Legislative History
2003-2004: Tax Policy, Minimum Wage, Non-Retaliation
(Tax Policy, Minimum Wage Rule Changes, Non-Retaliation)
H.381, Non-Retaliation Bill for Employee Wage Disclosure
H.381 contains a provision that makes it unlawful for an employer to discharge or discriminate against an employee for disclosing her or his wages to another employee. This bill will protect low-wage workers who are often pressured by employers not to discuss their wages with colleagues which is particularly helpful when organizing and educating co-workers about livable wage in the workplace. H.381 will also provide another tool for women and people of color to combat wage discrimination in the workplace by allowing workers to discuss wages and discover if there are wage disparities between them and their white male co-workers. Unfortunately, the bill never made it out of the House Committee on General and Housing & Military Affairs. It will be reintroduced in 2005.
Minimum Wage Rules Change
In September, the Vermont Department of Labor & Industry finalized the Minimum Wage Rules which dictate what deductions may be made from a worker’s paycheck in Vermont. The new rules can be read on their website and they went into effect on September 1st. You can read the rules at http://www.state.vt.us/labind/Wagehour/rule-final.htm. In January 2004, the Vermont Department of Labor and Industry proposed changes to the rules which govern the Vermont minimum wage. These rules define what deductions an employer can make from an employee's paycheck for uniforms and employer-provided housing. The Vermont Livable Wage Campaign believed these changes were a direct contradiction to the increase of the Vermont minimum wage rate from $6.25 an hour to $6.75 an hour on January 1, 2004 and called for the Department not make these changes to the rules.
The uniform and housing rules have remained the same thanks to over 300 Vermonters contacting Labor & Industry to oppose these changes. The final rules contain clear and more concise language. The uniform language is clearer than the previous rules--absolutely NO deductions may be made for maintenance or providing a uniform. For room and board, employees are still required to provide written authorization for goods or services deductions (i.e. housing or board), otherwise the employer needs to have proof of the employee's intention to pay for these goods/services. Also, caps on the amount allowed to be deducted from employee paychecks for room and board remain in place. All in all, this is a victory for our Campaign! Thank you to all of you for your support on this fight!
Governor Douglas' Tax Policy
At the beginning of the legislative session, Governor Douglas proposed a three-part tax reform plan. First he proposed closing a loophole in the corporate income tax that will force large multi-state companies to pay more in taxes. He also called for changes in the capital gains tax that will affect mainly high income individuals and make them pay more taxes. These changes would produce millions in additional revenue for the state. However, the Governor insisted on making the tad reform package "revenue neutral" by cutting income taxes. Savings to low and moderately income Vermonters will be minimal under the Governor's plan. The majority of income tax filers would see less than $50 in savings per year. Families with income of $25,000 a year and less would receive just $3 in savings. A revenue neutral policy means the state will lose the opportunity to use the money to address numerous unmet needs (e.g., child care subsidies for low income Vermonters, health care, affordable housing, infrastructure, etc.).
Over twenty organizations, including the Peace & Justice Center and Vermont Livable Wage Campaign, joined together to support closing the corporate loophole and increasing the capital gains tax but in opposition to the income tax cuts as proposed by the Governor. The tax policy changes were not implemented this session.
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Vermont Livable Wage Campaign
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