Vermont Tipped Workers Definition Change Â» Minimum Wage

Vermont Changes Tipping Rules

Posted on 02-Jul-07 by The Timekeeper

Starting Sunday, July 1, the state of Vermont changed its definition of who is considered a “tipped worker.”

Under the old rules, anyone making over $30 a month in tips was considered a tipped worker, and could be paid a “minimum tip wage” of $3.65 an hour (compared to $7.53 an hour for non-tipped workers). With the change in rules, now the minimum amount of tips to be considered a tipped worker is $120 a month.

This means any workers who are making less than $120 a month in tips must be paid the regular state minimum wage. However, according to Dirk Anderson, Associate General Counsel for the Vermont DOL, it’s likely very few people will be affected. Rebecca Arnell, a restaurant manager in Monteplier, agrees, stating, “I think most tipped workers get far more tips than that.”

So, if you’re in Vermont, make sure either your employees get more than $120 in tips per month, or make sure you’re paying them the full state minimum wage. Simple as that! (Oh, and don’t forget to check with the Vermont DOL for updated wage and hour posters!)