Intro to Vermont Labor Laws

Vermont has enacted a new pay transparency law, effective July 1, 2025. Employers with five or more employees must disclose compensation or compensation ranges in job postings. Exceptions include commission-based and tipped positions, which have specific disclosure requirements. This law also prohibits discrimination or retaliation against employees exercising their rights. Employers should start preparing for compliance by reviewing job posting procedures and may benefit from conducting a pay equity audit to ensure adherence by July 1, 2025.

Vermont passed a law that updates the definition of race in the state’s Fair Employment Practices Act to include traits associated with or perceived to be associated with race, including hair type, texture, style, and protective hairstyles. Vermont has become the 24th state to enact such a law or amendment, joining its neighbors Maine and New York in this employment law trend.

Employers can prepare for this change, effective July 1, 2024, by reviewing their dress code, discrimination and harassment prevention, and grooming policies and procedures to ensure they comply with this update.