labor lawAdivision of labor law center

Each year, the Vermont minimum wage goes up to match the cost of living as indicated by the Consumer Price Index (CPI).

Because of higher than usual inflation, the rate went up more than it normally does in Vermont for 2009. The Vermont minimum wage increased to $8.06 an hour on January 1, 2009. The previous rate was $7.68 an hour.

Like other states, Vermont’s minimum wage laws mandate that if the federal minimum wage is higher than the state level, then the state minimum must be adjusted upward to equal the federal rate. The federal rate will go up to $7.25 an hour in July of 2009, however, so the law is not applicable this year.

In fact, Vermont’s minimum wage is now in the top five nationwide, although still below the highest, Washington State, which is now $8.55 hourly. Oregon follows that, with $8.40 per hour.

The Vermont Department of Labor is the agency charged with enforcing state wage and hour laws. The Department also helps workers collect their unpaid wages. Several labor law posters must be displayed prominently in the workplace. Employers who fail to do so could face fines and other penalties. Among those required posters is the Vermont minimum wage poster. (more…)

On January 1, 2009, the Vermont minimum wage will increase by 38 cents, from $7.68 per hour to $8.06 per hour. This increase puts the Vermont minimum wage in the top five in the nation. The nation’s highest minimum wage is in Washington, at $8.55 per hour in 2009. The second highest minimum wage is in Oregon, at $8.40 per hour.

The Vermont minimum wage for tipped employees increases on January 1, 2009 by 19 cents, from $3.72 per hour to $3.91 per hour. Under state law, this amount applies to “a service or tipped employee.” This is defined as an employee of a hotel, motel, tourist place or restaurant who customarily and regularly receives more than $120 per month in tips. If the employee’s tips plus wages does not average at least the Vermont minimum wage over the pay period, the employer must pay the difference to the employee, in wages.

Every Vermont employer is required to prominently display a number of labor law posters, including the Vermont minimum wage poster. Failure to do so can result in citations, fines and penalties. (more…)

A free half-day conference in Montpelier, Vermont on Monday, April 28 will help women identify and secure their employee benefits – and help employers learn more about benefits compliance.

The free seminar, “Healthy, Wealth and Wise?” is sponsored by the U.S. Department of Labor.

The event, scheduled from 8:30 am to 1 pm at the Capitol Plaza Hotel and Conference Center on State Street, will demystify retirement benefits, healthcare and pension rights for female workers.

According to the U.S. Department of Labor, women’s lives are often impacted by events such as job loss, illness, widowhood, divorce, pregnancy, single parenthood, caring for an elderly parent, starting a first job and retirement. While a number of laws protect women’s rights, they are administered by different agencies of the government. Obtaining needed information and assistance can be challenging and confusing, for both employers and employees.

“Healthy, Wealthy and Wise?” seeks to minimize such difficulties by being a ‘one stop’ information source for service providers to women. Experts will discuss real-life stories of how women are impacted by health care, retirement savings and employment issues.

Attendees will receive comprehensive information on those topics, and resource materials on services available to help Vermont’s women address health, financial security and workplace challenges.

The conference is designed for community workers, case managers, human resource professionals, counselors, Employee Assistance Program specialists, health care providers and advocates, legal advocates, faith community representatives, state and local agencies, labor union staff, legislators and their staff, and other concerned women and men.

It is sponsored by the Employee Benefits Security Administration and the Women’s Bureau of the U.S. Department of Labor, as well as the U.S. Department of Health and Human Services’ Office on Women’s Health.

Participating conference partners include: the University of Massachusetts Gerontology Institute, the Vermont Department of Labor, the Vermont Commission on Women, the Vermont Chamber of Commerce, Vermont Works for Women, the Vermont Department of Health, the Vermont Small Business Development Center.

Other participants include the Vermont Business and Professional Women, the Vermont Women’s Fund, the Central Vermont Community Action Council, the Vermont Alliance of Non-Profit Organizations, JSI Research and Training Institute, Northeastern Vermont Area Health Education Center and the Vermont Women’s Business Center.

This event builds on the EBSA’s recent pro-active efforts in assisting employers, especially small employers, in offering benefits to workers. This is a marked contrast to the EBSA’s former emphasis on punishing wrongdoers.

On April 8, 2008 the U.S. Department of Labor introduced an online video to help small employers select retirement options for workers.

The video helps employers, managers and accountants understand the different options available for small companies to provide retirement programs to workers.

“Choosing a Retirement Solution for Your Small Business” introduces employers to the three most popular retirement arrangements in a brief, user-friendly video format.

The video portrays real-life experiences of four small employers with different retirement options. The employers depicted operate simplified employee pension (SEP), savings incentive match plan for employees individual retirement arrangement (SIMPLE IRA) and 401(k) plans.

The video focuses on the ease in setting up a retirement program appropriate for small business owners as well as the advantages of sponsoring a retirement plan, including tax breaks.

In late February, the U.S. Department of Labor unveiled a new online resource to help American employees chart their retirement finances.

This is a great tool for employers to make workers aware of. It will assist workers of all ages in planning for retirement.

The tool is aimed at helping workers who are 10 to 15 years away from retirement to prepare for financial security after they quit working.

“Americans are living longer, healthier lives and need to plan for their retirement,” said U.S. Secretary of Labor Elaine L. Chao. “These interactive worksheets will give workers and their families a better perspective on how much they need to save to ensure that they can realize their retirement dreams.”

The website builds on a 2006 US DOL publication, “Taking the Mystery Out of Retirement Planning.” That booklet used worksheets to help workers calculate income and savings, as well as expected expenses, during their retirement years.

Vermont enacted a law in 2006 to annually increase the state’s minimum wage. On January 1, 2008, the state minimum wage increased 15 cents from $7.53 to $7.68 per hour. The minimum wage for tipped workers increased as well, increasing 7 cents from $3.65 to $3.72 hour.

Several employees are exempt from the Vermont state minimum wage law. Among them are full-time high school students, agricultural workers, cab drivers, newspaper delivery persons, workers in domestic service and some employees of non-profit agencies. Several of these workers are eligible for the federal minimum wage of $5.85 per hour.

Vermont law mandates that a worker who is fired must be given his or her final paycheck within 72 hours. When an employee resigns, the final paycheck should be paid on the next regular payday. If the company has no regular payday, the employer must provide the final paycheck by the following Friday.

Laws regarding the state minimum wage and state overtime are enforced by the Vermont Department of Labor. This department also mandates that employers honor vacation, holiday, sick or severance pay, or any other terms of a written agreement. Child Labor issues and minimum wage complaints are handled by the Vermont Wage and Hour program.

Federal law mandates that when an employee works more than 40 hours in one week, that employee is entitled to pay at 1.5 times the usual hourly rate. The Vermont state minimum wage law requires overtime for more than 40 hours in a week, too. The Vermont law, however, excludes several industries. The transportation industry, service industries, hotels, restaurants and amusement parks are all exempt from paying overtime in Vermont.

A number of states have established their own overtime laws. In states that do not have an overtime law at the state level, such as Delaware and Idaho, workers are often covered by the federal overtime statute. If an employee in a state without overtime laws doesn’t qualify for federal overtime, then that employee isn’t entitled to overtime at all.

The year 2008 has already brought several changes in state minimum wage laws, and is slated for several more.

On New Years Day, 2008, Arizona, California, Colorado, Delaware, Florida, Iowa, Massachusetts, Missouri, Montana, New Mexico, Ohio, Oregon, Vermont and Washington, fourteen states in all, enacted raises in their state minimum wage rate.

A number of other minimum wage changes are on the horizon for 2008. On July 1, 2008, five more states will follow suit. Michigan and Illinois will each raise its state minimum wage by twenty-five cents. Michigan’s will go from $7.15 to $7.40 per hour. Illinois’s will rise from $7.50to $7.75.

Five other states will enact less dramatic increases to their minimum wage rates. For example, both Michigan’s and Illinois’s rates will receive a 25 cent bump. The minimum wage in Illinois will increase from $7.50 to $7.75. Michigan’s minimum will be raised from $7.15 to $7.40 per hour.

The July 24, 2008 increase in the federal minimum wage is a result of the Fair Minimum Act of 2007, which President George W. Bush signed into law on May 24, 2006. The Act set up a three step system of increases. The July 24, 2008 bump will be the second step of that system.

In addition a number of states, the District of Columbia ties its minimum wage to the federal minimum. In D. C., however, the law requires the minimum wage rate to be at least $1.00 more per hour than the federal rate. On July 24, 2008, D.C.’s minimum wage will increase to $7.55 per hour.

These changes in the minimum wage law require employers to update their labor law posters, both for their own state laws, and for the federal law changes. Companies seeking updated information can visit www.laborlawcenter.com.

The minimum wage in Vermont will increase by 15 cents from $7.53 to $7.68 on January 1, 2008.

Beginning in 2006, a Vermont law dictates annual increases to the state minimum wage.

The state minimum wage law requires that employees be paid 1.5 times their usual rate for overtime, over 40 hours per week. However, the state law has very, very limited applications since it excludes numerous industries including, amusement parks, retail, service industries, hotels, restaurants and the transportation industry.

Most employees in the state are entitled to overtime after 40 hours under federal law, the Fair Labor Standards Act of 1938.

Also on January 1, 2008 the state minimum wage for tipped employees increases from $3.65 to $3.72 per hour – an increase of 7 cents.

The state of Vermont exempts a number of workers from the minimum wage law. These include full-time high school students, agricultural workers, cab drivers, outside salespeople, newspaper delivery persons, executives, people employed in domestic service, and some employees of non-profit or publicly supported organizations.  Many, but not all, of these employees are entitled to compensation of at least $5.85 per hour under the federal minimum wage.

Under state law, an employee who is fired must receive his or her final paycheck within 72 hours. If a worker resigns, he or she must be paid on the next regular payday. If there is no established regular payday, they must be paid by the following Friday.

The Vermont Department of Labor enforces the state minimum wage and overtime laws. In addition, under a state law, the department also forces employers to honor the terms of any written wage agreements, such as vacation, holiday or sick pay, or severance pay. The state Wage and Hour program also answers questions on child labor issues and minimum wage complaints.

When an employee works more than 40 hours a week, federal law says that worker is entitled to 1.5 times the usual hourly rate, or “overtime”. Many states have also enacted overtime laws. In Delaware, Idaho and others that don’t have a state overtime law, most employees are covered by the federal law. If federal law doesn’t apply in these states, many workers are not entitled to overtime.

Minimum wage and overtime laws vary a great deal among the 50 U.S. states. Among the states that have enacted statues for overtime, California seems to offer the worker the greatest benefit. A worker must receive overtime for hours worked in excess of 8 per day, or in excess of 40 hours per week. The seventh consecutive day worked entitles the employee to overtime all day, and after 8 hours on the seventh day, double time–twice the hourly rate–is paid.

Connecticut also provides overtime for workers on the seventh day in a row, but only for workers in hotels and restaurants. Kentucky also pays overtime on day seven, regardless of the number of hours worked up till then.

Many of the states across the country, such as Illinois, Nebraska and Michigan merely follow the federal law’s lead and require overtime pay for more than 40 hours per week.State laws for employees who also receive tips, also vary. Federal law ranks minimum wage for tipped employees at $2.13 per hour. As with the overtime laws, many states simply mirror the federal law and pay $2.13 as well.

A few states pay slighter higher, like Wisconsin at $2.33 per hour and Michigan at $2.65 per hour. At the low end of the range is Kansas with $1.59 per hour.

At the opposite end of the spectrum are those states that don’t allow much, if any, credit for a worker’s tips. Companies in Hawaii are allowed to pay tipped workers $7.00 per hour instead of $7.25, the state minimum. Washington allows employers no tips at all and requires employers to pay tipped and non-tipped workers the state minimum wage, which on January 1, 2008 will be $8.07 per hour.