FOR IMMEDIATE RELEASE
October 10, 2024
Contact: Rachel Dumeny
Communications and Outreach Coordinator
Office of the Commissioner
Vermont Department of Labor
(802) 272-4509
Rachel.Dumeny@vermont.gov
The Vermont Department of Labor Announces
Minimum Wage Increase Starting January 2025
Montpelier, Vt. – The Vermont Department of Labor has announced an increase to the State’s minimum wage. Beginning January 1, 2025, the State’s minimum wage will increase from $13.67 to $14.01 per hour - an increase of $0.34.
This annual adjustment also impacts the minimum wage for tipped employees. The “Basic Tipped Wage Rate” for service, or “tipped employees,” equals 50% of the full minimum wage. On January 1, 2025, the tipped minimum wage will increase from $6.84 to $7.01 per hour.
The State’s tipped minimum wage law allows employers to pay a lower hourly rate, as long as the employee receives tips equal to, or greater to than, the standard minimum wage during a given shift. In cases where the employee does not receive enough in tips during a workweek to equal the standard minimum wage per hour, the employer is required to pay the difference in order to ensure the tipped wage employee is compensated at the non-tipped minimum wage amount.
The minimum wage and tipped minimum wage are adjusted annually in accordance with Vermont law and take effect at the start of the new year, as outlined in 21 V.S.A. § 384.
If an employee believes they are not being compensated fairly, according to this law, they are encouraged to contact the Department of Labor’s Wage and Hour Unit at 802-951-4083 or online at Labor.Vermont.gov/Rights-and-Wages.
Additional information on the Vermont Department of Labor and its resources may be found at labor.vermont.gov.
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