Vermont's Minimum Wage to Rise to $8.73 in 2014

Author: Michael Cardman, XpertHR Legal Editor

October 29, 2013

Starting January 1, 2014, the minimum wage in Vermont will rise 13 cents to $8.73 per hour, the Vermont Department of Labor has announced.

Like nine other states, Vermont makes annual adjustments to its minimum wage rates based on the rate of inflation. Arizona, Colorado, Florida, Montana, Ohio, Oregon and Washington already have announced their changes. Missouri is expected to announce its adjustments soon. Nevada, which is the only state with annual inflation adjustments that do not take effect January 1 of each year, will announce its change, if any, by April 1.

Once the new minimum wage kicks in, Vermont's minimum wage will be $1.48 higher than the federal minimum wage of $7.25 per hour. The higher state minimum wage will apply, except in rare cases in which an employee is exempt from Vermont's minimum wage requirements but not those of the federal government.

Vermont allows employers to pay employees such as servers, bellhops, busboys, car wash attendants, hairdressers, barbers, valets and bartenders who customarily and regularly receive at least $120 per month in tips or gratuities a cash wage of $4.17 per hour. The service or tipped employee's total earnings during a pay period (a combination of tips and basic wage) must equal or exceed the minimum wage of $8.73 per hour; if not, the employer must make up the difference. Starting January 1, 2014, the new minimum wage for tipped employees will rise to $4.23 per hour.

Vermont also is adjusting the amounts that employers are entitled to deduct from wages earned for meals and lodging actually furnished and accepted.