Vermont State Minimum Wage

The statewide minimum wage for Vermont in 2023 is $13.18 per hour, after a January 1, 2023 increase, seeing the wage increase by 63 cents from 2022.

This 63-cent increase represents a 5% rise from the prior year when the minimum wage was $12.55 per hour.

As a business or franchise owner in Vermont, it is crucial that you are aware of how much you should be paying your employees and what rights they are entitled to – knowing the minimum wage and labor law in Vermont is incredibly important.

Equally, if you are an employee in Vermont, having a clear understanding of how much you should be paid and the laws surrounding your rights as a worker on the minimum wage is pivotal.

If you are a full-time worker on minimum wage in Vermont, your earnings could be as follows:

• Daily Minimum Wage: $105.44 (based on an 8-hour working day).
• Weekly Minimum Wage: $527.20 (based on a 40-hour week).
• Monthly Minimum Wage: $2,208.00 (based on a 160-hour month).
• Yearly Minimum Wage: $27,414.40 (based on being paid 52 weeks per year).

Here is a downloadable graphic displaying the minimum wage earnings for a full-time employee in Vermont:

It is important to note that these earnings are before any taxes such as income tax have been deducted!

Every state has a specific minimum wage, most are measured via the consumer price index.  The graphic below highlights the Vermont state minimum wage over the past several years.

As you can see, the minimum wage has been increasing each year at a gradual rate, with some increases more substantial than others:

Most employers will have to abide by the minimum wage set for their state for all employees if they plan to pay minimum wage.

Now, along with the standard minimum wage rate in Vermont, there are some exemptions due to employment type and situation, meaning that some employees will be subject to a different minimum wage rate, or exempt from being paid the minimum wage altogether.

Vermont Minimum Wage Exemptions

In addition to the regular minimum wage rate, there are a few Vermont state minimum wage exemptions that typically depend on your age or employment situation.

Below is a graphic displaying the Vermont minimum wage exemptions:

Below are the various minimum wage exemptions with some situational examples.

Vermont Student Minimum Wage

The minimum wage for student employees in Vermont is 85% of the state minimum wage, making their hourly pay $11.20 per hour in 2023.

This hourly rate is for any hours worked up to 20 hours per week. As a student employee, once you surpass 20 hours per week, you will be eligible to be paid the Vermont minimum wage rate of $13.18 per hour.

Being a student can be financially challenging, leading many students to pick up part-time jobs to make extra money while studying.

Despite a student minimum wage rate, many Vermont employers will not necessarily follow it and pay you equal to or more than the statewide minimum wage.

Many work-study programs are available at universities, which is a route many students go down.

Still, coffee shop, cafe, bar, and restaurant jobs are commonly taken by students as they can work them into their class schedule.

Vermont Under 20 Minimum Wage

If you are under 20 years old in Vermont, federal law allows your employer to pay you as little as $4.25 per hour for your first 90 days of employment.

Once the 90-day period is over, you will be eligible to be paid the 2023 Vermont minimum wage of $13.18 per hour or potentially even more.

Fortunately for young workers, this is 90 calendar days and not 90 working days; therefore, it can be completed relatively quickly and within about three months.

Vermont Tipped Minimum Wage

If you are a tipped employee in Vermont (someone who receives regular tips as a part of their job) then you are eligible to be paid a minimum wage of $6.59 per hour, with a tip credit of $6.59 per hour, ensuring that you reach the statewide minimum wage regardless if you make enough hourly tips.

Vermont Overtime Minimum Wage

Once you work over 40 hours a week, you are eligible to be paid an overtime rate of 1.5 times your hourly wage for every hour you work past 40.

So, the overtime minimum wage in Vermont is $19.77 per hour, 1.5 times the minimum wage of $13.18 per hour.

Minimum Wage Employment and Industry Exemptions

There are some industries in Vermont that, under the FLSA (Fair Labor Standards Act), are exempt from the minimum wage in Vermont.

The FLSA is a federal law establishing wage and hour standards for the majority of private and public employers, according to the FLSA for Vermont, certain industries are exempt from paying employees the Vermont state minimum wage in 2023.

Here is a list containing the remaining employment types exempt from the minimum wage in Vermont:

• Agricultural workers
• Taxi drivers
• Outside salespersons
• Domestic service workers
• Federal employees

Vermont Minimum Wage History

The table below provides the current rate and history of Vermont’s minimum wage over the past 40+ years since 1983.

You can see when there were increases in the minimum wage, how much they were, and what percentage increase it represents each year.

Vermont Department of Labor Contact Details and Minimum Wage Poster (Free Download)

The Vermont Department of Labor is responsible for upholding the minimum wage in Vermont each year, currently sitting at $13.18 per hour.

As a Vermont employer, you need to keep yourself compliant with the law. To do this, you need to display a Vermont Labor Law poster in a prominent place.

The good news is that you can acquire one of these posters for free from the Department of Labor website, and download the poster in English.

If you wish to contact the department directly, here are all of the contact details you need:

Department of Labor
5 Green Mountain Drive
P.O. Box 488
Montpelier, VT 05601-0488
Telephone: (802) 828-4000
Email: labor.lmi@vermont.gov