Vermont Employment Laws for Employers
Reviewed Sep 27, 2026 11 of 13 rules verified against official sources How we verify
Not a substitute for the advice of an attorney. General information; laws vary by state. Terms of use
Final pay and unused vacation
Final paycheck
If you fire someone, when is the last paycheck due?72 hoursVerified Sep 24, 2026 · 2 official pages from the same agency
A discharged employee must be paid within 72 hours of discharge. (21 V.S.A. § 342(b)(2))
“is discharged from employment shall be paid within 72 hours of discharge;”
legislature.vermont.gov · labor.vermont.gov
Put it in writing with the termination letter template for Vermont.
If an employee quits, when is the last paycheck due?Next regular paydayVerified Sep 24, 2026 · 2 official pages from the same agency
An employee who voluntarily leaves must be paid on the last regular payday, or, if there is no regular payday, on the following Friday. (21 V.S.A. § 342(b)(1))
“voluntarily leaves employment shall be paid on the last regular pay day, or if there is no regular pay day, on the following Friday;”
“An employee who voluntarily leaves an employment position, shall be paid on the last regular payday, or if there is no regular payday, on the following Friday.”
Unused vacation (PTO) at separation
Do you have to pay out unused vacation when someone leaves?Depends on your policyVerified Sep 24, 2026 · 2 official pages from the same agency
Vermont does not require employers to provide paid vacation or to pay vacation when an employee leaves. Employers that have a written agreement (including an employee handbook, memorandum or correspondence) providing for vacation time are liable to their employees for that benefit. (Vermont Dept. of Labor, A Summary of Vermont Wage and Hour Laws (2019))
“However, employers who are parties to written agreements, which can be in the form of an employee handbook, memorandum, correspondence, etc., providing for vacation time, sick leave, holidays and/or severance pay are liable to their employees for these benefits.”
Same official text as quoted above (see the quote; Vermont Dept. of Labor, A Summary of Vermont Wage and Hour Laws (2009 edition) · labor.vermont.gov).
Wages, paydays and breaks
Minimum wage
What is the minimum wage?$14.42 per hourVerified Sep 27, 2026 · 2 official sources
Vermont minimum wage is $14.42 per hour (employers of two or more employees), effective January 1, 2026. (21 V.S.A. § 384 (U.S. DOL WHD state minimum wage table))
“Vermont Applicable to employers of two or more employees Basic Minimum Rate (per hour): $14.42”
“Beginning January 1, 2026, the State’s minimum wage will increase from $14.01 to $14.42 per hour”
Paydays
How often do you have to pay?WeeklyVerified Sep 27, 2026 · 2 official sources
Biweekly or semimonthly with notice: Employers may pay bi-weekly or semi-monthly after giving notice to each employee. (21 V.S.A. § 342 (U.S. DOL WHD state payday table, footnote 23))
“23 Vermont. Employers may implement bi-weekly and semi-monthly paydays with written notice.”
“(A) after giving notice to each employee, pay biweekly or semimonthly, in lawful money or checks, each employee the wages earned by the employee to a day not more than six days prior to the date of payment”
dol.gov · legislature.vermont.gov · verified Sep 27, 2026 · 2 official sources
General rule: Employers must pay wages weekly unless, after giving notice to each employee, they choose to pay bi-weekly or semi-monthly. (21 V.S.A. § 342 (U.S. DOL WHD state payday table))
“Vermont X X 23 X 23”
“Any employer that is doing business within the State shall pay each week, in lawful money or checks, the wages earned by each employee to a day not more than six days prior to the date of payment.”
dol.gov · legislature.vermont.gov · verified Sep 27, 2026 · 2 official sources
Meal breaks
Do adult employees get a meal break?Reasonable opportunities to eat, no fixed lengthVerified Sep 27, 2026 · 2 official sources
Employers must give employees reasonable opportunities during work periods to eat and use toilet facilities; no fixed length is set. (21 V.S.A. § 304 (U.S. DOL WHD meal period table))
“Vermont Employees are to be given "reasonable opportunities" during work periods to eat and use toilet facilities in order to protect the health and hygiene of the employee. 21V.S.A. Section 304 Universal application”
“An employer shall provide an employee with reasonable opportunities during work periods to eat and to use toilet facilities in order to protect the health and hygiene of the employee.”
Rest breaks
Do adult employees get paid rest breaks?Verified: see ruleVerified Sep 27, 2026 · 2 official sources
Employers must give employees reasonable opportunities during work periods to eat and use toilet facilities; no fixed paid rest period is set. (21 V.S.A. § 304 (U.S. DOL WHD rest period table))
“Vermont Employees are to be given "reasonable opportunities" during work periods to eat and use toilet facilities in order to protect the health and hygiene of the employee. Statute Applicable to all employers of one or more employees within the state.”
Same official text as quoted above (see the quote; 21 V.S.A. § 304 · legislature.vermont.gov).
Paid sick leave
Do you have to give paid sick leave?Yes, statewideVerified Sep 24, 2026 · 2 official pages from the same agency
Accrual: Vermont earned sick time: employees accrue at least one hour of paid earned sick time for every 52 hours worked (including overtime). (21 V.S.A. § 482)
“(a) An employee shall accrue not less than one hour of earned sick time for every 52 hours worked.”
“An employee earns one hour of earned sick time for every 52 hours of actual work, including overtime.”
legislature.vermont.gov · labor.vermont.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Annual cap: Employers may limit accrual of earned sick time to 40 hours in a 12-month period. (21 V.S.A. § 482)
“(1) limit the amount of earned sick time accrued pursuant to this section to a maximum of 40 hours in a 12-month period; or”
“An employee will also be entitled to use up to 40 hours in 2025 and subsequent years.”
legislature.vermont.gov · labor.vermont.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Effective date: Vermont's Earned Sick Time law took effect January 1, 2017 (employers of five or fewer full-time employees had to comply from January 1, 2018). (21 V.S.A. § 482)
“(Added 2015, No. 69 (Adj. Sess.), § 4, eff. Jan. 1, 2017;”
“A: All employers with more than five full-time employees must begin complying with the Earned Sick Time Law on January 1, 2017. Employers of five or fewer full-time employees will have to start complying by January 1, 2018.”
legislature.vermont.gov · labor.vermont.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Employee eligibility: Covered employees are those employed for an average of at least 18 hours per week during a year (the statute lists exclusions, including federal employees, certain short seasonal jobs and individuals under 18 years of age). (21 V.S.A. § 481)
“(5) “Employee” means a person who, in consideration of direct or indirect gain or profit, is employed by an employer for an average of no less than 18 hours per week during a year.”
“A: Yes, as long as an employee works an average of 18 hours a week or more.”
legislature.vermont.gov · labor.vermont.gov · verified Sep 24, 2026 · 2 official pages from the same agency
Ending employment
At-will employment
Yes. Vermont follows at-will employment, with these exceptions (Marcoux-Norton v. Kmart Corp., 907 F. Supp. 766 (D. Vt. 1993), copy filed with the Vermont Legislature (House General committee work group)):
- Public policy: Recognized (Marcoux-Norton v. Kmart Corp., 907 F. Supp. 766 (D. Vt. 1993), copy filed with the Vermont Legislature (House General committee work group))
- Implied contract: pending verification (official source)
- Good faith and fair dealing: Recognized, limited (Marcoux-Norton v. Kmart Corp., 907 F. Supp. 766 (D. Vt. 1993), copy filed with the Vermont Legislature (House General committee work group))
Public policy exception: recognized?RecognizedVerified Sep 24, 2026 · 2 official sources
Vermont employers may not discharge an at-will employee for a reason against which there is a clear and compelling public policy. (Marcoux-Norton v. Kmart Corp., 907 F. Supp. 766 (D. Vt. 1993), copy filed with the Vermont Legislature (House General committee work group); Cole v. Foxmar Inc., No. 2:18-cv-220 (D. Vt. May 16, 2019), quoting Dulude v. Fletcher Allen Health Care, Inc., 807 A.2d 390, 397 (Vt. 2002))
“In Vermont, an employer may dismiss an employee at any time and for any reason, in the absence of an employment contract for a specific term, unless there is a clear and compelling public policy against the reason given for the discharge.”
“An at-will employee may be discharged at any time, with or without cause, "unless there is a clear and compelling public policy against the reason advanced for the discharge."”
Good faith and fair dealing exception: recognized?Recognized, limitedVerified Sep 24, 2026 · 2 official sources
In Vermont the implied covenant of good faith and fair dealing has little effect in a pure at-will employment relationship and is not recognized as a means of recovery where the relationship is unmodified and at-will. (Marcoux-Norton v. Kmart Corp., 907 F. Supp. 766 (D. Vt. 1993), copy filed with the Vermont Legislature (House General committee work group); Cole v. Foxmar Inc., No. 2:18-cv-220 (D. Vt. May 16, 2019), quoting Dicks v. Jensen, 768 A.2d 1279, 1286 (Vt. 2001))
“In a pure at-will employment contract, where all the employee has bargained for is a relationship in which he or she can be terminated at any time, with or without cause, the implied covenant of good faith has little effect as there are few, if any, contractual benefits for the implied covenant of good faith to protect.”
“The Vermont Supreme Court has "decline[d] to recognize the implied covenant of good faith and fair dealing as means of recovery where the employment relationship is unmodified and at-will."”
Separation notice
Do you have to give a separation notice when someone leaves?YesVerified Sep 24, 2026 · 2 official pages from the same agency
Vermont employers must give each individual notification of the availability of unemployment compensation at the time of the individual's separation from employment; the notification may be based on model language from the U.S. Secretary of Labor. Employers must also post the Commissioner's notice on how to seek unemployment benefits. (21 V.S.A. § 1346(c)(2))
“(2) An employer shall provide an individual with notification of the availability of unemployment compensation at the time of the individual’s separation from employment. The notification may be based on model notification language provided by the U.S. Secretary of Labor.”
Same official text as quoted above (see the quote; 21 V.S.A. chapter 17 (full chapter text) · legislature.vermont.gov).
Pending verification. Not verified for Vermont yet, so no answer is shown. Each link opens the official source to check.
Vermont and its neighbors
| State | Final pay after firing | Final pay after quitting | Minimum wage | Paid sick leave |
|---|---|---|---|---|
| Vermont | 72 hours | Next regular payday | $14.42 per hour | Yes, statewide |
| New York | Next regular payday | Next regular payday | $16.00 to $17.00 per hour (depends on the case) | Yes, statewide |
| New Hampshire | Pending verification. Official source (dol.nh.gov). | Pending verification. Official source (dol.nh.gov). | $7.25 per hour | Pending verification. Official source (dol.nh.gov). |
| Massachusetts | Day of discharge | Next regular payday | $15.00 per hour | Yes, statewide |
Verified rules only; open a state for its sources.
What an employee costs in Vermont
Every employer pays Social Security 6.2% (Publication 15), Medicare 1.45% (Topic 751) and FUTA (Topic 759). Vermont adds its unemployment insurance tax:
| Vermont payroll tax, 2026 | Amount |
|---|---|
| Taxable wage base per employee | $15,400 |
| Rates for experience-rated employers | 0.4% to 5.4% |
| New-employer rate | 1.00% |
| FUTA credit reduction | None for 2025 or 2026 |
| Estimated employer taxes on a $40,000 salary | $3,256 (8.1%) |
Of the $3,256, $154 is Vermont unemployment insurance tax (1.00% on the first $15,400 of wages) and $3,102 is federal tax.
The estimate counts FUTA at 0.6% of the first $7,000 ($42 per employee), which assumes the full FUTA credit (Topic 759).
Estimate for a new employer and a full year; check with your payroll provider. Sources: U.S. DOL, State UI Laws, July 2026, page 5; U.S. DOL, FUTA credit reductions.
Federal wage enforcement in Vermont
In FY2021 to FY2025, the federal Wage and Hour Division concluded 112 cases in Vermont (n = 112), 111 with violations, finding $1,505,033 in back wages owed to 1,505 employees and assessing $609,493 in civil money penalties (DOL enforcement data). Overtime back wages were part of 58.6% of the violation cases. OSHA opened 907 inspections in the same years (OSHA data). Enforcement data is not a violation rate: it shows where federal investigators looked. Wage violations by industry.
Vermont runs its own OSHA-approved State Plan that covers private employers, so workplace safety rules for most private workplaces in Vermont are enforced by the state program rather than by federal OSHA (OSHA: State Plans).
Changes coming in 2027
- Minimum wage, from Jan 1, 2027: the new amount is not announced yet (legislature.vermont.gov).
Changelog
- Sep 24, 2026: first verified, 13 rules.
- Sep 26, 2026: verified: at-will exceptions (good faith covenant), now backed by two independent official sources. (govinfo.gov)
- Sep 26, 2026: verified: at-will exceptions (public policy), now backed by two independent official sources. (govinfo.gov)
Questions about Vermont employment laws
What is the minimum wage in Vermont?
Vermont minimum wage is $14.42 per hour (employers of two or more employees), effective January 1, 2026. (21 V.S.A. § 384 (U.S. DOL WHD state minimum wage table))
Is Vermont an at-will state?
Yes. Vermont follows at-will employment, with exceptions. Of the 3 common exceptions, we have verified 2, and 2 are recognized in Vermont (Marcoux-Norton v. Kmart Corp., 907 F. Supp. 766 (D. Vt. 1993), copy filed with the Vermont Legislature (House General committee work group)).
When is the final paycheck due after firing someone in Vermont?
A discharged employee must be paid within 72 hours of discharge. (21 V.S.A. § 342(b)(2))
Sources (18)
- 21 V.S.A. § 384 (U.S. DOL WHD state minimum wage table)
- Vermont Department of Labor press release (21 V.S.A. § 384)
- 21 V.S.A. § 342 (U.S. DOL WHD state payday table, footnote 23)
- 21 V.S.A. § 342(a)(2)(A)
- 21 V.S.A. § 304 (U.S. DOL WHD meal period table)
- 21 V.S.A. § 304
- 21 V.S.A. § 304 (U.S. DOL WHD rest period table)
- Vermont Department of Labor, A Summary of Vermont Wage and Hour Laws (WH-13, 2019)
- Vermont Dept. of Labor, A Summary of Vermont Wage and Hour Laws (2009 edition)
- 21 V.S.A. § 482
- Vermont Department of Labor, Vermont's Earned Sick Time Act (mandatory poster)
- Vermont Department of Labor, Earned Sick Time FAQ
- 21 V.S.A. § 481
- Marcoux-Norton v. Kmart Corp., 907 F. Supp. 766 (D. Vt. 1993), copy filed with the Vermont Legislature (House General committee work group)
- Cole v. Foxmar Inc., No. 2:18-cv-220 (D. Vt. May 16, 2019), quoting Dicks v. Jensen, 768 A.2d 1279, 1286 (Vt. 2001)
- 21 V.S.A. § 1346(c)(2)
- 21 V.S.A. chapter 17 (full chapter text)
- U.S. Department of Labor: State labor offices
Checked Sep 27, 2026 · How we verify every rule · Report an error
General information, not legal advice. Not a substitute for the advice of an attorney. This page is for general information only and isn’t legal, financial or tax advice. Laws vary by state and change; check the official source or talk to a qualified professional about your situation. Report an error