Employer compliance guide
The Vermont labor law guide
Here is a guide on the most important Vermont labor laws that every business owner with employees must follow in order to stay compliant.
Contents7 sections
Wages and breaks
Vermont Minimum wage
$14.42
The current minimum wage rate in Vermont is $14.42, according to wage and hour laws.
The state minimum wage is to be reviewed every year and increased by 5 percent or the percentage increase of the Consumer Price Index, whichever is smaller.
Tipped min wage
$7.21
The minimum wage for tipped employees is $7.21.
The tipped minimum wage is to be adjusted by the same percentage as the standard minimum wage each year.
Vermont Overtime
1.5X
Vermont law requires employers to pay non-exempt employees 1.5 times their regular rate of pay for all hours worked over 40 in a workweek.
The federal overtime rule stipulates that the minimum salary requirement for administrative, professional, and executive exemptions is $684 per week or $35,568 per year
Vermont Breaks
Yes
Employers are required to provide “reasonable opportunity” to eat and use the restroom.
Federal law does not require employers to provide meal periods or breaks, but if they choose to do so, breaks lasting less than 20 minutes must be paid.
Vermont Lactation Breaks
Yes
Federal and state laws require that lactating women be provided with reasonable breaks to express milk for up to one year after the birth of a child.
Final paychecks in Vermont
Employees who are terminated or laid off must be paid all final wages within 72 hours of the discharge.
Employees who quit must be paid all final wages by the next regularly scheduled payday. If there is no established payday, they must be paid by the following Friday.
Vermont child labor laws
Minors 14 and 15 years of age
On school days, they may not work more than 3 hours a day and not during school hours. During school weeks they may not work more than 18 hours a week.
On non-school days, they may not work more than 8 hours a day. During non-school weeks they may not work more than 40 hours a week
They may not work outside of the hours of 7 a.m. and 7 p.m., except for June 1 to Labor Day, when they may work between the hours 7 a.m. and 9 p.m.
Minors 16 and 17 years of age
They do not have time restrictions, but may not work in hazardous jobs such as manufacturing, construction, and similar fields.
Leave requirements
Required by this state
8Sick daysRequired
Employers are required to provide eligible employees one hour of paid sick leave for every 52 hours worked.
Accrual may be capped to 40 hours in a 12-month period.
Family and medical leaveRequired
Employers may be required to provide employees with unpaid leave under the federal Family and Medical Leave Act (FMLA).
In addition, the Vermont Parental and Family Leave Act (VPFLA) requires employers with 10 or more employees to provide up to 12 weeks of unpaid leave. Effective July 1, 2025, the law was expanded to include additional protected leave categories, including bereavement leave (up to 2 weeks), safe leave, and qualifying military exigency leave, all within the existing 12-week entitlement.
Jury Duty LeaveRequired
Employers are not required to pay employees for time spent on jury duty, but may not penalize the employee in any way.
Voting timeRequired
Vermont does not require employers to provide leave.
Witness LeaveRequired
Employers cannot take any adverse action against an employee for appearing as a witness pursuant to a summons.
The employee’s witness leave counts as time worked for determining seniority, fringe benefits, credit towards vacations, and other rights, privileges, and benefits of employment.
Crime Victim LeaveRequired
An employee who is the victim of a crime must be allowed unpaid time off to attend legal proceedings related to the crime and they are entitled to reinstatement upon their return from leave.
Employees are eligible if they have worked for the employer for at least six months and average 20 hours or more per week.
Employers must not discriminate against crime victims in any other term or condition of employment.
Town meeting leaveRequired
Employers must allow an employee to take leave to attend an annual Town Hall Meeting, provided they have given at least seven days’ notice.
Military LeaveRequired
Employers must allow their employees who are service members to take up to 15 days of military leave.
After their leave, the employee is entitled to return to their job with the same seniority, status, and pay that they would have accrued if they had not taken the leave.
No state requirement
3Bereavement leaveNot req.
Effective July 1, 2025, Vermont Act 32 expands the Vermont Parental and Family Leave Act (VPFLA) to include bereavement leave as a protected category of leave. Employers with 10 or more employees must allow eligible employees to take up to 2 weeks of bereavement leave, with leave taken in periods of up to 5 consecutive days. This leave is included within the existing 12-week total VPFLA entitlement.
Vacation timeNot req.
Employers are not required to provide paid or unpaid vacation leave but must comply with their own established policies if they choose to implement one.
Holiday leaveNot req.
Private employers are not required to provide paid or unpaid time off for holidays.
Hiring and firing
Vermont Discrimination Leave
Federal law makes it illegal for an employer to discriminate on the basis of: Race, Color, Age, Sex, Sexual orientation, Gender, Gender identity, Religion, National origin, Pregnancy, Genetic information, including family medical history, Physical or mental disability, Child or spousal support withholding, Military or veteran status, Citizenship and/or immigration status.
Additionally, Vermont employers are prohibited from discriminating on the basis of: Credit report or credit history; AIDS/HIV; Place of birth; Wage garnishment for consumer debts.
Employers may not discharge or discriminate against employees or applicants because they are a member of the National Guard or federal reserves or engage in military activities.
Click here to read our blog on what acceptable and unacceptable questions to ask during an interview.
Vermont Termination Laws
Vermont is an employment-at-will state, which means that without a written employee contract, employees can be terminated for any reason at any time, provided that the reason is not discriminatory and that the employer is not retaliating against the employee for a rightful action.
Vermont has certain requirements for employers who are closing their business or conducting a mass layoff. A “business closing” or “mass layoff” means at least 50 employees lose their jobs in Vermont within a 90-day period.
Employers should provide 45 days’ notice to the Secretary of Commerce and Community Development and to the commissioner. This notice must include the approximate number of affected employees, their job titles, the anticipated layoff date, and the affected work sites.
Employers should also provide 30 days’ notice to the commissioner of the actual number of affected employees, their job titles, the date of the layoff, and other information necessary to determine unemployment benefits and to access resources to mitigate adverse impacts of the layoff.
Employers should provide 30 days’ notice to the local chief elected official of the municipality, affected employees, and, if applicable, employees’ union representative.
Vermont Record-Keeping Laws
Regarding employment and payroll data, under the Fair Labor Standards Act (FLSA) and others, you must:
For at least 3 years: keep payroll records, certificates, agreements, notices, collective bargaining agreements, employment contracts, and sales and purchase records. Also keep completed copies of each employee’s I-9 for three years after they are hired. If the employee works longer than three years, hold on to the form for at least one year after the employee leaves.
For at least 2 years: Keep basic employment and earning records like timecards, wage-rate tables, shipping and billing records, and records of additions to or deductions from wages. Also keep the records that show why you may pay different wages to employees of different sexes, such as wage rates, job evaluations, seniority and merit systems, and collective bargaining agreements.
For at least 1 year: The Equal Employment Opportunity Commission says employers should keep all employment records for at least one year from the employee’s date of termination.
Other record-keeping laws that may apply to you:
Under the Occupational Safety and Health Act, you need to keep records of job-related injuries and illnesses for five years. But some records, like those covering toxic substance exposure, have to be kept for 30 years.
You must keep files of benefit plans and seniority and merit systems while they are in effect and for at least a year after they end. You must also retain summary descriptions and annual reports of benefits plans for six years.
If your company is covered by the Family and Medical Leave Act, you must also retain relevant records of leaves, notices, policies, and more for three years.
Additional laws that may apply to you.
12 additional laws may apply. Open one to read the rule.
Vermont Pay Practices
Employers in Vermont must pay their employees at least weekly unless they give employees advance written notice that pay will be biweekly or semimonthly.
Vermont Pay Transparency Laws
Effective July 1, 2025, Vermont’s pay transparency law (H.704) requires employers with 5 or more employees to include a good faith salary or wage range in all job postings for Vermont-based roles (including certain remote roles tied to Vermont).
The “range” must reflect the minimum and maximum compensation the employer expects to pay at the time of posting. Job postings must also disclose if a role is commission-based or tipped, including base wage information where applicable.
In addition, Vermont law prohibits salary history inquiries and protects employees’ rights to discuss wages without retaliation, applying broadly across employers.
Employers should ensure compliance with these requirements, as Vermont’s law establishes comprehensive pay transparency obligations beyond salary history bans.
Vermont Background check Laws
Employers who run background checks should ensure they’re following the requirements of the Fair Credit Reporting Act, which are available here.
Employers are required to conduct background checks on the following types of employees or applicants: School personnel, including student teachers, superintendents, and employees of contractors who may have unsupervised contact with children; Work-study students who will have unsupervised contact with schoolchildren; Childcare personnel; Personnel, including volunteers, who work for a commissioner-designated shelter; Personnel, including principal officers and board members, of a cannabis dispensary; Home health agency personnel who provide direct care; Residential treatment program personnel, including volunteers and student interns, who may have unsupervised contact with children; Personnel who work for an emergency management organization and who have access to facilities, materials, or information that requires a security clearance.
Vermont Credit and Investigative Check Laws
Employers in Vermont may not obtain credit reports on their applicants or employees unless under the following circumstances: The information is required by State or federal law or regulation; The job involves access to confidential financial information; The employer is a financial institution or credit union; The job is for a law enforcement officer, emergency medical personnel, or a firefighter; The job requires a financial fiduciary responsibility to the employer or a client of the employer, including the authority to issue payments, collect debts, transfer money, or enter into contracts; The employer can demonstrate that the information is a valid and reliable predictor of employee performance in the specific job; The job involves access to an employer’s payroll information.
Vermont Arrest and Conviction Check Laws
Under the “Ban the Box” law, employers are prohibited from asking about criminal histories on initial employment applications. If employers ask for criminal history information later in the hiring process, applicants must be given the opportunity to explain the information, including any rehabilitation.
Vermont Drug and Alcohol Testing Laws
Employers may test their applicants and employees for drugs or alcohol only if they follow certain requirements, as outlined below.
Applicants: Employers may test applicants only if all the following conditions are met: The employer offers them the job conditioned on passing a drug or alcohol test; The employer provides written notice of the testing procedures and a list of drugs they test for; The employer provides a written statement that therapeutic levels of medically prescribed drugs will not be reported; The employer follows the following state requirements of administering the test.
Employees: Employers may test employees only if all the following conditions are met: The employer has probable cause to believe that the employee is using drugs on the job or is under the influence of drugs on the job; The employer has a rehabilitation program available to the employee; The employer does not discharge an employee for a positive test if the employee completes the rehabilitation program; The employer follows the following state requirements of administering the test.
Employers are generally required to accommodate off-duty medical use of marijuana.
Vermont Whistleblower Protection
Employers in Vermont may not discharge or discriminate against an employee for most types of whistleblowing. Examples of protected activity include the following: Exercising their rights regarding workplace safety, such as reporting an unsafe working condition; Filing a complaint or participating in an investigation regarding discrimination; Filing a complaint or participating in an investigation of a violation regarding parental and family leave; Filing a complaint regarding a violation of the Vermont Polygraph Protection Act; Filing a claim or participating in a proceeding regarding a violation of state labor law; Filing a claim or participating in an investigation regarding a violation of military-leave laws.
Vermont COBRA
COBRA is a federal law that allows many employees to continue their health insurance benefits after their employment ends. Because federal COBRA only applies to employers that have 20 or more employees, many states have adopted their own versions of the law, which are known as “mini-COBRAs.” Vermont’s mini-COBRA allows employees to continue their coverage for up to 18 months. Employers must provide an employee with a notice of their COBRA rights within 30 days of the triggering event.
Vermont Salary History Inquiry Ban
Employers may not ask about a prospective employee’s current or past compensation at any point during the hiring process. This prohibition includes seeking information from or through a third party. Employers also may not use current or past compensation to satisfy minimum or maximum requirements or to determine whether to interview a candidate.
Vermont Healthcare Fund Contribution
Employers with five or more employees who do not offer insurance to all their employees must pay a “Health Care Fund Contribution.” The Health Care Fund Contribution Assessment (HCFCA) is administered by the Department of Taxes.
The assessment is paid for every uncovered full-time equivalent employee. To find out how many uncovered full-time equivalent employees an employer has, an employer must do the following: Divide the total hours worked by all uncovered employees during a quarter by 520. No matter how many hours are worked by an employee in a quarter, no more than 520 hours can be assessed for one individual employee. Round down to the nearest whole number and then subtract 4. The reason 4 is subtracted is because the first four uncovered employees are exempt for all employers. The resulting number is the number of uncovered employees for which the employer must pay the assessment. Multiply the number of uncovered employees by the rate. The resulting number is the contribution the employer must pay to the Health Care Fund.
Vermont Social Media Laws
Compliance Calendar
Get our Compliance Calendar to stay on top of deadlines throughout the year: View it on your computer. Click + Google Calendar in the lower right to add it to your Google Calendar and subscribe to all updates. You can also download a calendar (.ics) file that you can import into iCal or Outlook, or download a PDF to your computer.
Remember
This summary is not qualified legal advice. Laws are always subject to change, and they can vary from municipality to municipality. It’s up to you to make sure you’re compliant with all laws and statutes in your area. If you need more compliance help, we recommend consulting with a qualified lawyer, checking with your local government agencies, or signing up for Homebase to get help from our certified HR Pros.
Staying compliant
Compliance you don’t have to remember
Homebase tracks breaks, overtime and paid time off as your team clocks in, flags the ones Vermont treats as violations, and keeps the records if anyone asks for them.
- Overtime and double-time calculated from the clock, not from memory.
- Break and meal-period warnings before a shift is closed, not after payroll runs.
- Time cards, schedules and pay stubs kept together for the retention window.
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