Employers in Vermont must conform with these state rules regarding the minimum wage paid to employees.
Effective January 1, 2014, the minimum wage in Vermont is $8.73 per hour ($8.60 per hour for 2013).
If the minimum wage established by the federal government is greater than the rate established by Vermont for any year, the minimum wage rate for that year will be the rate established by the federal government.
Vermont's minimum wage law covers employers with two or more employees. The term employee does not include individuals employed in:
- domestic service
- federal or state employees
- publicly supported nonprofit organizations except practical nurses, nurses' aides, and laundry employees
- bona fide executive, administrative or professional capacity
- individuals employed to deliver newspapers to homes
- taxicab drivers
- outside salespersons
- students working during all or any part of the school year or during vacations
Under the law, an employer may apply wage deductions as follows:
- by deducting for goods or services provided by the employer to the employee if the deduction does not reduce an employee's wages below the hourly minimum wage, the employee provides written authorization or the employer sufficiently documents the employee's intention to repay, the deduction is not prohibited by state or federal law or these rules, and the deduction does not exceed the amount the employee agreed to;
- by making deductions specifically authorized by state or federal law, including deductions for state and federal taxes and child support, and with written authorization from the employee, deductions for contributions to health or retirement plans; and
- by deducting from the minimum wage an allowance for employer provided meals and lodging.