Vermont Overtime Laws & Wages Attorney

Table of contents:

1. Minimum Wage Rates by Year
2. Tipped Minimum Wage
3. Vermont Overtime Regulations
4. Independent Contractors under Vermont Overtime Pay Law

For more information, contact a Vermont overtime laws & wages attorney or visit our comprehensive state labor laws guide.

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Minimum Wage Rates by Year

• 2023:  $13.18 per hour
• 2022:  $12.55 per hour
• 2021:  $11.75 per hour
• 2020:  $10.96 per hour
• 2019:  $10.78 per hour
• 2018:  $10.50 per hour
• 2017:  $10.10 per hour
• 2016:  $9.60 per hour
• 2015:  $9.15 per hour

Tipped Minimum Wage – (employees who regularly receive more than $120 per month in tips)

• 2023:   $6.59 per hour
• 2022:   $6.28 per hour
• 2021:   $5.88 per hour
• 2020:  $5.48 per hour
• 2019:  $5.39 per hour
• 2018:  $5.25 per hour
• 2017:  $5.00 per hour
• 2016:  $4.80 per hour
• 2015:  $4.58 per hour

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.

Independent Contractors under Vermont Overtime Pay Law

The “ABC Test” is used to determine the nature of the relationship between an employer and a worker, and the three parts ALL MUST BE MET for an individual to NOT be an employee who is entitled to overtime pay and other benefits.

The ABC Test:

A. The worker has been and will continue to be free from control or direction over the performance of services, both under his/her contract of service and in fact.

B. The service provided is either outside the usual course of the business for which such service is performed or such service is performed outside of all the places of business of the enterprise for which such service is performed.

C. The worker is customarily engaged in an independently established trade, occupation, profession or business.

The Vermont Supreme Court has made it clear that direction and control will exist where the employer has the “right” to provide direction and control, regardless of whether such direction and control is actually exercised.

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.