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Vt.: State Raises Minimum Wage to $10.50

By Joanne Deschenaux  6/10/2014
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Vermont Gov. Peter Shumlin signed into law a bill that will raise the state's minimum wage to $10.50 an hour by 2018, making it the country’s highest state minimum.

The new law, signed on June 8, 2014, will raise the minimum wage from the current $8.73 per hour, to $9.60 in 2016, $10 in 2017 and $10.50 in 2018. After 2018, the law requires annual cost-of-living increases of either 5 percent or if it is lower, a rate calculated by the federal Department of Labor annually that is tied to the consumer price index. Tipped and service employees will receive a minimum rate equal to half of the minimum wage.

The Vermont Legislature approved the minimum wage increase in mid-May. Connecticut, Delaware, Hawaii, Maryland, Michigan, Minnesota and West Virginia also recently raised their minimum wages, and Seattle adopted legislation June 3 to require a minimum wage of $15 per hour by 2017, the highest in the country.

Joanne Deschenaux, J.D., is SHRM’s senior legal editor. 

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