What Is the Minimum Wage in Vermont State?

Ben Steele  | 

2019 Minimum Wage in Vermont: $10.78 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, such as for full-time high school students, however, such exemptions would be covered under federal wage law in those cases, unless federal law also exempts those individuals.

Tipped: $5.39 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 $5.39 per hour.

The maximum tip credit that an employer can apply to a tipped worker’s wage is $5.39 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: $431.20 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: $22,422

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: $16.17 Per Hour

In Vermont, the overtime wage rate is one plus one half times the regular rate of pay. Based on a regular pay of $10.78 per hour, plus half ($5.39) that comes out to $16.17 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 was bumped up at the start of 2019 from $10.50 per hour. There is, however, a lot of debate about raising the minimum wage more aggressively, to $15 per hour by 2024. Legislation has already been proposed, and vetoed, but democrats in the state house are again attempting to pass higher wage legislation. It’s currently difficult to tell whether there will be any new progress.

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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 July 16, 2019. It was originally published July 16, 2019.