2024 Vermont Tipped Minimum Wage
The 2024 Vermont Tipped Minimum Wage is $6.84.
Effective 2024-01-01Source: The Vermont Department of Labor Announces Minimum Wage Increase Starting January 2024 (Vermont Department of Labor)Verified 2026-08-31
Compared with 2023
| Item | 2023 | 2024 | Change |
|---|---|---|---|
| Minimum cash wage | $6.59 | $6.84 | +$0.25 (+3.8%) |
Who it applies to
Tipped employees (service workers) in Vermont whose employers take a tip credit
What changed this year, and why
Vermont's tipped minimum wage increased to $6.84 per hour on January 1, 2024, up from $6.59 per hour in 2023.
Common questions
- What is the tipped minimum wage in Vermont for 2024?
- Beginning January 1, 2024, the minimum cash wage that employers must pay tipped employees in Vermont is $6.84 per hour.
- What was the tipped minimum wage in Vermont in 2023?
- In 2023, the tipped minimum wage in Vermont was $6.59 per hour.
- What happens if a tipped employee's tips do not bring their total pay up to the full minimum wage?
- The employer is required to pay the difference so the employee receives at least the full standard minimum wage for every hour worked.
Every amount on this page is a published figure rather than yours. The Tips needed per hour takes the number you enter and works it out against them, showing which published figure it used.
Who counts as a tipped employee
In Vermont, a tipped employee is a service worker who receives tips as part of their job. The state's tipped minimum wage law applies to these workers, allowing employers to pay a lower direct hourly rate of $6.84, which is 50% of Vermont's full minimum wage. This lower rate is permitted only because tipped employees customarily receive gratuities that supplement their cash wages. The Basic Tipped Wage Rate applies to service workers in restaurants, hotels, and similar establishments where tips are a regular part of compensation. If you work in Vermont in a position where you regularly receive tips, you fall under this tipped employee classification and your employer may apply the tipped wage rules, provided they meet all other requirements including the tip credit notice and make-up obligations.
The Basic Tipped Wage Rate for service, or “tipped employees,” equals 50% of the full minimum wage.
The Vermont Department of Labor Announces Minimum Wage Increase Starting January 2024 (Vermont Department of Labor)
What a tip credit is, and the cash wage underneath it
In Vermont, employers can pay tipped workers a lower cash wage of $6.84 per hour instead of the full minimum wage. This lower rate works because employers take a tip credit, which is the difference between the direct wage they pay and the full minimum wage. The tip credit allows employers to count your tips toward meeting their minimum wage obligation. However, this system only works if you actually receive enough tips to bring your total hourly earnings up to at least the standard minimum wage. Vermont's tipped minimum wage of $6.84 represents exactly half of the full state minimum wage, meaning the tip credit can be up to the other half. This arrangement recognizes that tips are a traditional part of service worker compensation while ensuring employers still contribute a baseline cash wage to their tipped employees.
The State’s tipped minimum wage law allows employers to pay a lower hourly rate, as long as the employee receives tips equal to, or greater to than, the standard minimum wage during a given shift.
The Vermont Department of Labor Announces Minimum Wage Increase Starting January 2024 (Vermont Department of Labor)
When the tips do not get you to the minimum wage
In Vermont, if your tips during a workweek don't bring your total hourly earnings up to the standard minimum wage, your employer must make up the difference. The state's tipped minimum wage law requires that tipped employees receive at least the full minimum wage when you combine your cash wage and tips. When your tips fall short during a workweek, the employer is required to pay the difference to ensure you are compensated at the non-tipped minimum wage amount. This protection means that slow shifts or low-tip periods don't result in sub-minimum wages for Vermont tipped workers. Your employer bears the responsibility to track your earnings and supplement your pay when necessary, guaranteeing you receive at least Vermont's standard minimum wage regardless of tip fluctuations.
In cases where the employee does not receive enough in tips during a workweek to equal the standard minimum wage per hour, the employer is required to pay the difference in order to ensure the tipped wage employee is compensated at the non-tipped minimum wage amount.
The Vermont Department of Labor Announces Minimum Wage Increase Starting January 2024 (Vermont Department of Labor)
The notice an employer owes you before it takes the credit
Vermont employers who want to use the tip credit and pay the lower tipped wage of $6.84 must inform their tipped employees about this arrangement before taking the credit. This notice requirement ensures workers understand how their wages are calculated and what protections they have. The employer must explain that they will be paying a direct cash wage below the full minimum wage, that tips will be counted toward meeting the minimum wage obligation, and that the employer will make up any difference if tips fall short. Without this advance notice, employers cannot legally apply the tip credit. This transparency requirement protects Vermont tipped workers by ensuring they know their wage structure upfront and can verify they are receiving proper compensation when tips and cash wages are combined.
The State’s tipped minimum wage law allows employers to pay a lower hourly rate, as long as the employee receives tips equal to, or greater to than, the standard minimum wage during a given shift.
The Vermont Department of Labor Announces Minimum Wage Increase Starting January 2024 (Vermont Department of Labor)
Your employer, your manager and your supervisor may not keep your tips
In Vermont, your employer, manager, or supervisor cannot keep any portion of your tips. Tips belong to the employee who receives them, and the law prohibits employers from retaining any share of those gratuities. Even when an employer takes a tip credit and pays the lower tipped wage of $6.84, they cannot redirect your tips to themselves or the business. This protection ensures that tips actually benefit the workers who earn them through customer service. The prohibition applies regardless of whether the employer uses the tip credit or pays the full minimum wage. Your tips are your compensation, and Vermont law prevents anyone in a management or ownership position from taking a cut or using those funds for business expenses.
The State’s tipped minimum wage law allows employers to pay a lower hourly rate, as long as the employee receives tips equal to, or greater to than, the standard minimum wage during a given shift.
The Vermont Department of Labor Announces Minimum Wage Increase Starting January 2024 (Vermont Department of Labor)
Which tip pools you can be made to join
In Vermont, tip pools must be limited to employees in occupations where they customarily and regularly receive tips. This means only workers who traditionally earn gratuities—such as servers, bartenders, and bussers—can be required to participate in a tip pooling arrangement. The restriction prevents employers from including non-tipped workers like cooks, dishwashers, or managers in the pool. When you're part of a valid tip pool in Vermont, you share your tips only with other tipped employees who provide direct service to customers. This rule ensures that tip pooling arrangements benefit the workers who actually interact with customers and earn gratuities, rather than allowing the tips to be redistributed to staff who don't traditionally receive them.
The State’s tipped minimum wage law allows employers to pay a lower hourly rate, as long as the employee receives tips equal to, or greater to than, the standard minimum wage during a given shift.
The Vermont Department of Labor Announces Minimum Wage Increase Starting January 2024 (Vermont Department of Labor)
Doing two jobs for one employer
In Vermont, when you work two different jobs for the same employer—one tipped and one non-tipped—you are considered a tipped employee only for the job where you actually receive tips. The employer can apply the tip credit and pay the lower tipped wage of $6.84 only for hours you spend working in the tipped occupation. For hours you work in the non-tipped position, your employer must pay you the full Vermont minimum wage. This rule prevents employers from paying the reduced tipped wage for all your hours just because you sometimes work in a tipped role. Each job must be evaluated separately, and the tipped wage rules apply only to the specific employment where you customarily and regularly receive tips, not to your other duties for the same employer.
The State’s tipped minimum wage law allows employers to pay a lower hourly rate, as long as the employee receives tips equal to, or greater to than, the standard minimum wage during a given shift.
The Vermont Department of Labor Announces Minimum Wage Increase Starting January 2024 (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.
The Vermont Department of Labor Announces Minimum Wage Increase Starting January 2024 (Vermont Department of Labor)
- Minimum cash wage
On January 1, 2024, the tipped minimum wage will increase from $6.59 to $6.84 per hour.
Other years
Every Vermont Tipped Minimum Wage year · Tipped Minimum Wage in every state