The Vermont Labor Law Guide

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees. The federal minimum wage is a wage baseline, but different states, cities, and regions can adopt their own rates. 

Minimum wage is the lowest hourly pay rate that employers are legally obligated to pay employees.

$14.42 per hour (Effective Jan 1, 2026)

• Exceptions:

  • Students: Full-time high school students may be paid $14.12 per hour (if the employer has a specific plan).

  • Small Employers: Employers with fewer than two employees are exempt from the state minimum wage law.

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Tipped minimum wage is the lowest hourly pay rate employers are legally obligated to pay employees who earn a significant portion of their income through tips.

$7.21 per hour (Effective Jan 1, 2026)

• Requirement: Employers may pay this lower "service rate" only if the employee earns more than $120.00 per month in tips.

• Tip Makeup: If the employee's direct cash wage ($7.21) plus tips does not equal at least the full minimum wage ($14.42), the employer must pay the difference.

Vermont overtime laws generally mirror the federal Fair Labor Standards Act (FLSA).

• Standard Rule: Employers must pay non-exempt employees 1.5 times their regular rate of pay for all hours worked over 40 hours in a workweek.

• Exemptions: State law provides exemptions for certain retail and service establishment employees, as well as executive, administrative, and professional employees who meet salary thresholds.

Vermont law is more flexible than many states regarding specific break times but mandates "reasonable" opportunities.

• Meal Opportunity: Employers must provide employees a "reasonable opportunity" to eat and use the restroom.

  • Paid vs. Unpaid: This time can be unpaid if it is at least 30 minutes and the employee is completely relieved of duties. If the employee is required to work while eating, they must be paid.

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Earned Sick Time (Paid) Vermont requires employers to provide paid sick time to employees who work an average of 18 or more hours per week.

• Accrual: Employees earn 1 hour of paid sick time for every 52 hours worked.

• Limits: Employers may cap accrual and usage at 40 hours in a 12-month period.

• Waiting Period: Employers may impose a waiting period of up to one year for new hires. During this time, employees accrue leave but cannot use it.

• Carryover: Unused time must carry over to the next year, unless the employer "frontloads" the full 40 hours at the start of the year or pays out unused time at the end of the year.

• Usage: Can be used for the employee’s or a family member's illness/injury, medical appointments, or for safety/legal/medical reasons related to domestic violence, sexual assault, or stalking.

Compliance Note on "Small Employers"

• Clarification: Unlike the minimum wage law (which exempts <2 employees), the Earned Sick Time law generally applies to all private employers doing business in Vermont, provided the employee works the minimum average hours (18+ hrs/week). New employers (in business less than one year) are exempt for that first year.

Vermont Parental and Family Leave Act (VPFLA)

Under the VPFLA, covered employers must provide eligible employees with unpaid, job-protected leave. The amount and type of leave depend on the employer's size.

Parental, Safe, and Bereavement Leave

• Covered Employers: Employers with 10 or more employees (who work an average of 30+ hours/week).

• Parental Benefit: Up to 12 weeks of unpaid leave in a 12-month period for:

  • The birth of a child or to care for a newborn.

  • The placement of a child for adoption or foster care.

  • Pregnancy, miscarriage, or recovery from childbirth.

• Safe Leave Benefit: Up to 12 weeks of unpaid leave to address the effects of domestic violence, sexual assault, or stalking (e.g., seeking legal or medical aid, relocating).

• Bereavement Benefit: Up to 2 weeks (10 workdays) of unpaid leave following the death of a covered family member.

Family Leave

• Covered Employers: Employers with 15 or more employees (who work an average of 30+ hours/week).

• Benefit: Up to 12 weeks of unpaid leave in a 12-month period.

• Reason: For the employee’s own serious health condition or to care for a covered family member with a serious health condition.

  • Covered Family Members: Spouse, domestic partner, civil union partner, child, parent, sibling, grandparent, grandchild, or parent-in-law.

Employee Eligibility: To qualify for any of the leaves above, an employee must have:

• Worked for the employer for at least 12 months; and

• Averaged 30 or more hours per week during that year.

Short-Term Family Leave

• Covered Employers: Employers with 15 or more employees (who work an average of 30+ hours/week).

• Benefit: Up to 4 hours of unpaid leave in any 30-day period, not to exceed 24 hours in a 12-month period.

• Reasons:

  • To participate in preschool or school activities (e.g., parent-teacher conferences).

  • To accompany a family member to routine medical or dental appointments.

  • To accompany a family member to other professional appointments related to their care or well-being (e.g., legal or social services).

  • To respond to a medical emergency involving a family member.

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Minors Under 14: Generally prohibited from working. Exceptions exist for newspaper delivery, acting, or agricultural work.

Minors Ages 14–15

• School Days: Max 3 hours per day / 18 hours per week.

• Non-School Days: Max 8 hours per day / 40 hours per week.

• Time: 7:00 AM – 7:00 PM (Extended to 9:00 PM from June 1 through Labor Day).

• Limit: Maximum 6 days per week.

Minors Ages 16–17

• Hours: There are no specific daily or weekly hour caps under state law (aligns with federal law).

• Hazardous Work: Prohibited from working in hazardous occupations (e.g., explosives, mining, power-driven machinery, exposure to radioactive substances).