Vermont Minimum Wage Calculator

💡 Vermont Wage Law Essentials

• State Minimum Rate: Under 21 V.S.A. § 384, Vermont indexes its statutory minimum wage annually based on the Consumer Price Index (CPI-U), setting the baseline at $14.42/hour. Vermont applies a uniform rate across all municipalities without local opt-outs.
• 50% Tipped Service Wage: Under state law, the direct cash wage for service employees receiving tips must equal at least 50% of the statutory minimum wage ($7.21/hour), capping the employer tip credit at $7.21/hour.
• Tip Shortfall Make-Up: If direct cash wages ($7.21/hr) plus tips average less than $14.42/hr across all hours worked during the workweek, the employer must cover the entire shortfall.
• Employer Coverage Threshold: Vermont's state minimum wage law applies to employers employing two (2) or more employees. Single-employee businesses not covered by state rules default to the federal FLSA baseline ($7.25/hr).
• Overtime Pay: Non-exempt hours exceeding 40 in a workweek must be paid at 1.5× the base minimum wage. For tipped employees, the direct cash overtime rate is $(1.5 \times \text{Base Wage}) - \text{Tip Credit} = (1.5 \times \$14.42) - \$7.21 = \$21.63 - \$7.21 = \$14.42/\text{hour}$.