Vermont tip laws (2026)
Vermont's minimum wage is $14.42 an hour in 2026, and tipped service employees can be paid $7.21 cash, half the minimum. The tipped rate only applies to workers who get more than $120 a month in tips for direct customer service. Hotel, motel and restaurant workers are exempt from state overtime.
Vermont at a glance
Tip credit allowedVermont: $14.42 an hour minimum wage. Tipped staff can be paid $7.21 cash, with up to $7.21 counted from tips.
| State minimum wage | $14.42/hr | Statewide from .[1] |
|---|---|---|
| Tipped cash wage | $7.21 | Plus up to $7.21 in tips = $14.42.[1] |
| Max tip credit | $7.21 | Counted from tips.[1] |
| Tip pooling | Allowed | Mandatory pools allowed.[2][3] |
| Card-fee deduction | Pro rata only | Only the tip's share of the fee.[2][3] |
| Card tip payout | Card tips are due by the regular payday, without waiting for the card company. | No separate state rule was found.[3] |
| Local minimum wages | None | None on file.[2] |
Rates verified against the Vermont Department of Labor, Wage and Hour Program on . Rates as of . Tipped totals are worked out from the rates above. Download this data (CSV)
02The yes/no sheet
Can you do this in Vermont?
In Vermont you can take a tip credit of up to $7.21 an hour, can require staff to join a tip pool and can take out only the tip's share of a card fee. Each answer below carries its condition and an official source.
| Number | Can you… | Answer | The condition |
|---|---|---|---|
| 01 | Take a tip credit against minimum wage? | Yes | Pay at least $7.21 cash and count up to $7.21 in tips. Tips must cover the gap.[1] |
| 02 | Make staff join a tip pool? | Yes | Allowed, as long as only eligible staff share.[2][3] |
| 03 | Include bartenders, bussers, runners and hosts? | Depends | Bartender, busser, food runner and host: needs real tipped customer-service duties for a tip-credit pool. A no-credit pool can include more non-manager staff.[2][3] |
| 04 | Include cooks and dishwashers? | Depends | Cooks and dishwashers can join only if everyone gets the full minimum wage and no tip credit is taken.[2] |
| 05 | Give managers or supervisors a share? | No | Managers and supervisors can't take pooled tips, with or without a tip credit. Tips for their own direct service follow federal rules.[2][3] |
| 06 | Let an owner keep any of the tips? | No | Employers can't keep workers' tips. Owners with 20% or more equity who actively manage count as managers.[3] |
| 07 | Pick your own split (hours, points or percentages)? | Depends | No fixed cap. The agency says required contributions can't go beyond a customary and reasonable amount.[2] |
| 08 | Take card processing fees out of tips? | Pro rata | Only the actual share of the card fee for that tip, as the state agency describes the federal rule. Minimum wage still applies.[2][3] |
| 09 | Hold card tips until payday? | Deadline | Card tips are due by the regular payday, without waiting for the card company. No separate state rule was found.[3] |
| 10 | Cover walkouts, breakage or register shortages from tips? | No | Not from tips.[3][2] |
| 11 | Keep a mandatory service charge for the house? | Federal rule | A required service charge isn't a tip. The tax department treats it as business income even if shared. Promises to staff still matter.[4] |
| 12 | Pay tips on a payroll card? | Depends | With the worker's consent. Offer another way to get paid too.[5] |
03State vs federal
Vermont vs federal law
Vermont sets a stricter rule than federal law on 2 of the 10 rules below, starting with a $14.42 minimum wage against the federal $7.25. Where the two differ, the rule that is better for the worker applies.
| Rule | Federal (FLSA) | Vermont | Comparison |
|---|---|---|---|
| Minimum wageStricter | Federal$7.25[3] | Vermont$14.42[1] | Stricter |
| Tipped cash wageStricter | Federal$2.13[3] | Vermont$7.21[1] | Stricter |
| Max tip creditHigher credit | Federal$5.12[3] | Vermont$7.21[1] | Higher credit |
| Who counts as tippedState rule | FederalMore than $30 a month in tips, customarily and regularly received in the occupation.[3] | VermontMore than $120 a month in tips for direct, personal customer service in a hotel, motel, tourist place or restaurant.[6] | State rule |
| Managers in the poolState rule | FederalManagers/supervisors meeting the executive duties test cannot keep employees’ tips or receive from pools; they may keep only tips received directly for services they directly and solely provide. No salary-level test is used for this tip restriction.[3] | VermontManagers and supervisors can't take pooled tips, with or without a tip credit. Tips for their own direct service follow federal rules.[2][3] | State rule |
| Kitchen in the poolState rule | FederalCooks and dishwashers may join a nontraditional mandatory pool only when all workers receive a direct cash wage of at least the full federal minimum wage and no tip credit is taken; employer/managers/supervisors remain excluded. State law may be stricter.[3] | VermontCooks and dishwashers can join only if everyone gets the full minimum wage and no tip credit is taken.[2] | State rule |
| Card fees from tipsSame as federal | FederalOnly the actual proportional credit-card transaction fee may be deducted from charged tips; no deduction exceeding that fee or reducing required minimum wages; state law may forbid even that deduction.[3] | VermontTip's share of the fee only[2][3] | Same as federal |
| Card tip payoutState rule | FederalCharged tips due by regular payday, without waiting for processor reimbursement. Employer-administered pools fully distributed by regular payday for the workweek/pay period; if the amount/distribution cannot be determined before payroll, distribute as soon as practicable afterward.[3] | VermontCard tips are due by the regular payday, without waiting for the card company. No separate state rule was found.[3] | State rule |
| Mandatory service chargesState rule | FederalA compulsory service charge is not an FLSA tip. Amounts distributed to employees are wages that may satisfy wage obligations and must enter the regular rate for overtime. This federal wage classification does not decide contractual or state-law ownership.[3] | VermontA required service charge isn't a tip. The tax department treats it as business income even if shared. Promises to staff still matter.[4] | State rule |
| Overtime for tipped staffState rule | FederalFor covered nonexempt employees, overtime generally begins after 40 hours in a workweek. Use the full regular rate, at least the full federal minimum wage, not $2.13; the hourly tip credit is not increased for overtime. Voluntary tips above the tip credit are excluded; distributed service charges enter the regular rate.[3] | VermontHotel, motel and restaurant workers are exempt from state overtime. Federal overtime is 1.5 times the full rate after 40 hours.[6][3] | State rule |
Every state starts from the same federal floor. Federal tip law baseline: the FLSA rules, rates and sources, and how Vermont fits among the four tip credit classes.
04Wages
Minimum wage and the tip credit in Vermont
In Vermont employers can pay tipped staff $7.21 an hour and count up to $7.21 in tips toward the $14.42 minimum. If tips fall short, the employer makes up the difference.[1]
One server, one slow 30-hour week in Vermont
A busy week with $216.30 or more in tips needs no top-up. Every tip above that is the server's. Fictional worker and tips.
- Tip credit conditions
- Must be a service employee. Cash pay at least half the state minimum, tips reach full minimum each week, shortfalls covered, notice given.[6][2]
- Who counts as tipped
- More than $120 a month in tips for direct, personal customer service in a hotel, motel, tourist place or restaurant.[6]
Other rates
One statewide rate. No employer-size, industry or youth rates in Vermont.
Scheduled increases
No statewide increase with a published amount is on file as of .
Not covered here? Ask the Vermont Department of Labor, Wage and Hour Program at 802-951-4083 or on labor.vermont.gov/rights-and-wages.
05Local rates
City and county minimum wages in Vermont
No city or county minimum wages above the $14.42 state rate are on file for Vermont.[2]
06Tip pool
Who can be in the tip pool in Vermont
Vermont allows tip pools, and employers can make them mandatory. Owners, managers and supervisors can't share in them. A tip pool collects tips and splits them among staff; a tip-out is one worker handing part of their tips to others.
| Role | Can share? | Condition |
|---|---|---|
| Front of house | ||
| Server | Depends | Needs real tipped customer-service duties for a tip-credit pool. A no-credit pool can include more non-manager staff.[2] |
| Bartender | Depends | Needs real tipped customer-service duties for a tip-credit pool. A no-credit pool can include more non-manager staff.[2] |
| Busser | Depends | Needs real tipped customer-service duties for a tip-credit pool. A no-credit pool can include more non-manager staff.[2] |
| Food runner | Depends | Needs real tipped customer-service duties for a tip-credit pool. A no-credit pool can include more non-manager staff.[2] |
| Host | Depends | Needs real tipped customer-service duties for a tip-credit pool. A no-credit pool can include more non-manager staff.[2] |
| Barback | Depends | Needs real tipped customer-service duties for a tip-credit pool. A no-credit pool can include more non-manager staff.[2] |
| Expo | Depends | Needs real tipped customer-service duties for a tip-credit pool. A no-credit pool can include more non-manager staff.[2] |
| Back of house | ||
| Cook | Depends | Only if everyone gets the full minimum wage and no tip credit is taken.[2] |
| Dishwasher | Depends | Only if everyone gets the full minimum wage and no tip credit is taken.[2] |
| Leadership | ||
| Shift lead | Depends | Depends on actual duties. Anyone who counts as a manager or supervisor gets no pool share.[2][3] |
| Manager or supervisor | Not allowed | No share of other workers' pooled tips.[3] |
| Owner | Not allowed | Employers can't keep workers' tips. Owners with 20% or more who actively manage count as managers.[3] |
- Managers and supervisors
- Managers and supervisors can't take pooled tips, with or without a tip credit. Tips for their own direct service follow federal rules.[2][3]
- Owners
- Employers can't keep workers' tips. Owners with 20% or more equity who actively manage count as managers.[3]
- Back of house
- Cooks and dishwashers can join only if everyone gets the full minimum wage and no tip credit is taken.[2]
- Who sets the percentages
- The employer can require a pool with notice. Contributions have to be customary and reasonable, and credit counts only kept tips.[2]
- Cap on what a pool can take
- No fixed cap. The agency says required contributions can't go beyond a customary and reasonable amount.[2]
07Put it to work
Setting up a tip pool in Vermont
Under Vermont rules, 6 of the 10 staff in this example can share a $1,200 pool. The table splits the same pool by percentage, by points and by hours.
| Who | By % | By points | By hours |
|---|---|---|---|
| Maya | $268.29 | $250.00 | $211.78 |
| Jordan | $268.29 | $250.00 | $211.76 |
| Priya | $268.29 | $250.00 | $211.76 |
| Sam | $175.61 | $200.00 | $211.76 |
| Luis | $109.76 | $125.00 | $176.47 |
| Ava | $109.76 | $125.00 | $176.47 |
| Theo | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Kim | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Rafa | Not in the pool. Out here: this pool includes servers paid with a tip credit. | ||
| Dana | Not in the pool. No share of other workers' pooled tips. | ||
| Total | $1,200.00 | $1,200.00 | $1,200.00 |
Fictional restaurant and staff. The guest-facing staff here are assumed to meet Vermont's condition for sharing (see who can be in the tip pool, above). Percentages and point weights are examples, not a recommendation. Shares are rounded to the cent, and any leftover cent goes to the first server. Run your own numbers in the tip pooling calculator.
Ferry Tip Manager: support pool split by hours
Servers and bartenders pay into the support pool, and Tip Manager splits it by hours worked. Each person sees their share, with no spreadsheet at close.
Who it's for Full-service restaurants that tip out bussers, runners and bar backs
08Service charges
Service charges vs tips in Vermont
Vermont has no service charge rule of its own. Under federal law a mandatory service charge is not a tip, and any part paid to staff counts as wages.
| Question | OptionalTip | MandatoryService charge |
|---|---|---|
| Who sets the amount | The guest | The business |
| Who it belongs to | The worker it was left for, or the pool | A required service charge isn't a tip. The tax department treats it as business income even if shared. Promises to staff still matter.[4] |
| Can it go to staff? | Yes, through the pool | Yes. Amounts paid to staff are wages, not tips.[3] |
| How it's taxed (federal) | Tip income the worker reports | Regular wages, with payroll taxes[7][8] |
| Guest notice | None needed | No state rule. Federal law sets no menu or receipt notice rule.[2] |
- Step 1Did the guest choose whether to pay it, and how much?YesIt's a tip. It belongs to staff.NoIt's a mandatory charge. Go to step 2.
- Step 2What does Vermont say?Federal ruleA required service charge isn't a tip. The tax department treats it as business income even if shared. Promises to staff still matter.[4]
- Step 3Check the cityNo city service charge rules on file for Vermont.
- Menu and receipt notice
- No state rule. Federal law sets no menu or receipt notice rule.[2]
- Large-party auto gratuities
- A required automatic gratuity is a service charge, not a tip. Under federal rules, amounts paid to staff are wages.[3]
Local service charge rules
No local service charge rules on file for Vermont.
More on the difference: service charge vs tip.
09Card tips
Card tips in Vermont: fees and payout timing
In Vermont only the tip's share of the card processing fee can come out of a card tip. Payout deadline: card tips are due by the regular payday, without waiting for the card company. No separate state rule was found.
Only the actual share of the card fee for that tip, as the state agency describes the federal rule. Minimum wage still applies.[2][3]
When card tips have to land
- TonightGuest adds a tip On the card, at the table.
- CloseShift is tallied The pool is split by your rules.
- DeadlineVermont rule Card tips are due by the regular payday, without waiting for the card company. No separate state rule was found.[3]
- Last dayFinal pay Fired: within 72 hours. Quit: on the last regular payday, or the following Friday if there isn't one.[5]
Paydays: Weekly by default. Biweekly or semimonthly with notice. Pay covers work up to 6 days before payday.[5]
Paying tips on a payroll card
- Allowed?Depends
- Worker consent needed?Yes
- Free way to get the money?State ruleAt least 3 free withdrawals per pay period, one for the full balance. Needs written consent and fee disclosures.[5]
- Must you offer another option?Yes
- Holding cash tipsFederal ruleNo state rule. Federal rule applies: employer may collect to administer a valid pool, then distribute under the regular-payday rule. No broader authorization to retain cash tips is established.[3][2]
- Tips shown on the pay stubNo (federal)No state rule. Federal rule applies: no. FLSA does not require pay stubs; state laws and employer records are separate.[9][2]
Ferry Pay: each tip share, paid out digitally
Each person's direct tips, tip outs and payable amount in one view, then paid through Ferry Pay. No cash to keep on hand for payouts. Eligibility and fees apply.
Who it's for Operators who want to stop the nightly cash run
“Since launching this card program, we've reduced our cash-carrying costs by over 66 percent”
10Records
Records and notices in Vermont
Keep each tipped worker's tips and hours on record, shift by shift. Vermont: signed tip reports for 3 years.
Vermont State
- Tip records Workers sign a weekly report of tips kept. Employers keep accurate hours and wages, plus federal tip-credit records.[2][10]
- How long to keep them Signed tip reports for 3 years. Federal payroll record periods also apply.[2]
- Tip credit notice Required. Tell workers the cash wage, credit amount, actual-tips limit and pool rules. No credit without notice.[2]
- Posters and forms Vermont minimum wage rules/poster; Weekly signed tip report.[10][2]
Everywhere Federal
- Tip records Maintain employee identity, time and pay records. Tip-credit employers additionally retain tipped employee, reported tips, credit amounts and hours/earnings by tipped and nontipped occupation. No-tip-credit employers operating mandatory pools record each recipient and weekly/monthly tips. IRS daily records/reporting are separate obligations.[3]
- How long to keep them FLSA: payroll records at least three years; underlying wage-computation records two years. Tax retention is separate.[11]
- Tip credit notice Oral or written notice must state cash wage; tip credit amount; credit cannot exceed actual tips; employee retains tips except valid traditional pool; credit unavailable until informed. Traditional pool contribution amounts also disclosed.[3]
- A written pool policy Good practice, not a federal rule: who's in, how it splits, when it pays. Share it with staff. How to write one.
Think your tips were handled wrong in Vermont?
Workers in Vermont can file a tip or wage claim with the Vermont Department of Labor, Wage and Hour Program (802-951-4083). Filing is free, and this page can't settle a dispute; the state can.[12]
Retaliation: No retaliation for wage complaints or cooperating with an investigation. Remedies include damages, fees and reinstatement.[13]
Penalties: Workers can recover twice the unpaid minimum wages, plus costs and fees. Other wage-payment penalties also apply.[14]
Can they take this out of my tips?
- Walkouts and dine-and-dashNot allowedFederally covered employers can't use tips to cover business costs. Regular wage deduction rules are a separate question.[3][2]
- BreakageNot allowedFederally covered employers can't use tips to cover business costs. Regular wage deduction rules are a separate question.[3][2]
- Register shortagesNot allowedFederally covered employers can't use tips to cover business costs. Regular wage deduction rules are a separate question.[3][2]
- UniformsNot allowedFederally covered employers can't use tips to cover business costs. Regular wage deduction rules are a separate question.[3][2]
- Card processing feesAllowedOnly the actual card fee on the tip. Required wages still have to be paid.[2][3]
- A manager's shareNot allowedEmployers and managers can't keep workers' tips.[3][2]
11Law changes
What changed in Vermont tip law, and what's coming
No statewide increase with a published amount is on file for Vermont as of . Most recent change: Employers with 5 or more employees must disclose tipped status and base-wage amount/range in covered Vermont job advertisements ().
- ChangedEmployers with 5 or more employees must disclose tipped status and base-wage amount/range in covered Vermont job advertisements.[15]
Bills and ballot measures
Nothing pending as of .
Key statutes
- 21 VSA 342–343,347–348
- 21 VSA 383–384,393,395,397
- Vermont minimum wage rules; agency guidance on tipped employees
12FAQ
Vermont tip law questions
Plain answers to the 8 questions restaurant owners and staff ask most about Vermont tip law, each linked to its source.
What is Vermont's tipped minimum wage in 2026?
Who counts as a tipped service employee?
Someone who gives direct, personal customer service in a hotel, motel, tourist place or restaurant and regularly gets more than $120 a month in tips.[6]
Do Vermont restaurant workers get overtime?
Can cooks share in a tip pool?
Yes, but only if everyone in the pool gets the full minimum wage and no tip credit is taken.[2]
Can managers take from the tip pool?
No. The state agency bars managers and supervisors from pools whether or not a tip credit is taken.[2]
Can card-processing fees come out of tips?
When is final pay due?
Within 72 hours after a firing. After a quit, on the last regular payday, or the following Friday if there isn't a regular payday.[5]
What does a Vermont payroll card have to offer?
At least 3 free withdrawals each pay period, including one for the full balance. Workers have to agree in writing.[5]
13Compare
How Vermont compares with nearby states
Vermont borders Massachusetts, New Hampshire and New York. Massachusetts and New York pay a higher minimum wage than Vermont's $14.42. Running locations on both sides of a line? Each one follows its own state's rules.
Neighboring states
States with the same rules
Same tip credit class as Vermont: Tip credit, cash wage above federal.
- Missouri tip laws$15.00 min wage $7.50 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- South Dakota tip laws$11.85 min wage $5.925 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Ohio tip laws$11.00 min wage $5.50 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Illinois tip laws$15.00 min wage $9.00 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- District of Columbia tip laws$18.40 min wage $10.30 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
- Rhode Island tip laws$16.00 min wage $3.89 tipped cash wage Also a tip credit with a cash wage above $2.13, and only the tip's share of card fees
The law decides who's in. Ferry runs the split.
See how operators set pool rules in Ferry Tip Manager and pay tips out without a cash run. Bring your own Vermont setup.
14Sources
Sources for Vermont tip laws
Every figure on this page links to one of these 15 sources: 11 for Vermont and 4 for the federal baseline. They are statutes, regulations and government agency pages, each with the date it was checked.
- 12026 Vermont Minimum Wage PosterVermont Department of Labor · Official source · Page updated 2026 · Checked Pinpoint: 2026 minimum and basic rates, p. 1labor.vermont.gov/sites/labor/files/documents/Min%20Wage%20Poster%202026%20%282%29.pdf
What the source says
“Effective 01/01/26 $14.42 per hour”
“Effective 01/01/26 $7.21 per hour”
- 2Information on Tipped and Serviced EmployeesVermont Department of Labor · Official source · Page updated 2023 · Checked Pinpoint: Shortfall, p. 1; Non-tipped duties, p. 2labor.vermont.gov/doc/sites/labor/files/doc_library/_Tipped%20and%20Services%20employees%20%281%29.pdf
What the source says
“the employer is required to make up the difference.”
“the employee shall retain all tips received, except to the extent that there is a valid tip pooling arrangement.”
“29 C.F.R. 531.56(e) allows employers to take the tip credit”
- 3Fact Sheet 15 Federal Tipped EmployeesU.S. Department of Labor · Official source · Checked Pinpoint: Overtime Problems; Tip pooling; Employers, Including Managers and Supervisorswww.dol.gov/agencies/whd/fact-sheets/15-tipped-employees-flsa
What the source says
“The employer may not take a larger FLSA 3(m)(2)(A) tip credit for an overtime hour than for a straight time hour.”
“The FLSA allows employers to require employees to share or “pool” tips with other eligible employees.”
“Regardless of whether an employer takes a tip credit, the FLSA prohibits employers from keeping any portion of employees’ tips for any purpose, whether directly or through a tip pool.”
- 4Vermont Tax Guide for RestaurantsVermont Department of Taxes · Official source · Checked Pinpoint: Tips and Service Chargestax.vermont.gov/restaurant
What the source says
“A service charge is a fee that you charge customers. It is different from a tip because the customer does not voluntarily pay the service charge.”
“Service charges are always counted as business income, even if you share it with employees.”
- 521 VSA 342 Wage Payment and Payroll CardsVermont General Assembly · Official source · Page updated · Checked Pinpoint: 342(a)(2)(A); 342(b)(1); 342(b)(2)legislature.vermont.gov/statutes/section/21/005/00342
What the source says
“after giving notice to each employee, pay biweekly or semimonthly”
“voluntarily leaves employment shall be paid on the last regular pay day, or if there is no regular pay day, on the following Friday;”
“is discharged from employment shall be paid within 72 hours of discharge;”
- 621 VSA 384 Employment and WagesVermont General Assembly · Official source · Page updated · Checked Pinpoint: 384(a)(2); 384(b)(3)legislature.vermont.gov/statutes/section/21/005/00384
What the source says
“a basic wage rate less than one-half the minimum wage.”
“customarily and regularly receives more than $120.00 per month in tips for direct and personal customer service.”
“Employees of an establishment that is a hotel, motel, or restaurant.”
- 7Tip recordkeeping and reportingInternal Revenue Service · Official source · Checked Pinpoint: Service charges are not tips, paragraph 2; qualified tips deduction, net-income limit; tip income, Social Security/Medicarewww.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
What the source says
“Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.”
“For self-employed individuals, the deduction may not exceed the individual’s net income (without regard to this deduction) from the trade or business in which the tips were earned.”
“These amounts are subject to federal income tax and generally are also subject to Social Security and Medicare taxes.”
- 8Revenue Ruling 2012-18Internal Revenue Service · Official source · Page updated 2012 · Checked Pinpoint: Q 1/A 1, four distinguishing factors; p. 1, ruling headingwww.irs.gov/pub/irs-drop/rr-12-18.pdf
What the source says
“compulsion; (2) the customer must have the unrestricted right to determine the amount; (3) the payment should not be the subject of negotiation or dictated by employer policy; and (4) generally, the customer has the right to determine who receives the payment.”
“Rev. Rul. 2012-18”
- 9Questions and Answers About the FLSA, DOL WHDU.S. Department of Labor · Official source · Checked Pinpoint: Recordkeeping and Notices, Are pay stubs required?www.dol.gov/agencies/whd/flsa/faq
What the source says
“However, the FLSA does not require an employer to provide employees pay stubs.”
- 1021 VSA 393 Records and NoticeVermont General Assembly · Official source · Page updated · Checked Pinpoint: 393(a); 393(b)legislature.vermont.gov/statutes/section/21/005/00393
What the source says
“Every employer shall keep a true and accurate record of the hours worked by each employee and of the wages paid to the employee”
“Every employer shall keep a copy of the rules posted in a conspicuous place in the area where employees are employed.”
- 11Fact Sheet #21: Recordkeeping Requirements under the Fair Labor Standards Act (FLSA)U.S. Department of Labor · Official source · Page updated · Checked Pinpoint: Posting, paragraph 1www.dol.gov/agencies/whd/fact-sheets/21-flsa-recordkeeping
What the source says
“Each employer shall preserve for at least three years payroll records, collective bargaining agreements, sales and purchase records.”
“Employers must display an official poster outlining the provisions of the Act, available at no cost from local offices of the Wage and Hour Division and toll-free, by calling 1-866-4USWage (1-866-487-9243).”
“Records on which wage computations are based should be retained for two years,”
- 12Worker Rights and ProtectionsVermont Department of Labor · Official source · Checked Pinpoint: Contactlabor.vermont.gov/rights-and-wages
What the source says
“Vermont Department of Labor”
“Worker Rights & Protections”
“Telephone: 802-951-4083”
- 1321 VSA 397 Retaliation ProhibitedVermont General Assembly · Official source · Page updated 2013 · Checked Pinpoint: 397(a)legislature.vermont.gov/statutes/section/21/005/00397
What the source says
“An employer shall not discharge or in any other manner retaliate against an employee because:”
- 1421 VSA 395 Civil ActionsVermont General Assembly · Official source · Page updated · Checked Pinpoint: 395legislature.vermont.gov/statutes/section/21/005/00395
What the source says
“twice the amount of the minimum wage established pursuant to section 384 of this subchapter less any amount actually paid by the employer, together with costs and reasonable attorney’s fees.”
- 15Vermont Labor Employment Practices, current full chapterVermont General Assembly · Official source · Checked Pinpoint: 495p(a)(2)(B), 5 employee scope(c)(3), effective July 1, 2025legislature.vermont.gov/statutes/fullchapter/21/005
What the source says
“An advertisement for a job opening that is paid on a tipped basis shall disclose that fact and the base wage or range of base wages for the job opening.”
15Methodology
How we research these pages
Every figure on this page comes from an official source, a statute, a regulation or a government agency page, and links to it where it is used. Ferry checks the page against those sources on a schedule and logs every change.
- 1
Official sources only
Statutes, regulations, state labor agencies, city ordinances and the U.S. Department of Labor. No vendor blogs, no AI answers, no secondary summaries as the only source.
- 2
Every figure is linked
Each rate and rule carries a numbered link to the statute or agency page behind it, with the exact pinpoint and, where available, a link that opens at the sentence itself.
- 3
Re-checked on a schedule
Every page is re-checked each January and July, and whenever a state or city changes a rate. Cash wage plus tip credit is checked against the minimum wage on every build.
- 4
Gaps are left out, not guessed
If a rule can't be confirmed from an official source, it isn't shown. The page points to the state agency instead.
What changed on this page
- First version of this page. Every figure was checked against the official sources listed on this page.
Researched by Ferry's tip operations research team. Last reviewed .
Changes to the law itself are listed in What changed and what's coming.
16Every state
Tip laws in every state
Pick any state for its tip credit, tip pool, service charge and card tip rules. Each chip shows the state's tip credit class.
- No tip creditNo tip credit
- Above $2.13Tip credit, cash wage above federal
- $2.13 cashTip credit, federal cash wage
- FederalFederal rates apply
51 of 51 state pages. Open the master guide for the federal baseline, tip credit classes and the full comparison table.