The Vermont minimum wage in 2010 will stay at $8.06 per hour, according to the Vermont Department of Labor. This is good news for employers in a state where the minimum wage normally increases every year.
For tipped employees who regularly earn at least $120 per month in tips for direct and personal service, the basic wage will also remain stable at $3.91 per hour. However, their total earnings from wages and tips during a pay period must equal or exceed $8.06 per hour. If the combined amount of the basic wage and tips does not meet that requirement, the employer must pay the difference in direct wages.
Under state law, the Vermont minimum wage increases each year based on the Consumer Price Index or CPI, and the increase each year is limited to a maximum of 5%. According to a press release issued by the Vermont Department of Labor, the cost of living fell by 1.5% between September 1, 2008 and August 31, 2009. Vermont law does not allow the minimum wage to decline, so it will remain the same as for 2009, at $8.06 per hour.
“A steady minimum wage reflects our economic times, “according to Labor Commissioner Patricia Moulton Powden. “The cost of living has fallen and the ability of employers to increase pay is limited by the recession.”
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