WAGE AND HOUR DEMAND LETTER
State of Vermont
Vermont Minimum Wage Act and Fair Labor Standards Act Claims
[ATTORNEY/FIRM LETTERHEAD]
[Firm Name]
[Address Line 1]
[City, Vermont ZIP]
Tel: [Phone Number]
Fax: [Fax Number]
[Attorney Email]
[Vermont Bar Number]
VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
AND VIA EMAIL TO: [recipient_email]
[Date]
[Employer Contact Name]
[Title]
[Company Legal Name]
[Company Address]
[City, State ZIP]
Copy to:
[Company General Counsel, if known]
[Registered Agent, if different]
Re: Wage and Hour Violations - [Client Full Name]
[and All Similarly Situated Employees - if class action contemplated]
Demand for Unpaid Wages Under Vermont Law and FLSA
CONFIDENTIAL SETTLEMENT COMMUNICATION PURSUANT TO VRE 408
Dear [Mr./Ms./Mx. Last Name]:
This firm has been retained by [Client Full Name] ("our client") to pursue claims for unpaid wages against [Company Legal Name] ("[Company Short Name]" or "the Company") arising from violations of the Vermont Minimum Wage Act, 21 V.S.A. Section 381 et seq., the Vermont Wage Payment Act, 21 V.S.A. Section 341 et seq., and the Fair Labor Standards Act ("FLSA"), 29 U.S.C. Section 201 et seq.
Please direct all further communications regarding this matter to our office.
I. VERMONT-SPECIFIC LEGAL FRAMEWORK
A. Applicable Wage and Hour Law
Vermont has a robust state minimum wage that exceeds the federal rate and is tied to annual cost-of-living increases. Vermont also has strong wage payment protections including mandatory weekly payment and strict final wage requirements.
Key Legal Framework:
| Category | Vermont Requirement | Citation |
|---|---|---|
| Minimum Wage | $13.67/hour (2024) | 21 V.S.A. Section 384 |
| Tipped Minimum | $6.84/hour (50% of minimum) | 21 V.S.A. Section 384(b) |
| Overtime | 1.5x regular rate after 40 hours/week | 21 V.S.A. Section 384(a) |
| Pay Frequency | Weekly | 21 V.S.A. Section 342 |
| Final Wages | Within 72 hours of termination | 21 V.S.A. Section 342(c) |
B. Statute of Limitations
| Claim Type | Limitations Period | Citation |
|---|---|---|
| Vermont wage claims | 6 years | 12 V.S.A. Section 511 |
| FLSA (standard) | 2 years | 29 U.S.C. Section 255(a) |
| FLSA (willful) | 3 years | 29 U.S.C. Section 255(a) |
| Breach of Contract | 6 years | 12 V.S.A. Section 511 |
C. Vermont Wage Payment Requirements
Payment Timing Requirements (21 V.S.A. Section 342):
| Situation | Requirement | Citation |
|---|---|---|
| Regular wages | Weekly | 21 V.S.A. Section 342(a) |
| Biweekly (with approval) | May be approved by Labor Commissioner | 21 V.S.A. Section 342(a) |
| Involuntary termination | Within 72 hours | 21 V.S.A. Section 342(c) |
| Voluntary resignation | Last regular payday or next Friday | 21 V.S.A. Section 342(c) |
Payroll Deductions (21 V.S.A. Section 342a):
- Written authorization required
- Deductions must be for lawful purposes
- Cannot reduce wages below minimum wage
D. Enforcement Mechanisms
Administrative:
- Vermont Department of Labor
- Wage and Hour Division
- File complaint at labor.vermont.gov
Private Right of Action (21 V.S.A. Section 388):
- Direct lawsuit in state or federal court
- Unpaid wages plus double damages for willful violations
- Reasonable attorney's fees and costs
- 6-year statute of limitations
E. Vermont Tip Credit Rules
| Requirement | Standard | Citation |
|---|---|---|
| Cash wage minimum | $6.84/hour (50% of minimum) | 21 V.S.A. Section 384(b) |
| Tip credit maximum | $6.83/hour | 21 V.S.A. Section 384(b) |
| Total must equal | $13.67/hour minimum | 21 V.S.A. Section 384 |
| Service charge distribution | Must go to employees | 21 V.S.A. Section 348 |
| Tip pooling | Valid for customarily tipped employees | Federal and state rules |
II. INTRODUCTION AND SUMMARY OF CLAIMS
Our client was employed by [Company Short Name] as a [Job Title] from [Start Date] to [End Date / Present], working at [Work Location(s)] in Vermont. During this employment, [Company Short Name] violated Vermont wage laws by:
[ ] Failing to pay the Vermont minimum wage of $13.67 per hour
[ ] Failing to pay overtime compensation at 1.5 times the regular rate for hours worked over 40 per week
[ ] Misclassifying our client as exempt from overtime when [he/she/they] should have been classified as non-exempt
[ ] Misclassifying our client as an independent contractor when [he/she/they] was an employee entitled to wage protections
[ ] Failing to pay wages weekly as required by Vermont law
[ ] Failing to pay final wages within 72 hours of termination
[ ] Failing to pay for all hours worked, including:
[ ] Off-the-clock work before/after shifts
[ ] Uncompensated meal periods during which work was performed
[ ] Time spent on required pre-shift or post-shift activities
[ ] Travel time that should have been compensated
[ ] Training time
[ ] Making unlawful deductions from wages
[ ] Unlawful tip pooling or tip credit violations
[ ] Failure to distribute service charges to employees
III. FACTUAL BACKGROUND
A. Employment Relationship
| Category | Details |
|---|---|
| Employee Name | [Client Full Name] |
| Job Title(s) | [Title(s)] |
| Dates of Employment | [Start Date] to [End Date / Present] |
| Work Location(s) | [Address(es) in Vermont] |
| Primary Duties | [Describe job duties] |
| Rate of Pay | $[Amount] per [hour/week/year] |
| Classification | [Exempt / Non-Exempt / Independent Contractor] |
| Pay Frequency | [Weekly / Bi-weekly] |
| Supervisor(s) | [Name(s) and Title(s)] |
B. Hours Worked
Our client regularly worked the following schedule:
Typical Weekly Schedule:
| Day | Scheduled Hours | Actual Hours Worked | Unpaid Time |
|---|---|---|---|
| Monday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Tuesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Wednesday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Thursday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Friday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Saturday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Sunday | [X:XX - X:XX] | [X:XX - X:XX] | [X hours] |
| Weekly Total | [X hours] | [X hours] | [X hours] |
Average overtime hours per week not compensated at 1.5x rate: [X hours]
C. Specific Wage Violations
[Detail specific violations as applicable - off-the-clock work, misclassification, tip violations, etc.]
IV. LEGAL ANALYSIS
A. Vermont Minimum Wage Act Violations
1. Minimum Wage Requirements (21 V.S.A. Section 384)
Vermont requires employers to pay at least $13.67 per hour. By [describe violation], [Company Short Name] failed to pay our client the minimum wage.
2. State Overtime (21 V.S.A. Section 384(a))
Vermont requires overtime at 1.5 times the regular rate for hours worked over 40 in a workweek, mirroring federal requirements.
B. Vermont Wage Payment Act Violations
1. Weekly Payment (21 V.S.A. Section 342)
Vermont requires weekly payment of wages unless the Labor Commissioner has approved biweekly payment. [Describe any violation.]
2. Final Wage Payment (21 V.S.A. Section 342(c))
Upon termination, all wages must be paid within 72 hours. [Company Short Name] failed to comply by [describe violation].
C. FLSA Violations
1. Enterprise Coverage
[Company Short Name] is subject to the FLSA because it is an enterprise engaged in commerce with annual gross sales of at least $500,000. 29 U.S.C. Section 203(s)(1)(A).
D. Double Damages for Willful Violations
Under 21 V.S.A. Section 388, willful violations entitle employees to double damages. [Company Short Name]'s violations were willful because [describe evidence of willfulness].
V. DAMAGES CALCULATION
A. Vermont and FLSA Damages
Relevant Period: [Start Date - 6 years prior to anticipated filing] to [End Date / Present]
Total Weeks in Period: [X weeks]
1. Unpaid Overtime
| Period | Avg. OT Hours/Week | Regular Rate | OT Rate (1.5x) | Unpaid OT/Week | Weeks | Total |
|---|---|---|---|---|---|---|
| [Period 1] | [X] | $[X.XX] | $[X.XX] | $[X.XX] | [X] | $[Amount] |
| Unpaid Overtime Subtotal | $[Amount] |
2. Unpaid Minimum Wage
| Period | Hours Below MW | Shortfall/Hour | Weeks | Total |
|---|---|---|---|---|
| [Period] | [X] | $[X.XX] | [X] | $[Amount] |
| Minimum Wage Subtotal | $[Amount] |
B. Summary of Damages
| Category | Amount |
|---|---|
| Unpaid Wages | $[Amount] |
| Vermont Double Damages (Willful) | $[Amount] |
| OR FLSA Liquidated Damages | $[Amount] |
| Pre-Judgment Interest | $[Amount] |
| Attorney's Fees (estimated) | $[Amount] |
| Costs (estimated) | $[Amount] |
| TOTAL INDIVIDUAL DAMAGES | $[Amount] |
C. Class Action Exposure
If this case proceeds as a class action:
| Category | Individual | Estimated Class Size | Total Exposure |
|---|---|---|---|
| Unpaid Wages | $[Amount] | [X employees] | $[Amount] |
| Double/Liquidated Damages | $[Amount] | [X employees] | $[Amount] |
| Class Exposure | $[Amount] |
VI. SETTLEMENT DEMAND
Based on the foregoing, we demand that [Company Short Name] pay $[Settlement Demand Amount] to settle all claims of [Client Full Name].
This demand includes:
- Unpaid wages
- Double damages / liquidated damages
- Pre-judgment interest
- Attorney's fees and costs incurred to date
This demand will remain open for twenty-one (21) days from the date of this letter, expiring on [Response Deadline Date].
VII. RESPONSE AND LITIGATION
If we do not receive a satisfactory response by the deadline, we will file suit in:
[ ] Vermont Superior Court, [County] Unit
[ ] United States District Court for the District of Vermont
The Complaint will seek:
1. Unpaid wages under 21 V.S.A. Section 381 et seq.
2. Unpaid overtime under 21 V.S.A. Section 384(a) and 29 U.S.C. Section 207
3. Double damages under 21 V.S.A. Section 388 for willful violations
4. FLSA liquidated damages under 29 U.S.C. Section 216(b)
5. Attorney's fees and costs
6. Class/collective certification
VIII. DOCUMENT PRESERVATION
LITIGATION HOLD NOTICE
[Company Short Name] must immediately preserve all documents and ESI relevant to these claims, including:
[ ] Time and attendance records
[ ] Payroll records and pay stubs
[ ] Personnel files and job descriptions
[ ] Employee handbooks and policies
[ ] Scheduling records
[ ] Communications regarding pay practices
[ ] Training materials
[ ] Prior Labor Department investigations
[ ] Tip records (if applicable)
[ ] Service charge records
Spoliation of evidence will result in severe sanctions.
IX. CONFIDENTIALITY
This letter is a confidential settlement communication protected under Vermont Rule of Evidence 408 and applicable evidentiary privileges.
We look forward to your prompt response.
Sincerely,
[Attorney Name]
[Title]
[Firm Name]
[Vermont Bar No.]
Enclosures:
[ ] Authorization to Represent
[ ] Pay stubs / wage statements (sample)
[ ] Time records (if available)
cc: [Client Name] (via email)
VERMONT-SPECIFIC PRACTICE NOTES
[ ] High State Minimum Wage: Vermont minimum wage ($13.67) significantly exceeds federal; tied to CPI increases
[ ] Weekly Pay Required: Vermont requires weekly payment unless Labor Commissioner approves biweekly
[ ] 72-Hour Final Pay Rule: All wages must be paid within 72 hours of termination
[ ] Double Damages: 21 V.S.A. Section 388 provides double damages for willful violations
[ ] 6-Year Statute of Limitations: Vermont has very long 6-year SOL for wage claims
[ ] Service Charges: 21 V.S.A. Section 348 requires service charges to be distributed to employees
[ ] Department of Labor: Vermont Department of Labor handles wage claims
- Website: labor.vermont.gov
- Phone: (802) 828-0267
[ ] Court Venue:
- Vermont Superior Court: All counties
- Federal District Court: District of Vermont (Burlington)
[ ] Seasonal/Agricultural Workers: Special rules may apply under 21 V.S.A. Section 383
[ ] Tip Credit at 50%: Vermont allows tip credit of 50% of minimum wage