Overtime Laws in Vermont 2026: Pay Rates, Exemptions & Tax Deduction (2026)
⚠️Informational only — not legal or tax advice.
Guide for Vermont overtime laws 2026
Last verified: March 8, 2026
Next scheduled review: June 5, 2026
Table of Contents
- Vermont Overtime Laws at a Glance (2026)
- Does Vermont Have Its Own Overtime Law?
- How Overtime Pay Is Calculated in Vermont
- Who Is Exempt from Overtime in Vermont?
- Overtime Tax Deduction: “No Tax on Overtime” (2025–2028)
- Can an Employer Require Overtime in Vermont?
- Industry-Specific Overtime Rules in Vermont
- How to File an Overtime Wage Complaint in Vermont
- Penalties for Overtime Violations in Vermont
- Vermont Overtime Law Updates (2025–2026)
- Frequently Asked Questions
- Sources and Verification
Vermont Overtime Laws at a Glance (2026)
| Details | |
|---|---|
| Overtime threshold | 40 hours per workweek |
| Overtime pay rate | 1.5× regular rate of pay |
| State minimum wage (2026) | $14.42/hour |
| Exempt salary threshold (2026) | Federal: $684/week ($35,568/year) |
| Daily overtime | No — weekly calculation only |
| State enforcement agency | Vermont Department of Labor, Wage & Hour Program |
| Federal enforcement | U.S. DOL Wage and Hour Division |
| Overtime tax deduction (federal) | Up to $12,500/year (2025–2028) — FLSA-covered workers |
| Statute of limitations | 2 years (state) / 2 years FLSA (3 if willful) |
Governing law: 21 V.S.A. § 384; Fair Labor Standards Act, 29 U.S.C. § 207 Last verified: March 8, 2026
Does Vermont Have Its Own Overtime Law?
Vermont has its own overtime statute under 21 V.S.A. § 384, which requires covered employers to pay nonexempt employees overtime at 1.5 times their regular rate of pay for all hours worked over 40 in a workweek. The Vermont law mirrors the federal Fair Labor Standards Act (FLSA) on the fundamental 40-hour weekly threshold and the 1.5× rate.
When Vermont law and the FLSA differ, the standard more favorable to the employee applies.
Key features of Vermont’s overtime law:
Vermont’s overtime statute applies to employers with two or more employees, whereas the FLSA’s enterprise coverage threshold requires at least $500,000 in annual revenue (or other qualifying conditions). A small Vermont employer not covered by the FLSA may still be subject to state overtime requirements if it employs two or more workers.
Vermont law also contains sector-specific exemptions from its own overtime requirements that differ from federal exemptions. Employees of retail or service establishments, hotels, motels, restaurants, certain amusement or recreational establishments, state and local government, and certain transportation businesses exempt under the FLSA are excluded from Vermont’s state overtime law. However, these workers may remain entitled to overtime under the FLSA if their employer meets federal coverage thresholds.
Vermont does not impose daily overtime requirements, double-time pay obligations, or seventh-consecutive-day rules. Overtime is calculated on a weekly basis only.
State statute: 21 V.S.A. § 384 — https://legislature.vermont.gov/statutes/section/21/005/00384 Federal statute: Fair Labor Standards Act, 29 U.S.C. § 207 — https://www.dol.gov/agencies/whd/overtime
How Overtime Pay Is Calculated in Vermont
What Is a “Workweek”?
Under the FLSA, a workweek is a fixed, regularly recurring period of 168 consecutive hours (seven consecutive 24-hour periods). A workweek does not have to start on Monday or align with a calendar week — the employer may designate any day and time as the start of the workweek.
Each workweek stands alone. An employer cannot average hours across two or more workweeks to avoid overtime. If an employee works 50 hours in one week and 30 the next, overtime is owed for the first week regardless of the second week’s total.
Source: 29 C.F.R. § 778.104–778.105
Pay Rate
Under 21 V.S.A. § 384 and the FLSA, nonexempt employees in Vermont earn overtime at:
Time-and-a-half (1.5× regular rate):
- All hours worked over 40 in a workweek
What Counts as the “Regular Rate of Pay”
The regular rate is not always the same as the hourly wage. Under 29 C.F.R. § 778.108, the regular rate includes:
- Base hourly rate or salary equivalent
- Non-discretionary bonuses and incentive pay
- Shift differentials
- Commissions
- Piece-rate earnings
The regular rate does not include:
- Discretionary bonuses (e.g., holiday gifts)
- Employer contributions to benefit plans
- Vacation, holiday, or sick pay when no work is performed
Vermont’s Wage and Hour Program specifically notes that bonuses paid as remuneration for employment — rather than as discretionary gifts — must be included when computing the regular rate for overtime purposes.
Source: Vermont DOL, Summary of Vermont Wage & Hour Laws; 29 C.F.R. § 778.108–778.122
Calculation Example
Example — Weekly overtime in Vermont:
An employee earns $14.42/hour (Vermont minimum wage, 2026) and works 48 hours in one workweek:
- Regular pay: 40 hours × $14.42 = $576.80
- Overtime pay: 8 hours × ($14.42 × 1.5) = 8 × $21.63 = $173.04
- Total weekly gross pay: $749.84
For the current Vermont minimum wage used in this calculation, see the Vermont Minimum Wage page.
Source: 21 V.S.A. § 384; 29 C.F.R. § 778.108
Who Is Exempt from Overtime in Vermont?
Not all employees in Vermont are entitled to overtime pay. Exemptions arise under both the FLSA and Vermont’s own overtime statute.
Federal FLSA Exemption Requirements
To be exempt from overtime under the FLSA, an employee must meet all three criteria:
1. Salary basis test: Paid a predetermined, fixed salary each pay period (not hourly)
2. Salary level test: Earn at least $684 per week ($35,568 per year)
3. Duties test: Perform specific job duties in one of these categories:
| Exemption | Key duty requirement |
|---|---|
| Executive | Manages enterprise or department; directs 2+ employees; authority to hire/fire |
| Administrative | Office/non-manual work related to management or business operations; exercises independent judgment |
| Professional | Work requiring advanced knowledge in a field of science or learning acquired through prolonged specialized study |
| Computer employee | Systems analysis, programming, software engineering — $684/week salary OR $27.63/hour |
| Outside sales | Primary duty is making sales away from employer's place of business |
Source: 29 C.F.R. Part 541
What Happened to the 2024 DOL Salary Threshold Increase?
In April 2024, the U.S. Department of Labor issued a final rule that would have raised the exempt salary threshold to $1,128 per week ($58,656/year) effective January 1, 2025.
On November 15, 2024, the U.S. District Court for the Eastern District of Texas vacated that rule nationwide in Texas v. U.S. Department of Labor (No. 4:24-cv-00499).
The salary threshold remains $684/week ($35,568/year) as of 2026. Vermont follows the federal FLSA salary threshold and does not currently set a higher state-level threshold.
Vermont-Specific Overtime Exemptions Under State Law
In addition to the standard FLSA executive, administrative, and professional exemptions, Vermont’s own overtime statute (21 V.S.A. § 384) excludes the following categories from state overtime requirements:
- Employees of retail or service establishments
- Employees of hotels, motels, or restaurants
- Employees of amusement or recreational establishments operating no more than seven months per year, or deriving the vast majority of their income in any six-month period
- Employees of hospitals, public health centers, nursing homes, maternity homes, therapeutic community residences, and residential care homes (subject to specific conditions)
- Employees engaged in transportation of persons or property who are also exempt from FLSA overtime requirements
- Employees of the state of Vermont and political subdivisions of the state
Important: Exemption from Vermont’s state overtime law does not necessarily mean exemption from federal FLSA overtime. Employees in these categories whose employer meets federal coverage thresholds (interstate commerce, $500,000+ annual revenue, or other qualifying conditions) may still be entitled to overtime under the FLSA. The standard more favorable to the employee governs.
Source: 21 V.S.A. § 384(b); Vermont DOL Summary of Vermont Wage & Hour Laws — https://labor.vermont.gov/rights-and-wages
Pending Legislation
Vermont H.347 (introduced February 25, 2025) — This bill proposes, among other changes, to establish a new salary threshold of $1,128 per week for executive, administrative, and professional exemptions under Vermont’s minimum wage and overtime laws, with annual adjustments. The bill was referred to the House Committee on General and Housing as of February 2025.
Status: In committee — House General and Housing Committee (as of March 2026) Source: https://legislature.vermont.gov/bill/status/2026/H.347
Overtime Tax Deduction: "No Tax on Overtime" (2025–2028)
The One Big Beautiful Bill Act (Public Law 119-21), signed on July 4, 2025, created a new federal income tax deduction for qualified overtime compensation under Internal Revenue Code § 225.
This deduction is available for tax years 2025 through 2028.
Who Is Eligible
- Nonexempt employees covered by the Fair Labor Standards Act (29 U.S.C. § 207)
- Must have a Social Security number valid for employment
- Cannot use the Married Filing Separately filing status
Who is NOT eligible:
- Exempt (salaried) employees who do not receive FLSA overtime
- Independent contractors (1099 workers) who are not FLSA-covered
- Employees receiving overtime only under state law, employer policy, or collective bargaining (if that overtime is not also required by the FLSA)
What Is Deductible
The deduction covers the premium portion of overtime pay — specifically the amount that exceeds the regular rate of pay.
| Overtime type | What is deductible | Example ($30/hr regular rate) |
|---|---|---|
| Time-and-a-half (1.5×) | The "half" — 1/3 of total OT pay | $15/hr per OT hour ($45 − $30) |
IRS shortcut for 2025: If you only know your total overtime pay and were paid time-and-a-half, divide the total overtime amount by 3. (Source: IRS Notice 2025-69)
| Deduction Limits | |||
|---|---|---|---|
| Filing status | Maximum annual deduction | Phase-out begins | Phase-out complete |
| Single | $12,500 | $150,000 MAGI | See IRS guidance |
| Married filing jointly | $25,000 | $300,000 MAGI | See IRS guidance |
| W-2 Reporting | |
|---|---|
| Tax year | Employer reporting requirement |
| 2025 | NOT required to separately report (transition year — IRS Notice 2025-62). May voluntarily report in W-2 Box 14 as "QUALI OT" or provide a separate statement |
| 2026 and later | REQUIRED to separately report qualified overtime compensation. IRS has indicated Box 12, Code TT for this purpose (draft form; subject to change before finalization) |
If an employer did not separately report overtime for 2025, the IRS allows employees to use “any reasonable method” to calculate the deductible amount, including one-third of total overtime pay for time-and-a-half workers, payroll records, or employer statements.
What This Deduction Does NOT Do
- Does NOT exempt overtime from Social Security (6.2%) or Medicare (1.45%) taxes
- Does NOT apply to state income taxes by default — state conformity is a separate question
- Does NOT change how much overtime pay an employee receives — it reduces taxable income when filing
- Does NOT apply to overtime paid solely under state law or employer policy that exceeds FLSA requirements
Source: IRS FAQs on Qualified Overtime Compensation Deduction; IRS Notice 2025-69; IRS Notice 2025-62; IRC § 225; P.L. 119-21, § 70202; Schedule 1-A (Form 1040) Official IRS page: https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation
Vermont Income Tax and the Overtime Deduction
Vermont imposes a state personal income tax. The federal overtime deduction under IRC § 225 applies to federal income tax only.
Vermont uses static IRC conformity with a conformity date of April 1, 2025 (updated retroactively in 2025). Because the One Big Beautiful Bill Act was signed on July 4, 2025 — after Vermont’s conformity date — the IRC § 225 overtime deduction does not automatically apply to Vermont state income tax returns.
Vermont workers may claim the federal deduction on their federal return but must include overtime pay as taxable income on their Vermont state return unless Vermont’s legislature takes specific action to conform to or separately adopt the IRC § 225 provision.
As of March 2026, the Vermont House Ways and Means Committee has been presented with analysis of the OBBBA’s state conformity implications (NCSL presentation, February 5, 2026). No Vermont legislation has been enacted to adopt or decouple from IRC § 225 as of the date this page was last verified.
What this means for Vermont workers: The federal overtime deduction reduces federal taxable income. Vermont state income tax on overtime pay is unaffected unless the Vermont legislature acts.
Source: 32 V.S.A. § 5824 (Vermont IRC conformity provision); Vermont JFO conformity analysis; NCSL Conformity Presentation to Vermont House Ways and Means, February 5, 2026 — https://legislature.vermont.gov/Documents/2026/Workgroups/House%20Ways%20and%20Means/Corporate%20Income%20Tax/
Cross-reference: For Vermont income tax details, see the Vermont Income Tax page.
Can an Employer Require Overtime in Vermont?
Under the FLSA, there is no federal limit on the number of hours an employer can require an adult employee (age 16 and older) to work in a workweek, as long as the employee is properly compensated for all overtime hours.
An employer may discipline or terminate an employee for refusing to work overtime, unless a specific law, employment contract, or collective bargaining agreement provides otherwise.
Vermont does not have additional mandatory overtime restrictions beyond the FLSA for most employees. Employers in Vermont may require overtime from at-will employees, and those who refuse may face disciplinary action.
Vermont is an at-will employment state. Either party may end the employment relationship for any reason not prohibited by law.
Protections That Always Apply
Regardless of mandatory overtime policies, the following protections apply in Vermont:
- All overtime hours must be compensated at the applicable overtime rate
- Employers cannot retaliate against employees who file wage complaints (29 U.S.C. § 215(a)(3))
- Disability accommodation requests under the ADA may limit overtime requirements
- Child labor laws restrict hours for employees under 18
Source: 29 U.S.C. § 207; 21 V.S.A. § 384
Industry-Specific Overtime Rules in Vermont
Healthcare (8-and-80 System)
Under 29 U.S.C. § 207(j), hospitals and residential care facilities may use a 14-day work period instead of the standard 7-day workweek for overtime calculation purposes. Under this arrangement, overtime is due after 8 hours per day or 80 hours in the 14-day period, whichever calculation results in more overtime pay for the employee.
Vermont’s own overtime statute lists hospitals, public health centers, nursing homes, maternity homes, therapeutic community residences, and residential care homes as categories subject to specific conditions regarding state overtime coverage. Employers in these sectors who use the 8-and-80 arrangement must have a prior agreement with the employee.
Source: 29 U.S.C. § 207(j); 21 V.S.A. § 384(b)
Retail and Commission Employees
Under 29 U.S.C. § 207(i), retail or service employees paid more than half their earnings in commissions may be exempt from overtime if their regular rate of pay exceeds 1.5 times the applicable minimum wage. Vermont’s overtime statute separately excludes employees of retail or service establishments from its own overtime requirements, though such workers covered by the FLSA remain subject to federal rules.
Source: 29 U.S.C. § 207(i); 21 V.S.A. § 384(b)
Agriculture
Under the FLSA, agricultural workers are generally exempt from the federal overtime requirement. Vermont’s own overtime statute also excludes agricultural workers from its coverage. Vermont H.347 (in committee as of March 2026) proposes to phase in overtime coverage for agricultural workers, but no such law has been enacted.
Source: 29 U.S.C. § 213(b)(12); 21 V.S.A. § 384; Vermont H.347 — https://legislature.vermont.gov/bill/status/2026/H.347
Public Sector / Government Employees
Under 29 U.S.C. § 207(o), state and local government employers may offer compensatory time off at 1.5 hours per overtime hour worked, rather than overtime pay in wages, provided a prior agreement exists. Vermont’s own overtime statute excludes state and political subdivision employees from state overtime coverage, but these workers may still be entitled to federal FLSA overtime or comp time arrangements.
Source: 29 U.S.C. § 207(o); 21 V.S.A. § 384(b)
Compensatory Time (“Comp Time”) Rules
Under the FLSA, private-sector employers cannot offer comp time in lieu of overtime pay. An employee who works overtime hours must be compensated at 1.5 times their regular rate in wages, not in time off.
Vermont’s own statutes are silent on compensatory time in the private sector. The Vermont DOL directs questions on this topic to the U.S. Department of Labor and notes that comp time may only be used in limited circumstances under federal provisions.
Public-sector employers (state and local government) may offer compensatory time off instead of overtime pay under 29 U.S.C. § 207(o), provided:
- The comp time accrues at 1.5 hours for each overtime hour worked
- A prior agreement exists between the employer and employee (or union)
- The cap is 240 hours of accrued comp time (or 480 hours for public safety, emergency response, and seasonal employees)
- Employees must be permitted to use accrued comp time within a reasonable period
Source: 29 U.S.C. § 207(o); Vermont DOL, Summary of Vermont Wage & Hour Laws — https://labor.vermont.gov/rights-and-wages
Transportation (Motor Carrier Exemption)
Employees whose duties affect the safe operation of motor vehicles in interstate commerce may be exempt from FLSA overtime under the Motor Carrier Act exemption (49 U.S.C. § 31502). Vermont’s own overtime statute separately excludes certain transportation workers who are also exempt from FLSA overtime requirements.
Source: 49 U.S.C. § 31502; 21 V.S.A. § 384(b)
How to File an Overtime Wage Complaint in Vermont
Employees in Vermont who believe they have not received proper overtime pay have three options:
Option 1: Vermont Department of Labor — Wage & Hour Program
| Details | |
|---|---|
| Agency | Vermont Department of Labor, Wage & Hour Program |
| Online filing | https://labor.vermont.gov/form/online-wage-claim-form |
| Phone | 802-951-4083 |
| Mailing address | 63 Pearl Street, Burlington, VT 05401 |
| Labor.WageHour@vermont.gov | |
| Deadline | 2 years from the date wages were due |
| Option 2: U.S. Department of Labor — Wage and Hour Division | |
|---|---|
| Details | |
| Online | https://www.dol.gov/agencies/whd/contact/complaints |
| Phone | 1-866-487-9243 (toll-free) |
| Nearest WHD office | Manchester, NH (serving Vermont) |
| Deadline | 2 years from violation (3 years if willful) |
Option 3: Private Lawsuit
Employees may file a lawsuit against their employer in state or federal court under 29 U.S.C. § 216(b). Remedies may include:
- Back wages owed
- Liquidated damages (an additional amount equal to unpaid wages)
- Reasonable attorney’s fees and court costs
Under Vermont law, a successful court action for unpaid wages may entitle an employee to recover twice the wages owed, with the additional amount split evenly between the employee and the state.
Retaliation Protection
Under the FLSA (29 U.S.C. § 215(a)(3)), employers cannot retaliate against employees for:
- Filing an overtime wage complaint
- Participating in an investigation
- Testifying in proceedings related to overtime violations
Source: https://labor.vermont.gov/rights-and-wages; 29 U.S.C. § 216(b); 29 U.S.C. § 215(a)(3)
Penalties for Overtime Violations in Vermont
| Federal FLSA Penalties | |
|---|---|
| Penalty type | Amount |
| Back wages | Full amount of unpaid overtime owed |
| Liquidated damages | Equal to unpaid wages (effectively doubles recovery) |
| Civil monetary penalty | Up to $2,451 per violation (willful/repeated — adjusted annually) |
| Criminal prosecution | Willful: fines up to $10,000; second offense: up to 6 months imprisonment |
Source: 29 U.S.C. § 216
Vermont State Penalties
Under Vermont law, if the Vermont Department of Labor Commissioner finds that an employer willfully failed to pay wages (including overtime), the employer may be required to pay twice the amount of unpaid wages. The employee receives half of the penalty amount; the other half is remitted to the state. Employers may also be required to pay litigation costs and attorney’s fees in court actions.
Source: 21 V.S.A. § 342; Vermont DOL, Wage Claim Process — https://labor.vermont.gov/rights-and-wages
Vermont Overtime Law Updates (2025–2026)
Federal Changes Affecting Vermont
- July 4, 2025: One Big Beautiful Bill Act (P.L. 119-21) signed — created federal overtime tax deduction for tax years 2025–2028 under IRC § 225
- November 15, 2024: DOL salary threshold rule vacated by federal court — exempt threshold remains $684/week ($35,568/year)
Vermont Changes
- January 1, 2026: Vermont minimum wage increased to $14.42/hour ($7.21 for tipped employees), raising the baseline for overtime rate calculations. Source: Vermont Department of Labor — https://labor.vermont.gov/rights-and-wages
- July 1, 2025: Vermont amended its workers’ compensation system, adding requirements for translation services for injured employees who do not speak English, penalties for late benefit payments, and new reporting obligations. These changes do not affect overtime pay calculations. Source: Vermont DOL
Pending Legislation
- Vermont H.347 — Would set a new state-level salary exemption threshold of $1,128/week for executive, administrative, and professional employees; would also phase in overtime coverage for agricultural workers and remove the tipped minimum wage. Status: In committee — House General and Housing Committee (introduced February 25, 2025). Source: https://legislature.vermont.gov/bill/status/2026/H.347
- IRC § 225 overtime deduction — Vermont conformity status: Vermont’s static IRC conformity date (April 1, 2025) predates the OBBBA. The Vermont House Ways and Means Committee reviewed federal conformity implications in February 2026. No Vermont law has been enacted to adopt IRC § 225 for state income tax purposes as of March 2026. Source: Vermont Legislature NCSL Conformity Presentation, February 5, 2026 — https://legislature.vermont.gov/Documents/2026/Workgroups/House%20Ways%20and%20Means/Corporate%20Income%20Tax/
Last reviewed: March 8, 2026 Next scheduled review: June 8, 2026
Frequently Asked Questions About Overtime in Vermont
Does Vermont have overtime laws?
Yes. Vermont has its own overtime statute under 21 V.S.A. § 384, which requires employers with two or more employees to pay overtime at 1.5 times the regular rate for all hours worked over 40 in a workweek. The federal Fair Labor Standards Act applies independently to employers engaged in interstate commerce or with $500,000 or more in annual revenue.
What is the overtime rate in Vermont in 2026?
The overtime rate in Vermont is 1.5 times the employee’s regular rate of pay. Based on the Vermont minimum wage of $14.42/hour, the minimum overtime rate in 2026 is $21.63/hour.
Does Vermont require daily overtime?
No. Overtime in Vermont is calculated on a weekly basis only. Working more than 8 hours in a single day does not trigger overtime unless total hours worked in the workweek exceed 40.
Is mandatory overtime legal in Vermont?
Under federal law, employers can generally require adult employees to work overtime. Vermont does not have additional state-level restrictions on mandatory overtime for most employees. Employees who work mandatory overtime must be paid at the applicable overtime rate.
Am I exempt from overtime in Vermont?
Exemption depends on salary level and job duties. Under the FLSA, employees must earn at least $684/week on a salary basis and perform executive, administrative, professional, computer, or outside sales duties. Vermont follows the federal $684/week threshold. Vermont H.347 (in committee) would raise the state threshold to $1,128/week if enacted.
Can salaried employees get overtime in Vermont?
Yes. Being paid a salary does not automatically make an employee exempt from overtime. Salaried employees who earn less than $684/week or who do not meet the FLSA duties tests are nonexempt and entitled to overtime pay under the FLSA and Vermont law.
Is overtime taxed in Vermont?
Overtime pay is subject to both federal and Vermont state income taxes. Under the One Big Beautiful Bill Act (2025–2028), FLSA-covered nonexempt employees may deduct up to $12,500 per year (or $25,000 for married filing jointly) of the premium portion of overtime from federal taxable income. Vermont has not conformed to IRC § 225, so this deduction does not reduce Vermont state income tax — overtime pay is taxable in full at the state level under current law.
How do I calculate the federal overtime tax deduction?
For time-and-a-half pay, the deductible amount is one-third of total overtime pay. For example, if you earned $9,000 in total overtime at time-and-a-half, the deductible qualified overtime compensation is $3,000. The IRS confirms this method in Notice 2025-69. This deduction applies to your federal return only; it does not reduce Vermont state taxable income.
How do I file an overtime complaint in Vermont?
File an online wage claim with the Vermont Department of Labor Wage & Hour Program at https://labor.vermont.gov/form/online-wage-claim-form, or call 802-951-4083. You may also file with the U.S. DOL Wage and Hour Division at 1-866-487-9243. The deadline under both state and FLSA law is 2 years from the date wages were due (3 years for willful FLSA violations).
Can my employer fire me for refusing overtime in Vermont?
In most cases, yes. Vermont is an at-will employment state, and employers may discipline or terminate employees who refuse mandatory overtime, unless a law, contract, or collective bargaining agreement provides otherwise. However, employers cannot retaliate against employees for filing overtime complaints.
Can my employer give comp time instead of overtime pay?
Under the FLSA, private-sector employers cannot offer comp time in lieu of overtime pay in Vermont. Vermont’s own statutes are silent on this issue and defer to federal rules. Public-sector employers may offer comp time at 1.5 hours per overtime hour, up to 240 hours (480 hours for public safety and emergency employees).
Does working on weekends or holidays count as overtime in Vermont?
No. Under both the FLSA and Vermont law, working on weekends or holidays does not automatically constitute overtime. Overtime depends on total hours worked in the workweek, regardless of which specific days those hours occurred.
What happens if my employer doesn’t pay overtime?
Employees may recover unpaid overtime wages, liquidated damages equal to the unpaid amount, and attorney’s fees under 29 U.S.C. § 216(b). Under Vermont law, willful nonpayment may result in the employer owing twice the unpaid wages, with half going to the employee and half to the state. The FLSA statute of limitations is 2 years (3 years if willful).
What is the statute of limitations for overtime claims in Vermont?
Under both Vermont law and the FLSA: 2 years from the date wages were due. The FLSA extends this to 3 years if the violation is willful. Employees should file promptly to preserve their claims.
Which Vermont employees are exempt from state overtime law?
Vermont’s own overtime statute (21 V.S.A. § 384) excludes employees of retail or service establishments, hotels, motels, and restaurants, certain amusement or recreational establishments, hospitals and residential care facilities (under specific conditions), certain transportation employees, and state and local government employees. These workers may still be entitled to overtime under the FLSA if their employer meets federal coverage thresholds.
Does Vermont plan to raise the exempt salary threshold?
Vermont H.347 (in committee as of March 2026) proposes to set a state-level salary exemption threshold of $1,128/week for executive, administrative, and professional employees, with annual adjustments. This bill has not been enacted. The current threshold remains at the federal level of $684/week.
Sources and Verification
Primary Sources
- 21 Vermont Statutes Annotated § 384 (Overtime) — https://legislature.vermont.gov/statutes/section/21/005/00384
- Vermont Department of Labor, Wage & Hour Program — https://labor.vermont.gov/rights-and-wages
- Vermont DOL, Summary of Vermont Wage & Hour Laws (WH-13) — https://labor.vermont.gov/sites/labor/files/doc_library/WH-13-Wage-and-Hour-Laws-2019%20.pdf
- Vermont DOL, Online Wage Claim Form — https://labor.vermont.gov/form/online-wage-claim-form
- Vermont Legislature, H.347 (2025–2026 session) — https://legislature.vermont.gov/bill/status/2026/H.347
- U.S. Department of Labor, Wage and Hour Division — https://www.dol.gov/agencies/whd/overtime
- Fair Labor Standards Act — 29 U.S.C. § 201–219
- 29 C.F.R. Part 541 (Overtime Exemptions)
- Internal Revenue Service — Overtime Tax Deduction FAQs — https://www.irs.gov/newsroom/questions-and-answers-about-the-new-deduction-for-qualified-overtime-compensation
- IRS Notice 2025-69 (Individual Calculation Guidance for Overtime Deduction)
- IRS Notice 2025-62 (Employer Reporting Transition Relief for 2025)
- 32 V.S.A. § 5824 (Vermont IRC conformity)
- Vermont Legislature, NCSL Conformity Presentation to House Ways and Means Committee, February 5, 2026 — https://legislature.vermont.gov/Documents/2026/Workgroups/House%20Ways%20and%20Means/Corporate%20Income%20Tax/