Wage-and-hour ground rules for hotel and hospitality employers in Vermont — minimum wage, tipped-employee rules, overtime, breaks, premium pay, and the hotel-specific obligations that apply on top. Figures below were last reviewed on June 12, 2026; most rates adjust annually.
Verified as of June 12, 2026 — every figure on this page was checked against the official sources listed at the bottom on that date. How we verify →
Minimum wage#
The Vermont minimum wage is $14.42 per hour, effective January 1, 2026. Adjusted each Jan. 1 by CPI, capped at 5% (21 V.S.A. §384). 2026: $14.01 → $14.42 (+$0.41). Applies to employers of two or more employees.
Tipped employees & tip pooling#
Vermont allows a tip credit: employers may pay tipped employees a cash wage of $7.21 and claim up to $7.21 per hour in tips toward the minimum wage. 'Service or tipped employee' = an employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $120/month in tips. Basic tipped wage rate is statutorily set at 50% of the full minimum wage (21 V.S.A. §384(a)), so it rises automatically — $7.21 for 2026. The definition is hospitality-specific: hotels are the core covered industry.
Tip pooling#
No detailed state pooling statute; FLSA governs — pools among customarily tipped staff valid, managers/supervisors excluded, BOH only when no tip credit is taken. (29 U.S.C. §203(m)(2)(B))
See the federal baseline rules in our tip credit and tip pooling briefs — the stricter of federal or Vermont law controls.
Overtime#
Overtime is due after 40 hours in a workweek. State OT is 1.5× over 40 (21 V.S.A. §384(b)), BUT employees of hotels, motels, tourist places, and restaurants are EXEMPT from the state overtime requirement — federal FLSA overtime still applies to virtually all hotels, so the practical effect is that FLSA (not state) OT rules govern.
Run the math — including the tipped-overtime trap — with the tipped overtime calculator.
Meal & rest breaks#
Meal breaks: Employees must be given 'reasonable opportunities' during work periods to eat and use toilet facilities (no fixed duration or timing); breaks under 30 minutes generally must be paid. (21 V.S.A. §304)
Rest breaks: Covered by the same 'reasonable opportunities' standard (21 V.S.A. §304); no defined 10-minute schedule. (21 V.S.A. §304)
Scheduling & premium pay#
- Reporting-time pay: None required by state law.
- Split-shift premium: None.
- Spread of hours: None.
Service charges & gratuities#
Vermont has no service-charge-specific statute — the federal tip/service-charge line (and IRS treatment) controls. Background: service charges, auto-gratuities & resort fees.
Pay administration#
- Pay frequency: Weekly by default; biweekly or semimonthly permitted after written notice to employees (21 V.S.A. §342).
- Wage statements: Statement of hours, rates, gross pay, and itemized deductions due with each wage payment (VDOL guidance under 21 V.S.A. ch. 5). (21 V.S.A. §342)
- Exempt salary floor: $684.00/week (federal) — No state EAP salary floor above federal $684/week.
- Lodging credit: Board, lodging, and other facilities may be allowed against minimum wage at amounts set by VDOL wage order/rule; verify current allowance amounts with VDOL before crediting seasonal/resort housing (common at VT ski resorts).
Hospitality-centric tipped definition ($120/month, hotel/motel/tourist place/restaurant) and the hotel exemption from STATE overtime are the two Vermont quirks; FLSA overtime still applies. Seasonal ski/resort employers should document tip records and any housing credits carefully. No local minimum wages exist (no express preemption statute identified; none enacted locally).
Official sources#
- Vermont Dept. of Labor — Wage & Hour
- 21 V.S.A. §384(a)(1) — CPI adjustment capped at 5% (accessed 2026-06-12)
- VDOL press release — minimum wage increase starting January 2026 (accessed 2026-06-12)