Under state law, the Vermont minimum wage increases each year based on the cost of living. According to a press release issued by the Vermont Department of Labor, the cost of living fell by 1.5% between September 1, 2008 and August 31, 2009. Because the state law does not permit a decline in the minimum wage, it will remain at the current level until 2011.
“A steady minimum wage reflects our economic times, “ according to Labor Commissioner Patricia Moulton Powden. “The cost of living has fallen and the ability of employers to increase pay is limited by the recession.”
The Vermont minimum wage for tipped employees will also remain stable at $3.91 per hour for employees who earn at least $120 per month in tips for direct, personal service. However, those employees are still entitled to the minimum wage of $8.06 when tips and (more…)
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…)