Vermont Overtime Laws

For a small state, Vermont has a lot of big named employers that offer good pay and benefits. One perk available to many employees in Vermont regardless of where they work is the right to overtime pay. However, this right is not automatic. If you work in the state, you owe it to yourself to become familiar with Vermont overtime laws. Miscalculations in overtime could cost you hundreds, or even thousands of dollars each year.

Vermont Overtime Law Summary

This chart highlights key provisions of Vermont overtime laws.

 

State and Federal Statutes
Vermont Overtime Rules
  • State/Federal Overtime pay rate is 1.5 time the employees regular rate
  • Overtime is calculated based on the number of hours worked on a weekly basis (not daily)
  • May ski area workers are not covered by state overtime law.
  • Compensatory time off (comp time) is not allowed in Vermont
  • Retail and Hotel workers are exempt from state overtime law.
Overtime Calculation Methods:
  • Hourly: Pay time and a half over 40 hours work/week.
  • Hourly Plus Bonus and/or Commission: Regular rate = Total hours times hourly rate, plus the workweek equivalent of the bonus and/or commission, divided by the total hours in the workweek; then pay half of that regular rate for each overtime hour.
  • Salary: Regular rate = Salary divided by the number of hours the salary is intended to compensate.
    • If the regular hours are less than 40: Add regular rate for each hour up to 40, then pay time and a half for hours over 40.
    • If the regular hours = 40: Pay time and a half for hours over 40.
File an Overtime Claim

Note: State laws are subject to change. It's important to verify the information you read about by conducting your own research or consulting with a Vermont attorney.

Vermont Overtime Laws

Employers with two or more employees must follow Vermont's overtime compensation law. Under state law, when a covered employee works over 40 hours during a workweek, their employer must compensate them at least 1.5 times their regular wage rate. Vermont law does not require overtime pay when you work more than eight hours in a day, or for work on weekend or holidays.

Vermont recognizes several importation exemptions and exclusions. First, benefit hours are not included when calculating overtime. For example, if you worked 36 hours in a workweek plus you received eight hours for a paid holiday or sick day, giving you a total of 44 hours paid for the week, you are NOT entitled to four hours of overtime. Vermont also exempts several types of employers from overtime requirement, including those in retail, service, hotels, recreation, hospitals or nursing homes.

Vermont Employees Covered by Federal Overtime

Fortunately, employers not covered by Vermont's overtime requirements can be subject to federal overtime rules contained in the Fair Labor Standards Act. Employers are covered if their work is in interstate commerce, which can simply mean they accept credit card transactions or ship/receive products that cross state lines. Also, the interstate commerce link is assumed when a business has an annual income of $500,000 or more. The FLSA also applies to public agencies, schools and institutions of higher education, as well as hospitals or institutions primarily engaged in the care of the sick, aged, or mentally ill who reside on the premises.

Who is Exempt from Federal Overtime Laws?

Despite its broad reach, the FLSA overtime provisions do not cover all employees. Those not covered are referred to as "exempt" employees. For an employee to be exempt from federal overtime law, their job duties must fall into a category specified by the Department of Labor and must be paid on a salary basis of at least $455 per week (as of 2017). For example, to qualify for an "executive" exemption the employee must "regularly direct the work of at least two or more other full-time employees."

The following types of employees represent a few of those frequently exempt from federal overtime rules:

  • Computer workers
  • Executive
  • Administrator
  • Agriculture workers (within specific limitations)
  • Commissioned salespeople
  • Employees employed as "learned professional" (CPA, lawyer)

Effect of On-Call Time for Vermont Employees

Many employees have "on-call" time with their employers in case of an emergency. Vermont does not require employees to be paid for this "on call" time. However, federal law may require compensation when an employee's liberty is "more than slightly restricted," to the extent that they cannot use their time effectively for their own purposes. Carrying a beeper or merely leaving a telephone number does not qualify for on call compensation.

Denied Overtime Pay? Get a Free Claim Review

Vermont and the federal rules guarantee many workers the right to overtime pay. Your employer must follow the rule that provides the most benefits to you when calculating your pay. If you have been denied overtime pay, you only have a few years to file a claim for unpaid wages. A local attorney can guide you through the claim process, and help you recover available lost wages and damages. Receive a free claim review from an experienced Vermont attorney to learn about the state and federal laws that apply to your issue.

Next Steps: Search for a Local Attorney

Contact a qualified attorney.