Vermont’s employment laws lean toward worker-focused standards with clear, practical obligations for employers. Requirements span earned sick time, robust anti-discrimination rules, lactation accommodations, and a statewide retirement program, alongside targeted rules on final pay, non-competes, and layoff notices.
When it comes to talent and workforce management, Vermont-based employers need to comply with the following state employment laws:
The below information was last updated September 9, 2025. It is not intended as legal advice. Also, unless otherwise noted below, the following laws predominantly apply to the private sector.
A subset of employment law, labor law focuses on the relationships between employers, employees, and labor unions, particularly in the context of collective bargaining and workplace rights.
Central to US labor law is the National Labor Relations Act (NLRA), which protects employees’ rights to organize, join unions, and negotiate working conditions while restricting unfair labor practices. Still, states can enact additional laws, such as Right-to-Work statutes, that influence union membership and dues requirements.
Right-to-work states prohibit employers from requiring union membership or dues as a condition of employment (a.k.a. union security agreements).
Vermont currently has no right-to-work laws or regulations. Although, under section 14(b) of the National Labor Relations Act (NLRA), Vermont can pass a right-to-work law in the future if it chooses.
Employment law governs the individual rights of employees and their professional relationship with their employers, such as working hours, fair wages, anti-discrimination protections, and workplace safety.
| Vermont Minimum Wage | The state of Vermont uses its own minimum wage rate of $14.01, including a tipped minimum wage rate of $7.01 for employees who earn tips with their base pay. |
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Vermont Overtime Pay Laws |
According to state law, overtime pay in Vermont is calculated at 1.5 times the employee’s regular pay rate when working over 40 hours a week. |
| Vermont Pay Equity Law | Under the Fair Employment Practices Act, no Vermont employer may discriminate between employees on the basis of sex, race, national origin, sexual orientation, or gender identity, or against a qualified individual with a disability by paying wages to employees of one sex, race, national origin, sexual orientation, or gender identity or an employee who is a qualified individual with a disability at a rate less than the rate paid to employees of the other sex or a different race, national origin, sexual orientation, or gender identity or without the physical or mental condition of the qualified individual with a disability for equal work that requires equal skill, effort, and responsibility and is performed under similar working conditions. |
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Vermont Pay Transparency Law |
In July 2025, Vermont passed Act 155 and became one of 15 states (plus Washington D.C.) to have pay transparency laws. Employers with five or more employees must disclose the hourly wage or range of compensation in job postings for positions that are either physically located in Vermont or report to an office or worksite that is physically located in Vermont. |
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Vermont Final Paycheck Law |
In Vermont, employees who voluntarily resign from a job must receive their final paycheck by the next regular payday. Involuntarily terminated Vermont employees must receive their final paycheck within 72 hours. |
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Vermont PTO Payout Laws |
Vermont doesn’t have specific PTO payout requirements, as it bases such decisions on an employer's policy. It also has no regulations regarding the use of "use-it-or-lose-it" policies. |
| Vermont Paid Sick Leave (PSL) | Vermont currently requires employers to provide employees with up to 40 hours of paid, protected sick leave under its Earned Sick Time Act. Moreover, employees shall accrue no less than one hour for every 52 hours worked. Employers may enforce a one-year waiting period before leave can be used. |
| Vermont currently has an optional, voluntary PFML program. However, employers with 50 or more employees must still comply with the federal Family and Medical Leave Act (FMLA), which provides eligible employees with up to 12 weeks of unpaid leave every 12 months for various reasons. | |
| Vermont Maternity Leave | Vermont doesn't have a maternity leave law, as this type of leave is an employer-provided benefit. Since the state only has a voluntary PFML program, employees may need to instead use FMLA leave or another type of employer-provided leave. |
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Vermont Voting Leave Law |
Vermont currently has no voting leave laws or regulations. |
All states must comply with federal health and safety standards overseen by the Occupational Safety and Health Administration (OSHA).
Vermont, however, also adopted and imposes additional, OSHA-approved regulations that are identical to those federal standards. Vermont’s State OSHA Plan is overseen by the Vermont Department of Labor.
Vermont currently has no work break laws or regulations, but does require employers to provide employees with reasonable opportunities during work to eat and to use toilet facilities.
As described by the state’s Fair Employment Practices Act, employers in Vermont are prohibited from discriminating against employees based on:
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Vermont also requires employers to comply with specific anti-harassment mandates, as outlined in Act 80. Employers must, for example, ensure that supervisors understand their obligations to report incidents of harassment or discrimination that are disclosed to them.
The state doesn't, however, require employees to complete any harassment or discrimination training courses.
| Vermont Non-Compete Agreement Laws | Vermont is one of several states to limit the use of non-compete agreements. Specifically, Vermont has a limited ban on such agreements related to the cosmetology and barbering industries. |
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Vermont Retirement Plan Laws |
Vermont is one of a handful of states with a mandatory retirement plan law for certain-sized employers. The Vermont Saves program requires all employers to register or certify their exemption if they have five or more employees, have been in business for at least two years, and do not already offer a workplace retirement plan. |
| Vermont Pre-Employment Inquiries Law | Vermont's Fair Employment Practices regulations prohibit employers from asking a job applicant about conviction history prior to an interview or after an applicant has been deemed otherwise qualified, unless otherwise exempt. |
| Vermont Lactation Law | Vermont state statutes require employers to provide reasonable time throughout the day for nursing mothers to express breast milk, for up to three years after the birth of a child. Furthermore, employers must make reasonable accommodation(s) to provide appropriate private space that is not a bathroom stall, and are prohibited from discriminating against an employee who exercises or attempts to exercise the rights provided under this act. |
| Vermont Layoff Laws | As regulated by the state’s Department of Labor, Vermont’s Notice of Potential Layoffs Act requires employers to provide notice of a mass layoff trigger that differs from the federal WARN Act. |
This information is provided as a courtesy and may be updated at any time. It is not intended as legal guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified employment or labor attorney or advisor.
Between constantly changing employment laws and updates to the Affordable Care Act (ACA), keeping your workplace compliant can be a time-consuming and costly challenge. Eliminate the stress and stay up to date with our Compliance Dashboard. View compliance alerts and get a bird’s eye view of what you need to do to avoid fines and penalties.
