Vermont has established wage transparency requirements that include salary posting mandates for certain employers and wage discussion protections for all workers. The Vermont pay transparency law provides meaningful protections while maintaining a focused approach that requires wage range disclosure in job postings for covered employers and comprehensive wage discussion rights for all employees.
Here’s what you need to know about Vermont’s pay transparency requirements and how they position the state among those implementing targeted wage equity legislation.
Core Law & Compliance
What Is the Vermont Pay Transparency Law? (2025 Update)
Vermont’s pay transparency framework consists of focused components designed to enhance wage equity and protect employee rights. Beginning July 1, 2025, the primary posting requirements under H. 704 and 21 V.S.A. § 495o require employers with five or more employees total (with at least one in Vermont) to include wage ranges in job postings.
The wage discussion protections under 21 V.S.A. § 495 prohibit all Vermont employers from requiring employees to refrain from discussing wages and prevent discrimination, discharge, or retaliation against employees who engage in wage discussions.
Vermont’s approach includes specific provisions for commission-based and tipped positions, ensuring that different compensation structures receive appropriate transparency treatment while maintaining comprehensive wage discussion protections for all workers.
Vermont Salary Posting Requirements for Employers
Beginning July 1, 2025, under Vermont law (H. 704 and 21 V.S.A. § 495o), employers with five or more employees total (with at least one in Vermont) who advertise job postings must include the actual wage or good faith minimum and maximum wage range they expect to pay.
The requirement applies to positions that will be located in Vermont or that will be remotely performed predominantly for an office or work location physically located in Vermont, ensuring broad coverage for Vermont-connected employment opportunities.
Special provisions address different compensation structures: commission-based positions must disclose that fact but are not required to include wage ranges, while tipped positions must disclose both the tipped nature of the role and the base wage or wage range.
When Did/Does the Vermont Pay Transparency Law Take Effect?
Vermont’s pay transparency provisions took effect on July 1, 2025, establishing the state’s framework for wage transparency and worker protection. The comprehensive requirements now include salary posting mandates for covered employers and universal wage discussion protections.
The wage discussion protections under 21 V.S.A. § 495 apply to all Vermont employers regardless of size, while the posting requirements specifically target employers with five or more employees who have at least one Vermont-based worker.
Employers must ensure current compliance with all applicable provisions, as Vermont’s framework provides worker protections and creates obligations for covered employers to maintain transparency in their hiring practices.
Employer Responsibilities
Which Employers Must Comply With the Vermont Pay Transparency Law?
Vermont’s pay transparency requirements apply to different categories of employers based on specific obligations and workforce characteristics.
All Vermont employers, regardless of size, must comply with wage discussion protections under 21 V.S.A. § 495, ensuring that workers across all organizations can discuss wages without fear of retaliation.
Employers with five or more employees total (with at least one in Vermont) must additionally comply with salary posting requirements under H. 704 and 21 V.S.A. § 495o for positions located in Vermont or remotely performed predominantly for Vermont-based offices.
Vermont Pay Transparency Thresholds by Employer Size
Vermont uses a focused approach based on employer size:
- All Employers: Must comply with wage discussion protections and cannot require employees to refrain from discussing wages or retaliate against employees for wage discussions (21 V.S.A. § 495)
- Employers with 5+ Employees Total (with at least 1 in Vermont): Must additionally include wage ranges in job postings for Vermont positions or remote positions predominantly serving Vermont offices, with special disclosure requirements for commission-based and tipped positions (H. 704; 21 V.S.A. § 495o)
This targeted system ensures that all employees receive fundamental wage discussion protections while requiring enhanced disclosure from employers with sufficient scale and Vermont connections.
Penalties for Violating the Vermont Pay Transparency Law
Vermont provides enforcement mechanisms for pay transparency violations, particularly under the wage discussion protection provisions. The law specifically prohibits employers from discriminating against, discharging, or retaliating against employees who engage in protected wage discussion activities.
Employers cannot require employees to refrain from discussing wage information as a condition of employment, creating comprehensive protection for worker communication about compensation.
Failure to comply with salary posting requirements or wage discussion protections can result in enforcement action through appropriate state agencies, with Vermont’s framework supporting compliance monitoring and worker protection.
Employee Rights & Impact
What Employees Should Know About the Vermont Pay Transparency Law
Vermont employees benefit from comprehensive wage discussion protections that apply to all workers regardless of their employer’s size. All employees have explicit rights to discuss and disclose their wage information and that of other employees without fear of employer retaliation.
Job seekers benefit from salary posting requirements that provide wage ranges for positions at employers with five or more employees (including at least one in Vermont), allowing informed decision-making about job opportunities in Vermont or remote positions serving Vermont offices.
The special provisions for commission-based and tipped positions ensure that workers in these compensation structures receive appropriate transparency about the nature of their potential roles and compensation arrangements.
Employee Rights Under Vermont Salary Posting Law
Vermont’s salary posting law grants employees specific rights designed to promote transparency and prevent wage discrimination.
The fundamental right to wage discussion under 21 V.S.A. § 495 means all employees can freely share salary information with colleagues and others, inquire about compensation practices, and discuss wage information without facing adverse employment actions.
Job applicants have rights to receive wage range information for positions at covered employers, with special disclosure requirements ensuring transparency about commission-based roles (which must disclose their commission nature) and tipped positions (which must disclose both tipped status and base wages).
The comprehensive protection against retaliation ensures that employees can exercise their transparency rights without fear of discrimination, discharge, or other adverse consequences.
How the Vermont Pay Transparency Law Helps Reduce Wage Gaps
Vermont’s approach to pay transparency addresses wage gaps through salary posting requirements and comprehensive wage discussion protections. The posting requirements help eliminate information asymmetries by ensuring candidates have access to compensation information for covered positions.
The robust wage discussion protections enable employees to identify potential pay disparities within their organizations through protected conversations with colleagues, making patterns of discrimination more visible and actionable.
The special provisions for commission-based and tipped positions help address transparency challenges in these compensation structures, ensuring that workers in these roles have appropriate information about their potential earnings and employment terms.
HR & Legal Best Practices
How HR Teams Can Comply With Vermont Pay Transparency Law
HR teams should implement comprehensive procedures to ensure compliance with Vermont’s targeted transparency requirements.
For employers with five or more employees (including at least one in Vermont), establish clear procedures for including wage ranges in job postings for Vermont positions and remote positions predominantly serving Vermont offices. Develop appropriate disclosure language for commission-based and tipped positions that meets Vermont’s specific requirements.
Implement robust policies protecting employees’ wage discussion rights and prohibiting retaliation. Train managers and supervisors on these protections to ensure consistent implementation across the organization.
Ensure that job posting practices account for Vermont’s coverage criteria, particularly regarding remote positions that predominantly serve Vermont-based offices or locations.
Updating Job Postings to Meet Vermont Salary Transparency Rules
Job postings from covered employers must include wage ranges that provide meaningful guidance to job seekers. These ranges should reflect good faith expectations of what the employer would actually pay for positions, considering factors like experience, qualifications, and performance.
For commission-based positions, clearly disclose the commission-based nature of the role without requiring wage range inclusion. For tipped positions, provide both disclosure of the tipped nature and the base wage or wage range information.
Ensure that posting practices properly identify which positions fall under Vermont’s coverage requirements, particularly remote positions that will be performed predominantly for Vermont-based offices or work locations.
Does the Vermont Pay Transparency Law Apply to Remote or Hybrid Workers?
Vermont’s pay transparency law specifically addresses remote work arrangements in its coverage provisions. The salary posting requirements apply to positions that will be remotely performed predominantly for an office or work location physically located in Vermont.
This means that remote positions serving Vermont-based operations must comply with posting requirements if the employer meets the five-employee threshold (including at least one in Vermont), ensuring remote workers receive transparency benefits.
The wage discussion protections apply to all Vermont employees regardless of work arrangement, ensuring consistent protection across different employment arrangements.
Comparison and Broader Context
How Vermont Pay Transparency Rules Compare With California and New York
Vermont’s approach to pay transparency provides targeted protections with a lower employee threshold than many other states. The five-employee requirement (with at least one in Vermont) creates broader coverage than states with higher thresholds while maintaining focused implementation.
Vermont’s special provisions for commission-based and tipped positions demonstrate thoughtful consideration of different compensation structures, providing appropriate transparency without imposing impractical requirements on roles where traditional wage ranges may not apply.
The comprehensive wage discussion protections place Vermont among states with strong worker rights, while the targeted posting requirements reflect a balanced approach that provides transparency benefits without overwhelming smaller employers.
Federal Pay Transparency Requirements vs. Vermont Law
Vermont’s state-level requirements exceed current federal transparency protections through proactive salary posting requirements and comprehensive wage discussion protections with specific anti-retaliation provisions.
The state’s thoughtful approach to different compensation structures supplements federal protections while providing clearer guidance for employers dealing with commission-based and tipped positions.
Vermont’s framework demonstrates how state legislation can provide targeted enhancements to worker protections that address specific state needs while exceeding federal minimums.
Pay Transparency Laws by State: Where Does Vermont Stand?
Vermont ranks among states implementing meaningful pay transparency legislation with a focused approach that balances worker protection with practical implementation considerations. The five-employee threshold provides broader coverage than many states while remaining manageable for enforcement.
The thoughtful provisions for different compensation structures and the combination of posting requirements with universal wage discussion protections position Vermont as having a well-designed transparency framework.
Vermont’s approach contributes to the growing momentum for pay transparency legislation while demonstrating how states can tailor requirements to their specific workforce characteristics and needs.
FAQs About the Vermont Pay Transparency Law
Do small businesses need to comply with Vermont pay transparency law?
All Vermont employers must comply with wage discussion protections and cannot prohibit employees from discussing wages or retaliate against them for doing so. Only employers with five or more employees total (with at least one in Vermont) must include wage ranges in job postings, providing some relief for very small businesses while ensuring basic transparency protections for all workers.
How should employers update existing job postings?
Employers with five or more employees (including at least one in Vermont) must update job postings for Vermont positions and remote positions predominantly serving Vermont offices to include actual wages or good faith wage ranges. Commission-based positions must disclose their commission nature, while tipped positions must disclose both tipped status and base wage information.
Are salary ranges required for internal postings as well as external ones?
Vermont’s law applies to “job postings” that are “advertised” but doesn’t specifically distinguish between internal and external postings. Given the law’s transparency objectives, employers should consider whether internal advancement opportunities that are formally posted or advertised should include appropriate wage range information.
What happens if employers fail to disclose salaries?
Employers who violate Vermont’s pay transparency requirements may face enforcement action through appropriate state agencies. The law specifically prohibits discrimination, discharge, or retaliation against employees who exercise their wage discussion rights, with comprehensive protection ensuring that workers can pursue transparency-related concerns without fear of adverse consequences.
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