Vermont minimum wage 2026
The minimum wage in Vermont is $14.42 an hour in 2026. Vermont adjusts its rate every January 1 by inflation under 21 V.S.A. 384, but never by more than 5% in a year. Tipped workers in hotels, motels, tourist places and restaurants may be paid half the minimum, and the law covers employers with two or more employees.
Contents11 sections
At a glance
| Minimum wage now | $14.42 an hour, since January 1, 202614 |
|---|---|
| Next change | The next rate has not been announced yet. |
| Tipped employees | $7.21 cash wage, tip credit up to $7.21315 |
| Overtime | 1.5 times the regular rate after 40 hours a week84 · details |
| Full-time pay | $577 a week, $29,994 a year at 40 hours a week before taxes · calculate for your hours |
| Enforced by | Vermont Department of Labor, Wage and Hour Program, 802-951-4083 |
What to know about the Vermont minimum wage
Vermont's minimum wage rises automatically each January 1 under 21 V.S.A. 384, with a ceiling: the increase is the smaller of 5% or the rise in the Consumer Price Index for All Urban Consumers over the 12 months before the previous September 1, rounded to the nearest cent.3 The rate can never fall, and if the federal minimum ever rose above Vermont's, the federal rate would become the state rate. Those rules produced $12.55 on January 1, 2022, then $13.18, $13.67, $14.01 and $14.42 on January 1, 2026.61
The law applies to employers of two or more employees.4 Its tipped rule is limited to the hotel, motel, tourist place and restaurant industry: there, a service or tipped employee who customarily receives more than $120 a month in tips for direct customer service may be paid half the minimum, $7.21 an hour from January 1, 2026, with tips bringing total pay to the full rate.3
The Department of Labor's Wage and Hour Program in Burlington takes wage claims and complaints through the department's website and answers questions by phone and email, and the department publishes the mandatory workplace posters, which employers display along with the federal ones.1 The department announces each new rate in the fall; the 2023 rate, for example, was announced on November 15, 2022.2
Tipped employees
| Tip credit | Allowed |
|---|---|
| Minimum cash wage | $7.21 an hour315 |
| Maximum tip credit | $7.21 an hour |
In hotels, motels, tourist places and restaurants, employees who customarily receive more than $120 a month in tips for direct customer service may be paid half the minimum wage, $7.21 an hour from January 1, 2026, as long as tips bring their pay to the full minimum.
An employer that takes a tip credit must make up the difference whenever wages plus tips fall short of the full minimum wage for the workweek. See the tipped minimum wage guide.
Overtime and salaried staff
| Weekly overtime | After 40 hours in a workweek, at 1.5 times the regular rate84 |
|---|---|
| Daily overtime | None in state law |
| Exempt salary | The federal level, $684 a week ($35,568 a year) |
Time and a half after 40 hours a week (21 V.S.A. 384(b)), but the rule does not apply to retail or service establishments, hotels, motels, restaurants, seasonal amusement establishments and some health care employers. The law covers employers of two or more employees.
Overtime at the minimum wage of $14.42 is $21.63 an hour. Salaried managers, administrators and professionals are exempt from overtime only if they meet the duties tests and are paid at least the exempt salary. See overtime rules in every state or calculate pay with overtime.
How the rate changes
Each January 1 the rate rises by the smaller of 5% or the increase in the Consumer Price Index for All Urban Consumers over the 12 months before the previous September 1, rounded to the nearest cent; it never decreases (21 V.S.A. 384). The Department of Labor announces the new rate in the fall.
Indexed to inflation: yes. Adjusted each January 1 by the smaller of 5% or the CPI-U increase for the 12 months before September 1; never decreases.84
Rate history
Who is covered
The state minimum applies to employers of two or more employees. If the federal minimum ever exceeds Vermont's, the federal rate becomes the Vermont rate. Overtime after 40 hours applies with many exemptions, including retail and service businesses, hotels and restaurants, and seasonal amusement businesses.
- The yearly increase is capped at 5% even when inflation is higher.
- The half-wage tipped rate is limited to the hotel, motel, tourist place and restaurant industry.
- The Wage and Hour Program can be reached at 802-951-4083 or [email protected].
Cities and counties
Vermont law does not expressly address local minimum wages, and no Vermont town or city has adopted one.
Neighboring states
If you live near a state line, the rate that applies is the one where you do the work, not where you live or where the employer is based.
| State | Per hour now |
|---|---|
| New York | $16.00 to $17.00 |
| Massachusetts | $15.00 |
| New Hampshire | $7.25 |
Compare every state on the ranked list and map.
Get help or file a claim
If you are paid less than the minimum wage that applies to your job, you can file a wage claim with the agency below. Federal law prohibits firing or otherwise retaliating against a worker for complaining about federal minimum wage rights.
| Agency | Vermont Department of Labor, Wage and Hour Program |
|---|---|
| Phone | 802-951-4083 |
| The law | 21 V.S.A. 384 (Employment; wages); 21 V.S.A. 383 (Definitions) |
| Federal | U.S. Department of Labor, Wage and Hour Division, 1-866-487-9243 |
Sources
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- 8 Vermont General Assembly, 21 V.S.A. 384 Employment; wages Checked Oct 28, 2026 · Back to text ↑
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