Vermont 2025-2026 Regular Session

Vermont House Bill H0347 Latest Draft

Bill / Introduced Version Filed 02/24/2025

                            BILL AS INTRODUCED 	H.347 
2025 	Page 1 of 6 
 
 
VT LEG #379441 v.1 
H.347 1 
Introduced by Representatives Logan of Burlington, Cina of Burlington, Cole 2 
of Hartford, Cordes of Bristol, Headrick of Burlington, Hooper 3 
of Burlington, McCann of Montpelier, McGill of Bridport, 4 
Priestley of Bradford, and Tomlinson of Winooski 5 
Referred to Committee on  6 
Date:  7 
Subject: Labor; employment practices; minimum wage and overtime  8 
Statement of purpose of bill as introduced:  This bill proposes to increase the 9 
minimum wage to $20.00 per hour, to repeal the exemption of agricultural 10 
workers from the applicability of the minimum wage laws, and to phase in 11 
overtime pay for agricultural workers.  This bill also proposes to eliminate the 12 
tipped minimum wage. This bill also proposes to set a minimum salary that an 13 
employee must earn to qualify as an executive, administrative, or professional 14 
employee for purposes of being exempt from the minimum wage and overtime 15 
laws. This bill also proposes to remove the authority of the Commissioner of 16 
Labor to recommend a subminimum wage for individuals with disabilities. 17 
This bill also proposes to remove the prospective repeal, effective July 1, 2026, 18 
of the Attorney General’s authority to investigate and enforce complaints of 19 
employee misclassification.    20  BILL AS INTRODUCED 	H.347 
2025 	Page 2 of 6 
 
 
VT LEG #379441 v.1 
An act relating to expanding coverage of the minimum wage and overtime 1 
laws and maintaining the authority of the Attorney General to enforce 2 
complaints of employee misclassification 3 
It is hereby enacted by the General Assembly of the State of Vermont:  4 
Sec. 1. 21 V.S.A. § 383 is amended to read: 5 
§ 383.  DEFINITIONS 6 
As used in this subchapter: 7 
(1)  “Commissioner” means the Commissioner of Labor or designee. 8 
(2)  “Employee” means any individual employed or permitted to work by 9 
an employer except: 10 
(A)  any individual employed in agriculture, provided the individual is 11 
the agricultural employer’s parent, spouse, or child; 12 
(B)  any individual employed in domestic service in or about a private 13 
home; [Repealed.] 14 
(C)  any individual employed by the United States;  15 
(D)  any individual employed in the activities of a public supported 16 
nonprofit organization, except laundry employees, nurses’ aides, or practical 17 
nurses; 18 
(E)  any individual employed in a bona fide executive, administrative, 19 
or professional capacity; 20 
(F)  any individual making home deliveries of newspapers or 21 
advertising; 22  BILL AS INTRODUCED 	H.347 
2025 	Page 3 of 6 
 
 
VT LEG #379441 v.1 
(G)  taxi-cab drivers; 1 
(H)  outside salespersons; and 2 
(I)  students working during all or any part of the school year or 3 
regular vacation periods. 4 
(3)  “Employer” means any person that employs two or more employees. 5 
(4)  “Occupation” means an industry, trade, or business or branch thereof 6 
or class of work in which workers are gainfully employed. 7 
(5)  An “individual employed in a bona fide executive, administrative, or 8 
professional capacity” means an individual who is paid a salary at least equal 9 
to $1,128,00.00 per week as of January 1, 2026.  On each subsequent January 10 
1, the salary threshold shall be increased by five percent or the percentage 11 
increase of the Consumer Price Index, CPI-U, U.S. city average, not seasonally 12 
adjusted, or successor index, as calculated by the U.S. Department of Labor or 13 
successor agency for the 12 months preceding the previous September 1, 14 
whichever is smaller, but in no event shall the salary threshold be decreased.  15 
Sec. 2.  21 V.S.A. § 384 is amended to read: 16 
§ 384.  EMPLOYMENT; WAGES 17 
(a)(1)  Beginning on January 1, 2022 2026, an employer shall not employ 18 
any employee at a rate of less than $12.55 $20.00 per hour, and on each 19 
subsequent January 1, the minimum wage rate shall be increased by five 20 
percent or the percentage increase of the Consumer Price Index, CPI-U, U.S. 21  BILL AS INTRODUCED 	H.347 
2025 	Page 4 of 6 
 
 
VT LEG #379441 v.1 
city average, not seasonally adjusted, or successor index, as calculated by the 1 
U.S. Department of Labor or successor agency for the 12 months preceding the 2 
previous September 1, whichever is smaller, but in no event shall the minimum 3 
wage be decreased.  The minimum wage shall be rounded off to the nearest 4 
$0.01. 5 
(2)  An employer in the hotel, motel, tourist place, and restaurant 6 
industry shall not employ a service or tipped employee at a basic wage rate less 7 
than one-half the minimum wage.  Beginning on January 1, 2026, an employer 8 
shall not employ a service or tipped employee at a basic wage of less than the 9 
minimum wage established pursuant to subdivision (1) of this subsection.  As 10 
used in this subdivision, “a service or tipped employee” means an employee of 11 
a hotel, motel, tourist place, or restaurant who customarily and regularly 12 
receives more than $120.00 per month in tips for direct and personal customer 13 
service. 14 
(3)  If the minimum wage rate established by the U.S. government is 15 
greater than the rate established pursuant to subdivision (1) of this subsection 16 
for any year, the minimum wage rate for that year shall be the rate established 17 
by the U.S. government. 18 
(b)  Notwithstanding subsection (a) of this section, an employer shall not 19 
pay an employee less than one and one-half times the regular wage rate for any 20  BILL AS INTRODUCED 	H.347 
2025 	Page 5 of 6 
 
 
VT LEG #379441 v.1 
work done by the employee in excess of 40 hours during a workweek.  1 
However, this subsection shall not apply to: 2 
* * * 3 
(9)(A)  Any individual employed in agriculture, provided the employee 4 
receives not less than one and one-half times the regular wage rate for any 5 
work done by the employee: 6 
(i)  in excess of 60 hours per week, effective January 1, 2026; 7 
(ii)  in excess of 56 hours per week, effective January 1, 2028; 8 
(iii)  in excess of 52 hours per week, effective January 1, 2030; 9 
(iv)  in excess of 48 hours per week, effective January 1, 2032; 10 
(v)  in excess of 44 hours per week, effective January 1, 2034; and 11 
(vi)  in excess of 40 hours per week, effective January 1, 2036. 12 
(B)  This subdivision (9) shall not apply if the individual is the 13 
agricultural employer’s parent, spouse, or child. 14 
* * * 15 
Sec. 3.  21 V.S.A. § 385 is amended to read: 16 
§ 385.  ADMINISTRATION 17 
The Commissioner and the Commissioner’s authorized representatives have 18 
full power and authority for all the following: 19 
* * * 20  BILL AS INTRODUCED 	H.347 
2025 	Page 6 of 6 
 
 
VT LEG #379441 v.1 
(5)  To recommend a suitable scale of rates for learners, and apprentices, 1 
and persons with disabilities, which may be less than the regular minimum 2 
wage rate for experienced workers without disabilities. 3 
Sec. 4. 2019 Acts and Resolves No. 85, Sec. 11 is amended to read: 4 
Sec. 11. REPEALS 5 
(a)  3 V.S.A. § 222d is repealed. 6 
(b)  21 V.S.A. §§ 346, 387, 712, and 1379 are repealed. 7 
Sec. 5.  EFFECTIVE DATE 8 
This act shall take effect on passage. 9