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Vermont’s Minimum Wage Will Increase on January 1st

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Meals and Lodging Allowances Will Also See Slight Increases

Montpelier, VT – The Vermont Department of Labor announced today that the STATE minimum
wage rate will be increased to $8.73 per hour – from the current rate of $8.60 per hour – effective on
January 1, 2014.

Under Vermont statute (21 VSA § 384), Vermont’s minimum wage increases each year at the same
rate as the Consumer Price Index (as calculated in August for the preceding year, or at 5%, whichever
is less). The same calculation increase applies to the basic wage rate for tipped employees and the
maximum tip credit allowed, and for the permitted-deduction-rates for employer-provided rooms
and meals.

Service or tipped employees rate will increase to $4.23 per hour from $4.17. “Service or tipped”
employees may include individuals working in businesses such as hotels, motels, tourist places and
restaurants, and who customarily and regularly receive more than $120.00 a month in tips for direct
and personal service. 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, and
if not the employer must make up the difference.

An employer may deduct from wages earned an allowance for meals and lodging actually furnished
and accepted. The allowances and the increased rates as of January 1, 2014 are as follows:
Breakfast $2.94 daily
Lunch $3.30 daily
Dinner $3.67 daily
Full Board $9.91 daily or $69.37 per week
Nightly Lodging $4.04 daily
Full Room $24.30 weekly
Full room & Board $83.93 per week

Vermont law requires all employers to post the minimum wage rates. Updated posters for both the
minimum wage and meals and lodging allowance can be found at the Vermont Department of
Labor’s website (www.labor.vermont.gov) under the “Publications” section.

Information about the minimum wage or other wage and hour regulations impacting Vermont’s
workforce can be found on the Vermont Department of Labor website at www.labor.vermont.gov or
contact the Department of Labor Wage and Hour Program at 802-828-0267.

 

For Immediate Release
October 25, 2013
Contact: Mathew Barewicz, Economic & Labor Market Information Chief
Vermont Department of Labor
Phone: 802-828-4153 or at mathew.barewicz@state.vt.us