Vermont HR Compliance
for Small Businesses

The minimum wage in Vermont is $14.42/hour (Jan 1, 2026, CPI-indexed). Tipped: $7.21 (50% of full minimum wage).. Tipped employees may be paid $7.21/hour with a valid tip credit. Always verify the current rate at the start of each calendar year — many state rates are indexed to CPI and adjust annually.

In Vermont: involuntary terminations — Within 72 hours. Voluntary resignations — . Accrued PTO is not required to be paid out on termination unless your written policy promises it. Never hold a final paycheck over unreturned equipment or unsigned paperwork — that exposes you to wage claims regardless of the circumstances.

Yes. Vermont requires paid sick leave. Earned Sick Time Act: up to 40hrs/yr, 1hr/52hrs worked. Illness, domestic violence, school/daycare closures.. Track accrual, carryover rules, and permissible uses carefully — enforcement actions typically follow audits of smaller employers with incomplete records.

Vermont does not have a state-mandated paid family leave program. Federal FMLA provides up to 12 weeks of unpaid, job-protected leave for employers with 50 or more employees. Employers can offer private paid leave or short-term disability insurance.

Yes. Vermont requires pay transparency in job postings. Eff. July 1, 2025: 5+ employees must include compensation range in all written job postings for VT or remote positions primarily performed from VT office.. Non-compliance can result in fines and enforcement action — audit all active job listings and internal promotion announcements to ensure full compliance.

No general statute. Common law reasonableness. Sector ban: barbers/cosmetologists. H.205 (2025) would ban for employees under $100,000 — not enacted. Vermont courts evaluate noncompetes for legitimate business interest and reasonableness of scope, geography, and duration.

Vermont uses the following test to determine worker classification: Common law multi-factor test. Misclassification exposes employers to back taxes, penalties, and liability for benefits and wage-hour violations. When in doubt, consult counsel before engaging contractors for ongoing work.

No. Vermont prohibits employers from asking job candidates about their prior salary or compensation history. Violations can result in discrimination claims and enforcement penalties. Train your recruiters and update any intake forms, application portals, or interview scripts that still ask about prior pay.

Meal breaks: Reasonable opportunity to eat and use toilet facilities (21 V.S.A. 304). No specific duration.. Rest breaks: None specifically mandated. Missing a required break can trigger a premium pay penalty — make sure managers understand that breaks are mandatory, not optional, and document compliance in timekeeping records.