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H.266

Introduced by   Representatives Donovan of Burlington, Aswad of Burlington, Dowland of Holland, Haas of Rochester, Head of S. Burlington, Kiss of Burlington, Larson of Burlington, Lorber of Burlington, Randall of Troy, Seibert of Norwich, Tracy of Burlington and Zuckerman of Burlington

Referred to Committee on

Date:

Subject:  Labor; minimum wage

Statement of purpose:  This bill proposes to increase the minimum wage and the basic tip rate in concert with increases in the cost of living and to increase the amount of monthly tips that an employee must receive in order to be considered a tipped employee.

AN ACT RELATING TO A LIVABLE WAGE

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

Sec. 1.  FINDINGS

The general assembly finds the following:

(1)  The Act 21 Research and Analysis in Support of the Livable Income Study Committee report issued on November 9, 1999, is now five years old, and its findings and conclusions are based on information that is at least six years old.

(2)  The study concluded, among other things, that increasing the state minimum wage in 1999 to $7.00 per hour would have had a minimal disemployment impact on working Vermonters or on the Vermont economy.

(3)  If the minimum wage had been increased to keep pace with inflation since 1969, the minimum wage would now be $8.00.

Sec. 2.  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 $7.50 per hour, and beginning on January 1, 2007, at a rate less than $8.00 an hour.  On January 1, 2008, the minimum wage rate that an employer offers shall be increased by five percent or a percent based on the Consumer Price Index, CPI-U, U.S. city average, not seasonally adjusted, or a successor index, as calculated by the U.S. Department of Labor, or successor agency, for the 12 months ending the previous September 30, whichever is smaller.  The minimum wage rate shall not be decreased in a year of deflation.  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 increasedBeginning on January 1, 2008, the basic wage rate for tipped employees shall be increased by five percent or by the same percentage rate as the minimum wage rate, whichever is smaller.  The basic wage rate for tipped employees shall not be decreased in a year of deflation.  For the purposes of this subsection “a service or tipped employee,” means all those, in either hotels, motels, tourist places, and restaurant an employee in a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $30.00 $100.00 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.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us