What Is the Minimum Wage in Vermont

Understanding Vermont's Current Minimum Wage Laws

Are you searching for updated information on the minimum wage in Vermont for 2024? Whether you are an employee, employer, or simply curious, knowing the state’s wage law is vital. Vermont’s salary regulations impact businesses, hourly workers, and the entire local economy. Let’s break down what you need to know about the latest minimum wage rates, how they compare nationally, and how they may affect you.

What Is the Minimum Wage in Vermont in 2024?

The official minimum wage in Vermont as of January 1, 2024, is $13.67 per hour.

• This wage applies to most non-exempt employees working within Vermont.
• The minimum wage is determined by Vermont state law and is adjusted annually for inflation.
• Certain employees may receive tips or fall under specific exemptions (explained below).

The Vermont Department of Labor reviews economic indicators each year and makes adjustments to help wages reflect the cost of living. This approach is designed to ensure hourly workers earn a fair wage that keeps up with rising prices.

Comparison: Vermont Minimum Wage vs. Federal Minimum Wage

The federal minimum wage is currently set at $7.25 per hour, and it has not increased since July 2009. Vermont’s minimum wage is much higher than the federal rate.

• Employees in Vermont are entitled to the higher state minimum wage, not the lower federal rate.
• The state minimum wage is among the top rates in the country.

If you are paid the federal minimum wage at a Vermont job, you should receive a higher wage to comply with state law. The higher Vermont minimum offers greater income and can boost your financial security.

Who Qualifies for Minimum Wage in Vermont?

Most hourly employees qualify for the minimum wage in Vermont. However, several categories of workers might have different rules:

• Tip-earning employees: Workers who regularly receive more than $120 per month in tips, such as servers and bartenders, may be paid a lower cash wage ($6.59 in 2024), as long as their total earnings (wage + tips) equal at least the standard minimum wage.
• Students and interns: Some exceptions for student learners apply under special circumstances and agreements.
• Youth workers: The same minimum wage generally applies for teenagers unless their role fits a specific exemption.
• Farmworkers, independent contractors, and some seasonal workers: There are exemptions and specific rules for certain agricultural and independent work.

Always check with the Vermont Department of Labor or an employment attorney if you are unsure of your wage classification.

How Does Vermont Adjust the Minimum Wage?

Vermont’s minimum wage law includes an automatic cost-of-living adjustment. Every year, the rate is reviewed and may rise based on increases in the Consumer Price Index (CPI).

• The goal is to prevent inflation from eroding your earnings.
• Wages are usually updated annually on January 1st.

This process helps Vermont workers keep pace with changes in the economy and provides more workforce stability and financial predictability.

Local Minimum Wage and City-Specific Rates

Unlike some other states, Vermont does not have separate municipal or city minimum wage rates. The statewide minimum wage applies everywhere in Vermont, from Burlington to Brattleboro.

No locality in Vermont currently enacts a higher minimum wage than the statewide standard set by the Vermont Department of Labor.

Why the Vermont Minimum Wage Matters

A higher minimum wage can help families afford housing, groceries, and other essentials. In Vermont, where the cost of living can be high, the minimum wage increase each year makes a measurable difference.

• It can reduce poverty rates among working families.
• Improves overall economic stability within local communities.
• Encourages businesses to pay fair and competitive wages.

If you work a full-time job at minimum wage in Vermont, you earn a higher annual income than in many states that stick with the federal minimum. This helps both employees and the broader Vermont economy.

What If My Employer Is Not Paying the Vermont Minimum Wage?

If you believe you are not receiving the correct minimum wage:

• Document all hours worked and your rate of pay.
• Discuss your concerns with your employer.
• If unresolved, contact the Vermont Department of Labor for help filing a wage complaint.

You are protected under state and federal employment laws. Vermont takes wage complaints seriously and can investigate and enforce proper payment.

Frequently Asked Questions About Vermont’s Minimum Wage

What is Vermont’s minimum wage for tipped employees in 2024?

For 2024, Vermont’s tipped minimum wage is $6.59 per hour. If a worker’s tips plus wage does not equal at least $13.67 per hour, the employer must make up the difference.

Does Vermont plan to keep raising its minimum wage?

Yes, Vermont’s minimum wage increases each January based on inflation and economic indicators. The Vermont Department of Labor reviews the rate each year to ensure it aligns with the state’s cost of living.

Are salaried workers entitled to the minimum wage in Vermont?

Most salaried/exempt employees are not covered by minimum wage laws. However, non-exempt employees, whether part-time or full-time, must be paid at least the minimum hourly rate.

How does Vermont’s minimum wage compare to other New England states?

Vermont’s minimum wage is competitive in New England. For 2024, it is slightly below Maine, Massachusetts, and Connecticut, which range from $13.80 to $15.00 per hour, but above New Hampshire, which follows the federal $7.25 rate.

What should I do if my employer is not following Vermont minimum wage law?

Keep track of your work hours, pay stubs, and wages. Contact the Vermont Department of Labor to file a wage complaint. You have the right to receive at least the state-mandated minimum wage for all hours worked.

Resources and Where to Learn More

To stay updated on the latest wage laws, always check with the Vermont Department of Labor. They provide guidelines for employees, employers, and job seekers. If you have questions about your rights or need to file a wage complaint, their website is the best place to start.

If you’re seeking a new job, negotiating a pay raise, or managing a business in Vermont, knowing the state’s minimum wage laws will help guide your decisions and protect your interests. Stay informed to make the most of your earnings in Vermont.