Vermont Minimum Wage Increase 2015

Effective January 1, 2015 the Vermont minimum wage increases to $9.15 per hour. The next schedule increase will occur in 2016, when the state’s lowest-paid workers will receive an increase to $9.60 per hour. The state minimum wage will increase in steps to $10.50 in 2018.

Under a law passed in 2014, the VT minimum wage will increase to $10.00 in 2017 and to $10.50 in 2018. Beginning in 2019, Vermont will join about a dozen other states in implementing annual minimum wage increases based on the cost of living index. In Vermont, that annual increase will be capped at a maximum of 5%.

The new Vermont minimum wage law also requires that tipped employees be paid half the minimum wage, or $4.575 in 2015. Many employers will round this rate up to $4.58 per hour in 2015.

Like other states, Vermont exempts many employees from the minimum wage laws including domestic workers, executives, outside sales people, taxi drivers and agricultural workers. (Some of those employees may be entitled to the lower federal minimum wage of $7.25 per hour.)

Vermont requires that workers in most industries be paid overtime at 1.5 times their average rate, when they work more than 40 hours per week. It’s vital for Vermont employers to update their minimum wage posters, to prevent fines and penalties.

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