2021 Vermont Minimum Wage
The 2021 Vermont Minimum Wage is $11.75.
Effective 2021-01-01Source: Wage and Hour (Vermont Department of Labor)Verified 2026-08-30
Compared with 2020
| Item | 2020 | 2021 | Change |
|---|---|---|---|
| Hourly | $10.96 | $11.75 | +$0.79 (+7.2%) |
Who it applies to
Employees working in the State of Vermont
What changed this year, and why
Vermont's minimum wage increased to $11.75 per hour, effective January 1, 2021.
Common questions
- How does the 2021 rate compare to the prior year?
- The 2021 rate of $11.75 per hour was higher than the 2020 rate of $10.96 per hour.
- When are future minimum wage increases effective?
- Vermont adjusts its minimum wage each year on January 1.
Overtime is paid at one and one-half times the regular rate
Under Vermont law, employees who work more than standard hours are entitled to overtime pay at a premium rate. The overtime premium is calculated as one and one-half times the employee's regular hourly rate. For workers earning the Vermont minimum wage, this means overtime hours must be paid at a rate one and one-half times their regular wage. The overtime requirement applies regardless of whether an employee is paid hourly, by salary, or on another basis. Employers must track hours worked and ensure that overtime premiums are properly calculated and paid. If you believe your employer has not paid proper overtime wages, contact the Vermont Wage and Hour Program to file a complaint or seek assistance.
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
If you have questions about Vermont's minimum wage rate or need to file a wage complaint, you should contact the Vermont Department of Labor's Wage and Hour Program. The program oversees state wage laws and attempts to settle disputes between employers and employees. The department recommends contacting them as soon as you have a problem, as delays make it more difficult to reach a solution. You can find contact information on the Vermont Department of Labor website or reach out to their office in Montpelier. Additionally, because federal wage laws differ from Vermont law, you may also need to contact the U.S. Department of Labor regarding rights under the Fair Labor Standards Act. The Vermont Wage and Hour Program can help you understand both state and federal requirements.
Contact the Wage and Hour program as soon as you have a problem. We are usually able to reach a settlement between employers and employees, but the longer the problem continues, then the more difficult it is to reach a solution.
Wage and Hour (Vermont Department of Labor)
State minimum wage laws that give more than the federal rate
When both Vermont state law and federal law establish minimum wage requirements, the law that provides greater protection to the worker controls. If Vermont's minimum wage exceeds the federal minimum wage, employers in Vermont must pay the higher Vermont rate. The federal Fair Labor Standards Act sets a baseline, but states like Vermont can establish more protective standards. Workers in Vermont are entitled to the most favorable rate available under either state or federal law. When Vermont's rate is higher than the federal rate, as it was in 2021 at $11.75 per hour, Vermont employers must comply with the state standard rather than the lower federal minimum.
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 employers may count tips and the value of meals and lodging toward meeting the minimum wage requirement under certain conditions. For tipped employees in Vermont, the minimum wage structure allows a lower cash wage with tips counting toward the full minimum. In 2021, Vermont's minimum wage for tipped employees was $5.88 per hour, with tips making up the difference to reach the full $11.75 minimum wage. If an employee's tips combined with the cash wage do not equal the standard minimum wage, the employer must make up the difference. The value of meals or lodging provided by the employer may also be credited toward the minimum wage when specific criteria are met and properly documented.
Effective 01/01/2021: $11.75 per hour worked / $5.88 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 minimum wage is lower than the federal minimum wage, the federal rate controls. In Vermont, however, the state minimum wage has consistently exceeded the federal rate in recent years. If Vermont's rate were ever to fall below the federal floor, employers in Vermont would be required to pay the higher federal minimum wage instead. With some limited exceptions, the federal minimum wage rate applies whenever it exceeds the state rate, ensuring workers receive at least the federal standard. Vermont workers are always entitled to whichever rate—state or federal—provides the greater protection, so the lower of the two rates never applies.
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 adjusts its minimum wage annually to account for inflation, with changes taking effect each January 1. The state uses a cost-of-living adjustment formula based on the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) to calculate the yearly increase. This automatic adjustment ensures that Vermont's minimum wage keeps pace with rising living costs without requiring new legislation each year. In 2021, Vermont's minimum wage reached $11.75 per hour following this inflation adjustment process. The Vermont Department of Labor announces each year's new rate in advance so employers and workers can prepare for the change. This indexing method protects workers' purchasing power over time.
**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 01/01/2021: $11.75 per hour worked / $5.88 for tipped employees
Other years
Every Vermont Minimum Wage year · Minimum Wage in every state