Minimum Wage in Vermont

Author: Jason Coles

Updated On:

The Vermont state minimum wage increased by 63 cents in January 2023, from $12.55 in 2023 to $13.18 per hour in 2023. This represents a 5% increase from 2022 to 2023.

When you are doing business in the United States, whether that be as a business or franchise owner, or if you are an employee working in Vermont, it is essential to understand and know the law and, subsequently, your rights when it comes to the minimum wage. Whether that’s paying employees or being paid yourself. Let’s look at the minimum wage in Vermont.

Every state has a specific minimum wage, most are measured via the consumer price index. However, there are still many states that use the federal minimum wage of $7.25 per hour as a reference to what workers should be paid in their state as a basic minimum wage.

This is not the case with the minimum wage in Vermont!

Did the Vermont Minimum Wage Go Up?

The graphic below highlights the Vermont minimum wage over the past several years. The minimum wage did go up in 2023 from $12.55 per hour (in 2022) to $13.18 in 2022.

Most employers will have to abide by the minimum wage set for their state for all employees if they plan to pay minimum wage to. The minimum wage is the lowest hourly, daily, or monthly wage that businesses may legally pay to employees or workers. However, in some industries, employers may be able to pay their employees a lower minimum wage which is offset by tips.

The Vermont Department of Labor is responsible for upholding the minimum wage in Vermont each year, currently sitting at $13.18 per hour. Should you have any questions, or concerns, or need clarity on the Vermont minimum wage in 2023 as an employer or employee, feel free to visit their website and make an inquiry.

The Vermont Wage & Hour Program oversees state law and adopted rules concerning minimum wage, overtime, wage payments, employee benefits, child labor, and workplace rights for employees and employers. The Vermont Wage & Hour also provides information on wage and employment-related issues and attempts to settle employer/employee wage disputes to the satisfaction of all parties.

Vermont Minimum Wage 2023

The Vermont minimum wage in 2023 increased by 63 cents, from $12.55 in 2022 to $13.18 in 2023. The Vermont minimum wage has been increasing consistently each year, resulting in many satisfied state workers.

Like many other states, there are some exceptions to the Vermont minimum wage in 2023 due to specific employer/employee situations. The minimum wage Vermont law covers employers who are employing two or more employees unless exempted by statute. Here are those exceptions:

  • Tipped employees at hotels & motels, tourist locations, and restaurants who earn at least $120 per month in tips can be paid less than the Vermont minimum wage.
  • Tipped employees must be paid a minimum wage of $6.59 per hour. However, the employee’s tips plus the tipped minimum wage must equal the Vermont minimum wage in 2023 of $13.18 p/hr.

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 minimum wage in 2023.

Being exempt from the minimum wage laws means that employers in certain industries aren’t tied to paying their employees the state minimum wage, in fact, they can have their own minimum wage rate that is typically based on the size of the business and its annual revenue. Those employees exempt from the minimum wage in Vermont are:

  • High school students
  • Employees working for nonprofit organizations
  • Taxi drivers
  • Agricultural and domestic workers
  • Government employees

Going forward, it doesn’t seem like the minimum wage in Vermont is going to stop increasing each year – this is a reflection of the successful state of the economy and the empathy Vermont has towards its workers.

Vermont Minimum Wage History

The table below displays the Vermont minimum wage in 2023, and previous years dating back to 2008. Also included are the amounts the minimum wage in Vermont has increased over the years including the percentage it has increased at.

StateWageYear$ Wage Increase% Increase
Vermont Minimum Wage 2023$13.182023$0.635%
Vermont Minimum Wage 2022$12.552022$0.806.8%
Vermont Minimum Wage 2021$11.752021$0.797.2%
Vermont Minimum Wage 2020$10.962020$0.211.95%
Vermont Minimum Wage 2019$10.782019$0.252.3%
Vermont Minimum Wage 2018$10.502018$0.505%
Vermont Minimum Wage 2017$10.002017$0.404.2%
Vermont Minimum Wage 2016$9.602016$0.454.9%
Vermont Minimum Wage 2015$9.152015$0.424.8%
Vermont Minimum Wage 2014$8.732014$0.131.5%
Vermont Minimum Wage 2013$8.602013$0.141.6%
Vermont Minimum Wage 2012$8.462012$0.313.8%
Vermont Minimum Wage 2011$8.152011$0.091.1%
Vermont Minimum Wage 2010$8.062010$00%
Vermont Minimum Wage 2009$8.062009$0.486.25%
Vermont Minimum Wage 2008$7.682008$00%
Vermont Minimum Wage 2007$7.552007$0.304.13%
Vermont Minimum Wage 2006$7.252006$0.253.57%
Vermont Minimum Wage 2005$7.002005$0.253.7%
Vermont Minimum Wage 2004$6.752004$0.508%
Vermont Minimum Wage 2003$6.252003$00%
Vermont Minimum Wage 2002$6.252002$00%
Vermont Minimum Wage 2001$6.252001$0.508.69%
Vermont Minimum Wage 2000$5.752000$00%
Vermont Minimum Wage 1999$5.751999$0.509.52%
Vermont Minimum Wage 1998$5.251998$00%
Vermont Minimum Wage 1997$5.251997$0.5010.52%
Vermont Minimum Wage 1996$4.751996$0.255.55%
Vermont Minimum Wage 1995$4.501995$0.255.88%
Vermont Minimum Wage 1994$4.251994$00%
Vermont Minimum Wage 1993$4.251993$00%
Vermont Minimum Wage 1992$4.251992$00%
Vermont Minimum Wage 1991$4.251991$0.4010.38%
Vermont Minimum Wage 1990$3.851990$0.102.66%
Vermont Minimum Wage 1989$3.751989$0.102.73%
Vermont Minimum Wage 1988$3.651988$0.102.81%
Vermont Minimum Wage 1987$3.551987$0.102.89%
Vermont Minimum Wage 1986$3.451986$0.102.98%
Vermont Minimum Wage 1985$3.351985$00%
Vermont Minimum Wage 1984$3.351984$00%
Vermont Minimum Wage 1983$3.351983$00%
Photo of author

Jason Coles

Jason Coles is the Founder of Foreign USA and its Chief Content Writer and Editor. Recognized as a prolific business plan writer by many prominent immigration attorneys in the U.S., Jason has written over 1,200 business plans over the past 16+ years for start-ups looking to establish and expand their footprint in the United States.