Code of Vermont Rules › Agency 24 - DEPARTMENT OF LABOR › Sub-Agency 090 - WAGE AND HOUR PROGRAM › Chapter 003 - MINIMUM WAGE › Section 24 090 003 - MINIMUM WAGE

Current through June, 2024
Section I Authority
Issued by Authority of and under the provisions of Subchapter
				3, Chapter 5, Title 21; Vermont Statutes Annotated as amended by No. 244 of the
				Acts of 1978, No. 82 of the Acts of 2005, No. 78 of the Acts of 2007, and No.
				182 of the Acts of 2008. These rules supersede and replace Wage Orders Number 1
				and 2.
Section II
			 Application
Minimum wage rules are applicable to all employers of two or
				more persons unless the employee is specifically exempt under
				21 V.S.A. §
											383(2).
Section III Definitions
1. Commissioner. The Commissioner of
			 Labor.
2. Employer. One who employs
			 two or more persons.
3. Employee.
			 Any individual employed or permitted to work by an employer.
4. Non-service Employees. Employees in
			 hotels, motels, tourist places or restaurants who do not regularly receive more
			 than $ 120.00 per month in tips.
5.
			 Service or Tipped Employees. Employees in hotels, motels, tourist places or
			 restaurants who customarily and regularly receive more than $ 120.00 per month
			 in tips for direct and personal customer service. See
			 21 V.S.A. §
											384(a). Examples of such
			 employees include waiters, waitresses, bartenders, housekeepers,
			 counter-servers, and bellhops.
6.
			 Occupation. Any industry, trade or business or branch thereof, or class of work
			 therein in which the worker is gainfully employed, specifically including the
			 cosmetology business.
7. Hotel or
			 Motel. Any establishment, including an Inn, Cabin, Lodge, Bed and Breakfast or
			 Resort, which as a whole or part of its business activities offers lodging
			 accommodations for hire to the public or to members or guests of its members,
			 and services in connection thereto.
8. Restaurant. Any establishment conducting
			 any activity directly connected with the preparation and serving of food to the
			 public for pay, and where lodging is not furnished for pay.
9. Tourist Industry. An amusement or
			 recreational establishment that,
a) does not
			 operate for more than seven months in any calendar year, or
b) during the preceding calendar year, had
			 average receipts for any six months of that year that were not more than one
			 third of its average receipts for the other six months of the year.
10. Basic Wage Rate. The minimum
			 hourly portion of the minimum wage which an employer subject to these rules
			 must pay service or tipped employees, provided however that in any week in
			 which a service or tipped employee does not receive and retain sufficient tips
			 to meet or exceed the minimum wage, the employer must contribute the additional
			 amount necessary to raise the employee's hourly earnings to at least the
			 minimum wage.
11. Tip. A sum of
			 money gratuitously and voluntarily left by a customer for service, or indicated
			 on the bill or the charge statement, to be paid to service or tipped employees
			 for directly and personally serving that customer in a hotel, motel, tourist
			 place or restaurant. Note: An employer mandated service charge is not a
			 tip.
12. Tip Credit. The amount of
			 a service or tipped employee's actual hourly average tip earnings received and
			 retained by the service or tipped employee during the work week (not to exceed
			 seven days) which an employer may credit toward the obligation to pay the
			 service or tipped employee the prevailing minimum wage, not to exceed the
			 smaller of either the amount set forth in the schedule below or the average
			 hourly amount of tips actually earned and retained by such employee, as
			 computed on a work week basis.