An act relating to eliminating certain exemptions from the minimum wage and overtime, including the tipped minimum wage; increasing the minimum wage; and requiring that inmates receive the minimum wage for work performed

This Vermont bill increases the state's minimum wage to $25.00 per hour starting January 1, 2026, with annual adjustments tied to inflation, and eliminates the lower "tipped minimum wage" that previously allowed hospitality workers (like servers in restaurants) to be paid less than the standard rate if tips covered the difference. It also requires inmates in Vermont correctional facilities to be paid at least the minimum wage for all work performed, with wages held in a separate fund and subject to limited deductions for maintenance or victim payments. The bill directly affects most Vermont workers - particularly tipped employees in hotels, motels, and restaurants - and inmates in state correctional facilities. The new minimum wage takes effect January 1, 2026, and corrections policies must align by that date.