Effective January 1, 2014, Vermont’s minimum wage will increase from $8.60 to $8.73 per hour for non-exempt employees, the Vermont Department of Labor announced. For service or tipped employees, the minimum cash wage will increase from $4.17 to $4.23 per hour, and the maximum tip credit an employer may take will increase from $4.43 to $4.50 per hour.
Vermont is one of nine states (the others being Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, and Washington) that by law must evaluate and possibly adjust its minimum wage on an annual basis, to be effective January 1 the following year. (Nevada also examines its minimum wage annually, with an updated minimum wage bulletin published by April 1 and the updated minimum wage effective July 1.) Notably, unlike other states, Vermont prohibits the minimum wage from decreasing.