What Is the Minimum Wage in Vermont State?

2020 Minimum Wage in Vermont: $10.96 per hour

The minimum wage in Vermont is well above the federal minimum wage. However, it remains lower than some other states such as Massachusetts, Washington, and California. 

There are some exemptions from state minimum wage laws, however, such exemptions would be covered under federal wage law in those cases, unless federal law also exempts those individuals.

Tipped: $5.48 Per Hour

The minimum cash wage for tipped employees, which means, the minimum amount of money that must be paid by the employer and not through tips, is $5.48 per hour.

The maximum tip credit that an employer can apply to a tipped worker’s wage is $5.48 per hour. A tipped worker must make a total wage of at least $10.78 per hour with the cash wage and tip credit combined, so an employer would still be responsible for a cash wage above the minimum if a worker doesn’t make sufficient tips to reach minimum wage.

Weekly: $438.40 Per Week

Citizens in Vermont earning minimum wage can reach a dollar amount of $438.40 per week. The weekly minimum wage is calculated by multiplying the hourly minimum wage by 40 hours, and represents the gross amount. The actual amount of take-home cash, after deductions such as taxes and health insurance, will be lower and will vary depending on a variety of factors. 

Annually: $22,796.80

Annually, workers in Vermont can earn up to $22,796.80 if they are paid minimum wage. The annual wage is calculated by taking the weekly wage and multiplying it by 52 for the average weeks in a year. This isn’t an exact figure, as it will depend on time-off, sick days, overtime, and a variety of factors that can influence the exact amount. Every individual’s take-home amount will also be different, depending on how they do their tax withholdings and what kinds of deductions are applied at the employer level.

Overtime: $16.44 Per Hour

Hourly employees in Vermont are entitled to overtime pay for any hours worked over 40 in a week. In Vermont, the overtime wage rate is 1.5 times the regular rate of pay. Based on a regular pay of $10.96 per hour, plus half ($5.48) that comes out to $16.44 as the overtime wage for minimum wage workers. It’s important to note that the state has several exemptions from overtime rules, including for retail, hotels, and restaurants; however, those employees may still be covered under federal regulations.

Vermont Minimum Wage Increase News

Vermont’s minimum wage generally increases annually, and is tethered to the Consumer Price Index. The current legislation allows for annual increases based on inflation rates. The current wage rate of $10.96 was bumped up from $10.78 per hour at the start of 2020. 

Recently the Vermont House passed a bill to raise the minimum wage to $12.55 per hour by 2022 in an attempt to compromise with the Senate. However, the bill’s fate is uncertain as eight Democrats have opposed the measure.

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Ben Steele is a writer, theatre(re) professional, and nonprofit administrator. He was born in England, spent his teen and early 20s in Canada, and now lives in America. Please excuse his occasionally confused voice and the odd recalcitrant u after an o.

This post was updated February 10, 2020. It was originally published July 16, 2019.