Bill > S0128

This bill proposes significant changes to Vermont's labor and wage laws by expanding worker protections and minimum wage requirements. The bill eliminates several exemptions from minimum wage and overtime regulations, including removing exclusions for domestic service workers, newspaper delivery workers, taxi drivers, outside salespersons, and students. It substantially increases the minimum wage from $12.55 to $25.00 per hour, effective January 1, 2026, with annual adjustments based on the Consumer Price Index. The legislation also eliminates the tipped minimum wage, requiring service and tipped employees in the hospitality industry to be paid the full minimum wage starting in 2026. Additionally, the bill mandates that inmates in Vermont's correctional facilities be paid at least the state minimum wage for work performed, with the Department of Corrections required to update its wage policies by January 1, 2026 to comply with this requirement. The bill aims to provide more comprehensive wage protections for workers across various sectors and ensure fair compensation for all employees, including those in traditionally lower-paid or exempt categories. The changes will take effect on July 1, 2025, giving employers and correctional facilities time to adjust to the new wage requirements.

Housing and Urban Affairs

https://legislature.vermont.gov/bill/status/2026/S.128