March 2009

The State of Vermont Department of Labor has adopted amendments to the state Minimum Wage Rules effective January 1, 2009. These rules are amended to reflect changes by various statutory amendments, including Act 82 (S.B. 80), L. 2005; Act 78 (S.B. 27), L. 2007; and Act 182 (H.B. 885), L. 2008. The definition of "service or tipped employees" is amended, to mean employees in hotels, motels, tourist places or restaurants who customarily and regularly receive more than $120 per month in tips for direct and personal customer service. Also, the minimum wage for non-service employees and the basic wage rate for service or tipped employees for 2008 is established, with an explanatory note that annual adjustments are to be made to the minimum wage rates (Effective January 1, 2009, the minimum wage is $8.06 per hour, and $3.91 is the basic wage rate for service or tipped employees). Employer deductions for meals and lodging actually furnished and accepted are also updated, with the provision for future adjustments based on increases in the cost of living. Also, employers are prohibited from deducting from an employee's wages any amount to offset a state-mandated Health Care Contribution as defined under Title 21 of the Vermont Statutes Annotated (Catamount Health).

Read the Rules