Who is exempt
Bona fide executive, administrative and professional staff, outside salespeople, agricultural and domestic workers, taxi drivers, and students are excluded from the definition of employee. Source: legislature.vermont.gov↗ (opens in a new tab)
Industry-specific rules
State overtime does not apply to retail and service businesses, hotels, motels, restaurants, certain seasonal amusement businesses, and some transportation workers. Federal overtime may still apply to these workers. Source: legislature.vermont.gov↗ (opens in a new tab)
Penalties
An underpaid employee can sue for up to twice the wages required by law, less what was paid, plus court costs and attorney fees. Source: legislature.vermont.gov↗ (opens in a new tab)
The law and where to check
The law: 21 V.S.A. § 384(b) (opens in a new tab)
The agency: Vermont Department of Labor, Wage and Hour Program (opens in a new tab)
What federal law says
The federal Fair Labor Standards Act (FLSA) requires 1.5 times the regular rate for hours over 40 in a workweek for non-exempt employees. Federal law has no daily overtime. The federal salary level for most exempt staff is $684 a week. Where state and federal rules differ, follow the rule that gives the employee more. Source: U.S. Department of Labor↗ (opens in a new tab) Source: U.S. DOL — salary levels↗ (opens in a new tab)
Free tool: work out overtime pay with our State Overtime Calculator.
Overtime checklist for Vermont employers
A simple order of work, based on the rules above. It is not a legal checklist.
- Decide which employees are non-exempt, and check exempt staff meet the salary and duties tests.
- Set your workweek (a fixed, repeating 7-day period).
- Track all hours worked, including daily hours if your state has daily overtime.
- Pay overtime at 1.5 times the regular rate, including bonuses where required.
- Use our free State Overtime Calculator to check the numbers.
- Keep time and pay records.
More Vermont employment law guides
- All Vermont employment laws
- Vermont final paycheck law
- Vermont paid sick leave law
- Vermont meal and rest break laws
- Vermont pay frequency law
- Vermont vacation and PTO payout law
- Vermont new hire reporting
- Vermont at-will exceptions
Overtime laws in other states
See every state on one page, or pick a state:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- District of Columbia
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Sources
All official government sources, last checked October 19, 2026.
- https://legislature.vermont.gov/statutes/section/21/005/00384
- https://legislature.vermont.gov/statutes/section/21/005/00383
- https://www.dol.gov/agencies/whd/overtime/whdfs17u
- https://legislature.vermont.gov/statutes/section/21/005/00395
- https://labor.vermont.gov/rights-and-wages/wage-and-hour
- https://www.dol.gov/agencies/whd/overtime
Disclaimer: This guide provides general information based on publicly available official sources and is for information only. It is not legal, tax, payroll or employment-law advice and does not guarantee compliance with federal, state or local requirements. Rules can depend on your location, industry, contracts and other circumstances, and laws change. Always check the official source, the relevant government agency or a qualified professional before making a decision. MadyHR.ai accepts no responsibility for any action taken based on this page.
Last checked: . Every rule and source link on this page was checked against the official government source on this date. Laws change, so always open the source link before you act.