Vermont Labor and Overtime Laws
Below is an overview of the minimum wage and overtime pay laws that apply to workers in the state of Vermont. Private actions to enforce Vermont’s wage and hour laws, and recover unpaid overtime due to workers, are commonly brought (on a contingent fee basis) by employment law firms such as The Lore Law Firm.
If you believe that you have been deprived of the overtime pay that you are legally entitled to, please contact us for a free and confidential review of your situation.
Vermont’s minimum wage rate increased to $10.00 per hour as of January 1, 2017. On January 1, 2018, it will increase again to $10.50/hour. For 2016, the minimum wage was $9.60/hour and for 2015, it was $9.15/hour.
As of January 1, 2017, Service or Tipped Employees (employees who regularly receive more than $120 per month in tips) must be paid at least $5.00 per hour. The prior minimum wage rate for service or tipped employees was $4.80/hour for 2016 and $4.58/hour for 2015.
Employees of the following are exempt from the Vermont overtime requirements: retail or service establishments; hotels, motels or restaurants; the state and political subdivisions of the state; certain amusement or recreational establishments; and certain employees engaged in transportation if also exempt from the F.L.S.A. However, these employees may still be entitled to overtime under federal law.
If Vermont employers provide written notice to their employees, they may adopt a bi-weekly or semi-monthly pay period. Otherwise, they must pay their employees weekly. Paydays must be within 6 days of the end of the pay period.
If an employee is discharged, the employee must be paid within 72 hours of the discharge. If an employee quits, s/he must be paid on the last regular payday or the following Friday if there is no regular payday.
Vermont law requires that employers provide their employees with a wage statement which must at least include the total hours worked, the hourly rate, gross pay and itemized deductions.
Employers may make the following deductions from employees’ wages:
- Deductions permitted or required by law
- Deductions for goods or services provided to the employee if:
- The deduction does not reduce wages below minimum wage.
- The employee has provided written authorization or employer sufficiently documents employee’s intention to repay.
- The deduction is not prohibited by state or federal law.
- The deduction does not exceed the amount agreed to by the employee.
- Deductions for meals and lodging that the employer provides pursuant to the Vermont Minimum Wage Rules
- Deductions for damages, cash register shortages or the cost of a medical exam required for employment.
- Deductions for buying or maintaining a uniform unless the employee voluntarily consents to such deduction in writing and the deduction does not:
- Reduce the employee’s wage below minimum wage
- Include any administrative fee or charge
- Violate the terms of any collective bargaining agreement
- Deductions for personal protective equipment required by federal regulations
- Deductions to offset a state mandated Health Care Contribution.