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SUMMARY OF THE 2005 ACTS AND RESOLVES

ACT NO. 82

(S.80)

Labor; minimum wage; annual cost-of-living increase

This act sets the current minimum wage at $7.00 an hour and, beginning January 1, 2006, $7.25 an hour, 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 act did not change the current minimum wage of $3.65 an hour for a service or tipped employee.  A "service or tipped employee" means all those in either hotels, motels, tourist places, and restaurants, or 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.

Effective Date: July 1, 2005



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us