Vermont Labor Laws

In the US, the federal Fair Labor Standards Act (FLSA) manages the time spent by employees in the workplace, safeguarding their rights and guaranteeing fair pay for their efforts. These laws act as directives for employers, keeping them in check and minimizing any forms of abuse or exploitation.

Vermont time management laws are shaped by both state legislation and the FLSA. The state has its own minimum wage, which is higher than the federal standard.

Tipped employees in Vermont can be paid a lower cash wage; however, their cash wage and tips must equal the state minimum wage.

In Vermont, a standard workweek is 40 hours. Any hours worked beyond 40 entitle a non-exempt employee to overtime pay. Note that overtime in Vermont is only calculated on a weekly basis.

Employees in Vermont are entitled to rest and meal breaks in accordance with the FLSA. Short breaks under 20 minutes are paid, while meal breaks of 30 minutes or more can be unpaid if the employee is fully relieved of duties.

Vermont law also offers certain leave benefits to workers in the state. Employees earn paid sick leave under the Healthy Workplaces law, as well as unpaid leave under the federal FMLA. Certain employees in Vermont also receive time off on recognized state holidays.

Employees who contravene Vermont time management laws can be liable to fines, backpay, and damages. An employee who believes their employer has violated their rights can file a complaint with the Vermont Department of Labor for investigation and legal action.

Employers, employment agencies, and labor organizations in Vermont are not allowed to discriminate against job applicants during the hiring process due to certain protected characteristics as per the Vermont Fair Employment Practices Act. These include:

Similarly, employees working in Vermont are protected from employer discrimination based on the above-mentioned characteristics. 

Vermont follows the at-will employment doctrine. This means that an employer can choose to fire an employee at any time, with or without reason. However, termination in violation of any public policy, such as an implied contract, is not allowed. Furthermore, if an employee’s contract does not specify the duration of employment, it is considered to be at-will.

After employee termination, all employers in Vermont are required to pay any due wages to the terminated employee within 72 hours of the designated payday. If an employee resigns, they must be paid on their regularly scheduled payday. If a regular payday is absent, then the employee must be paid by the immediate Friday. 

Here are some key labor laws in Vermont that influence employement arrangements:

• Health Insurance Continuation Laws: Employees in businesses with 20 or more workers in Vermont can choose to continue their group health insurance benefits under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) after a voluntary or involuntary job loss or a qualifying life event. Coverage can extend for 18 to 36 months. Smaller businesses — with two to 19 workers — can offer extended health insurance coverage under Vermont’s mini-COBRA for 18 months.
• Workplace Safety Laws: Vermont’s OSHA program, which is federally approved, aims to provide safe and healthy working conditions, consistently inspect for any flaws or irregularities, and strive to improve work conditions whenever feasible. In order to comply with OSHA regulations, employers must provide their employees with proper training, education, and ongoing assistance to ensure workplace safety.
• Whistleblower Protection Laws: Healthcare professionals in Vermont are protected by state law if their employer threatens, fires, or retaliates against them for reporting a violation of the law to relevant authorities. Healthcare workers are also protected if they refuse to participate in illegal activities at the direction of their employer, or if they take part in a legal proceeding or investigation. However, prior to making an official complaint, an employee must ensure that they first flag the issue with their employer and give them time to correct the issue or have sufficient belief that their employer will not fix the problem, even if it is raised. 
• Social Media Law: In Vermont, employers are prohibited from forcing employees to give their social media usernames and passwords, reveal personal information from social media, modify their privacy settings, or add personnel or contacts to their private social media contact lists. Any violations of this law will lead to penalties.
• Drug Testing Laws: Employers in Vermont can carry out pre-employment drug testing if they follow certain criteria. They must inform the applicant — in writing — about the procedure being carried out. The drug test must be carried out as per law, and the employee must be offered an offer of employment if the drug test is negative. Random drug testing is not allowed.
• Recordkeeping Laws: Under state law, employers in Vermont are required to maintain accurate employee records for at least two years. These records must include the total hours worked by each employee as well as the wages paid to the employee.

Employers with two or more employees in Vermont are required to pay their workers a minimum wage of at least $14.01 per hour.

A tipped employee is a service worker who regularly earns more than $120 monthly in tips, as per Vermont labor laws. These employees can be paid a minimum wage of $7.01 per hour, allowing employers to retain a tip credit of $7.00.

However, employers must ensure that a tipped employee’s cash wages and earned tips at least equal the state minimum wage. If not, the employer is required to make up the difference.

Certain types of employees in Vermont are not entitled to earn the state minimum wage as per state law. This includes: 

• Agricultural workers
• Full-time high school students
• Taxi drivers
• Outside salespersons
• Newspaper or advertisement delivery people
• Workers employed in public non-profit organizations with certain exceptions
• Workers employed in domestic service in a private home
• Federal government workers

In Vermont, every employer is required to pay their employees at least once a week. An employee’s payday must be within six days of the last day of the pay period.

However, employers can choose to pay their workers semi-monthly or bi-weekly after giving a written notice to their workers.

Moreover, employers are also obligated to provide a detailed statement on each payday that includes information about total hours worked, hourly rate, gross pay, and itemized deductions.

Employees who work more than 40 hours in a workweek are entitled to additional pay as per Vermont labor laws. This additional pay is calculated at 1.5 times the employee’s regular hourly wage.

For minimum wage earners in Vermont, this amounts to $21.015 per hour. Note that only employers with two or more employees are covered by Vermont overtime laws.

Certain employees in Vermont are not entitled to overtime pay, even if they work more than 40 hours in a week, as per state law. This includes employees working in:

• Retail or service establishments
• Amusement or recreational establishments (with certain restrictions)
• Hotels, motels, or restaurants
• Hospitals and public health centers
• Nursing, maternity, and therapeutic homes
• Transportation of persons or property to whom the FLSA overtime requirements do not apply
• Political subdivisions of the state.

Employees in Vermont are entitled to a reasonably timed break to eat and use the toilet under state law.

As per federal law, any lunch break lasting less than 30 minutes is paid in Vermont, provided that the break period is uninterrupted and the employee is completely relieved of all job duties.

Employers in Vermont are required to provide paid or unpaid breaks whenever needed by a nursing employee to express milk or breastfeed at the workplace. These breaks must be provided for up to three years after the birth of a child. 

Employers are also required to accommodate nursing mothers by providing a suitable private space that is not a bathroom stall for expressing milk.

If providing breastfeeding breaks would cause significant difficulties for the business, employers can request an exemption. However, if an employee exercises their rights under the breastfeeding law, the employer is prohibited from retaliating or engaging in discriminatory behavior.

The following are some leave benefits that must be provided to employees in the state as per Vermont labor laws:

• Parental Leave: In Vermont, employers with 10 or more workers, and employees who have worked an average of 30 hours per week for one year may take up to 12 weeks of unpaid leave in a 12-month period. This leave may be used during pregnancy, after childbirth, or within one year of adopting a child age 16 or younger. The employee must give reasonable written notice before taking leave.
• Family and Medical Leave: The Family and Medical Leave Act (FMLA) is a federal law granting eligible employees 12 weeks of unpaid leave for various reasons. In Vermont, additional provisions allow leave for pregnancy, childbirth, and medical emergencies. 
• Family Leave: Family Leave in Vermont applies to employers with 15 or more workers. Eligible employees may take up to 12 weeks of unpaid leave in a 12-month period for a serious illness affecting themselves or certain family members. The employee must provide reasonable written notice and may be required to submit medical certification. Benefits must continue during leave, and the employee must be returned to the same or a comparable job unless an exception applies.
• Short-Term Family Leave: This leave allows eligible employees to take up to four hours in a 30-day period, not exceeding 24 hours in a 12-month period, for specific family-related activities and appointments. The employee must give at least seven days’ notice when possible, or as early as possible in emergencies. The leave is unpaid.
• Jury Leave: Employees in Vermont are entitled to unpaid jury leave for when they need to attend jury service as per state law. Employees are protected from any form of employer retailation for taking jury leave.

The following public holidays will be observed in Vermont in the year 2025: 

Vermont labor law considers any individual under the age of 18 a minor. Minors aged 16 can work most jobs in the state.

Minors aged under 14 can only work with parental permission or with their parent on a farm. Minors younger than 12 can only work on small farms that are exempt from minimum wage laws in Vermont.

Work Permits for Minors in Vermont

Under state law, there is no requirement for minors to obtain work permits before securing employment in Vermont.

Working hours for minors in Vermont are based on their age. Minors aged 16 and older generally have no work hour restrictions. However, they cannot work in a manufacturing establishment for more than nine hours a day and 50 hours per week.

Minors aged 15 and younger can work for up to three hours daily and 18 hours weekly on school days. On non-school days, they can work up to eight hours daily and 40 hours weekly. Work hours cannot be scheduled before 7:00 a.m. or after 7:00 p.m., except after 9:00 p.m. between June 1st and Labor Day.

Minors under the age of 18 are not allowed to work in certain hazardous occupations, including the following jobs: