An act relating to repealing the Commissioner of Labor’s authority to recommend a subminimum wage for individuals with a disability

2025-2026 Regular Session Introduced by Emilie Krasnow

Eliminates the state’s ability to set or recommend subminimum wage rates for learners, apprentices, and workers with disabilities, enforcing standard minimum wage instead.

Read first time and referred to the Committee on General and Housing

Summary of H.374 (2025-2026) – Vermont

Purpose and intent

H.374, introduced by Rep. Emilie Krasnow, seeks to repeal the authority of the Vermont Commissioner of Labor to recommend a subminimum wage for certain groups, specifically individuals with disabilities.

The bill aims to shift away from allowing reduced wage rates for learners, apprentices, and persons with disabilities toward maintaining standard minimum wage requirements.

Key provisions

Section 1: Amends 21 V.S.A. § 385 (Administration) to remove or prohibit the provision that authorizes the Commissioner of Labor and the Commissioner’s representatives to “recommend a suitable scale of rates for learners, and apprentices, and persons with disabilities, which may be less than the regular minimum wage rate for experienced workers without disabilities.”

Section 2: Effective date – the act takes effect upon passage.

Who or what would be affected

The authority of the Vermont Department of Labor (specifically the Commissioner of Labor) to recommend subminimum wage scales would be eliminated.

Employers and workers, particularly those in training roles (learners and apprentices) and individuals with disabilities who might otherwise be considered for subminimum wage rates, would be directly impacted.

The change would align Vermont law with a policy that does not permit subminimum wages under the Commission’s recommendations, potentially increasing wages to the regular minimum wage level for these groups.

Procedural and timeline aspects

Status: Read first time and referred to the House Committee on General and Housing (as of February 26, 2025). No further committee activity is listed.

Effective date: The bill would take effect upon passage (immediate once enacted).

Potential impact and considerations

Labor standards: Eliminating the subminimum wage recommendation could lead to higher wages for individuals with disabilities and other trainees, reducing or removing wage disparities created by relying on subminimum rates.

Employment practices: Employers may need to adjust compensation structures to meet standard minimum wage requirements, which could affect training programs and apprenticeship models.

Policy alignment: The bill reflects a shift toward standardizing wages and away from subminimum wage frameworks, aligning with broader national and state conversations about fair wages for workers with disabilities.

Note: The bill text provides a single substantive change to the administration provisions and does not detail accompanying transition rules or exceptions.