Minimum Wage in Vermont
The current Vermont minimum wage, the tipped wage, scheduled increases and overtime rules, from the official source.
Short answer: $14.42 per hour, effective January 1, 2026. The rate rises every January 1 by the smaller of 5% or the increase in the Consumer Price Index (CPI-U), and never goes down. 21 V.S.A. § 384(a)
| Minimum wage | $14.42 per hour, effective January 1, 2026. The rate rises every January 1 by the smaller of 5% or the increase in the Consumer Price Index (CPI-U), and never goes down. If the federal minimum wage is ever higher, the federal rate applies. A new rate will take effect January 1, 2027 under the annual formula; the Department of Labor had not published the 2027 amount as of this update. Source: 21 V.S.A. § 384(a) |
|---|---|
| Tipped minimum wage | $7.21 per hour (half the minimum wage) for service or tipped employees of hotels, motels, tourist places and restaurants who customarily receive more than $120 a month in tips for direct customer service. Tips must bring total pay to at least the full minimum wage. The tipped rate will change on January 1, 2027 along with the regular minimum wage (half of the new rate). Source: 21 V.S.A. § 384(a)(2) |
| Overtime | Time and one-half for hours over 40 in a workweek. The state overtime rule does not apply to employees of retail or service establishments, hotels, motels or restaurants, or certain seasonal amusement or recreation businesses (federal overtime law may still apply). Some health care employers may elect a daily 8-hour overtime system with biweekly pay. Source: 21 V.S.A. § 384(b) |
Where to get help in Vermont
More Vermont employment law
- Final Paycheck Laws in Vermont
- Meal and Rest Break Laws in Vermont
- Wrongful Termination in Vermont
- Paid Sick Leave in Vermont
- All Vermont employment law rules
FAQ
What is the minimum wage in Vermont?
$14.42 per hour, effective January 1, 2026. The rate rises every January 1 by the smaller of 5% or the increase in the Consumer Price Index (CPI-U), and never goes down. If the federal minimum wage is ever higher, the federal rate applies.
What is the tipped minimum wage in Vermont?
$7.21 per hour (half the minimum wage) for service or tipped employees of hotels, motels, tourist places and restaurants who customarily receive more than $120 a month in tips for direct customer service. Tips must bring total pay to at least the full minimum wage.
What are the overtime rules in Vermont?
Time and one-half for hours over 40 in a workweek. The state overtime rule does not apply to employees of retail or service establishments, hotels, motels or restaurants, or certain seasonal amusement or recreation businesses (federal overtime law may still apply). Some health care employers may elect a daily 8-hour overtime system with biweekly pay.
General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.