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Bill

H 713

An act relating to raising the minimum wage for employees working for a national fast food chain

2025-2026 Regular Session Introduced by Brian Cina and 2 co-sponsors

The bill sets a $20/hour minimum wage for nationwide fast food workers in Vermont starting Jan 1, 2027, with annual increases tied to the general minimum wage.

Read first time and referred to the Committee on General and Housing
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WeVote Research Nonpartisan
Bill Summary · H 713

Summary of H.713 (2025-2026) – Vermont

Purpose and intent

  • H.713 aims to raise the minimum wage specifically for employees working for nationwide fast food chains in Vermont.
  • The bill also creates the Fast Food Council within the Department of Labor to study and recommend future minimum wage adjustments and other employment standards for workers at national fast food chains.

Key provisions and changes

  1. Minimum wage increases for fast food workers

    • Beginning January 1, 2027, the hourly minimum wage for employees of nationwide fast food chains would be set at $20.00 per hour.
    • Each subsequent January 1 would apply the same percentage increase as the general minimum wage increases described in the bill’s subsection (1) (i.e., tied to the federal CPI-U growth rate, with a floor at continued increases and a cap ensuring no decrease).
    • A “nationwide fast food chain” is defined as a limited-service restaurant network with more than 60 establishments nationwide, sharing a common brand or standardized decor, marketing, products, and services, primarily offering immediate consumption with limited or no table service (NACIS code 722513).
    • The provision applies regardless of whether the employer is a corporate owner or a franchisee/licensee.
    • If the U.S. federal minimum wage for a given year is higher than Vermont’s calculated rate, the higher federal rate would apply.

  2. Existing general minimum wage mechanics preserved

    • The general Vermont minimum wage continues to follow the prior structure: a base wage that increases annually by 5% or by the percentage change in the CPI-U (whichever is smaller), rounded to the nearest cent.
    • In the hotel/motel/tourist/restaurant sector, tipped employees must be paid at least half the minimum wage (for those earning tips over $120 per year).

  3. Fast Food Council (new body)

    • Purpose: Study and recommend minimum standards on wages, working hours, training, and other conditions to ensure health, safety, and welfare of nationwide fast food workers; evaluate the Department of Labor’s response to related issues.
    • Composition: 5 voting members (industry representative, franchisee/owner, fast food employee, employee advocate, and an unaffiliated public member with stringent independence requirements) and 2 nonvoting members (Department of Labor and Governor’s office representatives).
    • Appointment timeline: All council members to be appointed by February 28, 2027; terms run until January 1, 2031.
    • Reporting: Annual reports due December 15, 2028, and continuing through January 1, 2031, with recommendations for legislative action.
    • Operations: First meeting convened by the Department of Labor appointee; quorum and voting rules; public meetings; and temporary administration by the Department of Labor.
    • Funding and compensation: Per diem and expense reimbursement for members limited to up to four meetings per year; funds provided by the Department of Labor.

Affected parties

  • Employees working for nationwide fast food chains in Vermont (significant wage increases proposed starting 2027).
  • Nationwide fast food chains operating in Vermont (including both corporate and franchise operations).
  • Fast food workers’ advocates and industry stakeholders who participate on the new Fast Food Council.
  • Vermont Department of Labor (administrative support and implementation roles).

Timelines and effective dates

  • Effective date of the act: July 1, 2026.
  • First council appointments due by February 28, 2027; council to convene by May 1, 2027; council to cease existence on January 1, 2031.
  • Fast food wage increase to $20.00/hour begins January 1, 2027, with subsequent annual adjustments aligned to the general minimum wage increase formula.

Compiled from official sources — confirm details with the bill’s official record.

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