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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Showing posts with label Vermont Minimum Wage. Show all posts
Showing posts with label Vermont Minimum Wage. Show all posts
Monday, January 04, 2010
Monday, November 17, 2008
Vermont Minimum Wage to Increase to $8.06 on January 1, 2009
The state of Vermont will increase its minimum wage to $8.06 per hour effective January 1, 2009. The service or tipped employee basic wage will also increase to $3.91 per hour. The state minimum wage is subject to cost-of-living adjustments each year based on the CPI.
Governor James H. Douglas announced recently that, according to Title 21 of the Vermont Statutes, the state of Vermont will increase the minimum wage to $8.06 per hour effective January 1, 2009.
The law requires an adjustment to the minimum wage be calculated each year based on the change in the federal Consumer Price Index, US city average, not seasonally adjusted, for the 12 months ending in August, and cannot increase more than five percent per year. The 5.4% increase in the CPI-U will result in an increase of at most five percent, or $0.38, for 2009.
Governor James H. Douglas announced recently that, according to Title 21 of the Vermont Statutes, the state of Vermont will increase the minimum wage to $8.06 per hour effective January 1, 2009.
The law requires an adjustment to the minimum wage be calculated each year based on the change in the federal Consumer Price Index, US city average, not seasonally adjusted, for the 12 months ending in August, and cannot increase more than five percent per year. The 5.4% increase in the CPI-U will result in an increase of at most five percent, or $0.38, for 2009.
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