Vermont Minimum Wage 2026: $14.42 an Hour and Tipped Rate

(a)(1) Beginning on January 1, 2022, an employer shall not employ any employee at a rate of less than $12.55, and on each subsequent January 1, the minimum wage rate shall be increased by five percent or the percentage increase of the Consumer Price Index, CPI-U, U.S. city average, not seasonally adjusted, or successor index, as calculated by the U.S. Department of Labor or successor agency, rounded to one decimal point, for the 12 months preceding the previous September 1, whichever is smaller, but in no event shall the minimum wage be decreased. The minimum wage shall be rounded off to the nearest $0.01. (2) An employer in the hotel, motel, tourist place, and restaurant industry shall not employ a service or tipped employee at a basic wage rate less than one-half the minimum wage. As used in this subdivision, “a service or tipped employee” means an employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $120.00 per month in tips for direct and personal customer service. (3) If the minimum wage rate established by the U.S.

Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov

As used in this subchapter: (1) “Commissioner” means the Commissioner of Labor or designee. (2) “Employee” means any individual employed or permitted to work by an employer except: (A) any individual employed in agriculture; (B) any individual employed in domestic service in or about a private home; (C) any individual employed by the United States; (D) any individual employed in the activities of a public supported nonprofit organization, except laundry employees, nurses’ aides, or practical nurses; (E) any individual employed in a bona fide executive, administrative, or professional capacity; (F) any individual making home deliveries of newspapers or advertising; (G) taxi-cab drivers; (H) outside salespersons; and (I) students working during all or any part of the school year or regular vacation periods. (3) “Employer” means any person that employs two or more employees. (4) “Occupation” means an industry, trade, or business or branch thereof or class of work in which workers are gainfully employed. (Amended 1959, No. 109, eff. April 14, 1959; 1967, No. 177, § 1, eff. April 17, 1967; 1977, No. 244 (Adj. Sess.), § 7, eff. May 1, 1978; 1985, No. 80, § 2; 1993, No.

Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov

The Commissioner and the Commissioner’s authorized representatives have full power and authority for all the following: (1) To enforce and administer the provisions of this chapter, including the power to conduct investigations and take any other action considered necessary or suitable for the administration of this chapter. In the discharge of duties under this chapter, the Commissioner may administer oaths, take depositions, certify to official acts, subpoena witnesses, and compel production of any documents and records necessary and material to the administration of this chapter. (2) To enter and inspect any place of business or employment, question any employees, and investigate any records, facts, conditions, or matters that are deemed appropriate and that in any way appertain to or have a bearing upon the question of wages due under the provisions of this chapter. (3) To require from any employer full and correct statements in writing of the wages paid to all employees employed by that employer necessary to investigate and enforce the provisions of this chapter.

Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov

The Commissioner may, and on a petition of 50 or more residents of the State shall, investigate any industry, business, occupation, or employment pursuant to the provisions of section 385 of this subchapter, to ascertain whether any violations of this subchapter have occurred. (Amended 2023, No. 85 (Adj. Sess.), § 87, eff. July 1, 2024.)

Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov

(a) An employer or any officer or agent of an employer, who pays, permits to be paid, or agrees to pay to any employee less than the applicable rate to which the employee is entitled pursuant to this subchapter, shall be assessed a civil penalty of not more than $100.00 for each day the employee is paid less than the rate required pursuant to this subchapter. (b) An employer or an officer or agent of an employer, shall be assessed a civil penalty of not more than $100.00 for any of the following: (1) failing to keep the records required pursuant to this subchapter; (2) refusing to permit the Commissioner to enter the place of business; or (3) failing to furnish records to the Commissioner upon demand. (Amended 2001, No. 47, § 6; 2023, No. 85 (Adj. Sess.), § 91, eff. July 1, 2024.)

Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov

An employee who is paid by an employer less than the applicable wage rate to which the employee is entitled pursuant to this subchapter, shall recover, in a civil action, twice the amount of the minimum wage established pursuant to section 384 of this subchapter less any amount actually paid by the employer, together with costs and reasonable attorney’s fees. An agreement between an employer and an employee to work for less than the wage rates established pursuant to section 384 of this subchapter shall not be a defense to the action. (Amended 2001, No. 47, § 7; 2023, No. 85 (Adj. Sess.), § 92, eff. July 1, 2024.)

Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov

(a) An employer shall not discharge or in any other manner retaliate against an employee because: (1) the employee lodged a complaint of a violation of this subchapter; (2) the employee has cooperated with the Commissioner in an investigation of a violation of this subchapter; or (3) the employer believes that the employee may lodge a complaint or cooperate in an investigation of a violation of this subchapter. (b) Any person aggrieved by a violation of this section may bring an action in the Civil Division of the Superior Court seeking compensatory and punitive damages or equitable relief, including restraint of prohibited acts, restitution of wages or benefits, reinstatement, costs, reasonable attorney’s fees, and other appropriate relief. (Added 2013, No. 15, § 9.)

Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov

Also relied on in: Vermont Whistleblower Laws: Protections and How to Report

An employer who violates section 342 or 343 of this title shall forfeit to the individual injured twice the value thereof, to be recovered in a civil action, and all costs and reasonable attorney’s fees. However, an action may not be maintained under this section unless at the time the action is brought, the wages remain unpaid or improperly paid. (Amended 1977, No. 244 (Adj. Sess.), § 6, eff. May 1, 1978; 1979, No. 100 (Adj. Sess.), § 2; 2013, No. 15, § 6.)

Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov

Also relied on in: Vermont Final Paycheck Laws: The 72-Hour Rule for Firings

Every employer shall pay to each of his employees who in any workweek is engaged in commerce or in the production of goods for commerce, or is employed in an enterprise engaged in commerce or in the production of goods for commerce, wages at the following rates: except as otherwise provided in this section, not less than— $5.85 an hour, beginning on the 60th day after May 25, 2007; $6.55 an hour, beginning 12 months after that 60th day; and $7.25 an hour, beginning 24 months after that 60th day; if such employee is a home worker in Puerto Rico or the Virgin Islands, not less than the minimum piece rate prescribed by regulation or order; or, if no such minimum piece rate is in effect, any piece rate adopted by such employer which shall yield, to the proportion or class of employees prescribed by regulation or order, not less than the applicable minimum hourly wage rate. Such minimum piece rates or employer piece rates shall be commensurate with, and shall be paid in lieu of, the minimum hourly wage rate applicable under the provisions of this section.

Official text (excerpt) · last checked 2026-07-28 · Read the full text in our law library · Verify at uscode.house.gov

Also relied on in: Ohio Debt Collection Laws: Garnishment Formula, the 6-Year Consumer Debt Rule, and Repossession, Federal Minimum Wage 2026: $7.25 an Hour Since 2009, Minimum Wage by State 2026: All 50 States and DC

No provision of this chapter or of any order thereunder shall excuse noncompliance with any Federal or State law or municipal ordinance establishing a minimum wage higher than the minimum wage established under this chapter or a maximum work week lower than the maximum workweek established under this chapter, and no provision of this chapter relating to the employment of child labor shall justify noncompliance with any Federal or State law or municipal ordinance establishing a higher standard than the standard established under this chapter. No provision of this chapter shall justify any employer in reducing a wage paid by him which is in excess of the applicable minimum wage under this chapter, or justify any employer in increasing hours of employment maintained by him which are shorter than the maximum hours applicable under this chapter.

Official text (excerpt) · last checked 2026-07-28 · Read the full text in our law library · Verify at uscode.house.gov

Also relied on in: Alabama Minimum Wage 2026: $7.25 Federal, No State Rate, Alaska Minimum Wage 2026: $14.00 an Hour, $15.00 in July 2027, Arizona Minimum Wage 2026: $15.15 Per Hour, $15.65 in 2027