Blog · Payroll Management
Vermont Minimum Wage 2026: Rates & Rules
Vermont's 2026 minimum wage is $14.42 per hour, adjusted annually by a state formula, per the U.S. Department of Labor.
Because the rate moves each year and the state layers in its own overtime and paid sick leave requirements, Vermont payroll compliance takes more than checking a single number. Employers need a process for catching the annual adjustment and applying it alongside state-specific leave rules.
Vermont Minimum Wage Rate Table
| Jurisdiction | 2026 Minimum Wage |
|---|---|
| Vermont | $14.42 |
| Federal minimum wage | $7.25 |
| Vermont (scheduled change) | Adjusted annually by formula |
Overtime Rules in Vermont
Vermont requires overtime pay for hours worked over 40 in a workweek, at 1.5x the employee's regular rate. There is no daily overtime trigger under Vermont law.
Small-Employer Coverage
Vermont's minimum wage law generally applies to employers with 2 or more employees. Businesses near this threshold should confirm their specific coverage with the Vermont Department of Labor, since misclassifying employer size can lead to wage claims.
Paid Sick Leave and Family Leave
Vermont requires earned paid sick leave for employees. The state does not currently mandate a state-run paid family and medical leave (PFML) program, but a voluntary state PFML plan is available for employers who want to offer it.
Tipped Wages and Local Ordinances
Vermont permits a tip credit toward the minimum wage for tipped employees under state rules. Rules and any local variations can change, so always confirm current tipped-wage requirements with the state labor office contacts before setting pay rates.
What This Means for Payroll Compliance
Between the annual wage adjustment, the small-employer threshold, and mandatory paid sick leave, Vermont payroll compliance has several moving pieces that need to be tracked together, not in isolation. Multi-state employers face an even bigger challenge keeping every state's rules current at once.
This is exactly the kind of complexity BEG's managed payroll service is built to absorb. We track rate changes, thresholds, and leave requirements in every state where you have employees and apply them automatically, so nothing slips through.
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BEG manages payroll at $25-$45 per employee per month, all-inclusive. Get an instant cost comparison for your business.
Frequently Asked Questions
What is the minimum wage in Vermont in 2026?
Vermont's minimum wage in 2026 is $14.42 per hour, per the U.S. Department of Labor. The rate is adjusted annually by a state formula.
Does the Vermont minimum wage law apply to every employer?
Vermont's minimum wage requirements generally apply to employers with 2 or more employees. Very small operations may fall outside standard coverage; confirm your specific situation with the Vermont Department of Labor.
Does Vermont have its own overtime law?
Yes. Vermont requires overtime pay for hours worked over 40 in a workweek, generally following the same weekly-over-40 structure as federal law.
Does Vermont require paid sick leave?
Yes. Vermont requires earned paid sick leave for employees. Vermont does not currently mandate a state paid family and medical leave program, though a voluntary state PFML plan is available.
What should multi-state employers with Vermont workers watch for?
Because Vermont's rate adjusts annually and the state requires paid sick leave, multi-state employers should confirm the current wage and leave rules each year alongside requirements in their other work states.
Anthony leads payroll solutions at Business Executive Group, a national managed payroll firm serving businesses across industries. BEG manages payroll at $25-$45 PEPM, all-inclusive, with deep expertise in compliance, multi-state filing, and industry-specific payroll requirements. Get instant pricing at beghr.com.
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