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NO. 82.  AN ACT RELATING TO INCREASING THE MINIMUM WAGE.

(S.80)

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:

(a)  An employer shall not employ an employee at a rate less than $6.25 an hour, beginning on January 1, 2004 at a rate less than $6.75 an hour, and beginning on January 1, 2005 at a rate less than $7.00 an hour and, beginning January 1, 2006, at a rate less than $7.25, and, beginning January 1, 2007, and on each subsequent January 1, the minimum wage rate shall be increased by five percent or the percentage increase of the Consumer Price Index, CPI-U, U.S. city average, not seasonally adjusted, or successor index, as calculated by the U.S. Department of Labor or successor agency for the 12 months preceding the previous September 1, whichever is smaller.  The minimum wage shall be rounded off to the nearest $0.01.  An employer in the hotel, motel, tourist place, and restaurant industry shall not employ a service or tipped employee beginning on January 1, 2004 at a basic wage rate less than $3.58 an hour, beginning on January 1, 2005 at a basic wage rate less than $3.65 an hour and thereafter at a rate to be determined when the minimum wage is increased.  For the purposes of this subsection, “a service or tipped employee” means all those, in either hotels, motels, tourist places, and restaurants an employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $30.00 per month in tips for direct and personal customer service.  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.

Approved:  June 28, 2005



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us