Vermont Labor Laws: Wages, Breaks and Overtime (2026)

Employers are required to provide earned sick time to their employees. 

• All employees, both full-time and part-time, who work at least 18 hours per week on average, are eligible for earned sick time. 
• Employees accrue one hour of paid sick leave for every 52 hours worked, up to a maximum of 40 hours per year.
• Earned sick leave can be used for personal or family illness, injury, or medical care. 

Family Leave covers the serious illness of either the employee or an immediate family member.

• Employees are entitled to up to 12 weeks of unpaid leave in a 12-month period.
• During the first six weeks of family leave, the employee may use any accrued paid leave (sick, annual, compensatory, or personal leave), after which only compensatory, personal, and annual leave can be used. Beyond the first six weeks, unpaid leave can be taken.
• Family leave cannot exceed 12 weeks in combination with parental leave.

Parental Leave covers absences related to pregnancy, childbirth, or adoption.

• Employees can take up to six months of parental leave for pregnancy or within a year after the birth or adoption of a child.
• During the first six weeks of parental leave, employees may use any accrued paid leave. After the initial six weeks, only compensatory, personal, and annual leave can be used, or unpaid leave if no paid time is available.
• Employees may also use sick leave for up to six weeks following childbirth and for other pregnancy-related medical conditions, which may be extended by the employer.

Vermont does not have a specific state law mandating bereavement leave for employees. However, employers often offer this type of leave as part of their company policy or in agreements such as collective bargaining agreements for certain sectors, including state employees.

When bereavement leave is offered, it typically allows employees to take paid or unpaid time off following the death of a close family member.

Vermont labor laws do not require employers to provide vacation leave, whether paid or unpaid. However, many employers voluntarily offer vacation benefits to their employees as part of their compensation package.

The terms and conditions of vacation leave, including accrual rates, duration, and eligibility, are typically outlined in company policies or employment contracts.

Vermont law does not require employers to provide holiday leave, whether paid or unpaid. This means that any time off or additional pay for holidays is at the employer’s discretion.

However, many employers voluntarily observe federal holidays and offer either paid time off or holiday pay for employees who work on such days.

Employers are required to grant jury duty leave to employees who are summoned for jury service. This leave ensures that employees can fulfill their civic duties without fear of losing their job.

However, Vermont does not mandate that employers pay employees during their jury duty service, leaving compensation policies up to individual employers.

Vermont provides voting leave to ensure that employees have time to vote during elections without risking their job.

While the state encourages employers to accommodate workers’ ability to participate in the voting process, Vermont does not have specific laws mandating paid or unpaid leave for voting.

Vermont law provides crime victim leave to employees who are victims of a crime, allowing them time off to attend legal proceedings related to the crime without facing job loss or retaliation. This leave is designed to ensure that employees can participate in the justice process without suffering negative consequences at work.

In Vermont, witness leave allows employees to take time off from work if they are required to appear as a witness in a legal proceeding. This type of leave ensures that employees can fulfill their legal obligations without risking their job.

Vermont law does not require employers to provide paid leave for witness appearances. However, employees may use any available accrued paid leave (such as vacation or personal days) during their time off for witness duty.

Employees in Vermont are protected under both federal and state laws when taking leave for military service.

Federal Law: USERRA (Uniformed Services Employment and Reemployment Rights Act)

The federal USERRA law provides comprehensive protection to employees who take military leave for active duty or training. 

• Leave Duration: USERRA protects employees who take up to five years of cumulative military leave from the same employer.
• Paid or Unpaid Leave: Employees may choose to use their paid vacation time for some or all of their military leave, but this decision is entirely up to them.
• Health Insurance: Employers must continue to offer health coverage to employees on military leave for up to 18 months. Employees can be charged up to 102% of the premium for this coverage, depending on the length of their leave.

Vermont Law: State-Specific Military Leave Provisions 

In addition to USERRA, Vermont has its own laws to protect employees during reserve training and other military duties:

• Notice Requirement: Employees must provide 30 days’ notice to their employer before their leave begins, or as soon as practical after receiving their call to service.
• Job Reinstatement: Employees are entitled to return to their same position after military leave, unless they are no longer qualified for the job. In that case, the employer must find a comparable position with similar pay and benefits.
• Protection of Benefits: Employees on military leave cannot lose accrued benefits such as sick leave, vacation time, bonuses, or promotions due to their absence.

Vermont law uniquely provides Town Meeting Leave, which allows employees to take unpaid time off to participate in their local town meetings. This law reflects Vermont’s strong tradition of civic engagement, ensuring that employees can actively participate in their community’s decision-making process.

• Eligibility: All employees in Vermont are eligible for this leave, regardless of their employment status (full-time or part-time).
• Duration: Employers must provide up to three hours of unpaid leave on the day of a town meeting so that employees can attend and participate.
• Notice Requirement: Employees are required to provide advanced notice of their intent to take time off for a town meeting. This allows employers to plan around the absence.

Vermont is unique in that it does not have any local minimum wages. The minimum wage is set at the state level, and there are no specific municipalities or counties within the state that impose their own, higher minimum wage laws.

• Tipped Workers: Tipped workers earn $7.21 per hour as of January 2026.
• Trainees and Workers with Disabilities: Employers must obtain a certificate from the U.S. Department of Labor to pay workers with disabilities below the standard minimum wage, and this rate is determined on a case-by-case basis.
• Student Workers and Apprentices: Certain student workers, learners, and apprentices may also be paid less than the state minimum wage for a limited period.

• Agricultural Workers: Farm laborers and agricultural workers are generally exempt from Vermont’s minimum wage requirements. 
• Certain Student Workers: Full-time students employed in nonprofit educational institutions or vocational programs may be exempt from the minimum wage law.
• Casual Babysitters and Companionship Workers: Individuals employed as casual babysitters or domestic companions for the elderly or disabled in private homes are exempt from Vermont’s minimum wage law​.
• Independent Contractors: Vermont’s wage laws do not apply to independent contractors, as they are not considered employees under the law.

Vermont is an at-will employment state, meaning employers can terminate employees at any time, for any reason, or no reason at all, as long as it’s not illegal (i.e., discrimination or retaliation).

Vermont does not have right-to-work laws. This means that unionized workplaces can require employees to pay union dues as a condition of employment.

• Background Checks: Vermont law allows employers to conduct background checks on job candidates, but the use of such checks is regulated. Employers must comply with the federal Fair Credit Reporting Act (FCRA) when using third-party background check services.
• Ban-the-Box Law: Vermont has a Ban-the-Box law, which prohibits employers from asking about criminal history on initial job applications. Criminal background inquiries can only be made later in the hiring process.
• Drug Testing: Drug testing is allowed in Vermont, but it is heavily regulated. Employers must have a written policy and must provide employees with advance notice of drug testing. Random testing is generally prohibited unless safety-sensitive jobs are involved.

Vermont prohibits employment discrimination based on race, color, religion, national origin, gender, gender identity, sexual orientation, disability, age, and marital status, in alignment with both state and federal law (Title VII of the Civil Rights Act and Vermont’s Fair Employment Practices Act).