HOURLY WAGE INDEX
Let’s talk wages in Vermont
What is the minimum wage in Vermont?
The Vermont minimum wage is $13.67 per hour for all employees, with the exception of employees who receive tips whose minimum wage is $5.25 per hour. The combination of their wages and tips will bring them up to at least the standard Vermont minimum wage. The Vermont minimum wage rate was last updated in January 2023 and will continue to increase year over year.
What is the average wage in Vermont?
The average wage in Vermont varies depending on the occupation and location. According to data from the Bureau of Labor Statistics, the average hourly wage for hourly occupations in Vermont is $30.18. However, depending on the specific occupation, this can be significantly higher or lower. For example, the average hourly wage for management occupations was $37.80, while the average for food service occupations was $16.54.
What is the living wage in Vermont?
A guide to hourly labor laws in Vermont
- Standard Minimum Wage: $13.64 (Vt. Stat. Ann. tit. 21, § 384) (DoL Table) (DOL State Minimum Wages).
- Tipped Minimum Wage: $6.84, totaling at least minimum wage with tips (Vt. Stat. Ann. tit. 21, § 384).
- Overtime: Hours exceeding 40 in a fixed week are overtime, paid at 1.5 times the regular rate (Vt. Stat. Ann. tit. 21, § 384).
- Meal Breaks: Employers will provide reasonable meal and toilet break opportunities (Vt. Stat. Ann. tit. 21, § 304). Federal law allows unpaid, non-working, bonafide meal breaks over 30 minutes; exceptions may apply (29 C.F.R. § 785.19) (DoL).
- Rest Breaks: No state or federal law requires rest breaks. Breaks lasting 5–20 minutes must be paid (29 C.F.R. § 785.18).
- Wage Deductions: Only those required by law, such as taxes, and those authorized by the employee in writing. Third-party deductions benefitting the employer may not reduce wages below the applicable minimum (Vt. Stat. Ann. tit. 21, § 342) (29 C.F.R. § 4.168) (29 US Code § 203).
- Final Paychecks:
- Termination: Within 72 hours.
- Resignation: By the next regular payday or the following Friday (Vt. Stat. Ann. tit. 21, § 342).
- Wage Payment Frequency: Biweekly or semimonthly (Vt. Stat. Ann. tit. 21, § 342).
- Paid Sick Leave: Accrued at one hour per 52 hours worked, up to at least 40 hours per year (Vt. Stat. Ann. tit. 21, § 482).
- Paid Family and Medical Leave: Currently, no paid leave. A voluntary insurance plan is coming in 2025. Up to 12 unpaid weeks in one year for eligible employees (Vermont.gov) (FMLA).
- Maximum Daily and Weekly Hours for Children Under 16:
- General: No more than six days per week.
- School session: No working during school hours; up to three hours per day and 18 hours per week.
- Non-school session: Up to eight hours per day and 40 hours per week.
- Working hours: Only between 7 a.m. and 7 p.m., extended until 9 p.m. June 1 through Labor Day (Vt. Stat. Ann. tit. 21, § 434) (29 C.F.R. § 570.35).
- Maximum Daily and Weekly Hours for Children 16 and 17: Federal law does not restrict 16- and 17-year-olds’ working hours in non-hazardous occupations (Vt. Stat. Ann. tit. 21, § 434) (29 C.F.R. § 570.35) (DoL).
Frequently asked questions
What is the difference between gross wages and net wages?
It's important to remember that the Hourly Wage Index data above reflects gross wages, or the amount of money an employee earns before accounting for payroll deductions like taxes, benefits, or wage garnishments. Due to variability in tax rates across locations, slightly lower gross wages in a certain location might result in higher take home pay, or vice versa.
What is a good hourly wage?
This question is a difficult one to answer, as a "good hourly wage" is highly subjective according to experience, work responsibilities, cost of living, and other factors. We recommend using Hourly Wage Index data as a starting point. Once you have established a baseline for certain positions, do further research into similar businesses in your area. Lastly, consider surveying your employees. They're the best resource to help you know what is a good hourly wage, what competitive pay looks like in your location, and how competitive wages change in your industry over time.
Offering competitive pay is one of my top priorities—what other resources do you have that might help?
We know that getting applicants to pay attention to your business can be extremely challenging, and that offering competitive pay is a huge part of that. Wages aren’t everything, however! Applicant experience is another important factor that can help set you apart from your competition. A few examples include:
- Short, easy to understand job descriptions
- Mobile-friendliness
- Quick communication
- Streamlined interview stages
Resources
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