1 | 1 | | BILL AS INTRODUCED S.128 |
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2 | 2 | | 2025 Page 1 of 5 |
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4 | 4 | | |
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5 | 5 | | VT LEG #380181 v.1 |
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6 | 6 | | S.128 1 |
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7 | 7 | | Introduced by Senators Vyhovsky and White 2 |
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8 | 8 | | Referred to Committee on 3 |
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9 | 9 | | Date: 4 |
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10 | 10 | | Subject: Labor; public institutions and corrections; employment practices; 5 |
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11 | 11 | | employment of inmates; minimum wage; overtime; exemptions 6 |
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12 | 12 | | Statement of purpose of bill as introduced: This bill proposes to reduce the 7 |
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13 | 13 | | number of exemptions from Vermont’s minimum wage and overtime law, to 8 |
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14 | 14 | | eliminate the tipped minimum wage, to increase the minimum wage, and to 9 |
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15 | 15 | | require that inmates in Vermont’s correctional institutions be paid at least the 10 |
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16 | 16 | | Vermont minimum wage for any work performed. 11 |
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17 | 17 | | An act relating to eliminating certain exemptions from the minimum wage 12 |
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18 | 18 | | and overtime, including the tipped minimum wage; increasing the minimum 13 |
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19 | 19 | | wage; and requiring that inmates receive the minimum wage for work 14 |
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20 | 20 | | performed 15 |
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21 | 21 | | It is hereby enacted by the General Assembly of the State of Vermont: 16 |
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22 | 22 | | Sec. 1. 21 V.S.A. § 383 is amended to read: 17 |
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23 | 23 | | § 383. DEFINITIONS 18 |
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24 | 24 | | As used in this subchapter: 19 |
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25 | 25 | | (1) “Commissioner” means the Commissioner of Labor or designee. 20 BILL AS INTRODUCED S.128 |
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26 | 26 | | 2025 Page 2 of 5 |
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28 | 28 | | |
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29 | 29 | | VT LEG #380181 v.1 |
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30 | 30 | | (2) “Employee” means any individual employed or permitted to work by 1 |
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31 | 31 | | an employer except: 2 |
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32 | 32 | | (A) any individual employed in agriculture, provided the individual is 3 |
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33 | 33 | | the agricultural employer’s parent, spouse, or child; 4 |
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34 | 34 | | (B) any individual employed in domestic service in or about a private 5 |
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35 | 35 | | home; 6 |
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36 | 36 | | (C) any individual employed by the United States; or 7 |
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37 | 37 | | (D) any individual employed in the activities of a public supported 8 |
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38 | 38 | | nonprofit organization, except laundry employees, nurses’ aides, or practical 9 |
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39 | 39 | | nurses; 10 |
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40 | 40 | | (E)(C) any individual employed in a bona fide executive, 11 |
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41 | 41 | | administrative, or professional capacity; 12 |
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42 | 42 | | (F) any individual making home deliveries of newspapers or 13 |
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43 | 43 | | advertising; 14 |
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44 | 44 | | (G) taxi-cab drivers; 15 |
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45 | 45 | | (H) outside salespersons; and 16 |
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46 | 46 | | (I) students working during all or any part of the school year or 17 |
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47 | 47 | | regular vacation periods. 18 |
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48 | 48 | | (3) “Employer” means any person that employs two or more employees. 19 |
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49 | 49 | | (4) “Occupation” means an industry, trade, or business or branch thereof 20 |
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50 | 50 | | or class of work in which workers are gainfully employed. 21 BILL AS INTRODUCED S.128 |
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51 | 51 | | 2025 Page 3 of 5 |
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52 | 52 | | |
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53 | 53 | | |
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54 | 54 | | VT LEG #380181 v.1 |
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55 | 55 | | Sec. 2. 21 V.S.A. § 384 is amended to read: 1 |
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56 | 56 | | § 384. EMPLOYMENT; WAGES 2 |
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57 | 57 | | (a)(1) Beginning on January 1, 2022 2026, an employer shall not employ 3 |
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58 | 58 | | any employee at a rate of less than $12.55 $25.00 per hour, and on each 4 |
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59 | 59 | | subsequent January 1, the minimum wage rate shall be increased by five 5 |
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60 | 60 | | percent or the percentage increase of the Consumer Price Index, CPI-U, U.S. 6 |
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61 | 61 | | city average, not seasonally adjusted, or successor index, as calculated by the 7 |
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62 | 62 | | U.S. Department of Labor or successor agency for the 12 months preceding the 8 |
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63 | 63 | | previous September 1, whichever is smaller, but in no event shall the minimum 9 |
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64 | 64 | | wage be decreased. The minimum wage shall be rounded off to the nearest 10 |
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65 | 65 | | $0.01. 11 |
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66 | 66 | | (2) An employer in the hotel, motel, tourist place, and restaurant 12 |
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67 | 67 | | industry shall not employ a service or tipped employee at a basic wage rate less 13 |
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68 | 68 | | than one-half the minimum wage. Beginning on January 1, 2026, an employer 14 |
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69 | 69 | | shall not employee a service or tipped employee at a basic wage of less than 15 |
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70 | 70 | | the minimum wage established pursuant to subdivision (1) of this subsection. 16 |
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71 | 71 | | As used in this subdivision, “a service or tipped employee” means an employee 17 |
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72 | 72 | | of a hotel, motel, tourist place, or restaurant who customarily and regularly 18 |
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73 | 73 | | receives more than $120.00 per month in tips for direct and personal customer 19 |
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74 | 74 | | service. 20 |
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75 | 75 | | * * * 21 BILL AS INTRODUCED S.128 |
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76 | 76 | | 2025 Page 4 of 5 |
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78 | 78 | | |
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79 | 79 | | VT LEG #380181 v.1 |
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80 | 80 | | Sec. 3. 28 V.S.A. § 751b is amended to read: 1 |
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81 | 81 | | § 751b. GENERAL PROVISIONS GOVER NING OFFENDER WORK 2 |
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82 | 82 | | * * * 3 |
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83 | 83 | | (b) An offender shall not be required to engage in unreasonable labor or to 4 |
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84 | 84 | | perform any work for which he or she the offender is declared unfit by a 5 |
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85 | 85 | | physician employed or retained by the Department. 6 |
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86 | 86 | | (c)(1) The Commissioner shall establish written guidelines governing the 7 |
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87 | 87 | | hours and conditions of offender work, and the rates of compensation of 8 |
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88 | 88 | | offenders for employment. An offender shall be compensated at a rate that is 9 |
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89 | 89 | | equal to or greater than the minimum wage established pursuant to 21 V.S.A. 10 |
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90 | 90 | | § 384(a)(1) unless a different wage is required for the offender’s position 11 |
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91 | 91 | | pursuant to federal law. 12 |
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92 | 92 | | (2) Wage payments of offenders shall be set aside in a separate fund. 13 |
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93 | 93 | | (3) The guidelines of the Department may provide for the making of 14 |
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94 | 94 | | deductions from wages of offenders to defray part or all of the cost of offender 15 |
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95 | 95 | | maintenance or payments to victims of crime. The guidelines may also 16 |
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96 | 96 | | provide for the setting aside by the Department of a portion of an offender’s 17 |
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97 | 97 | | wages to enable the offender to contribute to the support of his or her the 18 |
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98 | 98 | | offender’s dependents, if any,; to make necessary purchases from a 19 |
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99 | 99 | | commissary,; to purchase approved books, instruments, and instruction not 20 BILL AS INTRODUCED S.128 |
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100 | 100 | | 2025 Page 5 of 5 |
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102 | 102 | | |
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103 | 103 | | VT LEG #380181 v.1 |
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104 | 104 | | supplied by a correctional facility,; and to set aside sums to be paid to the 1 |
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105 | 105 | | offender upon release from the custody or supervision of the Commissioner. 2 |
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106 | 106 | | (4) Any interest that accrues from these wages during the period of such 3 |
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107 | 107 | | custody of an offender shall be credited to any fund maintained by the 4 |
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108 | 108 | | correctional facility for the welfare of offenders. 5 |
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109 | 109 | | * * * 6 |
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110 | 110 | | Sec. 4. DEPARTMENT OF CORRECTIONS WAGE POLICIES; UPDATE 7 |
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111 | 111 | | On or before January 1, 2026, the Commissioner of Corrections shall update 8 |
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112 | 112 | | all Department of Corrections policies relating to inmate wages to comply with 9 |
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113 | 113 | | the requirements of 28 V.S.A. § 751b. 10 |
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114 | 114 | | Sec. 5. EFFECTIVE DATE 11 |
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115 | 115 | | This act shall take effect on July 1, 2025. 12 |
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