2021 Vermont Minimum Wage Posting Released

2021 VT Minimum Wage Peel 'N PostThe Vermont Department of Labor has updated the state-mandated Minimum Wage posting to reflect the minimum wage rate increase going into effect on January 1, 2021. The law requires every employer to prominently post the Minimum Wage posting in the workplace so that employees may refer to it. (VT Admin. Code §24-090-003).

Compliance Poster Company (CPC) makes it easy to stay in compliance with the posting requirement:

  • Choose the new 2021 Vermont All-On-One Poster™, which incorporates the official 2021 Minimum Wage posting and all other Vermont labor law posting updates that occurred over the last year

– or –

Employers who post the 2021 Vermont All-On-One Labor Law Poster or use the 2021 Minimum Wage Peel ‘N Post sticker to update a current Vermont All-On-One Poster are guaranteed full compliance with posting responsibilities. For their remote employees, employers can also purchase the fully updated 2021 Vermont Mobile Poster Pak™ (MPP) or use the 2021 Vermont Minimum Wage Peel ‘N Post sticker designed to update current Vermont Mobile Poster Paks. Mobile Poster Paks contain all required State and Federal labor law postings and keep you employees informed of their rights when they do not frequent the workplace.

 

Minimum Wage – What’s New?

Normally, Vermont’s minimum wage rate is adjusted every year for inflation as measured by the percentage increase in the Consumer Price Index (CPI) from the prior year. On January 1, 2021, the minimum wage will get an even bigger bump thanks to legislation (Senate Bill 23) passed in 2020. The Bill, which became law after the Vermont legislature voted to override the Governor’s veto of the Bill, fixes the minimum wage rate increases for 2021 and 2022.

The following minimum wage rates apply in 2021:

  • Minimum Wage Rate – $11.75 per hour
  • Basic Wage Rate for “service and tipped employees” – $5.88 per hour
  • Maximum Tip Credit – $5.88 per hour

In 2022, the minimum wage rate will increase to $12.55 per hour. Each January 1 thereafter, the minimum wage will increase by the percentage increase in the CPI.

 

Key Minimum Wage Components

  • 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 the employer’s obligation to pay the current minimum wage rate.
  • When a tipped employee’s cash wages plus tips do not equal the current hourly minimum wage, the employer must make up the difference.

 

Posting Enforcement

The Commissioner of Labor is authorized to enter and inspect any place of business or employment for compliance with posting responsibilities. Employers who fail to post the Minimum Wage notice may be fined $100.00. Posting the 2021 Vermont All-On-One Poster or using the 2021 Vermont Minimum Wage Peel ‘N Post to update an existing Vermont All-On-One Poster avoids a fine and ensures that employees have notice of their rights.

Leave a Reply

Your email address will not be published. Required fields are marked *