The paycheck laws of Vermont regulate how employers must pay their employees, how often they must pay them, and what deductions they can make from their wages. Vermont law requires employers to pay their employees at least once every two weeks or more frequently if agreed upon.
Employers must also make payment of wages for their employees within six days of the end of the pay period unless there is a valid reason for delay. Employers can only deduct from employees’ wages for taxes, benefits, court orders, or other authorized purposes.
What Is the Minimum Wage Salary in Vermont?
The minimum wage salary in Vermont is $13.18 per hour as of January 1, 2023. This applies to most employees, except for tipped workers, who must receive at least $6.59 per hour plus tips. The minimum wage is adjusted based on inflation.
How Many Hours Can You Work?
Vermont does not have a general limit on the number of hours an employee can work in a day or a week, unless they are under 18 years old. However, employers must pay overtime to non-exempt employees who work more than 40 hours in a week. The overtime rate is one and a half times the regular rate of pay.
Scenario
Imagine you are an employee at a popular bakery in Vermont. This bakery is known for its freshly baked goods, and as a result, experiences high demand, especially around holidays.
As Easter approaches, the bakery receives numerous orders for its famous hot cross buns. To meet this increased demand, the owner asks you to work additional hours. Instead of your usual 40 hours a week, you are asked to work 50 hours for the two weeks leading up to Easter.
Given Vermont’s labor laws, this situation will play out in the following way.
For the first 40 hours you work each week, you will be paid your regular hourly wage. However, for the additional 10 hours you work each week, you are entitled to be paid at an overtime rate, which is one and a half times your regular hourly wage.
So, for instance, if your regular hourly wage is $15, your overtime rate will be $22.50 ($15 * 1.5). Therefore, for the additional 10 hours of overtime each week, you will earn $225, in addition to your regular wage for the 40 hours of standard work.
The bakery’s request for you to work extra hours is legal as Vermont doesn’t have a general limit on the number of hours an employee can work in a day or week. However, they must compensate you accordingly for any hours worked beyond the standard 40-hour workweek. As such, you’ll be able to bring home a bigger paycheck during these high-demand periods.
Remember, these rules may not apply to exempt employees, such as certain administrative, executive, or professional workers, who are typically salaried rather than paid hourly. If you have questions about your status or if you feel you’re not being paid appropriately, you may want to consult with an employment attorney to understand your rights.
When Must Paychecks Be Sent Out?
Employers must send out paychecks to their employees within six days of the end of the pay period unless there is a valid reason for delay. Employees can choose to receive their paychecks by mail, direct deposit, or electronic pay card. Employees who quit or are terminated must receive their final paycheck within 72 hours of leaving the job.
What Happens If You Are Fired?
If you are fired from your job in Vermont, you may be eligible for unemployment benefits, depending on the reason for your termination and your work history. You must file a claim with the Vermont Department of Labor within 10 days of losing your job. You must also meet certain requirements, such as being able and available to work, looking for work, and reporting your income and job offers.
Can Your Paycheck Be Garnished?
Your paycheck can be garnished in Vermont if you owe money for child support, taxes, student loans, or other debts. The amount that can be garnished depends on the type and amount of debt, your income, and your exemptions. Generally, the maximum amount that can be garnished is 25% of your disposable income or the amount by which your income exceeds 30 times the federal minimum wage, whichever is less.
Scenario
Let’s say you are a full-time employee at a tech company in Vermont, earning a salary of $4000 per month (after tax). Unfortunately, you’ve fallen behind on your student loan payments, and the lender has obtained a judgment to garnish your wages until the debt is paid off.
Now, according to federal wage garnishment laws, the maximum amount that can be garnished from your paycheck is the lesser of:
- 25% of your disposable earnings (earnings after legally required deductions), or
- The amount by which your weekly earnings exceed 30 times the federal minimum wage, which, as of July 2023, is $7.25 per hour.
In your case, 25% of your monthly earnings would be $1000 ($4000 * 0.25). On the other hand, 30 times the federal minimum wage per week is $217.50 ($7.25 * 30), and your weekly income is $923.08 ($4000/4.33 weeks). The amount by which your weekly income exceeds 30 times the federal minimum wage is $705.58 ($923.08 – $217.50) per week or about $3055 per month (4.33 weeks * $705.58).
The law allows the lesser of these two amounts to be garnished. Therefore, instead of the $1000 that’s 25% of your monthly earnings, only around $3055 can be garnished from your monthly paycheck until your student loan debt is repaid.
Remember that garnishment laws can be complex, and the actual amount garnished could be less due to exemptions or limitations based on state law or the type of debt. If you’re facing wage garnishment, you might want to consult with a financial advisor or an attorney to understand your options and rights. LegalMatch can help you find a knowledgeable attorney in your area who can assist with your case.
Can You Recover a Withheld Paycheck?
If your employer fails to pay you your wages or makes unauthorized deductions from your paycheck, you can file a wage claim with the Vermont Department of Labor or sue your employer in small claims court. You may be able to recover your unpaid wages, plus interest and penalties. You may also be protected from retaliation by your employer for filing a wage claim or lawsuit.
Where Can You Find the Right Lawyer?
If you have a legal issue related to your paycheck or employment in Vermont, you may want to consult with an experienced Vermont employment lawyer who can advise you on your rights and options. You can find a qualified lawyer near you through LegalMatch.com, a free online service that matches you with lawyers who can handle your legal matter. Just fill out a simple online form and get matched with lawyers who are ready to help you.
There is no obligation to hire any lawyer you are matched with through LegalMatch. You have the freedom to evaluate your options and choose the attorney who you believe is the best fit for your case.
