Minimum Wages

V.S.A. tit. 21, ch. 5, subch. 3

in effect

21 V.S.A. § 381 Declaration of policy

381. Declaration of policy It is the declared public policy of the State of Vermont that workers employed in any occupation should receive wages sufficient to provide adequate maintenance and to protect their health, and to be fairly commensurate with the value of the services rendered.

21 V.S.A. § 383 Definitions

383. Definitions As used in this subchapter: (1) “Commissioner” means the Commissioner of Labor or designee. (2) “Employee” means any individual employed or permitted to work by an employer except: (A) any individual employed in agriculture; (B) any individual employed in domestic service in or about a private home; (C) any individual employed by the United States; (D) any individual employed in the activities of a public supported nonprofit organization, except laundry employees, nurses’ aides, or practical nurses; (E) any individual employed in a bona fide executive, administrative, or professional capacity; (F) any individual making home deliveries of newspapers or advertising; (G) taxi-cab drivers; (H) outside salespersons; (I) students working during all or any part of the school year or regular vacation periods; and (J) elected and appointed municipal officers. (3) “Employer” means any person that employs two or more employees. (4) “Occupation” means an industry, trade, or business or branch thereof or class of work in which workers are gainfully employed. Amended 1959, No. 109, eff. April 14, 1959; 1967, No. 177, § 1, eff. April 17, 1967; 1977, No. 244 (Adj. Sess.), § 7, eff. May 1, 1978; 1985, No. 80, § 2; 1993, No. 227 (Adj. Sess.), § 34; 2001, No. 47, § 1; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 84, eff. July 1, 2024; 2025, No. 177 (Adj. Sess.), § 8d, eff. June 18, 2026.

21 V.S.A. § 384 Employment; wages

384. Employment; wages (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. (2) An employer in the hotel, motel, tourist place, and restaurant industry shall not employ a service or tipped employee at a basic wage rate less than one-half the minimum wage. As used in this subdivision, “a service or tipped employee” means an employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $120.00 per month in tips for direct and personal customer service. (3) If the minimum wage rate established by the U.S. government is greater than the rate established pursuant to subdivision (1) of this subsection for any year, the minimum wage rate for that year shall be the rate established by the U.S. government. (b) Notwithstanding subsection (a) of this section, an employer shall not pay an employee less than one and one-half times the regular wage rate for any work done by the employee in excess of 40 hours during a workweek. However, this subsection shall not apply to: (1) Employees of any retail or service establishment. A “retail or service establishment” means an establishment 75 percent of whose annual volume of sales of goods or services, or of both, is not for resale and is recognized as retail sales or services in the particular industry. (2) Employees of an establishment that is an amusement or recreational establishment, if: (A) it does not operate for more than seven months in any calendar year; or (B) during the preceding calendar year its average receipts for any six months of that year were not more than one-third of its average receipts for the other six months of the year. (3) Employees of an establishment that is a hotel, motel, or restaurant. (4) Employees of hospitals, public health centers, nursing homes, maternity homes, therapeutic community residences, and residential care homes as those terms are defined in Title 18, provided: (A) the employer pays the employee on a biweekly basis; (B) the employer files an election to be governed by this section with the Commissioner; and (C) the employee receives not less than one and one-half times the regular wage rate for any work done by the employee: (i) in excess of eight hours for any workday; or (ii) in excess of 80 hours for any biweekly period. (5) Employees of a business engaged in the transportation of persons or property to whom the overtime provisions of the federal Fair Labor Standards Act do not apply. However, this subsection shall apply to all other employees of such businesses. (6) Employees of a political subdivision of this State. (7) State employees who are covered by the federal Fair Labor Standards Act. (8) Permanent employees of the Vermont General Assembly. (c) However, an employer may deduct from the rates required in subsections (a) and (b) of this section: (1) the amounts for board, lodging, apparel, rent, or utilities paid or furnished; or (2) other items or services or such other conditions or circumstances as may be usual in a particular employer-employee relationship. (d) For the purposes of earned sick time, an employer shall comply with the provisions required under subchapter 4B of this chapter. Amended 1959, No. 32, eff. Sept. 1, 1959; 1965, No. 35, § 1, eff. Oct. 1, 1965; 1967, No. 177, § 2, eff. April 17, 1967; 1969, No. 67, §§ 1, 2, eff. April 17, 1969; 1969, No. 190 (Adj. Sess.); 1971, No. 203 (Adj. Sess.); 1973, No. 265 (Adj. Sess.), eff. April 16, 1974; 1977, No. 244 (Adj. Sess.), § 8, eff. May 1, 1978; 1985, No. 80, § 1; 1987, No. 181 (Adj. Sess.); 1989, No. 131 (Adj. Sess.), § 1, eff. March 29, 1990; 1993, No. 227 (Adj. Sess.), §§ 33, 35; 1995, No. 150 (Adj. Sess.), § 1, eff. Jan. 1, 1997; 1997, No. 4, § 1; 1999, No. 21, § 1, eff. May 13, 1999; 1999, No. 119 (Adj. Sess.), § 7, eff. May 18, 2000; 2003, No. 67, § 25a; 2005, No. 82, § 1; 2007, No. 78, § 1; 2009, No. 54, § 31, eff. June 1, 2009; 2013, No. 176 (Adj. Sess.), § 1, eff. Jan. 1, 2015; 2015, No. 69 (Adj. Sess.), § 3, eff. Jan. 1, 2017; 2019, No. 86 (Adj. Sess.), § 1; 2023, No. 85 (Adj. Sess.), § 85, eff. July 1, 2024; 2023, No. 87 (Adj. Sess.), § 95, eff. Mar. 13, 2024; 2025, No. 40, § 6, eff. July 1, 2025; 2025, No. 91 (Adj. Sess.), § 109, eff. April 30, 2026.

21 V.S.A. § 385 Administration

385. Administration The Commissioner and the Commissioner’s authorized representatives have full power and authority for all the following: (1) To enforce and administer the provisions of this chapter, including the power to conduct investigations and take any other action considered necessary or suitable for the administration of this chapter. In the discharge of duties under this chapter, the Commissioner may administer oaths, take depositions, certify to official acts, subpoena witnesses, and compel production of any documents and records necessary and material to the administration of this chapter. (2) To enter and inspect any place of business or employment, question any employees, and investigate any records, facts, conditions, or matters that are deemed appropriate and that in any way appertain to or have a bearing upon the question of wages due under the provisions of this chapter. (3) To require from any employer full and correct statements in writing of the wages paid to all employees employed by that employer necessary to investigate and enforce the provisions of this chapter. (4) To determine the amount of deductions for board, lodging, or other items or services supplied by the employer or any other typical conditions or circumstances in a particular employer-employee relationship; provided, however, that in no case shall the total remuneration received by an employee, including wages, gratuities, board, lodging, or other items or services supplied by the employer, be less than the minimum wage established pursuant to section 384 of this subchapter. No deduction may be made for the care, cleaning, or maintenance of required apparel. No deduction for required apparel shall be made without the employee’s express written authorization and the deduction shall not: (A) reduce the total remuneration received by an employee below the minimum wage established pursuant to section 384 of this subchapter; (B) include any administrative fees or charges; or (C) amend, nullify, or violate the terms and conditions of any collective bargaining agreement. Amended 2001, No. 47, § 2; 2005, No. 212 (Adj. Sess.), § 10, eff. May 29, 2006; 2007, No. 182 (Adj. Sess.), § 10, eff. June 2, 2008; 2023, No. 85 (Adj. Sess.), § 86, eff. July 1, 2024; 2025, No. 40, § 7, eff. July 1, 2025.

21 V.S.A. § 386 Investigations

386. Investigations The Commissioner may, and on a petition of 50 or more residents of the State shall, investigate any industry, business, occupation, or employment pursuant to the provisions of section 385 of this subchapter, to ascertain whether any violations of this subchapter have occurred. Amended 2023, No. 85 (Adj. Sess.), § 87, eff. July 1, 2024.

21 V.S.A. § 393 Employers’ records; notice

393. Employers’ records; notice (a) Every employer shall keep a true and accurate record of the hours worked by each employee and of the wages paid to the employee and shall furnish to the Commissioner upon demand a sworn statement of the same. The records shall be open to inspection by the Commissioner or any authorized agent of the Department at any reasonable time. (b) Every employer shall keep a copy of the rules posted in a conspicuous place in the area where employees are employed. The Commissioner shall furnish copies of the rules to employers without charge. Amended 2023, No. 85 (Adj. Sess.), § 90, eff. July 1, 2024.

21 V.S.A. § 394 Penalties

394. Penalties (a) An employer or any officer or agent of an employer, who pays, permits to be paid, or agrees to pay to any employee less than the applicable rate to which the employee is entitled pursuant to this subchapter, shall be assessed a civil penalty of not more than $100.00 for each day the employee is paid less than the rate required pursuant to this subchapter. (b) An employer or an officer or agent of an employer, shall be assessed a civil penalty of not more than $100.00 for any of the following: (1) failing to keep the records required pursuant to this subchapter; (2) refusing to permit the Commissioner to enter the place of business; or (3) failing to furnish records to the Commissioner upon demand. Amended 2001, No. 47, § 6; 2023, No. 85 (Adj. Sess.), § 91, eff. July 1, 2024.

21 V.S.A. § 395 Civil actions

395. Civil actions An employee who is paid by an employer less than the applicable wage rate to which the employee is entitled pursuant to this subchapter, shall recover, in a civil action, twice the amount of the minimum wage established pursuant to section 384 of this subchapter less any amount actually paid by the employer, together with costs and reasonable attorney’s fees. An agreement between an employer and an employee to work for less than the wage rates established pursuant to section 384 of this subchapter shall not be a defense to the action. Amended 2001, No. 47, § 7; 2023, No. 85 (Adj. Sess.), § 92, eff. July 1, 2024.

21 V.S.A. § 396 Appeals from Commissioner’s decisions

396. Appeals from Commissioner’s decisions (a) Appeals to Superior Court. Any person aggrieved by a decision of the Commissioner may appeal to the Superior Court. (b) Procedure. The Commissioner shall forward to the court the record of the decision on appeal. The court shall consider the record and any evidence presented; may approve or set aside the Commissioner’s decision in whole or in part, as justice may require; and may refer any matter or issue arising in the proceedings to the Commissioner for further consideration. In no case shall such an appeal operate as a stay unless the Commissioner or the court to which the appeal is taken so orders. (c) Certifying record. The Commissioner may provide to the court the record by filing either the original papers or duly certified copies of them together with a certified statement of any other facts that show the grounds of the action appealed from. (d) Hearing. The court may take evidence or may appoint a referee to take such evidence as it may direct. A referee that is appointed shall submit a report to the court of all evidence taken together with findings of fact. (e) Costs. In any proceedings under this subchapter, the court may award any costs it determines to be equitable and just. (f) Appeal; Supreme Court. The decision of the Superior Court may be appealed to the Supreme Court. Amended 1971, No. 185 (Adj. Sess.), § 193, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3; 1997, No. 161 (Adj. Sess.), § 17, eff. Jan. 1, 1998; 2023, No. 85 (Adj. Sess.), § 93, eff. July 1, 2024.

21 V.S.A. § 397 Retaliation prohibited

397. Retaliation prohibited (a) An employer shall not discharge or in any other manner retaliate against an employee because: (1) the employee lodged a complaint of a violation of this subchapter; (2) the employee has cooperated with the Commissioner in an investigation of a violation of this subchapter; or (3) the employer believes that the employee may lodge a complaint or cooperate in an investigation of a violation of this subchapter. (b) Any person aggrieved by a violation of this section may bring an action in the Civil Division of the Superior Court seeking compensatory and punitive damages or equitable relief, including restraint of prohibited acts, restitution of wages or benefits, reinstatement, costs, reasonable attorney’s fees, and other appropriate relief. Added 2013, No. 15, § 9.

Source: Vermont General Assembly (legislature.vermont.gov)URL: https://legislature.vermont.gov/statutes/chapter/21/005Fetched: 10/21/2026