Legislation that will gradually increase the minimum wage in Vermont to reach $10.50 per hour by 2018 was signed by Governor Peter Shumlin on June 9.
The Governor said the phased-in approach, which is in line with what some neighboring states are also doing, softens the impact of the wage increase on businesses. The Vermont rate will climb from the current hourly rate of $8.73 to $9.60 in 2016, $10 in 2017 and finally $10.50 in 2018, and then will be indexed to inflation in subsequent years. The rate in Connecticut will climb to $10.10 in 2017; New York Governor Andrew Cuomo and Massachusetts Governor Deval Patrick have called for similar increases in their states.
Vermont is one of at least 26 states and the District of Columbia that either currently have a minimum wage higher than the national minimum, or have approved a higher rate that is scheduled to take effect on a certain date. (State of Vermont, Office of the Governor, Press Release, June 2014, http://governor.vermont.gov/newsroom-minimum-wage-bill-signing.)
For more information on this and other topics, consult the Visit our News Library.