The Vermont Department of Labor announced that the Vermont minimum wage rate will increase to $8.73/hour (currently at $8.60/hour) effective on January 1, 2014.
Vermont's minimum wage increases each year (21 VSA § 384) at the same rate as the Consumer Price Index (calculated in August for the preceding year, or at 5%, whichever is less). The same calculation increase applies to the basic wage rate for tipped employees and the maximum tip credit allowed, and for the permitted-deduction-rates for employer-provided rooms and meals.
Tipped employees (service) rate will increase from $4.17 to $4.23/hour. "Service or tipped employees” are defined as individuals working hotels, motels, and restaurants, and who customarily and regularly receiving more than $120/month in tips for direct and personal service. The service or tipped employee's total earnings during a pay period (a combination of tips and basic wage) must equal or exceed the Vermont minimum wage rate ($8.73/hour), and if not the employer must make up the difference.
An employer may deduct from wages earned an allowance for meals and lodging actually furnished and accepted. The allowances and the increased rates as of January 1, 2014 are as follows:
$2.94 per day - Breakfast
$3.30 per day - Lunch
$3.67 per day - Dinner
$9.91 per day or $69.37 – Full Board
$4.04 per day – Nightly Lodging
$24.30 per week – Full Room
$83.93 per week – Full Room and Board
NOTICE: Vermont law requires all employers to post the minimum wage rates. Updated posters for both the Vermont minimum wage and meals and lodging allowance can be found soon at the Vermont Department of Labor’s (VDOL) website you may also contact the VDOL Wage and Hour Program at 802-828-0267.