BILL AS INTRODUCED S.128
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S.128 1
Introduced by Senators Vyhovsky and White 2
Referred to Committee on 3
Date: 4
Subject: Labor; public institutions and corrections; employment practices; 5
employment of inmates; minimum wage; overtime; exemptions 6
Statement of purpose of bill as introduced: This bill proposes to reduce the 7
number of exemptions from Vermont’s minimum wage and overtime law, to 8
eliminate the tipped minimum wage, to increase the minimum wage, and to 9
require that inmates in Vermont’s correctional institutions be paid at least the 10
Vermont minimum wage for any work performed. 11
An act relating to eliminating certain exemptions from the minimum wage 12
and overtime, including the tipped minimum wage; increasing the minimum 13
wage; and requiring that inmates receive the minimum wage for work 14
performed 15
It is hereby enacted by the General Assembly of the State of Vermont: 16
Sec. 1. 21 V.S.A. § 383 is amended to read: 17
§ 383. DEFINITIONS 18
As used in this subchapter: 19
(1) “Commissioner” means the Commissioner of Labor or designee. 20 BILL AS INTRODUCED S.128
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(2) “Employee” means any individual employed or permitted to work by 1
an employer except: 2
(A) any individual employed in agriculture, provided the individual is 3
the agricultural employer’s parent, spouse, or child; 4
(B) any individual employed in domestic service in or about a private 5
home; 6
(C) any individual employed by the United States; or 7
(D) any individual employed in the activities of a public supported 8
nonprofit organization, except laundry employees, nurses’ aides, or practical 9
nurses; 10
(E)(C) any individual employed in a bona fide executive, 11
administrative, or professional capacity; 12
(F) any individual making home deliveries of newspapers or 13
advertising; 14
(G) taxi-cab drivers; 15
(H) outside salespersons; and 16
(I) students working during all or any part of the school year or 17
regular vacation periods. 18
(3) “Employer” means any person that employs two or more employees. 19
(4) “Occupation” means an industry, trade, or business or branch thereof 20
or class of work in which workers are gainfully employed. 21 BILL AS INTRODUCED S.128
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Sec. 2. 21 V.S.A. § 384 is amended to read: 1
§ 384. EMPLOYMENT; WAGES 2
(a)(1) Beginning on January 1, 2022 2026, an employer shall not employ 3
any employee at a rate of less than $12.55 $25.00 per hour, and on each 4
subsequent January 1, the minimum wage rate shall be increased by five 5
percent or the percentage increase of the Consumer Price Index, CPI-U, U.S. 6
city average, not seasonally adjusted, or successor index, as calculated by the 7
U.S. Department of Labor or successor agency for the 12 months preceding the 8
previous September 1, whichever is smaller, but in no event shall the minimum 9
wage be decreased. The minimum wage shall be rounded off to the nearest 10
$0.01. 11
(2) An employer in the hotel, motel, tourist place, and restaurant 12
industry shall not employ a service or tipped employee at a basic wage rate less 13
than one-half the minimum wage. Beginning on January 1, 2026, an employer 14
shall not employee a service or tipped employee at a basic wage of less than 15
the minimum wage established pursuant to subdivision (1) of this subsection. 16
As used in this subdivision, “a service or tipped employee” means an employee 17
of a hotel, motel, tourist place, or restaurant who customarily and regularly 18
receives more than $120.00 per month in tips for direct and personal customer 19
service. 20
* * * 21 BILL AS INTRODUCED S.128
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Sec. 3. 28 V.S.A. § 751b is amended to read: 1
§ 751b. GENERAL PROVISIONS GOVER NING OFFENDER WORK 2
* * * 3
(b) An offender shall not be required to engage in unreasonable labor or to 4
perform any work for which he or she the offender is declared unfit by a 5
physician employed or retained by the Department. 6
(c)(1) The Commissioner shall establish written guidelines governing the 7
hours and conditions of offender work, and the rates of compensation of 8
offenders for employment. An offender shall be compensated at a rate that is 9
equal to or greater than the minimum wage established pursuant to 21 V.S.A. 10
§ 384(a)(1) unless a different wage is required for the offender’s position 11
pursuant to federal law. 12
(2) Wage payments of offenders shall be set aside in a separate fund. 13
(3) The guidelines of the Department may provide for the making of 14
deductions from wages of offenders to defray part or all of the cost of offender 15
maintenance or payments to victims of crime. The guidelines may also 16
provide for the setting aside by the Department of a portion of an offender’s 17
wages to enable the offender to contribute to the support of his or her the 18
offender’s dependents, if any,; to make necessary purchases from a 19
commissary,; to purchase approved books, instruments, and instruction not 20 BILL AS INTRODUCED S.128
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supplied by a correctional facility,; and to set aside sums to be paid to the 1
offender upon release from the custody or supervision of the Commissioner. 2
(4) Any interest that accrues from these wages during the period of such 3
custody of an offender shall be credited to any fund maintained by the 4
correctional facility for the welfare of offenders. 5
* * * 6
Sec. 4. DEPARTMENT OF CORRECTIONS WAGE POLICIES; UPDATE 7
On or before January 1, 2026, the Commissioner of Corrections shall update 8
all Department of Corrections policies relating to inmate wages to comply with 9
the requirements of 28 V.S.A. § 751b. 10
Sec. 5. EFFECTIVE DATE 11
This act shall take effect on July 1, 2025. 12