Vermont Labor Laws (2025 Guide)

What’s New in 2025

• Increase to minimum wage
• Increase to tipped minimum wage
• Changes to workers’ compensation 
• Access to unpaid leave expanded under Vermont’s Parental and Family Leave Act (VPFLA) 
• Expanded coverage under Vermont’s Family and Medical Leave Insurance plan
• Expanded access to short-term family leave
• Addition of safe leave to VPFLA 
• Addition of bereavement leave to VPFLA 

Labor Law Posters

Federal labor law posters
State labor law posters

Wage and Hour Laws

Minimum Wage

The minimum wage in Vermont increases yearly based on inflation. Effective January 1, 2025, the minimum wage for most employers in Vermont is $14.01 per hour. 

Some employees are exempt from the state minimum wage:

• Agricultural workers.
• Domestic service workers in private homes.
• Employees of publicly supported non-profits (except nurses or laundry workers).
• Executive, administrative, and professional employees.
• Newspaper and advertising deliverers.
• Taxi drivers.
• Outside salespeople.
• Students.
• Tipped service workers.

In general, employees who are exempt from Vermont’s minimum wage must be paid the federal minimum wage of $7.25/hour or more.

Any employer found to be paying an employee less than the state minimum wage or other applicable rate will be fined $100 for each day the violation continues. The employee will also be able to bring a civil action against their employer to recover twice the minimum wage for each hour they were underpaid.

Employees can submit a wage claim or complaint within 2 years of when the underpaid wages were paid (they can also do this for unpaid wages within 2 years of when those wages were due).

Beginning July 1, 2025, if it’s determined that the unpaid wages were willfully withheld, the employer must pay up to twice the amount owed. Any additional amount that’s recovered above the unpaid wages will be split evenly—half to the employee and half to cover administrative and collection costs.

Employers must display the minimum wage poster in a conspicuous place in the workplace.

Tipped Minimum Wage

Employers can pay service or tipped employees in Vermont a reduced minimum wage of $7.01/hour under certain conditions. 

State law defines a service and tipped employee as “an employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $120.00 a month in tips for direct and personal customer service.”

The tipped minimum wage is allowed only if the employee’s tips plus wages equal or exceed the regular minimum wage of $14.01 per hour. If a tipped employee’s earnings fall short, the employer must make up the difference.

Overtime Laws

Private employers in Vermont must pay workers 1.5 times the regular rate for all work they do over 40 hours per week.

Exceptions include:

• Agricultural workers.
• Retail and service employees.
• Hotel and motel employees.
• Restaurant staff.
• Executive, administrative, and professional employees.
• Certain employees of hospitals, nursing homes, and other medical establishments.
• Workers in transportation businesses that fall under FLSA overtime regulations.
• Amusement and recreational establishments that operate no more than 7 months per year or earn no more than a third of their annual income in any 6 months of the year in comparison with the remaining 6 months.

Break Laws

Meal and Rest Breaks

State law doesn’t mandate specific lengths and times for work breaks. Instead, it requires employers to give workers “reasonable opportunities during work periods to eat and use toilet facilities.”

However, the federal Fair Labor Standards Act (FLSA) mandates pay for all breaks shorter than 20 minutes. Longer meal breaks can be unpaid if the employee is relieved of their duties. 

Breaks for Nursing Mothers

Employees who have given birth are entitled to reasonable time throughout the day to express milk in appropriate private spaces. State law doesn’t require these breaks to be paid.

Recordkeeping Requirements

Employers in Vermont are required to keep records under various state and federal laws. 

Federal laws such as the FLSA and the Equal Employment Opportunity Commission (EEOC) mandate that certain employers retain records related to personnel, pay, and discrimination. 

Vermont wage law requires employees to keep true and accurate records of the hours and wages worked by each employee. The Commissioner of Labor or their authorized agent can request to inspect employee pay records. If an employer doesn’t produce these records on demand or fails to maintain them, they can be fined up to $100.

Under Vermont law and the FLSA, payroll and personnel records must be retained for at least 3 years. The EEOC requires records to be kept for 1 year from the date of the personnel action.

Under Vermont unemployment insurance law, employers must keep the following for at least 4 years:

• Full names, addresses, and Social Security Numbers.
• Hourly pay rates and frequency of pay.
• Places of employment.
• Actual hours worked and amounts paid per pay period.
• Hiring and termination dates with reasons for employment ending.
• Workers’ compensation contributions.
• Pay stubs and time cards.
• Copies of tax filings.
• Copies of IRS forms.

Workers’ compensation law requires injury and illness recordkeeping.

Scheduling Laws

Vermont doesn’t have any fair or predictive scheduling laws: Employers have no legal obligation to give advance notice of schedules, compensate workers for changes to their schedules made on short notice, or provide minimum shift lengths. 

Employee Compensation and Benefits

Reporting Time Pay

There are no obligations under Vermont law to pay employees who report for work but aren’t put to work. In general, employees must be paid for the time they work only—unless a company policy or collective agreement says otherwise.

Payday Frequency and Method

In Vermont, employers must pay employees weekly for wages earned in the week ending 6 days before payment.

However, employers can get written permission from the Commissioner of Labor to pay every 2 weeks or semimonthly. If a collective bargaining agreement allows, wage payments can be for work performed up to 13 days before the payday.

Acceptable pay methods in Vermont are:

• Cash.
• Check.
• Direct deposit (with employee authorization).
• Payroll card.

Paystub Requirements

Employers must provide employees with pay statements every payday. Pay statements must include:

• All hours worked.
• Hourly rate.
• Gross pay.
• Itemized deductions (including taxes and garnishments). 

Wage Deductions and Garnishments

Employers can deduct from or withhold employee wages only if:

• The deduction is required by Vermont or federal law.
• The employee has given their written authorization for a specific, lawful deduction.
• A court has issued a wage garnishment order.

Wage garnishments for general debts are limited to the lesser of the following:  

• A quarter of the employee’s weekly disposable earnings (i.e., their earnings that remain after legal deductions), or… 
• Whatever portion of those earnings goes beyond 30 times the federal minimum wage.

In Vermont, wage deductions for consumer credit transactions are limited to 15% of an employee’s wages.

However, if an employee can show that their and their dependents’ living expenses are higher than what would be left of their wages after garnishment, a Vermont court can reduce the percentage of their disposable income that can be garnished.

Final Paycheck Laws

In Vermont, the due dates for final paychecks depend on the reason employment came to an end:

• Employees who leave voluntarily are due their final pay on their next regular payday. If there’s no regular payday, employers must pay final wages on the following Friday.
• When the employer terminates a worker’s employment, they must pay all wages owed within 72 hours.

Failure to pay final wages on time can result in financial penalties.

Workers’ Compensation

Most employers in Vermont must carry workers’ compensation insurance, regardless of their type of business entity. This includes sole proprietors, partnerships, limited liability companies, and corporations that hire employees.

State law mandates coverage for:

• Employers that employ 1+ individuals for any 20+ weeks in a year.
• Employers that pay $1,500+ in gross wages during any quarter of the current or previous year.
• Nonprofit organizations, excluding churches, that employ 4+ workers for any 20+ weeks in the current or preceding year.
• Employers that pay private home domestic service providers $1,000+ in wages in any quarter.
• Employers that pay agricultural workers $20,000+ in wages in any quarter.
• Employers that employ 10+ agricultural workers for any part of the day in 20+ weeks of the year.
• Employers that take over businesses already covered under the Vermont Unemployment Compensation law.
• Employers liable for Federal Unemployment Tax (FUTA) with 1+ people working for them in Vermont.
• State and local government employers.

Employers must have workers’ compensation insurance and pay for it themselves. Any employer in Vermont that deducts employee wages to pay insurance premiums can be fined up to $500, even if the employee agreed to pay. Employers can purchase workers’ compensation insurance from licensed private carriers or self-insure if permitted. 

Vermont employers must also post the workers’ compensation reinstatement rights poster and Notice to Employees: Employer’s Liability and Workers’ Compensation in workplaces to ensure their workers are aware of their rights.

From July 1, 2025, there are changes to Vermont’s workers’ compensation system. These include a requirement for employers to provide translation services if an injured employee doesn’t speak English fluently, penalties for late benefit payments (5%, 10%, or 15% depending on how late), and a new requirement to report late payments—plus reasons for them—quarterly for 1 year (this begins October 2025).

Claiming Workers’ Compensation

In Vermont, both employers and employees have responsibilities to report workplace injuries.

Employees must report workplace injuries and illnesses to their employer immediately or as soon as they become aware of them. 

Employers must report all workplace injuries to the Vermont Department of Labor using Form 1: Employer First Report of Injury. If the injury is minor and needs only first aid, employers don’t have to inform their insurer. However, if the injury requires medical attention beyond first aid, employers must send Form 1 to their insurance carrier within 72 hours of the injury occurring.

To initiate a workers’ compensation claim, the employee must complete and file Form 5: Employee’s Notice of Injury and Claim for Compensation.

The insurance company is then responsible for investigating the claim and making a decision to accept or deny it within 21 days.

Available Workers’ Compensation Benefits

Workers’ compensation benefits include:

• Medical treatment, including mental health claims.
• Temporary total or partial disability benefits.
• Permanent impairment benefits.
• Vocational rehabilitation services.
• Death benefits for dependents in fatal cases.

Dispute Resolution

The Vermont DOL handles disputes between employers, insurers, and workers. Reaching a resolution may require informal meetings, formal hearings, and appeals through the Department’s workers’ compensation division.

Vermont has produced a fact sheet to help employers navigate workers’ compensation rules and regulations.

Unemployment Insurance

Unemployment insurance (UI) provides temporary financial support to eligible workers who lose their jobs in Vermont. The UI program is funded solely by employers via state UI taxes.

Employers pay state unemployment taxes to the Vermont DOL, which deposits funds into a UI trust fund that can be used only to pay UI benefits.

State taxes are payable on the first $14,800 of each employee’s wages per year. Paying state taxes on time reduces the employer’s federal tax rate from 6.0% to 0.6%.

Employers must file quarterly wage reports using the appropriate system:

• 0–250 employees: File via the Vermont Internet Tax and Wage System (VITWS).
• 251+ employees or those using third-party payroll services: File using the Large Employer/Third-Party Portal.

Employers must also pay federal UI taxes to the IRS on the first $7,000 of each employee’s annual wages. This money is used for:

• Administrative costs of state programs.
• Costs of extended benefits.
• Loans to states when trust funds are depleted.

UI Eligibility Requirements

To qualify for UI benefits, workers must:

• Have earned sufficient wages in the base period—this is the first 4 of the last 5 completed quarters before the worker files their claim.
• Be out of work or had their hours significantly reduced through no fault of their own.
• Be able, available, and actively seeking employment.

Employees need a valid email address to start a new unemployment claim. When granted, the amount of UI benefits an individual receives is calculated based on earnings in their base period. UI benefits run week to week, so job seekers must file weekly claims to continue to receive their benefits. They do this via the online portal or by calling 1-800-983-2300.

Employers must display the A-24 unemployment poster so employees are aware of their UI benefit entitlements.

Workplace Rights and Protections

Discrimination and Harassment

The Vermont Fair Employment Practices Act (VFEPA) works alongside federal laws like Title VII of the Civil Rights Act and the Americans with Disabilities Act (ADA) to protect employees in Vermont from discrimination. Although federal laws protect the same characteristics, Vermont’s state laws provide more comprehensive protections by applying to all employers with 1+ employees (federal laws apply to larger employers). 

Under VFEPA, discrimination and harassment based on the following characteristics are illegal:

• Race.
• Color.
• Religion.
• National origin and ancestry.
• Sex.
• Sexual orientation.
• Gender identity.
• Age.
• Disability.
• Crime victim status.
• HIV status.

Employees can file discrimination and harassment complaints with:

• The Attorney General’s Office for private sector employees.
• The EEOC for federal protections.
• The Vermont Human Rights Commission (VHRC) for state employees.

It’s unlawful for employers or labor organizations to retaliate against employees who file discrimination and harassment complaints and take part in subsequent investigations.

Reasonable Accommodations

Some federal and state laws also require employers to provide reasonable accommodations to certain employees. 

For example, under Vermont law, employers must fulfill requests from employees with pregnancy-related conditions to make reasonable workplace accommodations.

Ignoring and retaliating against employees who request pregnancy-related accommodations is unlawful and can lead to penalties and legal action.

Employers must display the accommodations for pregnant employees poster in the workplace to ensure employees understand their rights.

Leave Laws

✅ Family and Medical Leave	Eligible employees in Vermont can take up to 12 weeks of unpaid leave under the federal Family and Medical Leave Act (FMLA) or under Vermont’s Parental and Family Leave Act (VPFLA). The VPFLA applies to more employees than the FMLA.  Employees are eligible under the FMLA only when they: Work for an employer with 50+ workers within a 75-mile radius. Have been employed for at least 12 months. Have worked at least 1,250 hours in the preceding 12 months. Employees are eligible under the VPFLA when: Work for employers of 10+ (parental leave) or 15+ (family leave) and work an average of 30 hours per week. Have worked an average of 30 hours a week for at least 12 months, or meet the airline flight crew requirements. Both federal and state laws provide job-protected leave for things such as: The birth or adoption of a child. The employee’s serious health condition. The serious health condition of the employee’s family member. Up to 26 weeks leave to care for a spouse, child, parent who’s a seriously ill or injured service member. (This is effective July 1, 2025, under VPFLA.) Up to 12 weeks’ unpaid leave for qualifying exigencies—situations related to the employee’s spouse, child, or parent being on active military duty. (This is effective July 1, 2025, under VPFLA.) Vermont law defines “family member” more broadly than the FMLA by including: In-laws. Civil union and domestic partners, and their parents (from July 1, 2025).  “Any individual for whom the employee provides caregiving responsibilities similar to those of a parent-child relationship” (from July 1, 2025).  *Learn more about changes to the VPFLA taking effect July 1, 2025.
✅ Paid Sick Leave	Under the Vermont Earned Sick Time Act, employers with 6+ employees must provide up to 40 hours of paid sick leave each year. Paid sick leave accrues at a rate of 1 hour for every 52 hours of work, including overtime. When employees take paid sick leave, they must be compensated at their regular hourly wage or Vermont’s minimum wage—whichever is greater. To qualify, employees must: Be over 18. Be employed in a qualifying role. Work 18+ hours per week. Work 20+ weeks per year. Employers may lawfully require employees to work for 1 year before they start accruing paid sick leave.
❌ Paid Family Leave	Vermont doesn’t mandate paid family leave. However, employers can voluntarily opt into the Vermont Family and Medical Leave Insurance (VT-FMLI) program. The program offers up to 6 weeks of paid leave at 60% wage replacement, though it doesn’t include job protection. Employees can, however, use it concurrently with job-protected leave (like FMLA or VPFLA). The program currently provides coverage for state employees and private employers with 2+ or more employees.  Starting July 1, 2025, coverage becomes available for:  Small employers with just 1 employee. Self-employed individuals. Employees whose employers haven’t opted in.
✅ Pregnancy and Parental Leave	The VPFLA (as detailed above) entitles employees to up to 12 weeks of unpaid leave each year for. Parental leave: During pregnancy, after childbirth, or within a year of placing a foster or adopted child (under age 16). Family leave: To care for a seriously unwell child, stepchild, ward, spouse, parent, in-law, or the employee’s own serious health condition. Employers must post the parental and family leave notice in the workplace. Employees can use VT-FMLI for parental leave.
❌ Vacation and Personal Leave	Vermont doesn’t mandate paid vacation and personal leave. If employers choose to offer it, they must honor their written policies and agreements.

Other Mandatory Leave

Military Leave	Members of the US Armed Forces, Vermont National Guard, and National Guard of any state are entitled to 15 days’ unpaid leave each year to take part in federal or state service. Employers can’t deny reemployment when employees return from military leave. Employees have more reemployment protections for extended military leave under the Uniformed Services Employment and Reemployment Rights Act (USERRA).
Jury Duty Leave	Under Vermont law, employers must allow employees to attend jury service. Employers aren’t required to pay employees for their time—but must treat workers as if they were on a leave of absence. Employers can’t retaliate against employees for serving jury duty.
Alleged Crime Victim Leave	Vermont law grants eligible employees unpaid leave to attend court proceedings related to being a victim of crime. To be eligible, employees must’ve worked for their employer for at least 6 months for an average of 20+ hours a week.
Short-Term Family Leave	VPFLA entitles employees up to 4 hours’ unpaid leave in every 30-day period to: Participate in a family member’s preschool or school activities. To accompany a family member to a medical or dental appointment. To accompany a family member to other professional service appointments. To respond to an emergency involving a family member. Employers may require this leave to be taken in 2-hour increments (at minimum).  Starting July 1, 2025, Vermont’s definition of “family member” for short-term family leave purposes will expand.
Town Meeting Leave	Employees in Vermont have the right to unpaid leave to attend their annual town meeting, provided that: The employee gives at least 7 days’ notice. The leave doesn’t interfere with the essential operations of the business.
Bereavement Leave	From July 1, 2025, VPFLA will allow employees to take up to 2 weeks of unpaid bereavement leave for a family member’s death within any 12‑month period. No more than 5 days may be taken consecutively. This leave also covers time taken to manage or settle the deceased family member’s estate—but leave taken for this specific purpose must be used within 1 year of the family member’s death. Employers may require documentation for this leave.
Safe Leave	From July 1, 2025, VPFLA will allow unpaid leave when an employee or their family member is the victim of certain crimes, for purposes including: Obtaining medical care and counseling. Relocating to secure safe housing. Meeting with a state’s attorney or law enforcement. Employers may require documentation for this leave.

Child Labor Laws

In general, the minimum age to work in Vermont is 14. 

However, children under 14 can work:

• When they’re employed by a parent or legal guardian.
• On a newspaper round.
• As actors or performers.

Under-16s must have an employment certificate to work during school hours unless the work is part of an approved educational or vocational course.

Children aged 14 and 15 can be employed, as long as their employer complies with the following state regulations:

Work hour limitations	No work before 7am or after 7pm (this extends to 9pm from June 1 until Labor Day). Maximum 3 hours per day on school days. Maximum 18 hours per week during school weeks. Maximum 8 hours per day on non-school days. Maximum 40 hours per week during non-school weeks. No more than 6 days per week.
Permitted occupations	Office work. Retail. Delivery and errand running (not driving). Cleaning. Ground maintenance (use of powered mowers and trimmers is prohibited). Serving food and some kitchen work (not cooking). Gas station and car wash attendants.
Prohibited work	Mining. Manufacturing. Processing. Commercial laundries. Operating power-driven machinery. Warehousing and storage. Transportation of people or goods. Any work declared hazardous—even in permitted occupations.

Prohibited occupations and work for under-18s include:

• Explosive manufacturing and storage.
• Driving.
• Logging, sawmilling, and the use of power-driven woodworking machinery.
• Work with radioactive substances.
• Mining.
• Slaughterhouses and meatpacking.
• Brick, tile, and kindred product manufacture.
• Demolition, wrecking, and shipbreaking.
• Roofing.
• Excavation.
• Work with power-driven hoisting, metal forming, bakery, and paper-product machinery.

16- and 17-year-old apprentice and student learners may be allowed to work in some of these occupations. 

All employers of minors must display the child labor poster, and employers subject to federal law must keep records of the date of birth of all employees under 19 years old.

Workplace Safety and Health

In Vermont, the Occupational Safety and Health Act (OSHA) is enforced by the Vermont Occupational Safety and Health Administration (VOSHA). 

Under both federal and state law, employers must foster safe, hazard-free workplaces. VOSHA applies to most employers, though employers in certain non-hazardous and agricultural industries need 10 employees before its regulations become applicable.

Employers have several obligations:

• Provide safety and health training in languages employees can understand.
• Display the Vermont OSHA poster and other mandatory notices.
• Maintain workplace accident and illness records.
• Inform VOSHA of serious workplace injuries and hospitalizations within 24 hours.
• Inform VOSHA of workplace fatalities within 8 hours.

Under the OSHA Act, employees have the right to:

• View employers’ work-related injury and illness records.
• Request OSHA to inspect their workplace and report OSHA violations without retaliation from their employer.

Workers in Vermont who become aware of unsafe workplace conditions should complete and submit the online Notice of Alleged Safety or Health Hazards form. Workplace conditions or working practices that place an imminent threat to life should be reported by phone at (800) 287-2765.

Labor Union Regulations

Vermont isn’t a right-to-work state. This means that employers can require employees to join a union and pay union fees as a condition of employment.

Most private sector employees in Vermont have rights under the federal National Labor Relations Act (NLRA) allowing them to:

• Form and join labor unions.
• Take part in collective bargaining with employers.
• Discuss working conditions with colleagues.
• Participate in strikes and pickets.

Employment Contracts and Severance

Employment Contract Laws

Vermont is an at-will employment state, meaning that employers and employees can terminate employment for any lawful reason, with or without notice—unless a policy, agreement, or contract states otherwise.

Restrictive covenants are enforceable in Vermont as long as they’re:

• Reasonable in scope, geography, and duration.
• Necessary to protect a legitimate business interest, such as trade secrets or customer relationships.
• Not unduly restrictive on the employee’s ability to work.

Severance Pay

Severance pay isn’t generally required by Vermont law. However, employers may be liable to pay severance if it’s required by a written employment contract, a collective bargaining agreement, or company policy.

Additionally, employers may be required to pay severance if they violate Vermont’s mass layoff regulations (more on this below).

Additional State-Specific Employment Laws

Mass Layoffs (Mini-WARN)	Under Vermont law, a mass layoff is the termination of 50+ employees at 1 or more worksites within a 90-day period. Employers must notify employees at least 30 days in advance of an impending layoff or business closure. If the layoffs will be staggered, employers must give each affected group of employees at least 45 days’ notice. If there’s a chief elected official or administrative officer of the municipality where the layoff will be, employers must also notify them 30 days in advance. Notices should detail: The number of layoffs. Job titles of affected employees. The expected date of the employment loss.  Affected worksites. Employers anticipating a layoff must also inform the Secretary of Commerce and Community Development and the Commissioner of Labor within 45 days of the layoff (or business closure).  Failure to give this notice can result in fines of $500 for each day the employer should’ve provided notice. However, the Commissioner may waive the administrative penalty if the employer demonstrates good cause and pays employees all owed wages and other amounts for which they’re liable. Where layoffs are the result of a business being sold, the seller and the purchaser must comply with notice requirements. There are some exceptions to these rules.  Liable employers who violate any of these rules can be made to pay each employee 1 day of severance pay up to a maximum of 10 days. Employers may also remain liable for the continuation of any medical or dental coverage.
Cessation of Healthcare Benefits Notice	Employers in Vermont must comply with specific notification requirements regarding the end of a group health insurance policy.  Employees must: State that the policy will end and when. Advise employees that the insurance carrier won’t be liable for medical claims when the policy ends. Direct employees to review their plan documents or insurance certificates to understand their rights.
Mini-COBRA Health Coverage	Vermont’s Mini-COBRA enables eligible employees to temporarily continue their group health insurance coverage after experiencing job loss, reduced work hours, or other qualifying events. It provides wider coverage than the federal COBRA. While federal COBRA applies to employers with 20+ employees, Vermont’s Mini-COBRA entitles employees of employers with fewer than 20 employees to up to 18 months’ coverage after separation from employment.
Independent Contractor Classification	Vermont has different definitions for independent contractors depending on the area of law. For workers’ compensation insurance purposes, anyone an employer hires to do work in the course of their business is assumed to be an employee, unless the employer can prove otherwise. For unemployment insurance purposes, Vermont uses the ABC test.
Healthcare Whistleblower Protections	Vermont law protects employees of healthcare facilities from retaliation if they: Refuse to perform duties they reasonably believe would endanger patient safety. Report unsafe practices. Employers must post the Healthcare Whistleblower Poster in a conspicuous location to inform workers of their rights.

Legal Resources for Employers and Employees

The following organizations offer support and information on workplace rights, responsibilities, and compliance:

• Vermont Department of Labor: Provides workplace posters, wage claim filing, and employer resources.
• Vermont Attorney General’s Civil Rights Unit: Investigates discrimination and harassment complaints within private employment.
• Vermont Legal Aid and Legal Services Vermont: Offers civil law legal information and legal aid for low-income Vermont residents.
• VOSHA (Vermont OSHA): Delivers guidance on safety inspections, training, and compliance.

Disclaimer

The information presented on this website about labor laws in Vermont is a summary for informational purposes only and is not intended as legal advice. However, laws and regulations regularly change and may vary depending on individual circumstances. While we have made every effort to ensure the information provided is up to date and reliable, we cannot guarantee its completeness, accuracy, or applicability to your specific situation. Therefore, we strongly recommend that readers seek guidance from their legal department or a qualified attorney to ensure compliance with applicable laws and regulations. Please note that we cannot be held liable for any actions taken or not taken based on the information presented on this website.