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NO. 4. AN ACT RELATING TO MINIMUM WAGE

(H.8)

It is hereby enacted by the General Assembly of the State of Vermont:

Sec. 1. 21 V.S.A. § 384(a) is amended to read:

§ 384. PROHIBITION OF EMPLOYMENT

(a) An employer shall not employ an employee at a rate less than *[$4.75 an hour, and after January 1, 1997, at a rate less than]* $5.00 an hour and after *[January 1, 1998]* June 30, 1997, at a rate less than $5.15 an hour and after September 30, 1997, at a rate less than $5.25 an hour. If the minimum wage rate established by the United States government is greater than the rate established for Vermont for any year, the minimum wage rate for that year shall be the rate established by the United States government. *[The minimum wage required under this subsection shall not be required for the first 90 calendar days of employment for employees who:]*

*[(1) have no prior experience at the type of job in question; and]*

*[(2) are not displacing other workers.]*

*[During this 90-day period, the employer shall pay the employee not less than $4.75.]*

Sec. 2. RULE CHANGE; MINIMUM WAGE ORDER; TIP CREDIT RATE

The Commissioner of Labor and Industry shall adopt rules to be effective July 1, 1997, to amend the minimum wage order affecting the hotel, motel, tourist place and restaurant industry by making the tip credit rate 45 percent of the state minimum wage rate, thereby establishing the state basic wage rate as $2.83 after June 30, 1997, and $2.89 after

September 30, 1997.

Approved: April 2, 1997