The State of Vermont has issued a revised poster informing employees of the 2025 Vermont minimum wage increase. The State Department of Labor’s Wage and Hour Division recently updated its "Minimum Wage for Vermont Employers and Workers" posting to reflect a minimum wage increase from $13.67 per hour to $14.01 per hour, which took effect on January 1st, 2025. To avoid possible fines, penalties, and citations, all affected employers should immediately post the notice where other Vermont state & federal labor law posters are commonly displayed in the workplace.
Why Did the Vermont Minimum Wage Increase for 2025?
The Vermont Department of Labor announced the thirty-four cent increase via a press release in October but didn't release the revised poster until early January. Title 21, Section 384 of the Vermont Statutes (21 V.S.A. 384) requires an annual adjustment to the state’s minimum wage based on changes to the Consumer Price Index (CPI-U) for the previous 12-month period ending September 30. By law, the annual increase must equal at least five percent of the prior minimum wage. Vermont is one of several states that adjust their minimum wage annually for inflation and has done so since 2007.
What Is the Vermont Tipped Minimum Wage in 2025?
The tipped minimum wage for Vermont in 2025 has increased from $6.84 per hour to $7.01 per hour. It only applies to "service and tipped employees" and is also known as the "basic wage rate." Under Vermont law, a service or tipped employee includes any hotel, motel, tourism, or restaurant employee who regularly receives more than $120 monthly in tips.
The $7.01 minimum wage for tipped workers and service workers allows employers to apply a tip credit of up to $7.00 to equal the required wage rate for non-tipped employees of $14.01. When a covered employee fails to earn enough in tips for their hourly rate to equal the non-tipped minimum wage, the employer must pay the difference. This additional compensation ensures that the worker earns at least the minimum wage for all hours worked within a given week or pay period.
Employer Takeaways
Vermont employers with 2 or more employees on payroll must post the revised 2025 Vermont minimum wage poster to inform all affected employees of the increased minimum wage rates, which took effect on January 1st, 2025. Affected businesses must post this notice in areas frequented by employees during the workday. Adjustments to employee compensation to comply with the new minimums must have occurred on or before January 1.
Labor Law Posters Online's updated 2025 Vermont Labor Law Posters now includes the recently released Minimum Wage notice. Our all-on-one compliance resources are guaranteed to include all recent changes to any required state and federal notices, including the Vermont Expanded Unpaid Leave Poster Update (Act 32, 2025). Current Labor Law Posters Online subscribers who purchased an annual poster update program will automatically receive the revised 2025 notice via U.S. mail.
