Pursuant to 2020 Senate Bill 23, the Vermont minimum wage rate will increase by a fixed amount in 2021 and 2022. Each year thereafter, the minimum wage rate will be adjusted for inflation.
An employer may not employ any employee at a rate of less than the effective minimum wage rate. (21 V.S.A. § 384)
An employer in the hotel, motel, tourist place, and restaurant industry may not employ a service or tipped employee at a basic wage rate less than one-half the minimum wage. (21 V.S.A. § 384)
Effective January 1, 2021, Vermont minimum wage rates have been adjusted as follows:
Minimum Wage Rate – $11.75 per hour
Basic Wage Rate – $5.88 per hour
Maximum Tip Credit – $5.88 per hour
Who must post?
Vermont’s Minimum Wage Law applies to every employer who employs two or more employees. (21 V.S.A. § 382)
Every employer who is subject to the Vermont Minimum Wage Law must post in the workplace a copy of the law’s provisions in the form furnished by the Commissioner of Labor. (21 V.S.A. § 393)
