Vermont’s minimum wage to hit $14 on Jan. 1

October 11, 2024  |  By Waterbury Roundabout 

On Jan. 1, Vermont’s minimum wage will reach $14 for the first time as the annual increase to the hourly wage standard goes into effect, according to the Vermont Department of Labor. 

Vermont’s minimum wage will increase 34 cents from $13.67 to $14.01 per hour. 

The annual adjustment also impacts the minimum wage for tipped employees. The Basic Tipped Wage Rate for service or tipped employees equals 50% of the full minimum wage, increasing on Jan. 1, 2025, from $6.84 to $7.01 per hour.  

Vermont’s tipped minimum wage law allows employers to pay a lower hourly rate, as long as the employee receives tips equal to, or greater than the standard minimum wage during their shift. In cases where the employee does not receive enough in tips during a workweek to equal the standard minimum wage per hour, the employer is required to pay the difference to ensure that the tipped-wage employee is compensated at the standard minimum wage amount.  

The minimum wage rates are adjusted annually in accordance with Vermont law and take effect at the start of the new year, as outlined in 21 V.S.A. § 384. Under this statute, if an employee believes they are not being compensated fairly, they are encouraged to contact the Department of Labor’s Wage and Hour Unit at 802-951-4083 or online at Labor.Vermont.gov/Rights-and-Wages.  

More information from the Vermont Department of Labor at labor.vermont.gov.