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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEScan for outdated or missing drivers - takes under a minuteDriver Scan →For work beginning January 1, 2026, Vermont’s minimum wage is $14.42 an hour. The basic tipped wage is $7.21 an hour, but that figure is not a guaranteed floor for tipped workers: the employer must make up any gap so that wages plus tips reach $14.42. Vermont also sets rules on overtime, earned sick time, child labor, and employer recordkeeping, and each of those rules depends on coverage and conditions that decide who is affected. This guide explains the rules as they appear in Vermont’s statutes and in the Vermont Department of Labor’s 2026 materials. It is general information, not legal advice; the facts of a particular job and any applicable federal law can change the answer.
Vermont minimum wage for 2026
Vermont adjusts its minimum wage each year under a statutory formula in 21 V.S.A. § 384. The 2026 figures were announced by the Vermont Department of Labor on October 6, 2025, and apply to work beginning January 1, 2026. Use the rate in effect for the period you are examining. If you are reading this for a different year, confirm the rate with the Department of Labor, because the figure changes annually.
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| Category | Rate for work beginning January 1, 2026 | What it means |
|---|---|---|
| Standard minimum wage | $14.42 per hour | The floor for covered employees, and the benchmark that tipped employees must reach |
| Basic tipped wage | $7.21 per hour | The cash wage for covered service or tipped employees, permitted only where wages plus tips reach $14.42 for the hours worked |
The core prohibition is stated plainly in 21 V.S.A. § 384: an employer “shall not employ any employee at a rate of less than” the applicable minimum wage. That sentence is the reason the tipped rate needs a make-up rule to operate lawfully.
How the tipped wage make-up rule works
An employer paying the $7.21 basic tipped wage must ensure that the worker’s wages plus tips add up to at least the standard $14.42 for the time worked. If they do not, the employer must pay the difference. Tips therefore do not sit on top of a $7.21 guarantee; they are the part of the pay that must close the gap to $14.42.
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Consider a server who works 20 hours in a pay period, earns the basic tipped wage, and keeps $100 in tips:
- Required combined amount: 20 hours × $14.42 = $288.40
- Base wages from the employer: 20 hours × $7.21 = $144.20
- Combined before any make-up: $144.20 + $100.00 = $244.20
- Make-up the employer owes: $288.40 − $244.20 = $44.20
At these rates, tips must average $7.21 an hour before the employer owes nothing. The example assumes all 20 hours fall within a single measurement window. Ask Wage and Hour how the test is applied across your pay cycle, because the answer affects whether a shortfall shows up in one paycheck or is spread over several.
Federal law adds a second layer. Under 21 V.S.A. § 384, if a federal minimum rate is higher than Vermont’s rate, the federal rate controls.
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Overtime: time and a half after 40 hours
For covered employees, Vermont’s wage statute generally requires one and one-half times the regular rate for hours worked over 40 in a workweek. The threshold is measured per workweek. Whether that rule reaches a given worker depends on coverage, exemptions, and the hours actually worked.
What decides whether a worker is covered
Overtime is not a universal promise. Three questions determine the outcome:
- Coverage: whether the employer and the work fall under the state wage statute.
- Exemption: whether the statute exempts the position. The statute lists its exemptions, and eligibility turns on the duties and facts of the work. Do not infer an exemption from a job title alone.
- Hours in the workweek: the hours actually worked, counted against the 40-hour threshold.
Federal overtime rules may apply independently of Vermont’s. Where both apply, the employer must follow whichever rule gives the greater protection. The Department of Labor’s 2019 summary of Vermont wage and hour laws is useful for orientation, but it is dated, so rely on the current statutory text for any legal point.
Earned sick time
Vermont’s earned sick time provisions sit within Title 21, Chapter 5. The statute sets an accrual rate of at least one hour for every 52 hours worked. Accrual is only half the picture: the statute also defines what the time can be used for and when it can be used.
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Qualifying uses
The statute lists these qualifying reasons:
- Illness or injury of the employee
- Health care needs
- Care for certain family members
- Certain needs related to domestic violence, sexual assault, or stalking
- Certain public-health or safety closures, as the statute defines them
Limits, waiting periods, and notice
The chapter sets accrual and use limits, carryover rules, and employer notice requirements. It may permit a waiting period for new hires. It also contains provisions for employers that offer an equivalent paid-time-off policy in place of separate sick-time accrual. Because each of these carries conditions, an individual’s entitlement depends on the statute’s current text and the employer’s policy, not on a general rule.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Child labor
Vermont’s statutes define a child as anyone under 18, but the hour limits focus on workers under 16, while a separate hazardous-work rule covers the broader under-18 group. Federal child-labor requirements also apply, so check both sets of rules before setting a young worker’s schedule.
| Rule | Ages covered | Limits stated in the Vermont text |
|---|---|---|
| Hour and time-of-day limits (21 V.S.A. § 434 and related provisions) | Under 16 | No more than 8 hours a day and 6 days a week. Work is generally barred before 7 a.m. or after 7 p.m., with a summer evening exception. Separate school-day and school-week limits also apply; check the text for the figures. |
| Hazardous work (21 V.S.A. § 437) | Under 18, subject to listed exceptions | Hazardous work is prohibited, subject to exceptions. The section also states limits of 8 hours a day and 40 hours a week. Confirm which minors and which work those caps cover before applying them to a schedule. |
Recordkeeping, complaints, and remedies
Covered employers must keep accurate records of hours worked and wages paid under Title 21, Chapter 5. The chapter provides civil and administrative consequences for violations and bars retaliation against workers who make wage-law complaints.
The following is practical advice, not a list the statute requires. A worker who suspects a pay problem should keep:
- Work schedules and shift confirmations
- Pay statements for each pay period
- Messages that address hours, pay, or tips
Where to get official help
The Vermont Department of Labor’s Wage and Hour program is the official contact point for questions about minimum wage, overtime, child labor, and required workplace posters.
- Phone: 802-951-4083
- Email: [email protected]
Required workplace postings are free. The Department also publishes a Minimum Wage Poster for 2026 reflecting the rates above. Its Child Labor Compliance page offers forms, guidance for employers, and contact details. The Department’s FAQ page poses two questions directly: “What is the state minimum wage?” and “Can an employer make overtime mandatory, and what can be done if you don’t want to work overtime?” Read the agency’s answers there, and check the statute for any question that turns on coverage or exemptions.
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