Current and Projected Wages
The Vermont Minimum Wage is greater than the Federal Minimum Wage of $7.25 per hour. Currently, minimum wage workers in Vermont are entitled to $10.78 an hour, earning approximately $22,422.40 per year. Vermont’s minimum wage is set to increase incrementally until it reaches $15.75 per hour in 2024.
Tipped employees in Vermont receive a minimum wage that is 50% of the full minimum wage. This means the tipped minimum wage will rise from the current $6.59 to $6.84 per hour.
Legislative Changes and Economic Impact
Legislation in Vermont outlines a gradual increase of the minimum wage over the coming years. The schedule is as follows:
- $11.50 in 2020
- $12.25 in 2021
- $13.10 in 2022
- $14.05 in 2023
- $15.00 in 2024
Adjustments will continue to be made according to inflation. Supporters of the minimum wage increase argue that it will positively affect low-wage workers and the state’s economy by providing more disposable income for necessities.
Employers operating in multiple jurisdictions should monitor local government activities for any changes to minimum wage laws.
In New Hampshire, the 2024 minimum wage will remain at $7.25 per hour, which aligns with the federal minimum wage.
Tipped Workers:
The tipped minimum wage in the state is set at $3.27 per hour.
Youth and Seasonal Workers:
- Employees under 18: 75% of the minimum wage for the first 6 months on the job.
- Seasonal workers: Some exemptions apply from the minimum wage laws.
Overtime:
Employees working over 40 hours receive overtime pay at a rate of 1.5 times the regular rate, which amounts to at least $10.88 per hour.
The Minimum Wage Debate
There is ongoing discussion in New Hampshire about increasing the minimum wage, especially as other New England states have done so. Advocates argue that a $15 per hour wage by 2024 would benefit approximately 173,000 workers in the state.