Vermont Statewide Rule
Vermont Minimum Wage Local Authority Under 21 V.S.A. 384
Key Facts
- Statute
- 21 V.S.A. sec. 384
- 2026 minimum wage
- $14.42 per hour
- Tipped wage
- $7.21 with tip credit
- Adjustment
- Annual cost-of-living increase
- Local higher rates
- Not preempted
Summary
Vermont sets a statewide minimum wage under 21 V.S.A. 384 but does not preempt local minimum wage ordinances, allowing municipalities to set higher rates.
(a)(1) Beginning on January 1, 2022, an employer shall not employ any employee at a rate of less than $12.55, and on each subsequent January 1, the minimum wage rate shall be increased by five percent or the percentage increase of the Consumer Price Index, CPI-U, U.S. city average, not seasonally adjusted, or successor index, as calculated by the U.S. Department of Labor or successor agency, rounded to one decimal point, for the 12 months preceding the previous September 1, whichever is smaller, but in no event shall the minimum wage be decreased. The minimum wage shall be rounded off to the nearest $0.01.
Full Breakdown
Vermont's minimum wage is set under 21 V.S.A. section 384, with annual cost-of-living adjustments. Unlike many states, Vermont does not expressly preempt local minimum wage ordinances, leaving municipalities theoretical authority to enact higher local wages, though no Vermont city has done so. Effective January 1, 2026 the state minimum wage is $14.42 per hour, with a basic tipped rate of $7.21 per hour subject to tip-credit reconciliation. Employers must comply with the higher of state or applicable local rates. Vermont's Department of Labor enforces wage and hour rules and investigates complaints.
Violations & Penalties
Wage violations under 21 V.S.A. 384 carry penalties including back wages, liquidated damages, and civil fines up to $5,000 per violation.
Frequently Asked Questions
Can Vermont cities raise the minimum wage above state law?
What is Vermont's current minimum wage?
Sources
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