Vermont State Overtime Labor Laws

What’s Covered in This Article

Vermont Minimum Wage Overtime Laws in Vermont
Holidays & Vacation Meal Breaks & Rest Periods
Pay Periods Deductions in Vermont

Vermont State Minimum Wage Regulations

What is minimum wage in Vermont? Vermont’s minimum wage rate increased to $10.78 per hour as of January 1, 2019. It was $10.50/hour in 2018, $10.00/hour in 2017, $9.60/hour in 2016, and $9.15/hour in 2015.

As of January 1, 2019, Service or Tipped Employees (employees who regularly receive more than $120 per month in tips) must be paid at least $5.39 per hour. The prior minimum wage rate for service or tipped employees was $5.25/hour for 2018, $5.00/hour for 2017, $4.80/hour for 2016, and $4.58/hour for 2015.

Vermont Overtime Regulations

An employer must pay an employee at least 1-½ times the employee’s regular wage rate for all hours worked over 40 on a workweek.

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.

Holidays / Vacation

Vermont does not require an employer provide its employees with paid or unpaid holidays, sick leave (except under the Parental, Family Leave Act), vacation pay, or severance pay.

Meal Breaks / Rest Periods

Employers are required by Vermont state law to provide their employees with “reasonable opportunity” to eat and use the bathroom. Under federal law, lunch periods can be unpaid only if they are least thirty minutes and the employee is completely uninterrupted and free from work.

Pay Periods

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.

Deductions in Vermont

Employers may make the following deductions from employees’ wages:
  1. Deductions permitted or required by law
  2. 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.
  3. Deductions for meals and lodging that the employer provides pursuant to the Vermont Minimum Wage Rules
Employers may not make the following deductions:
  1. Deductions for damages, cash register shortages or the cost of a medical exam required for employment.
  2. 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
  3. Deductions for personal protective equipment required by federal regulations
  4. Deductions to offset a state mandated Health Care Contribution.

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