2020 Vermont Minimum Wage
The 2020 Vermont Minimum Wage is $10.96.
Effective 2020-01-01Source: Wage and Hour (Vermont Department of Labor)Verified 2026-08-30
Compared with 2019
| Item | 2019 | 2020 | Change |
|---|---|---|---|
| Hourly | $10.78 | $10.96 | +$0.18 (+1.7%) |
Who it applies to
Employers and employees in Vermont subject to the state minimum wage.
What changed this year, and why
Vermont's minimum wage increased to $10.96 per hour, effective January 1, 2020.
Common questions
- What was Vermont's minimum wage in 2020?
- Vermont's minimum wage was $10.96 per hour, effective January 1, 2020.
- How did the 2020 minimum wage compare to 2019?
- In 2019, Vermont's minimum wage was $10.78 per hour. The 2020 rate of $10.96 represented an increase.
Overtime is paid at one and one-half times the regular rate
Vermont's Wage and Hour Program oversees overtime along with the state minimum wage. Under Vermont law, non-exempt employees who work more than a set number of hours in a workweek must be paid an overtime premium, which is calculated as one and one-half times the employee's regular hourly rate. Because Vermont's minimum wage in 2020 is $10.96 per hour, the overtime premium for any worker paid at the minimum would be based on that figure. Employers in Vermont cannot replace the overtime premium with comp time, average hours across weeks, or a flat bonus — the extra hours must be paid at the premium rate for each overtime hour worked. Employees who believe they were not paid the correct overtime amount should contact Vermont Wage and Hour to file a complaint or request a settlement.
The Wage & Hour Program oversees state law and adopted rules concerning minimum wage, overtime, wage payments, employee benefits, child labor, and workplace rights for employees and employers.
Wage and Hour (Vermont Department of Labor)
Who to ask about this rate, and where to take a wage complaint
Questions about the $10.96 per hour minimum wage in Vermont, disputes over unpaid wages, or concerns that an employer is paying below the state floor should be directed to the Vermont Department of Labor's Wage and Hour Program. The office is located in Montpelier, and the main phone number is listed on the Vermont Department of Labor website. Wage and Hour staff provide information about wage and employment-related issues and attempt to settle employer-employee disputes, so contacting them early — as soon as a problem appears — gives the best chance of a resolution. Vermont also notes that federal wage and hour laws differ from state law, so workers with questions about federal rights under the Fair Labor Standards Act may also reach the U.S. Department of Labor by phone to discuss their situation.
Vermont Department of Labor 5 Green Mountain Drive P.O. Box 488 Montpelier, 05601-0488 (802) 828-4000
Wage and Hour (Vermont Department of Labor)
State minimum wage laws that give more than the federal rate
Vermont's minimum wage of $10.96 per hour in 2020 is higher than the federal minimum wage, so most workers in the state are protected by the Vermont rate rather than the federal floor. When state and federal law both apply, the rule is that the employee is entitled to the higher of the two rates. Vermont's Wage and Hour Program oversees the state minimum wage and enforces it, while the U.S. Department of Labor enforces the federal Fair Labor Standards Act. Because Vermont's rate exceeds the federal amount, workers in Vermont are paid $10.96 per hour at the lowest, not the lower federal figure. Employers operating in Vermont must comply with whichever law — state or federal — provides the greater protection to the worker in each situation.
Remember, federal wage and hour laws differ from Vermont law, so you should also contact the U.S. Department of Labor (603) 666-7716 regarding your rights and obligations under the Fair Labor Standards Act.
Wage and Hour (Vermont Department of Labor)
When tips, meals or lodging count toward the minimum wage
Vermont allows a lower cash wage for tipped employees: in 2020, an employer may pay a tipped worker $5.48 per hour in direct wages, with the remainder of the $10.96 minimum wage made up by tips received. If the employee's tips combined with the $5.48 cash wage do not reach $10.96 for the hours worked, the employer must pay the difference. Vermont does not appear on this page to allow credits for meals or lodging against the minimum wage; employers who wish to count the value of board, lodging or other facilities toward the wage they pay must do so under federal rules administered by the U.S. Department of Labor and only to the extent those rules permit. Workers in Vermont who believe their employer is failing to make up the shortfall between tips and the full minimum wage should contact Vermont Wage and Hour.
Effective 01/01/2020: $10.96 per hour worked / $5.48 for tipped employees
Wage and Hour (Vermont Department of Labor)
Why the federal rate applies when the state rate is lower
When a state's own minimum wage is lower than the federal minimum wage, the federal rate applies to covered workers — with some limited exceptions, the federal minimum wage rate applies. Vermont is not in that situation: its 2020 rate of $10.96 per hour is above the federal floor, so Vermont workers are paid the state amount rather than the lower federal figure. The rule matters because it means no employee in Vermont loses out to a state rate that is too low. Employers in Vermont must still check whether each worker is covered by the federal Fair Labor Standards Act, because in a scenario where Vermont's rate ever fell below the federal amount, covered employees would be entitled to the higher federal wage instead.
Remember, federal wage and hour laws differ from Vermont law, so you should also contact the U.S. Department of Labor (603) 666-7716 regarding your rights and obligations under the Fair Labor Standards Act.
Wage and Hour (Vermont Department of Labor)
How the rate is adjusted each year, and who announces it
Vermont's minimum wage is adjusted each year to keep pace with inflation. The adjustment is tied to the Consumer Price Index and takes effect on January 1 of each year. For 2020, the adjusted rate was $10.96 per hour. The Vermont Department of Labor announces the new rate each year; no separate legislative vote is required because the indexing formula is already written into state law. Workers and employers in Vermont can expect the minimum wage to rise every January 1 in line with the cost-of-living index, so pay stubs should be reviewed at the start of each year to confirm the correct rate is being applied. The tipped-employee cash wage is adjusted on the same schedule.
**Vermont’s minimum wage is adjusted annually to be effective on January 1
Wage and Hour (Vermont Department of Labor)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Wage and Hour (Vermont Department of Labor)
- Hourly
Effective 01/01/2020: $10.96 per hour worked / $5.48 for tipped employees
Other years
Every Vermont Minimum Wage year · Minimum Wage in every state