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Minimum Wage in Vermont in 2023

Last Updated on:

16 January 2023
Minimum Wage in Vermont

Did you know that employees and workers are often exploited by their employers? Yes, it is true. As business owners are always looking for ways to cut down on costs for running their businesses, employees often suffer as their salaries are sometimes reduced to minimize expenses. 

The US Federal department has established the Federal Minimum Wage to combat this. It is a minimum compensation that all employers must pay their employees unless they are exempted under specific conditions. The reason for that is each earning individual must earn a minimum amount of money to maintain a certain standard of lifestyle. 

While this Federal Minimum Wage is applicable nationwide, individual states have also created state-specific minimum wages and rules and regulations surrounding them. That is called state minimum wage.

Vermont, too, has a minimum wage that is different from that of the Federal minimum wage. This article will discuss the minimum wage in Vermont and its details to help you understand it better.

What is the Minimum Wage in Vermont?

As of 2023, the minimum wage in Vermont is $13.18 per hour, which is significantly more than the Federal minimum wage of $7.25. 

According to FLSA, an employee is entitled to receive the minimum wage that is the highest between the Federal and State minimum wages. This means almost all workers and employees in Vermont are legally obligated to receive $13.18 hourly as their minimum wage unless they are exempted or work in exempted jobs.

Exemptions to Vermont Minimum Wage

The following are exempted from receiving minimum wage in Vermont:

  • Employees hired by the US directly
  • Employees working as admins, professionals, etc.
  • Employees who are full-time students
  • Employees who work in agriculture
  • Employees working in NPOs
  • Employees who drive taxis
  • Domestic jobs holders
  • Newspaper delivery persons
  • White-collar job holders
  • Salespersons from a different state

Weekly Minimum Wages in Vermont

Employees working at minimum wage in Vermont will earn $527.20 per week given that they work 40 hours throughout the week.

Yearly Minimum Wage in Vermont

When calculating yearly minimum wages, it is standard to consider a 52-week year. So employees working at minimum wage in Vermont will earn a yearly minimum wage of $27,414.40. 

Overtime Minimum Wage in Vermont

The FLSA mandates that all employers pay their employees overtime when they work more than the 40-hour-per-week threshold. The FLSA also determines this overtime wage rate. According to law, an employer must pay 1.5x the minimum wage rate as overtime minimum wage for employees.

So, the overtime minimum wage in Vermont is $19.77 for every hour worked beyond the standard 40 hours.

For instance, let us consider an employee who worked for 65 hours in a particular week. So at the end of the week, they should expect to earn their regular wage + additional wage as overtime wage. Here is a breakdown:

40 x $13.18= $527.20 at a minimum hourly wage rate

25 x $19.77= $494.25 at the overtime wage rate

So that employee should expect to earn at least $1021.45 for working 65 hours that week, considering the minimum wage as $13.18 and a 40-hour standard work week.

Vermont Overtime Wage Exemptions

The following categories of workers are exempted from receiving overtime wages in Vermont:

  • Employees working in retail
  • Employees working in theme parks and recreational services
  • Employees working in the hospitality and tourism industry
  • Employees working in health care
  • Employees working in caregiving industry
  • Employees working in transportation
  • Employees working in political subdivision

Tipped Minimum Wage in Vermont

In Vermont, the minimum hourly wage for tipped employees is $6.59. But their wage plus tips should total the $13.18 minimum wage rate in Vermont. 

If there is a shortfall, the employer is obligated to pay for the difference. 

Suppose an individual in Vermont earns $400 at a $6.82 hourly rate and tips combined. From this total,  $272.8 is from the tipped hourly wage, and $127.2 is from customer tips. 

In this case, the employer needs to compensate that individual an additional $102 to make the total weekly earnings of that employee equal to $527.20, which would be the weekly earnings for that individual at minimum wage. 

The FLSA mandates employers to ensure this. Failure to maintain this will result in a violation of worker rights.

How is Vermont Minimum Wage Different from the Federal Minimum Wage?

Currently, in 2023, The minimum wage in Vermont is significantly higher than the Federal minimum wage, which is $7.25 hourly. To be more precise, the Vermont minimum wage is more than 70% higher than the federal minimum wage. 

Moreover, the subminimum wage in Vermont is the same as the minimum wage, which is something you will not find in other states. 

Who Is Subject to Subminimum Wage in Vermont?

The following are subject to subminimum wage in Vermont:

  • Employees under training
  • Employees that are learning
  • Student employees
  • Employees who have disabilities
  • Employees working in retail
  • Employees working in agriculture
  • Employees working in the service industry

What is the Subminimum Wage in Vermont?

The subminimum wage in Vermont is $13.88 compared to the federal minimum wage of $7.25; it is almost three times that amount.

Historical Change of Minimum Wage in Vermont 

Year

Minimum Wage Amount in USD

2023

13.18

2022

12.55

2021

11.75

2020

10.96

2019

10.78

2018

10.50

2017

10.00

2016

9.60

2015

9.15

2014

8.73

2013

8.60

2012

8.46

2011

8.15

2010

8.06

2009

8.06

2008

7.68

2007

7.55

2006

7.25

2005

7.00

2004

6.75

2003

6.25

2002

6.25

2001

6.25

2000

5.75

1999

5.75

1998

5.25

1997

5.25

1996

4.75

1995

4.50

1994

4.25

1993

4.25

1992

4.25

1991

4.25

1990

3.85

1989

3.75

1988

3.65

1987

3.55

1986

3.45

1985

3.35

FAQ

1. Are Employees required to work Overtime in Vermont?

No, but when employees work more than 40 hours in a week or overtime, their employer must pay them 1.5 times their regular pay rate.

2. Are Small Businesses required to pay Minimum Wage?

Yes. The FLSA mandates that all businesses pay at least $7.25 hourly, regardless of size.

3. Does Vermont have a separate Minimum Wage?

Yes, Vermont has a separate minimum wage which is 70% higher than the federal minimum wage. The minimum wage in Vermont is $12.55, whereas the federal minimum is only $7.25 per hour. 

4. What is Mini-COBRA Law?

COBRA Law, which gives some employees the option to continue their healthcare benefits after a job loss, usually applies to employers with more than 20 employees. So a lot of the states in the US have adopted their own version of COBRA law for employers with 20 or fewer employees. This is known as Mini-COBRA Law.

5. What is the Mini-COBRA Law for Vermont?

In the case of employers with less than 20 employees and workers, they are required to cover health care insurance for terminated employees for 18 months from the month of termination.


Josh Evan

Written by:

Josh Evan

Josh Evan is the professional career counselor and career development writer at When Work Works. He loves to see people from this field succeed through initiating the right thing in the right way. He never tells; he shows the way. We appointed John not because of his impressive CV. It was his counseling charisma which stood out of everything. He can implant idea, confidence and productive thoughts into mind almost effortlessly. His pen and mouth both speak for the greater good.


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