Like federal law, Vermont law requires that employees be paid at one and a half times their regular rate of pay for any hours worked over 40 in any given workweek. Vermont’s overtime provision does not apply to anyone to whom the state’s minimum wage provision does not apply. In addition, the state’s overtime provision does not apply to any of the following employees to whom the state’s minimum wage does apply:

• Employees of any retail or service establishment
• Employees of amusement or recreational establishments that do not operate for more than seven months or that make the vast majority of their profits in a six-month period
• Hotel, motel, or restaurant employees
• Under certain circumstances, employees of hospitals, public health centers, nursing homes, maternity homes, therapeutic community residences and residential care homes
• Certain employees involved in the transportation of persons or property who are also exempt from FLSA requirements 
• Employees of a political subdivision of the state (public employees)
• State employees covered by federal wage-and-hour law

Vermont’s minimum wage is $14.01 per hour, higher than the federal minimum wage of $7.25 per hour. The minimum wage for tipped employees is $7.01 an hour. 

Tipped employees who regularly receive more than $120.00 per month in tips can be paid at a rate lower than the minimum wage, but under no circumstances can they be paid at less than the basic wage rate. Employers can take the tip credit for time spent on duties related to the tipped occupation, even if those duties don’t directly produce tips. However, if the employee spends more than 20% of their time on non-tipped duties, the employer can’t take the tip credit. See the Vermont website for more information.

Vermont law goes beyond federal law in that it requires employers to provide employees “reasonable opportunities” to eat and use the restroom. Breaks may be unpaid if they are less than 30 minutes. The law is not more specific than that, however.

If your employer owes you wages, you can electronically file a wage claim with the Vermont Department of Labor. 

Do not delay in contacting the Department of Labor to file a claim. There are strict time limits in which charges of wage-and-hour violations may be filed. In order for the Department to act on your behalf, you must file your wage claim within two years from the date on which your wages were due. However, as you might have other legal claims with shorter deadlines, do not wait to file your claim until your time limit is close to expiring. It may be helpful to consult with an attorney prior to filing your claim, but it is not necessary to have an attorney to file your claim with the Department.

If your employer has paid you less than the minimum wage, you can bring a lawsuit in court to recover twice the minimum wage, less any wages you were actually paid. The court may also require your employer to pay your litigation costs and attorneys’ fees. There appears to be a six-year statute of limitations on such actions, but this is not clear, and you should consult an attorney as soon as possible to consider filing suit. If your employer owes you wages (unrelated to minimum wage issues), you can also bring a lawsuit in court. In such a case, the court may award you twice the wages you are owed, as well as require your employer to pay your litigation costs and attorneys’ fees. The statute of limitations for such a claim is two years.