Minimum Wage
Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. The federal minimum wage is a wage baseline, but different states, cities, and regions can adopt their own rates.
The Vermont minimum wage is adjusted annually in accordance with Vermont Statute 21 V.S.A. § 384. Minimum wage rates in Vermont increase five percent or the percentage increase of the Consumer Price Index for the previous calendar year, whichever is less. Changes to the minimum wage go into effect on January 1, 2025.
As of October 2024, the hourly wage is $13.67
Starting January 1st, 2025, the minimum wage will be $14.01 for most employees.
Vermont sets a standard minimum wage rate that applies to the entire state, so the minimum wage is consistent from city to city.
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Tipped Minimum Wage
Tipped minimum wage is the lowest hourly pay employers are legally obligated to pay workers who earn a significant portion of their income through tips.
Vermont's tipped minimum wage law allows employers to pay a lower hourly rate if an employee receives tips greater than or equal to the state's standard minimum wage.
In Vermont, the Basic Tipped Wage Rate for services or tipped employees is equivalent to 50 percent of the full minimum wage. Consequently, the minimum wage increase taking effect on January 1 will also impact the tipped minimum wage.
As of October 2024, the tipped hourly wage is $6.84.
Starting January 1st, 2025, the tipped minimum wage will be $7.01 per hour for most employees.
Overtime Laws
Overtime compensation laws in Vermont are written in accordance with the Federal Labor Standards Act (FLSA). Vermont employers are required to pay qualifying employees no less than one and a half times the regular wage rate for work exceeding 40 hours in a week. Overtime is calculated by hours accumulated over the course of 7 consecutive 24-hour periods. The law applies to employers with two or more non-exempt employees.
Among other exemptions, Vermont exempts retail establishments and hotels from its overtime law.
Vermont Wage and Hour Laws supplement FLSA and provide additional guidance on worker overtime. They include guidance on compensation for on-call, travel, and training time outside of work hours.
Meal and Rest Break
Under Vermont law, employers are required to provide "reasonable opportunities" for employees to eat and use the restroom. Federal mandates consider employer-provided breaks and lunch periods shorter than 30 minutes to be paid hours worked. Lunch periods that last at least 30 minutes can be unpaid if the employee is completely uninterrupted and free from work during that time.
Vermont provides protections for nursing mothers to express breastmilk during the work day. For three years following the birth of a child, a nursing mother's employer must provide:
Reasonable time, either compensated or uncompensated, throughout the day to express breastmilk
Reasonable accommodations for the employee to express breastmilk in a private space that isn't a bathroom stall
Vermont employers may be exempt if providing time or space for nursing mothers to express breastmilk would substantially disrupt an employer's operations. The law stipulates that employers may not retaliate or discriminate against employees who exercise their right to express breastmilk during the work day.
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Leave and Holidays
Vacation leave
Vermont does not require private employers to provide paid time off to employees. Employers can choose to offer vacation leave at their discretion.
Paid sick leave
The Vermont Earned Sick Time Act requires private employers with more than six employees to provide paid sick leave. Non-exempt employees in Vermont earn 1 hour of earned sick time for every 52 hours worked, including overtime. Qualifying employees may use up to 40 hours of paid sick leave each year for illnesses related to themselves or a child, spouse, parent, grandparent, or parent-in-law. Employers in business for less than one year are exempt from requirements to provide paid sick leave.
To be eligible, workers must meet the following requirements:
Work no less than 18 hours per week
Be employed for more than 20 weeks per year
Be over the age of 18
Work in a qualifying job
Holidays
Vermont law doesn’t require private employers to provide paid holiday leave. However, many employers in Vermont choose to pay employees for holidays including New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas. Employers are not required to pay holiday or overtime pay to workers who work on a holiday.
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Child Labor Laws
Vermont child labor laws depend on the age of the minor in question. Children must be at least 14 years old to work in Vermont, with a few exceptions. Youth wishing to work before age 16 are asked to provide certification of eligibility to the Commissioner of Labor to work in the state.
Laws for minors 14 to 15 years old:
Cannot work during school hours
Cannot work earlier than 7 AM or later than 7 PM (except after 9 PM between June 1st and Labor Day)
Can work no more than three hours per day on school days
Cannot work more than eight hours per day on non-school days
Cannot work more than 18 hours per week in school weeks
Cannot work more than 40 hours per week in non-school weeks
Cannot work more than six days per week
Laws for minors 16 and older:
Cannot be employed in a manufacturing or mechanical establishments more than nine hours in any one day, or more than 50 hours in any one week
Hiring and Firing
Hiring
Unlike many states, Vermont has not adopted right-to-work laws. Union membership may be a condition of employment for certain jobs.
Vermont employers are prohibited by federal and state laws from discrimination in their hiring practices. It's illegal to refuse to hire a candidate in Vermont based solely on any of the following:
Race
Religion
National origin
Gender
Pregnancy/childbirth
Marital status
Disability
Age
Sexual orientation
HIV status
Financial history
Firing
Vermont is an employment-at-will state. Employers have the right to terminate employment at any time for any lawful reason as long as it isn't done in retaliation and doesn't violate the employee's rights. Any employer planning to lay off 50 or more workers within a 90-day period is required to provide advanced notice of no less than a month and a half to the Vermont Commissioner of Labor.
Employees who are terminated or laid off must be paid within 72 hours of discharge under the Vermont final paycheck law. When an employee voluntarily leaves employment:
They should be paid on the next regular payday.
They may be paid the following Friday if there isn't a regular payday.
Disclaimer: The information provided in this publication is for general informational purposes only. Deputy makes no representations or warranties of any kind, express or implied, with respect to the software or the information contained in this publication. While, Deputy’s software is designed to simplify shift work by assisting with hiring, onboarding, scheduling, time and attendance tracking, payroll integration, and wage and hour compliance, it is not a substitute for payroll or legal advice, nor is it intended to relieve you of your obligation to comply with the legal requirements applicable to your business. It is ultimately your responsibility to ensure that your use of Deputy complies with all applicable laws and regulations. Please review our Product Specific Terms for more information about your compliance responsibilities.