At a glance
- Minimum wage: $14.42 an hour.
- Tipped cash wage: $7.21.
- Overtime: after 40 hours in a workweek.
- Final paycheck if fired: within 72 hours.
- Paid sick leave: Yes. Paid family leave program: Voluntary.
What Vermont employers need to know
Vermont's minimum wage rises each January with inflation, and the tipped cash wage is half the minimum. The state requires earned sick time from every employer, reasonable meal and restroom opportunities, and pay ranges in job postings for employers with 5 or more employees. Vermont also has one of the shortest new hire reporting deadlines: 10 days from the first day of work.
Vermont minimum wage
| Minimum wage | $14.42 |
|---|---|
| Tipped cash wage | $7.21 |
| Next change | Inflation adjustment (rate announced by the Vermont Department of Labor) on January 1, 2027 |
Pay the highest rate that applies where the employee works: federal, state, or local. For comparison, neighboring states pay New York ($17.00), New Hampshire ($7.25), Massachusetts ($15.00). See every state side by side in our minimum wage by state table, and convert between hourly and annual pay with the salary to hourly calculator.
Vermont overtime rules
The federal FLSA rule applies: overtime at 1.5 times the regular rate after 40 hours in a workweek. There is no daily overtime rule.
Exempt salary test: the federal minimum of $684 a week ($35,568 a year) applies. Duties tests apply too, so job titles alone don't make someone exempt.
Work out overtime owed with our overtime calculator, compare states in overtime laws by state, and check classification with our guide to exempt vs non-exempt employees.
Vermont meal and rest break laws
Meal breaks: No fixed length, but employees must get reasonable opportunities during work periods to eat and use the restroom.
Rest breaks: No state rest break law for adults. Under federal law, short breaks of 5 to 20 minutes that you choose to give must be paid.
Many states have stricter break rules for minors. Compare adult rules nationwide in break laws by state, and total up shifts with the time card calculator.
Vermont final paycheck law
| If you fire or lay off the employee | Within 72 hours. |
|---|---|
| If the employee quits | By the next regular payday, or the following Friday if there is no regular payday. |
| Unused vacation or PTO | Not required by state law. Follow your written policy or contract, and apply it consistently. |
Build the deadline into your offboarding checklist. Our offboarding guide covers the full process, the PTO payout calculator works out the amount, and the final paycheck laws by state table compares every state.
Vermont paid sick leave and family leave
Paid sick leave: Earned Sick Time: 1 hour for every 52 hours worked, up to 40 hours a year.
Paid family and medical leave: No mandatory program. Vermont's voluntary Family and Medical Leave Insurance program lets employers buy coverage, and individuals can enroll.
Federal FMLA: employers with 50 or more employees within 75 miles must also give eligible employees up to 12 weeks of unpaid, job-protected leave. Read our FMLA guide, and compare states in paid leave laws by state.
Hiring, pay transparency, and payroll setup
Pay transparency: Required for employers with 5 or more employees since July 1, 2025: pay range in job postings.
New hire reporting: Report each new hire within 10 days, shorter than the federal 20-day deadline.
State income tax withholding: Yes. Register with the state tax agency before the first payroll.
Our pay transparency laws guide explains posting rules in more depth, and our job description templates include pay data for 50 common roles.
What trips up Vermont employers
- Report new hires within 10 days of the first day of work.
- Final pay for terminated employees is due within 72 hours.
- Pay ranges are required in postings for employers with 5 or more employees.
Sources and the agency to contact
- Vermont Department of Labor (state labor agency)
- US Department of Labor: state minimum wage laws
- US Department of Labor: minimum wages for tipped employees by state
- US Department of Labor: state meal period requirements
General information for US employers, not legal advice. Laws change and have exceptions by industry, employer size, and city. Confirm current rules with the state agency or employment counsel before you rely on them.
Cite or share this data
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<a href="https://www.hrtally.com/state-labor-laws/vermont/">Vermont labor laws for employers (2026)</a> (source: HRTally)
Suggested citation: HRTally Research Team. "Vermont labor laws for employers (2026)." HRTally, updated October 20, 2026. https://www.hrtally.com/state-labor-laws/vermont/
Frequently asked questions
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Written by the HRTally Research Team
Our guides are written and reviewed by people with hands-on US HR, payroll, and HR technology experience. Legal and tax facts are checked against primary sources, such as the Department of Labor, IRS, EEOC, and USCIS, and linked at the end of each guide. Vendors never review or pay for our editorial content.