Vermont 2025-2026 Regular Session

Vermont Senate Bill S0128 Compare Versions

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11 BILL AS INTRODUCED S.128
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55 VT LEG #380181 v.1
66 S.128 1
77 Introduced by Senators Vyhovsky and White 2
88 Referred to Committee on 3
99 Date: 4
1010 Subject: Labor; public institutions and corrections; employment practices; 5
1111 employment of inmates; minimum wage; overtime; exemptions 6
1212 Statement of purpose of bill as introduced: This bill proposes to reduce the 7
1313 number of exemptions from Vermont’s minimum wage and overtime law, to 8
1414 eliminate the tipped minimum wage, to increase the minimum wage, and to 9
1515 require that inmates in Vermont’s correctional institutions be paid at least the 10
1616 Vermont minimum wage for any work performed. 11
1717 An act relating to eliminating certain exemptions from the minimum wage 12
1818 and overtime, including the tipped minimum wage; increasing the minimum 13
1919 wage; and requiring that inmates receive the minimum wage for work 14
2020 performed 15
2121 It is hereby enacted by the General Assembly of the State of Vermont: 16
2222 Sec. 1. 21 V.S.A. § 383 is amended to read: 17
2323 § 383. DEFINITIONS 18
2424 As used in this subchapter: 19
2525 (1) “Commissioner” means the Commissioner of Labor or designee. 20 BILL AS INTRODUCED S.128
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2929 VT LEG #380181 v.1
3030 (2) “Employee” means any individual employed or permitted to work by 1
3131 an employer except: 2
3232 (A) any individual employed in agriculture, provided the individual is 3
3333 the agricultural employer’s parent, spouse, or child; 4
3434 (B) any individual employed in domestic service in or about a private 5
3535 home; 6
3636 (C) any individual employed by the United States; or 7
3737 (D) any individual employed in the activities of a public supported 8
3838 nonprofit organization, except laundry employees, nurses’ aides, or practical 9
3939 nurses; 10
4040 (E)(C) any individual employed in a bona fide executive, 11
4141 administrative, or professional capacity; 12
4242 (F) any individual making home deliveries of newspapers or 13
4343 advertising; 14
4444 (G) taxi-cab drivers; 15
4545 (H) outside salespersons; and 16
4646 (I) students working during all or any part of the school year or 17
4747 regular vacation periods. 18
4848 (3) “Employer” means any person that employs two or more employees. 19
4949 (4) “Occupation” means an industry, trade, or business or branch thereof 20
5050 or class of work in which workers are gainfully employed. 21 BILL AS INTRODUCED S.128
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5454 VT LEG #380181 v.1
5555 Sec. 2. 21 V.S.A. § 384 is amended to read: 1
5656 § 384. EMPLOYMENT; WAGES 2
5757 (a)(1) Beginning on January 1, 2022 2026, an employer shall not employ 3
5858 any employee at a rate of less than $12.55 $25.00 per hour, and on each 4
5959 subsequent January 1, the minimum wage rate shall be increased by five 5
6060 percent or the percentage increase of the Consumer Price Index, CPI-U, U.S. 6
6161 city average, not seasonally adjusted, or successor index, as calculated by the 7
6262 U.S. Department of Labor or successor agency for the 12 months preceding the 8
6363 previous September 1, whichever is smaller, but in no event shall the minimum 9
6464 wage be decreased. The minimum wage shall be rounded off to the nearest 10
6565 $0.01. 11
6666 (2) An employer in the hotel, motel, tourist place, and restaurant 12
6767 industry shall not employ a service or tipped employee at a basic wage rate less 13
6868 than one-half the minimum wage. Beginning on January 1, 2026, an employer 14
6969 shall not employee a service or tipped employee at a basic wage of less than 15
7070 the minimum wage established pursuant to subdivision (1) of this subsection. 16
7171 As used in this subdivision, “a service or tipped employee” means an employee 17
7272 of a hotel, motel, tourist place, or restaurant who customarily and regularly 18
7373 receives more than $120.00 per month in tips for direct and personal customer 19
7474 service. 20
7575 * * * 21 BILL AS INTRODUCED S.128
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7979 VT LEG #380181 v.1
8080 Sec. 3. 28 V.S.A. § 751b is amended to read: 1
8181 § 751b. GENERAL PROVISIONS GOVER NING OFFENDER WORK 2
8282 * * * 3
8383 (b) An offender shall not be required to engage in unreasonable labor or to 4
8484 perform any work for which he or she the offender is declared unfit by a 5
8585 physician employed or retained by the Department. 6
8686 (c)(1) The Commissioner shall establish written guidelines governing the 7
8787 hours and conditions of offender work, and the rates of compensation of 8
8888 offenders for employment. An offender shall be compensated at a rate that is 9
8989 equal to or greater than the minimum wage established pursuant to 21 V.S.A. 10
9090 § 384(a)(1) unless a different wage is required for the offender’s position 11
9191 pursuant to federal law. 12
9292 (2) Wage payments of offenders shall be set aside in a separate fund. 13
9393 (3) The guidelines of the Department may provide for the making of 14
9494 deductions from wages of offenders to defray part or all of the cost of offender 15
9595 maintenance or payments to victims of crime. The guidelines may also 16
9696 provide for the setting aside by the Department of a portion of an offender’s 17
9797 wages to enable the offender to contribute to the support of his or her the 18
9898 offender’s dependents, if any,; to make necessary purchases from a 19
9999 commissary,; to purchase approved books, instruments, and instruction not 20 BILL AS INTRODUCED S.128
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103103 VT LEG #380181 v.1
104104 supplied by a correctional facility,; and to set aside sums to be paid to the 1
105105 offender upon release from the custody or supervision of the Commissioner. 2
106106 (4) Any interest that accrues from these wages during the period of such 3
107107 custody of an offender shall be credited to any fund maintained by the 4
108108 correctional facility for the welfare of offenders. 5
109109 * * * 6
110110 Sec. 4. DEPARTMENT OF CORRECTIONS WAGE POLICIES; UPDATE 7
111111 On or before January 1, 2026, the Commissioner of Corrections shall update 8
112112 all Department of Corrections policies relating to inmate wages to comply with 9
113113 the requirements of 28 V.S.A. § 751b. 10
114114 Sec. 5. EFFECTIVE DATE 11
115115 This act shall take effect on July 1, 2025. 12