🇺🇸 Vermont Minimum Wage — 2026 UPDATE

Vermont Minimum Wage 2026

⚠️Informational only — not legal or tax advice.

Last Updated: February 11, 2026
Last Reviewed: February 11, 2026
Applicable Period: 2026
Jurisdiction: State of Vermont, United States
Update Schedule: Quarterly reviews in 2026; annual reviews thereafter

Minimum Wage in Vermont 2026

Table of Contents

Click any item below to jump to the relevant section

Introduction

The minimum wage in Vermont establishes the lowest hourly compensation that employers must legally provide to covered employees. For 2026, Vermont maintains a minimum wage of $14.42 per hour, with specific provisions for tipped employees. The state adjusts its minimum wage annually based on the Consumer Price Index, ensuring automatic cost-of-living adjustments without requiring new legislation.

Minimum wage regulations in Vermont operate under 21 V.S.A. § 384 alongside federal requirements established by the Fair Labor Standards Act (FLSA). When state minimum wage rates exceed the federal standard, employers must comply with the higher state rate. Vermont allows tip credits for service employees in the hospitality industry, and no local jurisdictions have enacted separate minimum wage ordinances.

This page provides an authoritative overview of Vermont minimum wage law for 2026, including current rates, scheduled increases, tipped employee provisions, coverage and exemptions, enforcement procedures, and compliance requirements. All information is compiled from official government sources.

Vermont Minimum Wage – 2026 Quick Reference
Category Rate Effective Date Official Source
State minimum wage $14.42/hour January 1, 2026 21 V.S.A. § 384
Tipped minimum wage $7.21/hour January 1, 2026 21 V.S.A. § 384(a)(2)
Tip credit allowed Yes (50% of minimum wage) — Vermont statute
Next scheduled increase TBD (CPI-based) January 1, 2027 VT DOL announcement
Rate adjustment mechanism CPI-indexed Annual 21 V.S.A. § 384(a)(1)
Federal minimum wage $7.25/hour Ongoing FLSA
Local minimum wages No — State law

Last verified: February 11, 2026 via Vermont Department of Labor website

Overview of Minimum Wage Law in Vermont

Legal Authority

Vermont minimum wage requirements are established under 21 V.S.A. § 384, part of Title 21, Chapter 5, Subchapter 3 of the Vermont Statutes Annotated. The Vermont Department of Labor administers and enforces minimum wage regulations in Vermont. The state minimum wage law was enacted in 1959 under Act 32 and has been amended numerous times since its passage, most recently through Act 176 of 2014, which established the current CPI-indexing mechanism.

Relationship to Federal Law

Under the Fair Labor Standards Act (FLSA), the federal minimum wage establishes a floor of $7.25 per hour for covered employers and employees. Vermont law operates independently of federal minimum wage standards while incorporating a provision that if the federal rate ever exceeds the state rate, Vermont will adopt the higher federal minimum. When both state and federal minimum wage laws apply, employers must pay whichever rate is higher.

Because Vermont’s minimum wage of $14.42 substantially exceeds the federal minimum, most covered employers must comply with the state rate. Vermont’s statute explicitly provides that “if the minimum wage rate established by the U.S. government is greater than the rate established for Vermont for any year, the minimum wage rate for that year shall be the rate established by the U.S. government.”

Coverage Scope

Vermont minimum wage law applies to all employers and employees in Vermont, with limited statutory exemptions specified in 21 V.S.A. § 383. The broad coverage includes private sector employers of all sizes, without any small employer exemption based on number of employees or annual sales volume. Employers not subject to state minimum wage requirements but covered by federal law must comply with FLSA standards.

Higher Rate Principle

The principle of “higher prevailing rate” requires employers to pay the highest applicable minimum wage—whether federal, state, or local. In Vermont, this means employers must identify and apply whichever minimum wage rate provides employees the highest hourly compensation. Because Vermont has no local minimum wage ordinances, employers typically need only compare the state rate of $14.42 to the federal rate of $7.25, with the state rate applying in virtually all cases.

Current Minimum Wage Rates in Vermont 2026

Standard Hourly Minimum Wage

As of January 1, 2026, the standard minimum wage in Vermont is $14.42 per hour for covered employees. This rate applies to all non-exempt employees working in Vermont, regardless of employer size or industry. The uniform statewide rate applies to private sector employers, with no variation based on business size, geographic location, or number of employees.

Vermont adjusts its minimum wage annually based on the Consumer Price Index for All Urban Consumers (CPI-U), U.S. city average, not seasonally adjusted. The 2.9% increase from 2025’s rate of $14.01 reflects the inflation adjustment calculated under the statutory formula. According to the Vermont Department of Labor announcement, the $0.41 increase for 2026 was determined based on CPI data for the 12 months preceding September 1, 2025.

The adjustment mechanism established in 21 V.S.A. § 384(a)(1) provides that “on each subsequent January 1, the minimum wage rate shall be increased by five percent or the percentage increase of the Consumer Price Index, CPI-U, U.S. city average, not seasonally adjusted, or successor index, as calculated by the U.S. Department of Labor or successor agency, rounded to one decimal point, for the 12 months preceding the previous September 1, whichever is smaller, but in no event shall the minimum wage be decreased.”

This means the minimum wage increases each year by the lesser of: (1) 5%, or (2) the percentage increase in the CPI-U. The minimum wage can never decrease, even if the CPI declines. The rate is rounded to the nearest $0.01.

Scheduled Minimum Wage Increases

Vermont does not have legislatively scheduled minimum wage increases for future years. Instead, the minimum wage adjusts automatically each January 1 based on the CPI-indexed formula described above.

The Vermont Department of Labor calculates and announces the adjusted rate each fall for the following calendar year. The announcement typically occurs in October or November, providing employers approximately two months’ notice before the new rate takes effect on January 1.

For January 1, 2027, the minimum wage will be calculated based on CPI-U data for the 12-month period ending September 1, 2026. The actual rate for 2027 will be announced by the Vermont Department of Labor in late 2026. Based on the statutory formula, the 2027 rate will equal the 2026 rate of $14.42 multiplied by either 1.05 (representing a 5% increase) or (1 + the CPI-U percentage increase), whichever results in a smaller increase.

Historical increases under this mechanism have been:

  • 2024: $13.67 (3.7% increase)
  • 2025: $14.01 (2.5% increase)
  • 2026: $14.42 (2.9% increase)

Youth and Training Wage Provisions

Vermont does not authorize reduced minimum wage rates for youth workers or training wage provisions. All employees, regardless of age or experience level, must be paid at least the full minimum wage of $14.42 per hour. This differs from some states that permit subminimum wages for workers under age 18 or during initial training periods.

Full-time high school students are exempt from Vermont’s minimum wage law under 21 V.S.A. § 383(2), but if such students are covered by federal law, they must be paid at least the federal minimum wage of $7.25 per hour. Similarly, student learners and apprentices under federal programs may be subject to different wage requirements under FLSA provisions, even though Vermont state law does not specifically address these categories.

Minimum Wage for Tipped Employees

Tipped Employee Cash Wage

Vermont permits employers to pay tipped employees a reduced cash wage, provided that employee tips combined with the cash wage equal at least the full minimum wage. This is known as the “tip credit” system.

Cash wage requirement: $7.21 per hour
Maximum tip credit: $7.21 per hour
Total minimum compensation: $14.42 per hour (cash wage + tips)

The tipped minimum wage equals exactly 50% of the full minimum wage, as mandated by 21 V.S.A. § 384(a)(2). This means the tipped rate automatically adjusts proportionally with the standard minimum wage each January 1. When the full minimum wage increased from $14.01 to $14.42 on January 1, 2026, the tipped minimum wage simultaneously increased from $7.01 to $7.21.

Who Qualifies as a Tipped Employee

Under Vermont law, a “service or tipped employee” is defined as an employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $120.00 per month in tips for direct and personal customer service.

Qualifying occupations typically include:

  • Restaurant servers and bartenders
  • Hotel bell staff and room service attendants
  • Casino dealers and service workers
  • Tour guides at tourist attractions
  • Parking attendants and valets (at hotels or restaurants)
  • Food delivery drivers who receive tips

The $120 monthly threshold is relatively low and has not been adjusted for inflation since its original enactment. Most employees who receive any regular tips will exceed this threshold. The requirement that tips be for “direct and personal customer service” generally excludes back-of-house kitchen staff, dishwashers, and maintenance workers, even if they occasionally receive tips through pooling arrangements.

Employer Obligations for Tipped Workers

Employers who claim a tip credit must comply with specific requirements:

  1. Ensure total compensation equals or exceeds the full minimum wage of $14.42 per hour for all hours worked. Employers must track both the cash wage paid and the tips received by employees.
  2. Pay the difference if an employee’s tips fail to bring total compensation to the full minimum wage. If a server earning $7.21 per hour in cash wages receives only $5.00 in tips during an hour worked, the employer must pay an additional $2.21 to ensure the employee receives $14.42 for that hour.
  3. Calculate on a workweek basis. The tip credit is evaluated over the course of a workweek (not per shift or per day). If an employee’s average hourly tips plus cash wages for the entire workweek equal or exceed $14.42 per hour, the employer has satisfied minimum wage obligations.
  4. Maintain accurate records of employee tips and hours worked. Employers must keep records showing the cash wage paid, the amount of tip credit taken, and verification that tips received brought total compensation to at least the minimum wage.
  5. Comply with tip ownership rules. Tips are the sole property of employees under 21 V.S.A. § 384(e). Employers cannot retain any portion of tips, use tips for purposes other than satisfying minimum wage obligations, or require employees to share tips with managers or supervisors.

Tip Pooling and Sharing

Vermont law permits tip pooling arrangements among employees who customarily and regularly receive tips. However, strict limitations apply:

Who may participate: Only employees who directly provide customer service and customarily receive tips may participate in mandatory tip pools. This includes servers, bartenders, bussers, hosts, and similar front-of-house positions.

Who cannot participate: Managers, supervisors, and employees who do not customarily receive tips cannot participate in tip pools or receive any portion of pooled tips. Back-of-house employees such as cooks and dishwashers generally cannot be included in mandatory tip pools unless they provide direct customer service.

Credit card processing fees: Employers who permit patrons to pay tips by credit card must pay employees the full amount of the tip indicated by the customer, without any deductions for credit card processing fees or costs. This requirement is explicitly stated in 21 V.S.A. § 384(e)(1).

Service charges vs. tips: Mandatory service charges added to customer bills are not tips and are the property of the employer unless the employer has established a policy to distribute them to employees. Such charges must be clearly distinguished from voluntary tips.

Local Minimum Wage Ordinances in Vermont

Vermont maintains a uniform statewide minimum wage of $14.42 per hour with no local variations. No cities or counties in Vermont have enacted their own minimum wage ordinances that exceed the state rate.

Dillon’s Rule and Local Wage Preemption

Vermont is a Dillon’s Rule state, which means municipalities possess only those powers explicitly granted to them by the state legislature. Vermont law does not authorize cities or counties to establish their own minimum wage rates different from the statewide minimum.

As a result, all employers in Vermont must comply with the uniform statewide rate of $14.42 per hour, regardless of whether they operate in urban Burlington, rural counties, or any other jurisdiction within the state. The statewide rate applies universally across all 14 Vermont counties and 255 municipalities.

Burlington’s Livable Wage Ordinance

While Burlington does not have a separate minimum wage ordinance applicable to all employers, the city maintains a Livable Wage Ordinance that applies to:

  • City of Burlington employees
  • Employees of entities that enter into service contracts with the city
  • Employees of entities that receive financial assistance from the city

This ordinance does not establish a citywide minimum wage for all private employers. Instead, it functions as a prevailing wage requirement for government contractors and subsidy recipients. The livable wage rate is calculated annually and typically exceeds the state minimum wage, but it applies only to the limited categories of workers described above.

Private employers in Burlington that do not have city contracts or receive city financial assistance must comply with the state minimum wage of $14.42 per hour, not the city’s livable wage calculation.

Who Is Covered and Who Is Exempt

Employees Covered by Vermont Minimum Wage

Vermont minimum wage law covers most employees working in the state. Unless specifically exempted, covered employees include:

  • Private sector workers: Full-time and part-time employees of private businesses of any size
  • Salaried non-exempt employees: Employees paid on a salary basis who do not qualify for executive, administrative, or professional exemptions
  • Hourly employees: Workers compensated on an hourly basis
  • Temporary and seasonal workers: Covered at the same rate as permanent employees
  • Minor employees: Workers under age 18 are generally covered at the full minimum wage rate (with exception for full-time high school students)
  • Part-time workers: Covered regardless of number of hours worked per week

Exemptions from Minimum Wage Requirements

The following categories of employees are exempt from Vermont minimum wage requirements under 21 V.S.A. § 383:

Executive, Administrative, and Professional Employees
Employees performing bona fide executive, administrative, or professional duties may be exempt if they meet both salary and duties tests. Vermont generally applies federal FLSA standards for determining exempt status, though the state does not specify its own salary threshold in statute. Employers should consult both state and federal requirements to ensure proper classification.

Outside Sales Employees
Employees whose primary duty is making sales away from the employer’s place of business and who are customarily and regularly engaged away from the employer’s business location are exempt from minimum wage requirements. This exemption applies only to true outside sales personnel, not inside sales staff or retail workers.

Agricultural Workers
Individuals employed in agriculture are exempt from Vermont’s minimum wage law. This exemption covers workers engaged in farming operations, including cultivating soil, raising and harvesting crops, and raising livestock. However, some agricultural processing activities may not qualify for this exemption.

Domestic Service Workers in Private Homes
Employees performing domestic service in private homes are exempt from state minimum wage requirements. This includes housekeepers, nannies, caregivers, and similar household employees. However, these workers may be covered under federal law if they meet FLSA requirements.

Employees of Publicly-Supported Nonprofit Organizations
Employees of publicly-supported nonprofit organizations are generally exempt, except for laundry workers, nurses’ aides, and practical nurses employed by such organizations, who must be paid minimum wage.

Full-Time High School Students
Full-time students enrolled in secondary school are exempt from Vermont’s minimum wage. However, if covered under federal law, they must be paid at least the federal minimum wage of $7.25 per hour.

Newspaper and Advertising Delivery Personnel
Individuals engaged in the delivery of newspapers and advertising materials to consumers are exempt from minimum wage requirements.

Taxi Drivers
Taxicab drivers are exempt from Vermont minimum wage law. This exemption reflects the unique compensation structure in the taxi industry, where drivers often operate as independent contractors or work primarily for tips and fares.

Independent Contractors
Properly classified independent contractors are not employees and therefore not covered by minimum wage requirements. However, Vermont applies strict tests to determine independent contractor status, and misclassification may result in penalties and back wages. The Vermont Department of Labor investigates worker misclassification claims and can reclassify workers as employees when appropriate.

Federal Government Employees
Individuals employed by the United States government are exempt from state minimum wage law, as are employees of the U.S. postal service.

Small Employer Exemptions

Vermont does not provide a small business exemption from minimum wage requirements based on number of employees or annual sales volume. All employers, even those with a single employee, must comply with the $14.42 minimum wage.

This contrasts with federal law, which only covers employers with $500,000 or more in annual gross sales or those engaged in interstate commerce. In Vermont, state law extends minimum wage protection to employees of very small businesses that may fall outside federal coverage.

Employer Obligations and Enforcement

Employer Compliance Obligations

Employers subject to Vermont minimum wage law must:

  1. Pay the applicable minimum wage of $14.42 per hour for all hours worked by non-exempt employees
  2. Maintain accurate payroll records documenting hours worked and wages paid for at least three years
  3. Display required posters informing employees of minimum wage rates and their rights under state law
  4. Issue compliant wage statements showing gross wages, deductions, and net pay with each payment of wages
  5. Provide written notice of wage rates to new employees at the time of hiring, as required by 21 V.S.A. § 393
  6. Calculate overtime properly for hours worked over 40 in a workweek, paying at least 1.5 times the regular rate (subject to overtime exemptions)

Recordkeeping Requirements: Employers must maintain payroll records for at least three years under state law, including:

  • Employee names, addresses, and Social Security numbers
  • Hours worked each workday and workweek
  • Wage rates and total wages paid each pay period
  • Deductions from wages
  • Dates of employment

Records must be made available for inspection by the Vermont Department of Labor or its authorized agents upon request. Failure to maintain records can result in fines of up to $100.

Enforcement of Minimum Wage Law

The Vermont Department of Labor, Wage and Hour Program enforces minimum wage requirements in Vermont. The agency:

  • Investigates wage complaints filed by employees
  • Conducts compliance inspections and audits
  • Issues citations and orders for wage violations
  • Collects unpaid wages on behalf of employees
  • Assesses civil penalties for violations
  • Refers cases for criminal prosecution when appropriate

Filing a Complaint: Employees who believe they have not been paid proper minimum wage may file a complaint with the Vermont Department of Labor through:

Complaints must be filed within two years after the date wages were due, as specified in 21 V.S.A. § 342a. Vermont law prohibits retaliation against employees who file wage complaints or cooperate with investigations, under 21 V.S.A. § 397.

The Vermont Department of Labor will investigate the complaint, which may include reviewing payroll records, interviewing the employer and employee, and determining whether violations occurred. If violations are found, the Department can order the employer to pay back wages and penalties.

Penalties for Minimum Wage Violations

Employers who violate Vermont minimum wage law may be subject to:

Back Wages: Employers must pay employees the difference between wages paid and the required minimum wage for all hours worked. Under 21 V.S.A. § 342a, the Department of Labor can recover unpaid wages for up to two years preceding the complaint date.

Liquidated Damages: Under 21 V.S.A. § 395, employees may recover twice the amount of unpaid minimum wages in a civil action. This means if an employee was underpaid by $1,000, they can recover $2,000 (double the unpaid amount) plus attorney fees and costs.

Civil Penalties: Administrative penalties may be assessed against employers for minimum wage violations. Penalties of up to $100 per day can be imposed for failure to maintain required records or produce records upon request, as specified in 21 V.S.A. § 393.

Criminal Penalties: Under 21 V.S.A. § 394, willful violations of minimum wage law constitute a criminal offense. Employers who willfully violate the law may be fined up to $1,000.

Attorney Fees: Employees who prevail in minimum wage actions may recover reasonable attorney fees and costs of litigation under 21 V.S.A. § 395, in addition to unpaid wages and liquidated damages.

Interest: Unpaid wages may accrue interest from the date payment was due, though Vermont statute does not specify a particular interest rate for wage claims.

Private Right of Action

In addition to filing complaints with the Vermont Department of Labor, employees have a private right of action to sue employers directly in court for minimum wage violations. Civil actions must be brought in Vermont Superior Court under 21 V.S.A. § 395.

An employee who successfully proves minimum wage violations can recover:

  • Twice the amount of unpaid minimum wages
  • Reasonable attorney fees
  • Court costs

No agreement between an employer and employee to work for less than minimum wage is valid or serves as a defense to such actions.

Vermont Minimum Wage vs Federal Law

The Federal Minimum Wage Floor

The Fair Labor Standards Act (FLSA) establishes a federal minimum wage of $7.25 per hour, which has remained unchanged since July 24, 2009. This federal rate sets a floor for minimum wage requirements nationwide and applies to employers engaged in interstate commerce or with annual gross sales exceeding $500,000.

The federal minimum wage covers most private sector employers and employees, though significant exemptions exist for certain occupations and small businesses. Federal law also permits a youth minimum wage of $4.25 per hour for employees under age 20 during their first 90 consecutive calendar days of employment, though Vermont does not recognize this provision.

When State Law Applies

Because Vermont’s minimum wage of $14.42 substantially exceeds the federal minimum, most employees working in Vermont are entitled to the higher state rate. The federal minimum serves as a fallback only for the limited category of employees who are exempt from Vermont law but covered by federal law.

For example, agricultural workers and domestic service workers in private homes are exempt from Vermont minimum wage under state law, but many such workers are covered by federal law and must receive at least $7.25 per hour. Similarly, full-time high school students are exempt from Vermont’s minimum but must be paid at least the federal rate if covered by the FLSA.

Vermont statute explicitly provides that “if the minimum wage rate established by the U.S. government is greater than the rate established for Vermont for any year, the minimum wage rate for that year shall be the rate established by the U.S. government.” This ensures Vermont workers always receive at least the higher of the two rates.

Higher Applicable Rate Rule

The fundamental principle governing minimum wage compliance is that employers must pay whichever rate—federal or state—provides employees the highest hourly wage. This rule ensures workers receive maximum protection under applicable law.

Practical Application:

  1. Determine whether the employee is covered by Vermont minimum wage law (not exempt under 21 V.S.A. § 383)
  2. Determine whether the employee is covered by federal minimum wage law (FLSA coverage)
  3. Pay the highest applicable rate

For most Vermont employees, this analysis yields the state minimum of $14.42 per hour. Only employees who are exempt from state law but covered federally would receive the lower federal rate of $7.25.

Regional Minimum Wage Context
Vermont's minimum wage of $14.42 can be compared to surrounding New England states for regional context:
State 2026 Rate
Vermont $14.42
New Hampshire $7.25 (federal)
Massachusetts $15.00
New York $15.00–$16.50
Connecticut $15.69

Vermont’s rate exceeds New Hampshire’s federal minimum by $7.17 per hour but falls slightly below Massachusetts ($15.00) and Connecticut ($15.69). New York’s minimum wage varies by region, with rates ranging from $15.00 in most of the state to $16.50 in New York City, Westchester, and Long Island.

Among New England states, Vermont ranks in the middle for minimum wage levels. The state’s CPI-indexed adjustment mechanism ensures the minimum wage maintains purchasing power relative to inflation, though the statutory cap of 5% annual increases means Vermont’s rate may grow more slowly than states with scheduled increases or higher indexing formulas.

Minimum Wage Posting Requirements

Vermont law requires employers to display an official minimum wage notice in a conspicuous location accessible to all employees. The poster must include current wage rates, employee rights, and contact information for the Vermont Department of Labor.

Where to obtain posters:

Posting locations: The notice must be posted in each workplace location where employees can readily see it, typically near time clocks, in break rooms, or at other prominent locations where employees regularly pass or gather.

Compliance: Failure to display required posters may result in citations and penalties from the Vermont Department of Labor. Employers must update posters when minimum wage rates change each January 1. The 2026 poster displays the $14.42 standard minimum wage and $7.21 tipped minimum wage that took effect January 1, 2026.

Frequently Asked Questions: Minimum Wage in Vermont 2026

What is the minimum wage in Vermont in 2026?

The minimum wage in Vermont is $14.42 per hour as of January 1, 2026. This rate applies to all covered employees statewide. Tipped employees in hotels, motels, restaurants, and tourist establishments may be paid a cash wage of $7.21 per hour, provided tips bring total compensation to at least $14.42 per hour.

When is the next minimum wage increase in Vermont?

The next minimum wage increase in Vermont is scheduled for January 1, 2027. The exact rate will be announced by the Vermont Department of Labor in fall 2026, based on CPI-U data for the 12 months ending September 1, 2026. The increase will equal the lesser of 5% or the percentage increase in the Consumer Price Index.

Does Vermont allow tip credit?

Yes, Vermont permits employers in the hotel, motel, tourist place, and restaurant industry to pay tipped employees a cash wage of $7.21 per hour (50% of the full minimum wage), with up to $7.21 in tip credit, provided total compensation reaches $14.42 per hour. Employers must make up any shortfall if tips do not bring the employee to full minimum wage.

Are there different minimum wages in different cities in Vermont?

No, Vermont maintains a uniform statewide minimum wage of $14.42 per hour. No cities or counties have enacted minimum wages higher than the state rate. Burlington has a livable wage ordinance, but it applies only to city employees and certain government contractors, not all private employers. As a Dillon’s Rule state, Vermont municipalities lack authority to establish their own minimum wage rates.

Who is exempt from minimum wage in Vermont?

Common exemptions from Vermont minimum wage include executive, administrative, and professional employees meeting salary and duties tests, outside sales employees, agricultural workers, domestic service workers in private homes, full-time high school students, newspaper delivery personnel, and taxi drivers. Independent contractors are not covered. Most hourly workers, including part-time employees, are covered by the $14.42 minimum wage.

What happens if an employer pays below minimum wage in Vermont?

Employers who pay below minimum wage face back wage liability for up to two years, liquidated damages equal to twice the unpaid amount, potential civil penalties, and possible criminal prosecution. Employees can file complaints with the Vermont Department of Labor at 802-951-4083 or sue directly in court. Vermont law prohibits retaliation against workers who report violations.

Do small businesses have to pay minimum wage in Vermont?

Yes, all employers in Vermont must pay the $14.42 minimum wage regardless of size. Unlike federal law, Vermont has no small business exemption based on number of employees or annual sales volume. Even businesses with one employee must comply with the state minimum wage rate.

Is Vermont’s minimum wage higher than the federal minimum?

Yes, Vermont’s minimum wage of $14.42 is $7.17 higher than the federal minimum wage of $7.25. Employers in Vermont must pay the higher state rate. Vermont’s minimum wage has exceeded the federal rate since the state established its indexed adjustment mechanism in 2007.

How often does Vermont increase its minimum wage?

Vermont adjusts its minimum wage annually on January 1 based on the Consumer Price Index for All Urban Consumers (CPI-U). The Vermont Department of Labor announces the new rate each fall, typically in October or November. The increase equals the lesser of 5% or the percentage increase in the CPI-U for the 12 months ending the previous September 1.

Can employers pay less than minimum wage during training?

No, Vermont does not authorize a training wage or reduced rate for new employees. Employers must pay at least $14.42 per hour from the first hour of employment, regardless of the employee’s experience level or training status. This applies to all covered employees, including minors.

How to file a minimum wage complaint in Vermont

Employees who believe they have not received proper minimum wage compensation may file a wage complaint with the Vermont Department of Labor. Filing methods include:

Complaints must be filed within two years of when wages were due. The Vermont Department of Labor will investigate the complaint and may recover unpaid wages on behalf of the employee. Vermont law prohibits employer retaliation against workers who file wage complaints or participate in investigations.

Do remote workers in Vermont get the Vermont minimum wage?

Generally, the minimum wage of the jurisdiction where the employee physically performs work applies. Remote workers located in Vermont are typically entitled to Vermont’s minimum wage of $14.42, even if their employer is based in another state. Employers should consult legal counsel for complex multi-state remote work situations, as application of wage laws can depend on various factors including employment contracts and the duration of work in Vermont.

Information Verification Log

All information on this page has been compiled from official government sources and verified for accuracy as of the dates below.

Source Verification – Vermont Minimum Wage (2026)
Source Last Verified Full URL
21 V.S.A. § 384 (Vermont minimum wage statute) February 11, 2026 https://legislature.vermont.gov/statutes/section/21/005/00384
21 V.S.A. § 383 (Definitions and exemptions) February 11, 2026 https://legislature.vermont.gov/statutes/section/21/005/00383
Vermont Department of Labor – 2026 increase announcement February 11, 2026 https://labor.vermont.gov/press-release/vermont-department-labor-announces-minimum-wage-increase-starting-january-2026
Vermont Department of Labor – Rights and Wages February 11, 2026 https://labor.vermont.gov/rights-and-wages
Vermont Department of Labor – 2026 Minimum Wage Poster February 11, 2026 https://labor.vermont.gov/document/minimum-wage-poster-2026
21 V.S.A. § 395 (Civil actions for unpaid wages) February 11, 2026 https://legislature.vermont.gov/statutes/section/21/005/00395
21 V.S.A. § 393 (Employer records and notice) February 11, 2026 https://legislature.vermont.gov/statutes/section/21/005/00393
21 V.S.A. § 394 (Penalties) February 11, 2026 https://legislature.vermont.gov/statutes/section/21/005/00394
21 V.S.A. § 397 (Retaliation prohibited) February 11, 2026 https://legislature.vermont.gov/statutes/section/21/005/00397
21 V.S.A. § 342a (Investigation of complaints) February 11, 2026 https://legislature.vermont.gov/statutes/section/21/005/00342a
Fair Labor Standards Act (FLSA) February 11, 2026 https://www.dol.gov/agencies/whd/flsa
U.S. Department of Labor – Minimum Wage February 11, 2026 https://www.dol.gov/general/topic/wages/minimumwage

Others

California
Iowa
Idaho
Rhode Island
Montana
North Dakota
Maine
Alaska
New Hampshire
Delaware
South Dakota
New Mexico
Oklahoma
South Carolina
Kansas

Legal Disclaimer: Nature of This Compilation This document is a compilation of publicly available information from official government sources. It is NOT: Legal advice An interpretation of laws or regulations A substitute for consultation with a licensed attorney A comprehensive treatment of all applicable laws Guaranteed to be complete or current