Vermont FLSA Laws: Your Guide to Compliance
Keep Your Business Compliant with Vermont-Specific FLSA Auditing
Minimum Wage in Vermont
- Federal FLSA: $7.25/hour.
- Vermont Law: $13.67/hour (non-tipped) as of January 1, 2024, with annual CPI adjustments—$14.08/hour effective January 1, 2025 (Vermont Statutes, Title 21, § 384). Tipped employees: $7.04/hour with a $7.04 tip credit (half the state minimum).
- What You Need to Know: Higher state rate applies—violations can lead to double damages and fines up to $5,000.
Overtime Pay
- Federal FLSA: 1.5x regular rate for hours over 40/week.
- Vermont Specifics: Matches federal 40-hour rule. Overtime based on state minimum wage ($21.12/hour in 2025). No fluctuating workweek method allowed (Vermont Statutes, Title 21, § 384).
- Risk: Misclassifying exempt employees or skipping overtime can trigger state or DOL penalties.
Child Labor
- Vermont Rules: Minors under 14 restricted to limited roles; 14–15 capped at 3 hours/school day, 8 hours/non-school day; 16–17 barred from hazardous jobs. Work permits required under 16 (Vermont Statutes, Title 21, § 431–451).
- Federal FLSA: Aligns, but Vermont’s permit rule for under 16 is stricter—state law applies.
Recordkeeping
- Federal FLSA: 3-year retention of payroll and hours records.
- Vermont Addition: 3 years minimum, with weekly pay stubs required showing hours, wages, and deductions (Vermont Statutes, Title 21, § 396).
Enforcement & Penalties
- Federal: DOL penalties, back wages, up to $1.2M average for violations.
- Vermont: Double damages for unpaid wages, fines up to $5,000 per violation, enforced by Vermont DOL (Vermont Statutes, Title 21, § 342).
Why It Matters for Your Business
- CFOs and Managers: Vermont’s rising minimum wage and strict overtime rules increase payroll complexity. A single error—like misapplied tip credits—could cost thousands in fines or lawsuits.
- Avoid Costly Mistakes: Protect your bottom line with expert FLSA auditing tailored to Vermont laws.
Schedule Your Vermont FLSA Audit Today
