Legislative History
2007-2008: Tipped Minimum Wage
2007
Victories
S.27, Tipped Minimum Wage Increase Passes, In May 2007 the Vermont legislature passed S. 27, a bill to increase the minimum wage for tipped workers in Vermont. The tipped minimum wage had been $3.65/hour. S. 27, increases the tipped minimum wage annually based on the CPI-U (Consumer Price Index – Urban or “cost-of-living”) starting on Jan 1, 2008. This COLA (cost of living adjustment) is the same index that is currently attached to the general minimum wage. A worker is considered a “tipped worker” and can be paid the $3.65/hour if he/she earns $30 or more a month in tips on a regular basis and occupations range from waitstaff to housekeepers in hotels/motels to bell-hops to pizza delivery people.
S. 27 also includes a revision to the tipped worker definition. Currently workers who make $30 or more in tips a month can be paid as a tipped worker. S. 27 revises this definition to $120 or more in tips a month. The current definition had not been adjusted since 1957. Redefining the tip threshold excludes low-tipped and some part-time tipped workers who earn small tips due to low priced menus from being paid the tipped minimum wage. Instead, these workers will now be entitled to the general minimum wage ($7.53/hr in 2007). Tipped workers are legally guaranteed the general minimum wage ($7.53) via the “tipped credit.” Currently, Vermont law requires an employer to fill in the gap when an employee makes less than the general minimum wage when tips and $3.65 per hour work do not equal $7.53/hour. As tipped workers testified in front of the House General Committee in February, many employees do not know the “tipped credit” provision is Vermont law.
Prior to the passage of S. 27, the Vermont tipped minimum wage had not moved in Vermont for three years. It was last increased on Jan 1, 2005. An annual COLA insures that tipped workers do not loose ground in the value of their wages as the cost of living increases. Waitstaff comprise the majority of tipped workers in Vermont. Menu prices, the base for most tip calculations, usually do not annually adjust and thus, tips do not automatically adjust to reflect the growing cost of living.
The VLWC worked to put together a film on the rights of tipped workers called "Survival Tips." This film is a valuable educational tool in the campaign to get a higher minimum wage passed for tipped workers and the eventual elimination of the tipped minimum wage. We want tipped workers to have the same minimum wage as all other Vermont workers.
Other Work
Hearing on H. 337:
On March 13th in front of a joint hearing with House General, Housing and Military Affairs Committee and House Commerce Committee the VLWC helped to bring 10 workers to testify on H.337. The 10 workers testified about their experience without paid sick days or working with children whose parents lack this benefit. For the past three months the VLWC has been working closely with a coalition of unions, advocacy organizations and businesses on H. 337. The legislation would guarantee 7 paid sick days annually to any worker who works more then 30 hours per week, and be pro-rated for part-time workers. As many of you know, working Vermonters across the state must choose between paying for rent, food or fuel and taking care of themselves, their partner or their children when they are sick.
Although, it does not appear that their will be further movement on guaranteeing all Vermonters paid sick days this session, we are planning to build upon this momentum towards next year. As sick day policies are be discussing in 12 states, the recent adoption of a policy in Washington DC, and the 1 year anniversary of San Francisco's sick day policy there is a lot of to be learned from other successes. Over the next year we plan to organize and build a sustained movement to make sure that in 2009 we can guarantee all Vermonters this right.
Home | Mission | FAQs & Facts | Campaigns | Contact Us | Site Map
Vermont Livable Wage Campaign
60 Lake Street, Burlington, VT 05401
802.863.2345 x8 livablewage@pjcvt.org
© 2007 Vermont Livable Wage Campaign