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||
|Overtime Calculation Methods:||
|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
- 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 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 claim review from an experienced Vermont attorney to learn about the state and federal laws that apply to your issue.
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