2020 Vermont Tipped Minimum Wage
The 2020 Vermont Tipped Minimum Wage is $5.48.
Effective 2020-01-01Source: Wage and Hour (Vermont Department of Labor)Verified 2026-08-30
Who it applies to
Employers of tipped employees in Vermont and the employees themselves
What changed this year, and why
Vermont's minimum cash wage for tipped employees was set at $5.48 per hour, effective January 1, 2020, as published by the Vermont Department of Labor.
Common questions
- What was the tipped minimum wage in Vermont for 2020?
- The minimum cash wage for tipped employees in Vermont was $5.48 per hour, effective January 1, 2020.
- How does the tipped cash wage work?
- The employer must ensure the employee's total earnings (cash wage plus tips) reach at least the full minimum wage. If tips do not bring total compensation to that level, the employer must make up the difference.
Who counts as a tipped employee
In Vermont, the minimum cash wage for tipped employees in 2020 is $5.48 per hour. This is the direct amount your employer must pay you before counting any tips toward the full minimum wage. Vermont's minimum wage is adjusted annually to be effective on January 1, so this figure applies for the calendar year beginning 01/01/2020.
Effective 01/01/2020: $10.96 per hour worked / $5.48 for tipped employees
Wage and Hour (Vermont Department of Labor)
What a tip credit is, and the cash wage underneath it
In Vermont for 2020, the full minimum wage is $10.96 per hour, but employers may pay tipped employees a direct cash wage of $5.48 per hour. The difference between these two amounts is the tip credit the employer is allowed to take. This means your employer counts on your tips to make up the gap. Federal wage and hour laws differ from Vermont law, so you should also contact the U.S. Department of Labor regarding your rights and obligations under the Fair Labor Standards Act.
Effective 01/01/2020: $10.96 per hour worked / $5.48 for tipped employees
Wage and Hour (Vermont Department of Labor)
When the tips do not get you to the minimum wage
In Vermont for 2020, if your tips plus the $5.48 per hour cash wage do not equal at least $10.96 per hour, your employer must make up the difference. This is the FLSA's tip credit rule: when you take the tip credit, you are guaranteed the full minimum wage regardless of how much you actually earn in tips. Vermont's minimum wage is adjusted annually, so this floor changes each January 1.
Effective 01/01/2020: $10.96 per hour worked / $5.48 for tipped employees
Wage and Hour (Vermont Department of Labor)
The notice an employer owes you before it takes the credit
In Vermont, before an employer can take the tip credit and pay you the $5.48 cash wage instead of the full $10.96 minimum wage, the employer must inform you of the arrangement. Under federal law, employers must provide the following information to tipped employees before taking a tip credit: the amount of the cash wage, the additional amount claimed as a tip credit, that the tip credit cannot exceed actual tips received, that all tips are retained by the employee (except for valid tip pooling), and that the tip credit will not apply unless you have been told of these provisions.
Effective 01/01/2020: $10.96 per hour worked / $5.48 for tipped employees
Wage and Hour (Vermont Department of Labor)
Your employer, your manager and your supervisor may not keep your tips
In Vermont, your tips belong to you. Federal law prohibits employers from keeping any portion of employees' tips, whether directly or through managers or supervisors. Even if your employer pays you the $5.48 cash wage and takes the tip credit, they cannot skim your tips or require you to hand over any share to the business or its owners. Tips are your property under the Fair Labor Standards Act, and this protection applies regardless of whether your employer uses a tip pool.
Effective 01/01/2020: $10.96 per hour worked / $5.48 for tipped employees
Wage and Hour (Vermont Department of Labor)
Which tip pools you can be made to join
In Vermont, if you are part of a tip pool, the pool must be limited to employees in occupations in which they customarily and regularly receive tips. This means servers, bartenders, and similar staff can share tips with each other, but the employer cannot force you to pool with cooks, dishwashers, or other back-of-house workers who are not customarily tipped. Federal law restricts tip pooling to traditionally tipped occupations when the employer takes a tip credit and pays the $5.48 cash wage.
Effective 01/01/2020: $10.96 per hour worked / $5.48 for tipped employees
Wage and Hour (Vermont Department of Labor)
Doing two jobs for one employer
In Vermont, if you work two different jobs for the same employer — for example, as a server and as a host — you are a tipped employee only with respect to your employment as a server. When you are performing non-tipped work, your employer must pay you the full $10.96 per hour minimum wage, not the $5.48 tipped cash wage. The tip credit applies only to hours spent in the tipped occupation, so your employer cannot average your tips across both roles to justify paying the lower rate for non-tipped time.
Effective 01/01/2020: $10.96 per hour worked / $5.48 for tipped employees
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)
- Minimum cash wage
Effective 01/01/2020: $10.96 per hour worked / $5.48 for tipped employees
Other years
Every Vermont Tipped Minimum Wage year · Tipped Minimum Wage in every state