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!




The Vermont minimum wage 2021 is $11.75 per hour, this is an increase of 75 cents per hour from 2020. This is significantly higher ($4.42 per hour) than the federal minimum wage. The minimum wage in Vermont is considered one of the highest out of all 50 states.

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 2021 from $10.96 per hour (in 2020) to $11.75 in 2021.

Minimum Wage in Vermont

Most employers will have to abide by the minimum wage set for their state for all employees that 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 offsets by tips.

The Vermont Department of Labor is responsible for upholding the minimum wage in Vermont each year, currently sitting at $11.75 per hour. Should you have any questions, concerns, or need clarity on the Vermont minimum wage in 2021 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 2021

The Vermont minimum wage 2021 increased by 79 cents, from $10.96 in 2020 to $11.75 in 2021. 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 2021 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 $5.88 per hour. However, the employee’s tips plus the tipped minimum wage must equal the Vermont minimum wage in 2021 of $11.75 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 2021.

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.

If you’re interested in finding out more information regarding the US minimum wage by state, check out our table that shows all 50 states’ minimum wage in 2021 and over the past several years.

Vermont Minimum Wage History

The table below displays the Vermont minimum wage 2021, 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 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%