Vermont Labor Laws

As of January 1, 2022, Vermont’s state minimum wage rate is $12.55 per hour

Vermont allows employers to take a tip credit. Employers must pay tipped employees at least $6.28 an hour, effective January 1, 2022. If an employee doesn’t earn enough in tips to bring his or her total compensation up to at least the full state minimum wage rate an hour, the employer must make up the difference.

In calculating the overtime rate for the tipped employee, the restaurateur must multiply the minimum wage ($12.55 per hour) by 1½ (1.5), subtract the tip credit ($6.28 per hour), multiply that figure by the number of overtime hours worked, and then add that sum to their 40-hour total. 

Vermont state law mandates that “a reasonable opportunity” to eat a meal must be provided to all employees. This meal break may be unpaid if it is at least 30 minutes long, but only if the employee is completely relieved of his or her duties. … Vermont law does not provide specifically for any other rest breaks.

Vermont allows employers to deduct an employee’s pro rata share of the credit card processing fee from that employee’s tip. The Vermont Department of Labor suggests that employers should advise employees if they follow this practice, in the employee handbook or a written memo.

If your primary workplace is in Vermont, you are eligible for up to 40 hours of paid sick time per year at your regular hourly wage. Employers can provide the leave in one lump sum or tie it to the number of hours you have worked — one hour of sick time for every 52 hours of actual work.

Employment Law Firms

John Franco Law

When you are in need of an employment law firm to handle your civil litigation case, look no further than John Franco Law. For decades our attorney at law has assisted individuals who have been wrongfully terminated, experienced discrimination in the workplace, and other civil cases. Call us today to schedule your appointment in Burlington, Vermont.

Rich Cassidy Law


Rich Cassidy Law represents people, not businesses or institutions. We focus on personal injury litigation and employment law. We represent people who have been injured due to the fault of others and employees in disputes with their employers or former employers.