Vermont employment rules for employers
Last verified Sep 24, 2026 · 13 verified rules · How we verify every rule
General information, not legal advice. 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. Every rule on this page links to its official source.
Minimum wage
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))
What is the minimum wage?$14.42 per hourVerified Sep 24, 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”
Used in: How to hire your first employee
Paydays
How often do you have to pay?WeeklyVerified Sep 24, 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 24, 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 24, 2026 · 2 official sources
Used in: How to hire your first employee
Meal breaks
Do adult employees get a meal break?Verified: see ruleVerified Sep 24, 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 24, 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.”
“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.”
Final paycheck
If you fire someone, when is the last paycheck due?72 hoursVerified Sep 24, 2026 · 2 official sources
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;”
“If the employer discharges an employee, the employee must be paid within 72 hours from the time of discharge.”
If an employee quits, when is the last paycheck due?Next regular paydayVerified Sep 24, 2026 · 2 official sources
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.”
Final paycheck laws by state · Final paycheck date calculator
Used in: How to fire an employee in your state · Employee no call, no show: what to do · An employee resigned: what to do next
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.”
“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.”
Used in: How to fire an employee in your state · An employee resigned: what to do next
Paid sick leave
Do you have to give paid sick leave?Yes, statewideVerified Sep 24, 2026 · 2 official sources
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 sources
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 sources
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 sources
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 sources
At-will employment
We have not verified whether Vermont follows at-will employment. Check the official source.
Public policy exception: recognized?Not verified yetCheck the official source
We have not verified this rule for Vermont yet. Check the official source: legislature.vermont.gov.
Implied contract exception: recognized?Not verified yetCheck the official source
We have not verified this rule for Vermont yet. Check the official source: labor.vermont.gov.
Good faith and fair dealing exception: recognized?Not verified yetCheck the official source
We have not verified this rule for Vermont yet. Check the official source: legislature.vermont.gov.
Used in: How to write up an employee (the right way, in your state) · How to put an employee on a performance improvement plan · Employee no call, no show: what to do · Insubordination: what counts, and how to handle it
Service letter (reason for termination)
Do you have to give a written reason for the termination on request?Not verified yetCheck the official source
We have not verified this rule for Vermont yet. Check the official source: labor.vermont.gov.
Used in: How to write up an employee (the right way, in your state) · How to fire an employee in your state
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.”
“(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.”
Used in: How to fire an employee in your state
Final pay after firing, neighbors
| State | Final pay after firing |
|---|---|
| Vermont | 72 hours |
| New York | Next regular payday |
| New Hampshire | Not verified |
| Massachusetts | Not verified |
Only verified rules are shown. "Not verified" means we have not checked that state's rule yet; open its rulebook for the official source.
What an employee costs in Vermont
Beyond the salary, an employer pays these payroll taxes on each employee. Rates for 2026, from official sources:
- Social Security: 6.2% of wages, up to $184,500 per employee in 2026 (Publication 15).
- Medicare: 1.45% of all wages, with no wage base limit (Topic 751).
- Federal unemployment (FUTA): 6.0% of the first $7,000 of each employee's wages, with a credit of up to 5.4% for state unemployment taxes paid, so usually 0.6% (Topic 759).
- FUTA credit reduction: Vermont is not on the DOL list for 2025 (final) or 2026 (potential), so the full 5.4% credit is available if state unemployment taxes are paid in full and on time (U.S. DOL, FUTA credit reductions; Topic 759).
- Vermont unemployment insurance: taxes apply to the first $15,400 of each employee's wages. Rates for experience-rated employers run from 0.4% to 5.4%; the new-employer base rate is 1.00%. Source: U.S. DOL, Significant Provisions of State UI Laws, effective July 2026, page 5. The DOL notes that higher rates may apply by industry and that the table "is not an official interpretation of state UI laws". Find the Vermont unemployment agency.
A worked example: $40,000 salary
Estimate, before benefits and workers' comp; check with your payroll provider. It assumes a new employer, a full year of wages and the full FUTA credit.
| Tax on a $40,000 salary | Per year |
|---|---|
| Social Security, 6.2% (Topic 751) | $2,480 |
| Medicare, 1.45% (Topic 751) | $580 |
| Federal unemployment (FUTA), 0.6% of the first $7,000 (Topic 759) | $42 |
| Vermont unemployment insurance, new-employer rate 1.00% of the first $15,400 (DOL, July 2026) | $154 |
| Estimated total employer taxes | $3,256 |
Estimate: $3,256 is about 8.1% on top of the salary. It leaves out health insurance, retirement contributions, workers' compensation, state disability or paid leave programs and any local taxes.
Federal wage enforcement in Vermont
In FY2021 to FY2025, the U.S. Department of Labor's Wage and Hour Division concluded 112 cases in Vermont (n = 112), finding $1,505,033 in back wages owed to 1,505 employees (DOL enforcement data). Enforcement data is not a violation rate: it shows where federal investigators looked, and many states handle wage claims through their own agencies. Wage violations by industry.
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.
Questions about Vermont employer rules
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))
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 (21)
- 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
- 21 V.S.A. § 1346(c)(2)
- 21 V.S.A. chapter 17 (full chapter text)
- IRS Publication 15 (2026), Circular E, Employer's Tax Guide
- IRS Topic no. 751, Social Security and Medicare withholding rates
- IRS Topic no. 759, Form 940, Employer's Annual Federal Unemployment (FUTA) Tax Return
- U.S. DOL, Employment and Training Administration: FUTA credit reductions
- U.S. DOL, Office of Unemployment Insurance: Significant Provisions of State Unemployment Insurance Laws, effective July 2026
- U.S. Department of Labor: State labor offices
Checked Sep 24, 2026 · How we verify every rule · Report an error