The Vermont minimum wage in 2010 will remain at the current rate of $8.06 per hour. This is good news for employers in a state where the minimum wage normally increases every year.
Under state law, the Vermont minimum wage increases each year based on the cost of living. According to a press release issued by the Vermont Department of Labor, the cost of living fell by 1.5% between September 1, 2008 and August 31, 2009. Because the state law does not permit a decline in the minimum wage, it will remain at the current level until 2011.
The annual adjustment in the Vermont minimum wage is based on the Consumer Price Index or CPI. The increase each year is limited to a maximum of 5%.
“A steady minimum wage reflects our economic times, “ according to Labor Commissioner Patricia Moulton Powden. “The cost of living has fallen and the ability of employers to increase pay is limited by the recession.”
The Vermont minimum wage for tipped employees will also remain stable at $3.91 per hour for employees who earn at least $120 per month in tips for direct, personal service. However, those employees are still entitled to the minimum wage of $8.06 when tips and wages are added together. If the employee does not average $4.15 per hour in tips over the payperiod, the employer must pay the difference in direct wages.
The Vermont overtime law is unchanged. An employer msut still pay 1.5 times the employee’s average hourly wage when employee work more than 40 hours in the week. However, retail, service establishments, hotels, restaurants, local governments and amusement or recreational employees are exempt from the state overtime law.
Under Vermont law, most employees must be paid at least every other week, no more than 6 days after the end of the payroll period. An employee who is discharged from employment is entitled to payment within 72 hours.
