Vermont minimum wage to increase to $8.15 an hour on January 1

The Department of Labor announced the state minimum wage will be increasing to
$8.15 per hour from $8.06 per hour on January 1, 2011. Vermont’s minimum wage increases at the same
rate as the Consumer Price Index (CPI), as calculated in August, for the preceding year. This August, the
CPI increased by one and one tenth percent (1.1%).
Addit ionally, the basic wage rate for ‘service and tipped’ employees is tied to the CPI. As such, the basic
wage for such employees will be increasing to $3.95 per hour from $3.91. Service or tipped employees are
individuals working in hotels, motels, tourist places, and restaurants who customarily and regularly receive
more than $120.00 a month in tips for direct and personal service.
Tipped employees’, like other workers, total earnings during a pay period must equal or exceed $8.15 per
hour. If a combination of tips and the basic wage do not meet that requirement, the employer must make
up the difference.
Vermont law requires all employers to post the minimum wage rates. Updated posters may be obtained
from Labor’s website under the ‘News’ section found at www.labor.vermont.gov.
In January 2011 the minimum wage in neighboring states range from a high of $8.00 in Massachusetts to a
low of $7.25 in New York and New Hampshire. Vermont’s minimum wage is the highest in the region,
but six states nationwide have higher minimum wage rates than Vermont.
Anyone with a question about the minimum wage or other wage and hour regulations impacting Vermont’s
workforce may visit the Department of Labor online at www.labor.vermont.gov
Source: VTDOL