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Vermont Minimum Wage Increases to $8.15 in 2011


Posted by Tamara

On January 1, 2011, the Vermont minimum wage will increase from $8.06 to $8.15 per hour. This is the first increase since January 1, 2009.

The minimum wage for tipped employees will increase by 5 cents in 2011, from $4.15 to $4.20 per hour. Under Vermont state law, if employees of hotels, motels restaurants of tourist establishments regularly earn more than $120 in tips per month, the employer can pay them the lower tipped minimum wage. Conversely, if the employee’s tips do not average at least $8.15 per hour for the payroll week, the difference must be paid by the employer.

According to the Vermont Department of Labor, there are several exceptions to the Vermont minimum wage law. For example, full-time high school students, outside salespeople and cab drivers can be paid the lower federal minimum wage of $7.25 per hour. Exceptions also include domestic workers “employed in our about the home”, which includes housekeepers, gardeners and handymen. If an employee works for a non-profit agency that’s supported by state taxes, he or she may be exempt from the state minimum. Laundry employees, however and nurse’s aides and practical nurses are not exempt.

Administrators, executives and professionals who are exempt under the federal FLSA (Fair Labor Standards Act) are also exempt from the Vermont state minimum wage.

Other occupations which are exempt from the state minimum wage include many agricultural workers. In some cases, these workers are exempt from both Vermont and federal minimum wage laws.

Employees in Vermont are required to be paid by cash or check. Payment by debit card is prohibited. In addition, employees may receive their wages via direct deposit, but only with the employee’s permission. Vermont employers aren’t required to pay for unused vacation at termination, unless they have done so in the past, or have a written policy in place to do so.

As a result of the change in the minimum wage law, Vermont employers are required by law to update his or her labor law posters.

 

 

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