Dealing With Unpaid Wages in Vermont

My employer hasn't paid me — here's what Vermont law says and what to do next.

Vermont Law

Statute: Vt. Stat. tit. 21, § 342

Deadline: 3 days

Penalty: Employer may be liable for the unpaid wages plus reasonable attorney fees and costs

What is dealing with unpaid wages?

The federal minimum wage is $7.25 per hour. Your employer must pay you at least this amount for every hour you work. Many states and cities have higher minimum wages — you're entitled to whichever is higher.

Tipped employees have a lower federal minimum ($2.13/hr), but your tips plus wages must equal at least $7.25/hr. If they don't, your employer must make up the difference.

What to Do If Your Employer Pays Below Minimum Wage

Step 1: Know your rate. Check your state and city minimum wage — it's often higher than the $7.25 federal rate.

Step 2: Calculate your actual hourly pay. Divide your total weekly pay by total hours worked. If it's below the minimum, you have a claim.

Step 3: Document everything. Save pay stubs, schedules, and any records of hours worked.

Step 4: File a complaint. Contact the DOL Wage and Hour Division or your state's labor department. Many employment attorneys handle wage cases on contingency.

How Vermont differs from federal law

Vermont has a minimum wage above the federal level, adjusted annually:

  • $13.67/hr as of January 2024, adjusted annually based on CPI
  • Vermont allows a limited tip credit — tipped employees can be paid $6.84/hr (50% of minimum wage) if tips bring total to minimum wage
  • There is a training wage for the first 30 days for tipped employees
  • No local jurisdictions have enacted higher minimums
  • Vermont was one of the first states to tie the minimum wage to CPI adjustments

Additional steps in Vermont

File wage complaints with the Vermont Department of Labor at (802) 828-0267 or labor.vermont.gov.

What you should NOT do

Don't accept illegal deductions. Your employer cannot deduct for cash register shortages, breakage, or uniforms if it would bring your pay below minimum wage.

Don't ignore tip credit violations. If you're a tipped employee and your tips + base pay don't reach $7.25/hr, your employer must pay the difference.

Don't sign away your rights. Any agreement to work for less than minimum wage is unenforceable under federal law.

Don't wait — the clock is ticking.

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This page is general legal information for Vermont, not legal advice for your specific situation. Laws change, and how a statute applies depends on facts we don't know. For advice on your matter, consult a licensed attorney in Vermont.

You came here to know your rights — help someone else know theirs.

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