Vermont pays 1.5 times the regular rate for hours over 40 in a workweek, with no daily overtime rule. The 2026 minimum wage is $14.42 an hour, indexed to inflation each January. Enter your rate and hours for a Vermont paycheck estimate.
Rules verified November 2026 · Sources: U.S. Department of Labor and Vermont Department of Labor
By Mudassir Khan
Vermont weekly 40 hour test. Each workweek stands alone.
Vermont wage claims must be filed within 2 years from the date wages were due. Estimates only. Not tax, legal, or payroll advice. Confirm with your employer or a qualified professional.
Vermont follows the federal weekly standard: nonexempt employees earn at least 1.5 times the regular rate for hours over 40 in a workweek, with no daily overtime.
Vermont adjusts its minimum wage with the consumer price index each January 1. The 2026 rate of $14.42, up from $14.01, keeps Vermont above the federal floor by a wide margin.
Complaints to the Vermont Department of Labor must come within 2 years from the date the wages were due, and willful nonpayment can double what the employer owes.
Gross = (40 × rate) + (hours over 40 × rate × 1.5)
| Rule | Vermont |
|---|---|
| Overtime rule | 1.5 times pay after 40 hours in a workweek (no daily overtime) |
| Minimum wage 2026 | $14.42 from Jan 1, 2026 (from $14.01; indexed to inflation each January) |
| State income tax | Graduated, up to 7.6% |
| Claim agency | Vermont Department of Labor, Wage and Hour Unit |
| Claim deadline | 2 years from the date wages were due (21 V.S.A. § 342a) |
| Worker | Math | Gross |
|---|---|---|
| $14.42/hr, 48 hours | $576.80 + 8 × $21.63 | $749.84 |
| $18/hr, 50 hours | $720 + 10 × $27 | $990.00 |
| $22/hr, 45 hours | $880 + 5 × $33 | $1,045.00 |
| $14.42/hr, 40 hours in four 10 hour days | 40 × $14.42, no overtime | $576.80 |
Example 4 is the Vermont trap: the same four 10 hour days would earn 8 overtime hours in California. In Vermont they earn none, because only the weekly 40 hour line counts.
Ski season and seasonal weeks. Vermont's resort, hospitality, and tourism jobs swing between quiet weeks and 55 hour peak weeks. Each workweek stands alone under the law, so a huge holiday week earns overtime even if the next week is short.
Double wages for willful nonpayment. If the Commissioner finds an employer willfully failed to pay wages, the employer can be ordered to pay twice what is owed, with half going to the worker and half to the state.
The January inflation bump. Because the floor moves every January 1 with the CPI, overtime math for minimum wage workers shifts every year. Budgets built on last year's $14.01 need the $14.42 update.
Vermont’s New England neighbors use the same weekly overtime test: our New Hampshire overtime calculator, Maine overtime calculator, and Rhode Island overtime calculator show the math across the region. The federal baseline is explained in the FLSA overtime rules guide.
Vermont follows the weekly overtime standard: 1.5 times the regular rate for hours over 40 in a workweek, for nonexempt employees, with no daily overtime rule. The result matches the federal weekly test.
$14.42 an hour from January 1, 2026, up from $14.01. Vermont adjusts its minimum wage with the consumer price index each January 1.
With the Vermont Department of Labor, Wage and Hour Unit, or with the Wage and Hour Division of the U.S. Department of Labor, or in court. Complaints to the Department must come within 2 years from the date the wages were due.
No. Vermont has no daily overtime rule. Only the weekly line matters: hours over 40 in a workweek earn 1.5 times the regular rate, no matter how long any single day was.
Yes. Vermont has a graduated income tax up to 7.6%, so overtime pay is taxed by the state on top of federal income tax plus Social Security and Medicare taxes.
Yes, if nonexempt. A salary alone does not remove overtime rights in Vermont. Only employees who pass the exempt duties and salary tests can be denied overtime pay.
Rates and rules checked against these sources in November 2026.
Want the same math without the Vermont framing? Use the overtime pay calculator. Curious what the no tax on overtime deduction does to a Vermont paycheck? Try the deduction calculator; it trims the federal bite on the overtime premium.