The minimum wage in Vermont is $13.70 per hour. That’s lower than the national minimum wage, and it’s not even close to what many tipped workers earn. However, the high cost of living in Vermont makes a $15 minimum wage even more essential. In order to combat this, NELP supports raising the minimum wage to $15 by 2024. In addition, NELP supports expanding the Earned Income Tax Credit to include tipped workers.
NELP supports raising the minimum wage to $15 by 2024
The NELP testified that the current state minimum wage is just not enough for working people in Vermont to meet their basic needs. By 2024, workers will need even more, a full $15 an hour. A $15 minimum wage would provide enough for the basic needs of 87,000 working Vermonters. The group also testified against the elimination of the current minimum wage exemption for young workers who are in secondary school.
Many businesses are struggling to rebound from the economic recession. A large mandatory increase would add significant financial pressure to business owners. Many are already struggling with a weak economy, additional costs, and regulatory complexity. By adding a $15 minimum wage to these costs, a significant number of people would see their incomes soar. Moreover, it would be impossible for some families to survive on this income level.
Impacts of a $15 minimum wage on workers
Some experts believe that the introduction of a $15 minimum wage will reduce the number of low-paying jobs in the state. While this is true, young people often struggle to make ends meet, and this exemption will only affect people who are still in high school. The new law would also increase the number of jobs that are automatable, and this will only increase unemployment and lower wages. This legislation should be carefully considered, however, as its effects may not be as dramatic as advocates claim.
The increase in the minimum wage will also have a negative effect on the state’s economy. While the 0.3 percent impact may seem small, it is significant when you consider that the state’s real GDP actually grew 1.1 percent last year. And while increasing payroll costs might benefit some businesses, others may have to cut back on services to keep costs low. As a result, a $15 minimum wage in Vermont may have a detrimental effect on many employers.
Current minimum wage for tipped workers
The current minimum wage for tipped workers in Vermont is $4.10 per hour. Federal law requires that the total wages of tipped employees must equal $7.25 an hour. As a result, employers may not deviate from this minimum wage requirement. Employers may choose to give more to their tipped workers if they can. This is not the case in all situations, however. If you are unsure of whether your employer is paying you the correct minimum wage in Vermont, read on.
The federal government defines tipped workers as those who receive at least $30 a month in tips. However, tipped workers in some states earn as much as $120 a month. Those who work in the hospitality industry may earn even higher. In Vermont, the current minimum wage for tipped workers is the same as the state’s minimum wage. It may also be higher than the federal minimum wage, depending on the size of the business.
Impacts of expanding the Earned Income Tax Credit
A recent report by the Joint Fiscal Office has addressed this issue by answering the question, “What is a basic income?” It reminds us that while the minimum wage is not yet a living wage, it is the basic need that is the most important to people. A minimum wage of $15 per hour is the minimum wage that will bring about a $2,000 increase in income to an average Vermonter. A $15 minimum wage would bring that raise even closer, but it is far from enough to help everyone.
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The EITC is a critical source of income for low-wage workers. In this time of rising food prices and the COVID virus, many households are struggling to put food on the table. This is making poverty reduction efforts even more critical. The EITC is a proven poverty reducer and would allow more Vermont families to afford their basic needs. Expanding the credit would provide that much-needed boost.
Minimum Wage in Vermont Conclusion
The Vermont state legislature increased the state’s minimum wage rate to $12.55 per hour, effective January 1, 2022, increasing it by 80 cents from the previous minimum wage of $11.75 per hour. This increase affects all non-exempt employees and tipped employees in Vermont who are 18 years of age or older and have been in the same job for at least three months, and appropriately reflects the cost of living in Vermont.
Minimum Wage in Vermont FAQ
What is Vermont’s minimum wage for 2022?
Vermont minimum wage, Vermont hourly wage, Vermont minimum wage 2018, Vermont state minimum wage, Vermont’s hourly state minimum wage is expected to rise to $13.18 from $12.55, and the hourly tipped minimum wage is expected to rise to $6.59 from $6.28 effective Jan. 1, 2023, according to Bloomberg Tax calculation
What is Vermont’s minimum wage 2023?
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