For hourly teams in Vermont, the rules can be intricate — most visibly in predictive scheduling expectations.
State requirements can interact with federal standards, and in some areas, local rules may layer on additional obligations for employers.
Vermont’s labor laws set a strong baseline for worker protections, with a steadily rising minimum wage and clear rules around paid sick leave, wage payments, and worker classification.
While Vermont’s regulatory environment is less fragmented than states with city-level ordinances, employers must still ensure their policies align with both state and federal requirements.
Whether you manage employees directly or through an Employer of Record (EOR) like HireArt, understanding Vermont’s wage and hour laws is essential for maintaining compliance and fair employment practices.
This blog is based on information available to HireArt as of October, 2025. HireArt does not provide tax, accounting or legal advice. This material has been prepared for informational purposes only, and should not be relied on for, tax, legal or accounting advice. Consult your own tax, legal and accounting advisors before engaging in any related activities or transactions.
Employers in Vermont must pay the state minimum wage or any higher federal or local rate that applies.
As of 2025, the minimum wage in Vermont is $14.01 per hour, and it increases annually based on inflation indexing.
Employers must follow the higher applicable rate between state and local law.
Vermont’s Earned Sick Time law requires nearly all employers to provide paid sick leave to eligible employees.
Workers accrue one hour of paid sick time for every 52 hours worked, up to a maximum of 40 hours per year. Accrued time may be used for personal illness, caring for family members, or addressing health and safety issues related to domestic violence or public health emergencies. Employers may choose to offer more generous policies, but not less.
Vermont provides a statewide baseline for wage and hour laws, and there are no local ordinances that exceed or differ from state requirements.
While municipalities may implement supplemental labor programs, employers generally only need to follow state-level standards unless operating under a specialized local contract or ordinance.
If multiple standards ever apply, employers must comply with the rule that provides the greatest benefit to the employee.
Vermont law does not specify detailed requirements for meal or rest breaks for adult employees.
Employers should follow internal policies, collective bargaining agreements (CBAs), and the federal Fair Labor Standards Act (FLSA) for guidance on compensable time. Providing reasonable breaks can improve productivity and employee wellbeing, even when not legally required.
Whether unused vacation or paid time off must be paid at termination in Vermont depends on the employer’s written policy or employment contract.
State law typically enforces the employer’s stated policy unless earned vacation time is considered wages. To prevent disputes, policies should clearly outline payout procedures for departing employees.
Vermont does not have a specific statute requiring reimbursement for business expenses.
Employers are encouraged to maintain a written reimbursement policy addressing work-related expenses such as mileage, remote work costs, or required tools. Transparent policies help ensure compliance with state wage laws and maintain fairness for employees.
Employers in Vermont must issue accurate wage statements and pay final wages in a timely manner.
Maintaining consistency in these processes supports compliance and employee trust.
Vermont applies federal and state economic-realities tests to determine whether a worker is an employee (W-2) or an independent contractor (1099).
If an employer exerts significant direction or control over how work is performed, the individual should be classified as an employee. Misclassification can result in wage recovery actions, tax liabilities, and penalties under both state and federal law.
HireArt acts as an Employer of Record (EOR) to simplify compliance for employers operating in Vermont and beyond. Through HireArt, companies can:
By partnering with HireArt, employers can reduce administrative complexity, maintain compliance across jurisdictions, and create a better experience for every Vermont-based worker.
