An act relating to eliminating the tipped minimum wage

This bill requires employers in Vermont to pay tipped workers the standard minimum wage starting January 1, 2024, instead of allowing a reduced "tipped minimum wage." It applies to employees in hotels, motels, tourist places, and restaurants who regularly receive more than $120 per month in tips. The legislation also sets a transitional phase where tipped workers must receive at least half the minimum wage beginning July 1, 2023, before reaching full minimum wage coverage in 2024. The standard minimum wage itself continues to increase annually by either 5% or the Consumer Price Index, whichever is smaller, ensuring tipped workers benefit from these raises once the transition is complete.