Vermont Labor Laws: A Complete Guide to Wages, Breaks, Overtime, and More for 2025

Health and Safety Standards in Vermont

Vermont’s labor laws prioritize the health and safety of employees across all industries by setting strict guidelines for workplace safety.

Employers are required to follow these regulations to prevent accidents and ensure a safe working environment. These laws cover everything from equipment safety to handling hazardous materials and emergency response plans.

Both employers and employees share responsibilities to maintain a secure and compliant workplace.

In Vermont, employers must…

• Comply with Vermont Occupational Safety and Health Administration (VOSHA) standards: These standards include requirements for workplace safety practices, protective equipment, and proper training.
• Provide safe and functional equipment: Employers must ensure all tools and machinery used in the workplace are well-maintained and safe to operate.
• Offer health and safety training: Employers are required to train employees on potential workplace hazards and how to mitigate risks.
• Report work-related injuries and illnesses: Employers must maintain records and report any serious injuries or illnesses related to workplace activities to VOSHA.

In Vermont, employees should…

• Follow workplace safety guidelines: Employees are responsible for adhering to safety procedures, such as wearing required protective equipment.
• Report unsafe conditions: Employees should immediately report any hazardous conditions or safety concerns to their employer or VOSHA.
• Participate in safety training: Employees should actively engage in any health and safety training provided by their employer.
• Use safety equipment: When provided, employees must use personal protective equipment (PPE) as required for their job duties.

Report health and safety violations (unsafe working conditions) in Vermont to…

Employees:

• Vermont Occupational Safety and Health Administration (VOSHA): Report Unsafe Conditions
• Vermont Department of Labor: File a Complaint

Employers:

• VOSHA Employer Resources: VOSHA Employer Information
• Workplace Safety Programs: Project WorkSAFE

Anti-Discrimination Laws in Vermont

Vermont follows strict anti-discrimination laws to ensure that employers provide equal opportunities to all job applicants and employees, prohibiting discriminatory practices in hiring, firing, and workplace treatment. These laws align with both federal regulations and additional state-specific protections.

Employers in Vermont may not discriminate against job applicants or employees based on:

• Race, color, or national origin: Discrimination based on an individual’s race, ethnicity, or country of origin is prohibited.
• Sex or gender identity: This includes protections for gender identity, sexual orientation, pregnancy, and childbirth-related conditions.
• Religion: Employers cannot treat individuals differently based on their religious beliefs or practices.
• Age: Employees over the age of 18 are protected from discrimination due to age, under both state and federal law.
• Disability: The law prohibits discrimination against individuals with disabilities and requires employers to provide reasonable accommodations.
• Marital status, ancestry, and military status: Vermont extends protections to cover these categories as well, ensuring a comprehensive anti-discrimination framework.

Employee Resignation or Termination in Vermont

Vermont operates under at-will employment, meaning that either the employer or the employee can terminate the employment relationship at any time, for any reason, as long as it is not illegal (such as in violation of anti-discrimination laws or in retaliation for protected activities).

Employees can resign without notice, though providing notice is typically considered professional courtesy. Similarly, employers are not required to provide advance notice for termination unless otherwise stated in an employment contract or collective bargaining agreement. However, termination based on unlawful reasons, such as discrimination or retaliation, can lead to legal challenges.

Unemployment Benefits in Vermont

Workers in Vermont are eligible for unemployment benefits if they:

• Lost their job through no fault of their own (e.g., due to layoffs or lack of work).
• Earned sufficient wages during the “base period,” which is typically the first four of the last five completed calendar quarters before the claim.
• Are able, available, and actively seeking work while receiving unemployment benefits.

To qualify, applicants must meet specific criteria and actively search for new employment during the benefit period. If an employee is terminated for misconduct or voluntarily quits without good cause, they may not qualify for benefits.

Use this website to start your application for unemployment benefits in Vermont:

• Vermont Department of Labor – Unemployment Insurance

COBRA Benefits in Vermont

Separated employees in Vermont may extend their employer-provided health care coverage through the Consolidated Omnibus Budget Reconciliation Act (COBRA), which allows eligible workers to temporarily continue their health insurance after leaving their job or experiencing a qualifying event. This coverage is especially helpful for those who need to maintain their health benefits during transitions such as job loss, reduction in hours, or other significant changes.

COBRA stipulates:

• Eligibility: Employees who were enrolled in their employer’s group health plan at the time of separation, as well as their dependents, are eligible for COBRA. This includes those who were terminated for reasons other than gross misconduct or experienced a reduction in work hours.
• Duration: COBRA coverage can last for 18 months, but in some cases (such as disability or the death of the covered employee), coverage may be extended to 29 or 36 months for eligible beneficiaries.
• Cost: Employees must pay the full premium for COBRA coverage, including both their share and the employer’s share, plus an administrative fee of up to 2%.

Final Paychecks in Vermont

In Vermont, separated employees must receive their final paychecks promptly after termination, whether they quit or were fired. The timing of the payment depends on the reason for the separation:

• Involuntary Termination (Fired or Laid Off): Employers must pay the employee’s final wages within 72 hours of termination.
• Voluntary Resignation (Quit): If the employee resigns, the employer is required to issue the final paycheck by the next scheduled payday, or within 72 hours if the employee gave at least one pay period’s notice.
• Includes All Wages Owed: The final paycheck must include all unpaid wages, including accrued vacation or other earned paid time off if the employer’s policy allows it.

Vermont labor laws encompass various aspects beyond wages, overtime, and safety standards. Below are some important additional regulations that govern employment in the state.

Workers’ Compensation in Vermont

Workers’ compensation is designed to protect employees who suffer work-related injuries or illnesses. Vermont law requires employers to carry workers’ compensation insurance, which provides wage replacement and medical benefits to injured employees.

• Eligibility: All employees in Vermont are covered under the workers’ compensation system, except for a few exceptions such as independent contractors.
• Employer Responsibilities: Employers must report workplace injuries to their insurance carrier and the Vermont Department of Labor within 72 hours of receiving notice of the injury.
• Employee Benefits: Employees may receive compensation for medical expenses, temporary disability benefits, and permanent disability benefits, depending on the severity of the injury.

Whistleblower Protections in Vermont

Vermont provides legal protections for employees who report illegal or unsafe practices in the workplace. These whistleblower protections are designed to ensure that employees can speak up without fear of retaliation.

• Protection from Retaliation: Vermont employers are prohibited from retaliating against employees who report violations of state or federal law, including safety violations, fraud, and discrimination.
• Scope: The protections cover employees who report issues to a government agency, participate in an investigation, or refuse to engage in illegal activity at the request of their employer.
• Remedies: Employees who experience retaliation may be entitled to reinstatement, back pay, or compensatory damages.

More details can be found at the Vermont Department of Labor or Vermont Human Rights Commission.

Wage Deductions in Vermont

Vermont law regulates the types of deductions that employers can make from an employee’s paycheck, ensuring that employees receive their full, rightful earnings unless specific legal conditions are met.

• Permitted Deductions: Employers are allowed to make deductions for items like federal and state taxes, Social Security contributions, and court-ordered garnishments (e.g., child support).
• Prohibited Deductions: Employers cannot deduct for damages, uniforms, or other business-related expenses unless the employee has given express written consent.
• Wage Advance Deductions: If an employee receives a wage advance or loan from the employer, the employer may deduct payments from future wages, but only with the employee’s written permission.