The 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 at the state minimum wage for their work. The bill modifies existing definitions and provisions in the law, including the definition of "employee" and the conditions under which employers can pay lower wages to tipped employees.

Key changes include 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 policies regarding inmate wages to align with the new minimum wage requirements by January 1, 2026. The act is set to take effect on July 1, 2025.

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