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Introduced by Representatives Brooks of Montpelier, Moran of Wardsboro, Consejo of Sheldon, Deen of Westminster, Donovan of Burlington, Fisher of Lincoln, Fitzgerald of St. Albans City, French of Randolph, Godin of Milton, Haas of Rochester, Jewett of Ripton, Johnson of South Hero, Kitzmiller of Montpelier, Larson of Burlington, Lenes of Shelburne, Lorber of Burlington, Mrowicki of Putney, Obuchowski of Rockingham, Pearson of Burlington, Pugh of S. Burlington, Stevens of Shoreham, Trombley of Grand Isle, Weston of Burlington and Zuckerman of Burlington

Referred to Committee on


Subject:  Labor; minimum wage; minimum tip wage rate; definition of tipped employee; increase

Statement of purpose:  This bill proposes to increase the minimum tip wage rate and to adjust the definition of tipped employee to reflect contemporary economic reality.


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 $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 at a basic wage rate less than $3.65 an hour and, beginning January 1, 2008, less than $4.65 per hour, and on each January 1 thereafter, the basic tip wage rate shall increase at the same percentage rate as the minimum wage rate.  For the purposes of this subsection, “a service or tipped employee” means an employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $30.00 $200.00 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