By Payroll and Entitlements Editorial Staff
The Vermont General Assembly voted to override Governor Phil Scott’s veto of legislation that originally proposed to increase the state minimum wage to $15 an hour by January 2024.
The Vermont House on February 25 overruled the Governor’s veto of S. 23 by a vote of 100 to 49. A two-thirds vote of 100 was required. Earlier, on February 13, the Senate voted to pass the measure over the Governor’s veto by a vote of 24 to 6.
Under Senate Bill 23, as amended, the minimum wage will increase to $11.75 in 2021 and $12.55 in 2022 and then ties to inflation in future years. The state minimum wage is currently $10.96 per hour.
After 2022, the bill provides for the minimum wage to increase each January 1 by 5% or the percentage increase in 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 preceding the previous September 1, whichever is smaller, but in no case shall the minimum wage be decreased. The minimum wage rate is to be rounded off to the nearest $0.01.
For service and tipped employees of a hotel, motel, tourist place or restaurant industry who customarily and regularly receive more than $120 per month in tips for direct and personal customer service, employers must pay at least one-half of the minimum wage rate.
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