Vermont Minimum Wage Calculator
Vermont’s 2026 minimum is $14.42 per hour, with $7.21 basic cash for qualifying tipped hospitality work. A restaurant or retail job can be exempt from Vermont’s state overtime rule while remaining covered by federal overtime.
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Weekly gross including tips—
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- Hourly floor—
- Per workday—
- Weekly gross—
- Monthly average—
- Yearly gross—
- Employer cash before shortfall
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- Weekly tips retained
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- Employer shortfall payment
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- Total employer cash
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Overtime uses the full regular rate before subtracting a permitted tip credit. The employer must cover a weekly tip shortfall within the selected scope. This floor scenario does not calculate pay at a higher agreed rate. Per-workday pay divides the week by the days with hours. Annual figures repeat the rounded weekly result.
Reviewed rate period: 2026-01-01 through 2027-12-31. Gross earnings before taxes or deductions. Annual figures repeat this weekly scenario; they do not combine different rate periods.
Reviewed October 2, 2026. Vermont DOL published rates · 21 V.S.A. §384 wage and overtime rules.
State minimum coverage starts with employer and worker definitions
The state act defines an employer as a person employing two or more employees. It also excludes specified categories, including agriculture, private-home domestic service and students working during the school year or regular vacations. Those exclusions do not erase any independent federal right. This calculator requires ordinary adult nonstudent state-minimum coverage; it does not determine exemptions from a job title. §383 definitions.
Retail and hospitality need a separate overtime check
Section 384 exempts hotels, motels and restaurants from state weekly overtime, as well as qualifying retail/service establishments. Federal coverage can still require overtime after 40 hours. A small business cannot assume it is outside the FLSA without considering individual employee coverage. State exceptions · Federal coverage.
| Full-cash scenario at $14.42 | Overtime after 40 applies | Confirmed state exception and no federal overtime |
|---|---|---|
| 40 hours | $576.80 | $576.80 |
| 45 hours | $684.95 | $648.90 |
| 50 hours | $793.10 | $721.00 |
The second column pays a half-rate premium above straight time for each overtime hour. The last column is only available after coverage has been confirmed. It is not an employer election to avoid overtime.
The tipped rate is limited to qualifying hospitality service
The state’s definition covers direct personal customer service at a hotel, motel, tourist place or restaurant, with customary tips exceeding $120 per month. Receiving an occasional tip in another occupation does not establish eligibility. Select full cash if those conditions are not met. §384(a)(2).
For 40 eligible hours with $200 retained tips, employer cash starts at $288.40 and needs an $88.40 adjustment. Combined gross is $576.80. With 45 hours, $400 tips and federal overtime, employer cash is $360.50 and gross is $760.50. Under the confirmed state-only hospitality scenario, the same hours and tips instead give $324.45 cash and $724.45 gross.
Federal overtime uses the full regular rate before a permitted credit. A compulsory service charge is not a voluntary tip and can affect that rate; those distributions and bonuses are excluded here. Federal tip-credit and service-charge treatment.
Compare the increase from 2025 without mixing rate years
The state published $14.01 and $7.01 basic tipped cash for 2025, compared with $14.42 and $7.21 for 2026. Forty hours at full cash rose from $560.40 to $576.80, a $16.40 weekly difference. The historical tipped figure is the published rounded rate; this calculator uses only the reviewed 2026 amounts. DOL current and prior-year posters.
The statutory annual adjustment is capped by its inflation formula. As of October 13, 2026 the Department of Labor’s wage page lists only the rate effective January 1, 2026 ($14.42, with $7.21 for tipped employees), so for work dates from January 1, 2027 the calculator asks for the official 2027 amount instead of forecasting one. Vermont Department of Labor wage information · §384(a)(1) annual adjustment.
Annual gross depends on how many weeks you work
A 40-hour week repeated for 52 weeks gives $29,993.60, averaging $2,499.47 monthly. Thirty hours for 40 weeks gives $17,304. The result does not include taxes, paid leave or a different holiday schedule. A higher agreed wage also requires a different calculation.
Compare New Hampshire’s hospitality cash rate, New York’s regional and occupational rules and Massachusetts’s shift-by-shift tipped adjustment, or Maine’s Portland and Rockland rates. Sources · Methodology.
Updated First published