Vermont Business Magazine The Vermont state’s minimum wage increased today, January 1, 2022, to $12.55 per hour. This is an increase of $0.80 from the previous minimum wage of $11.75.
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, 2022, the tipped minimum wage increases from $5.88 to $6.28 per hour.
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.
Any employee who believes they are not being compensated fairly, according to this law, is 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.
Meanwhile the federal minimum wage of $7.25 has not changed since 2009, even as nearly half of the country will increase minimum wages for hourly workers after January 1, 2022.
Twenty-five states are on a schedule for annual increases to eventually reach $15 an hour (California will begin $15 an hour starting today for employers with more than 25 employees); 20 states follow the federal (or no) minimum.
Some local entities already have increased their minimum wage to $15 an hour. Seattle and four cities in California, including San Francisco, have minimums that exceed $16 an hour.
Consolidated Minimum Wage Table
| Greater than federal MW | Equals federal MW of $7.25 | No MW Required |
|---|---|---|
| AK $10.34 | CNMI | AL |
| AR $11.00 | GA | LA |
| AZ $12.80 | IA | MS |
| CA $14.00 | ID | SC |
| CO $12.56 | IN | TN |
| CT $13.00 | KS | |
| DC $15.20 | KY | |
| DE $10.50 | NC | |
| FL $10.00 | ND | |
| HI $10.10 | NH | |
| IL $12.00 | OK | |
| MA $14.25 | PA | |
| MD $12.50 | TX | |
| ME $12.75 | UT | |
| MI $9.87 | WI | |
| MN $10.33 | WY | |
| MO $11.15 | PR | |
| MT $9.20 | ||
| NE $9.00 | ||
| NJ $13.00 | ||
| NM $11.50 | ||
| NV $9.75/8.75 | ||
| NY $13.20 | ||
| OH $9.30 | ||
| OR $12.75 | ||
| RI $12.25 | ||
| SD $9.95 | ||
| VA $11.00 | ||
| VT $12.55 | ||
| WA $14.49 | ||
| WV $8.75 | ||
| VI $10.50 | ||
| GU $8.75 | ||
| 30 States + DC, GU, & VI | 15 States + PR, CNMI | 5 States |
1) Like the federal wage and hour law, State law often exempts particular occupations or industries from the minimum labor standard generally applied to covered employment. Some states also set subminimum rates for minors and/or students or exempt them from coverage, or have a training wage for new hires. Additionally, some local governments set minimum wage rates higher than their respective state minimum wage. Such differential provisions are not identified in this table. Users are encouraged to consult the laws of particular States in determining whether the State's minimum wage applies to a particular employment. This information often may be found at the websites maintained by State labor departments. Links to these websites are available at www.dol.gov/agencies/whd/state/contacts.
Additional Minimum Wage Information
- The state minimum wage rate requirements, or lack thereof, are generally controlled by legislative activities within the individual states.
- Federal minimum wage law supersedes state minimum wage laws where the federal minimum wage is greater than the state minimum wage. In those states where the state minimum wage is greater than the federal minimum wage, the state minimum wage prevails.
- CNMI has a minimum wage set lower than the federal minimum wage. There are 29 states plus the District of Columbia, Guam, and the Virgin Islands with minimum wage rates set higher than the federal minimum wage. There are 16 states plus Puerto Rico that has a minimum wage requirement that is the same as the federal minimum wage requirement. The remaining 5 states do not have an established minimum wage requirement.
- The District of Columbia has the highest minimum wage at $15.20/hour. Note: There are 18 states (AK, AZ, CA, CO, DC, FL, ME, MN, MO, MT, NV, NJ, NV, NY, OH, OR, SD, and WA) that currently have scheduled annual adjustments for their minimum wages based on varying formulas. Most of these increases occur around January 1st. Individuals should consult the relevant state labor offices for information on the particular formula used to adjust the state minimum wage.
This document was last revised on January 1, 2022.
Source: Vermont Department of Labor. US DOL 1.1.2022