The Vermont Department of Labor has updated two state-mandated workplace postings – the 2020 Vermont Minimum Wage notice and the Earned Sick Time Act notice. The revised 2020 Vermont All-On-One Labor™ Law Poster incorporates both mandatory posting updates as well as any other minor posting changes that have been made since last year. Employers who post the 2020 Vermont All-On-One Labor Law Poster are guaranteed full compliance with current posting responsibilities.
Minimum Wage – What’s New?
Vermont’s Minimum Wage Law (21 VSA §§ 384-397) requires the state minimum wage rate to be adjusted for inflation every January 1. The minimum wage rate increases by 5% or by the percentage increase in the Consumer Price Index (CPI) from the prior year, whichever is smaller. This January, the minimum wage rate will increase 1.8% corresponding with the 1.8% increase in the CPI since last year.
The Minimum Wage posting has been revised to reflect the minimum hourly wage rates effective on January 1, 2020:
- the general Minimum Wage Rate is $10.96 per hour
- service and tipped employees’ Basic Wage Rate is $5.48 per hour
- the employer Maximum Tip Credit is $5.48 per hour
The posting also shows updated contact information for the Vermont Department of Labor, Wage & Hour Program.
Vermont Minimum Wage FAQs
- The Vermont minimum wage law covers employers who employ two or more employees.
- The “basic wage rate” is the minimum hourly rate that an employer must pay a service and tipped employee.
- The “maximum tip credit” is the maximum amount of tip earnings an employer may credit toward its obligation to pay the current minimum wage.
- When a tipped employee’s cash wages plus tips do not equal the current minimum wage, the employer must make up the difference.
Earned Sick Time – What’s New?
Starting in 2017, employees began accruing one hour of paid earned sick time for every 52 hours worked pursuant to Vermont’s Earned Sick Time Law. (21 VSA §§ 481-486). In 2017 and 2018, employees were entitled to earn 24 hours of sick leave per year. After January 1, 2019, employees are entitled to earn at least 40 hours of sick leave per year.
The Earned Sick Time posting has been revised to reflect the 40-hour minimum earned sick time available to employees in beginning in 2019 and each subsequent year. The minimum amount of sick leave from prior years was removed from the posting. The revised posting also includes a new web link to the Earned Sick Time statute and the updated telephone number for the Vermont Department of Labor.
Earned Sick Time FAQs
- The Earned Sick Time Law applies to all employers regardless of the number of employees.
- Unless otherwise exempt, any employee who works an average of not less than 18 hours per week and whose primary place of work is in Vermont is eligible to accrue earned sick time, regardless of the primary location of the employer.
- Earned sick time is paid at the employee’s regular hourly rate of pay.
- An employer who has a vacation, sick leave or PTO policy that provides the minimum number of sick hours and complies the other rules for paid sick ltime does not need to provide additional time off.
Employees may use earned sick time for the following purposes:
- for the employee’s own illness or injury, or health care
- to care for a family member who requires home health care or medical care
- helping a family member obtain heath care treatment and long-term care
- for reasons related to domestic violence, sexual assault, or stalking
- to care for a family member whose school, business or care facility is closed for public health or safety reasons.
Posting Enforcement
Both the Minimum Wage Law and the Earned Sick Time Law require employers to post an official summary of each law’s provisions in the workplace. The penalties for failure to comply with posting requirements are steep. Employers who fail to post the Minimum Wage notice may be fined $100.00. (21 VSA § 394). Employers who fail to post the Earned Sick Time notice are subject to a fine of up to $5,000 per violation. (CVR 24-010-014). Posting the 2020 Vermont All-On-One Labor Law Poster ensures that an employer has complied with both laws and avoids exposure to these fines.
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