Employment and labor laws in Vermont [Updated 2026]

Key takeaways

• Vermont's minimum wage rose to $14.42/hr on January 1, 2026, and adjusts annually based on the Consumer Price Index.

• Vermont's paid sick leave law requires employers to provide up to 40 hours of paid sick leave per year, accruing at 1 hour per 52 hours worked.

• As of July 1, 2025, Vermont law requires employers with 5 or more employees to disclose pay ranges in job postings, and the state also prohibits employers from asking applicants about salary history.

• Vermont's Parental and Family Leave Act, expanded in 2025 by Act 32, provides up to 12 weeks of unpaid leave for parental, bereavement, and safe leave at employers with 10 or more qualifying employees.

• Vermont's Family and Medical Leave Insurance (VFMLI) program is now fully rolled out: employers with 2 or more employees can offer coverage, and as of 2026, individuals and one-employee businesses can purchase coverage directly through The Hartford.

• Vermont is not a right-to-work state. Employers and unions may require union membership as a condition of employment.

• Vermont law explicitly protects employees against discrimination on 14 characteristics, including HIV status, crime victim status, and place of birth.

• Vermont employees have a unique right: unpaid time off to attend their annual town meeting.

Vermont has a reputation for progressive employment legislation, often going beyond federal requirements to protect its workforce. Whether you're hiring in Burlington, Montpelier, or rural Vermont, understanding these state-specific rules is essential to stay compliant.

Employment vs. labor law: What's the difference?

While "employment law" and "labor law" are often used interchangeably, they have distinct definitions. Employment law addresses the relationship between an employer and an individual employee. Labor law addresses issues between employers and groups of workers, such as unions.

• Employment law encompasses compensation, working hours, hiring, workplace health and safety, non-discrimination, and termination.

• Labor law covers the formation of unions, collective bargaining agreements, and related group activities.

Wages and hours in Vermont

Vermont's wage laws are enforced by the Vermont Department of Labor. The state minimum wage adjusts annually, and as of July 1, 2025, employers with five or more employees must also disclose pay ranges in job postings. Separate pay transparency rules prohibit employers from requesting salary history.

Minimum wage in Vermont

Vermont's minimum wage adjusts annually based on the Consumer Price Index. As of January 1, 2026, the rate is $14.42 per hour, significantly higher than the federal minimum of $7.25/hr. The rate adjusts again each January, so employers should verify the current rate with the Vermont Department of Labor. Vermont maintains a statewide rate, and there are no local minimum wage variations.

For tipped employees, Vermont sets a base wage of $7.21 per hour (50% of the standard minimum wage), as long as total earnings (wages plus tips) meet the full minimum wage. The employer must cover any shortfall.

Overtime pay in Vermont

Vermont follows federal FLSA overtime rules. Non-exempt employees who work more than 40 hours in a workweek are entitled to 1.5 times their regular rate of pay for all additional hours. Standard FLSA exemptions apply for executive, administrative, and professional employees.

Pay transparency in Vermont

Pay transparency laws are growing across the US, and Vermont now has one of its own. As of July 1, 2025, Vermont law requires employers with five or more employees (including at least one based in Vermont) to disclose the actual wage or a good-faith minimum and maximum wage range in job postings for roles located in, or predominantly performed for, a Vermont work location. Commission-based roles must disclose that pay is commission-based, and tipped roles must disclose both the tipped status and the base wage or wage range. The Vermont Attorney General's office enforces the law and protects employees from retaliation for reporting violations.

Vermont also prohibits employers from asking job applicants about their salary history. Employers cannot base hiring decisions or initial pay on a candidate's prior compensation. Under the federal National Labor Relations Act, employees also retain the right to discuss wages with coworkers.

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Breaks and rest periods in Vermont

Vermont has no explicit break law specifying a required duration. State law implies that employees who work more than six consecutive hours are entitled to a reasonable opportunity to eat and rest, but does not define a specific minimum duration.

Employers must provide reasonable unpaid rest breaks for nursing employees to express milk for up to three years after childbirth, along with a private space that is not a bathroom.

Leaves of absence in Vermont

Vermont offers several leave protections for employees, including Vermont-specific requirements that go beyond the federal baseline.

Family and medical leave

Under the federal FMLA, employers with 50 or more employees must provide eligible employees up to 12 weeks of unpaid, job-protected leave per year for serious health conditions, childbirth or adoption, and qualifying military reasons.

Vermont's Parental and Family Leave Act provides additional protections beyond federal FMLA. As of July 1, 2025, Act 32 expanded the law: employers with 10 or more employees who work an average of 30 or more hours per week must provide up to 12 weeks of unpaid, job-protected leave for parental leave (pregnancy, childbirth, adoption, or fostering), bereavement leave (up to 2 weeks within the 12-week cap), and safe leave for employees or family members affected by domestic violence, sexual assault, or stalking. Employers with 15 or more qualifying employees must also provide family leave to care for a family member with a serious illness. Act 32 also expanded the definition of "family member" to include domestic partners, grandparents, grandchildren, and siblings, in addition to spouses, children, and parents.

Vermont Family Leave Insurance (VFMLI)

Vermont's Family and Medical Leave Insurance (VFMLI) program has completed its phased rollout. State employees gained coverage in July 2023, and private employers with two or more employees have been able to offer VFMLI coverage since July 2024. As of 2026, the final phase opened an individual purchasing option through The Hartford, letting self-employed workers, individuals whose employers don't offer VFMLI, and one-employee businesses buy coverage directly. Eligible participants can receive up to 60% of their average weekly wage, up to a maximum weekly benefit, for up to six combined weeks per benefit year to bond with a new child, care for a family member with a serious health condition, or recover from their own serious health condition.

Military leave

Vermont employees may take leave for military service, including duty in the National Guard or as a reservist. Military leave provisions ensure employees can fulfill civic duties without losing their employment rights under federal USERRA and state law. Act 32 (2025) also added job-protected unpaid leave for qualifying military exigencies arising from a family member's active duty service, at employers with 10 or more qualifying employees.

Jury duty leave

Employees have the right to take time off for jury service. It is illegal for employers to fire employees for serving on a jury. Jury duty leave is not required to be paid.

Town meeting leave

Vermont employees have the unique right to take unpaid time off to attend their annual town meeting. Non-state employees must notify their employer at least seven days in advance.

Pregnancy disability leave in Vermont

Vermont's Parental and Family Leave Act entitles eligible employees to up to 12 weeks of unpaid leave per year during pregnancy or after childbirth, including for short-term disability due to pregnancy complications. Covered employers have 10 or more employees who work an average of 30 or more hours per week, and eligible employees must have worked for the employer for at least one year.

Paid sick leave in Vermont

Vermont's paid sick leave law requires employers to provide up to 40 hours of paid sick leave per year, accruing at 1 hour per 52 hours worked. Employees may use paid sick leave for:

• Personal illness or injury: time off to recover or seek medical care

• Caring for a family member: illness or medical care for a child, spouse, parent, or parent-in-law

• Safe leave: time off related to domestic violence, sexual assault, or stalking, for the employee or a family member

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Workplace safety in Vermont

Vermont employers must comply with federal OSHA standards and state-specific regulations to ensure a safe work environment. Some key employee protections under Vermont's workplace safety laws include:

• Right to know about hazards: employees must be informed about potential workplace hazards.

• Access to safety equipment: employers must provide necessary safety gear and training.

• Injury and Illness Prevention Programs (IIPP): Vermont encourages employers to implement an IIPP to proactively manage workplace safety, though it is not mandatory.

• Reporting and recordkeeping: employers must keep detailed records of workplace injuries and report severe incidents to the appropriate state agency.

Workers' compensation insurance is required for most Vermont employers.

Discrimination and harassment laws in Vermont

Vermont law explicitly protects employees from discrimination based on:

• Race, color, national origin

• Religion

• Sex (including pregnancy)

• Sexual orientation

• Gender identity

• Age

• Disability

• HIV status

• Marital status

• Place of birth

• Genetic information

• Crime victim status

Harassment is defined as unwelcome conduct based on any of the above characteristics, severe enough to create a hostile work environment or where enduring it is a condition of employment.

Vermont strongly encourages employers to provide sexual harassment training, though it is not legally required. Training requirements vary by state.

Unions in Vermont

Labor unions advocate for better wages, benefits, and working conditions. Under federal law, employees have the right to organize, bargain collectively, take collective action, or refrain from union activity. Employers cannot threaten or retaliate against employees for their decisions about union participation.

Vermont is not a right-to-work state. Employers and unions may negotiate contracts requiring union membership or the payment of union dues as a condition of employment.

How Rippling supports Vermont labor law compliance

Vermont is known for progressive employment legislation: a minimum wage well above the federal floor (adjusted annually), mandatory paid sick leave, an expanded parental and family leave law, a new pay transparency requirement for job postings, unique town meeting leave rights, and a fully rolled-out state Family and Medical Leave Insurance program. Rippling helps Vermont employers manage these requirements in one place.

• Rippling HR Services: helps Vermont employers manage HR administration, onboarding, and compliance workflows, including support for Vermont's paid sick leave requirements, parental and family leave provisions, and workers' compensation enrollment.

• Rippling Payroll: automates Vermont's annual minimum wage updates, FLSA overtime compliance, paid sick leave deductions, and state income tax withholding, keeping payroll accurate as Vermont's rates adjust each January.

• Rippling HRIS: centralizes employee records and compliance documentation, supporting audit readiness for the Vermont Department of Labor, the Vermont Attorney General, or federal EEOC inquiries.

• Rippling Time and Attendance: tracks hours worked, paid sick leave accrual (1 hour per 52 hours worked), and leave balances for Vermont's sick leave, parental and family leave, and other required leave types.

• Rippling Headcount Planning and Compensation Bands: centralizes headcount planning and compensation management so employers can maintain pay equity, set consistent salary ranges, and stay ahead of pay transparency laws, including Vermont's new job posting pay range disclosure requirement and its salary history ban.

• Rippling LMS: delivers ready-to-use compliance and harassment training courses, helping employers meet training best practices and reduce legal risk across their workforce.

FAQs about Vermont labor and employment laws