Bill S.128, introduced by Senators Vyhovsky and White, aims to amend Vermont's labor laws by reducing exemptions from the minimum wage and overtime regulations, eliminating the tipped minimum wage, increasing the minimum wage to $25.00 per hour starting January 1, 2026, and ensuring that inmates in correctional institutions are compensated at least the minimum wage for their work. The bill proposes specific changes to existing definitions and provisions in the law, including the removal of certain exemptions for employees in agriculture and domestic service, and the establishment of a new minimum wage structure that adjusts annually based on the Consumer Price Index.

Additionally, the bill mandates that the Commissioner of Corrections update all policies related to inmate wages by January 1, 2026, to align with the new compensation requirements. It also includes provisions for the compensation of offenders, ensuring they receive at least the minimum wage unless federal law dictates otherwise. The act is set to take effect on July 1, 2025, marking a significant shift in labor practices within Vermont's public institutions and correctional facilities.

Statutes affected:
As Introduced: 21-383, 21-384, 28-751b