Vermont HR Consulting & Employment Law for Small Businesses
Vermont has enacted broad employee protections including parental and family leave obligations, mandatory earned sick time, and a minimum wage above the federal floor.
Vermont employers are subject to Vermont Parental and Family Leave (up to 12 weeks for employers with 10+ employees), Vermont Earned Sick Time (all employers), Vermont's Fair Employment Practices Act (broader than federal law), and a minimum wage set above the federal baseline. Vermont also restricts non-competes for lower-earning workers.
Note: This guide is for informational purposes only and does not constitute legal advice. Employment laws change frequently. Consult a qualified employment attorney for advice specific to your situation.
Key Vermont Employment Laws
Vermont Earned Sick Time
All Vermont employers must provide earned sick time. Employers with 6 or more employees must provide paid sick time (up to 40 hours per year). Smaller employers must provide unpaid sick time. Leave accrues at 1 hour per 52 hours worked. Leave can be used for personal illness, family care, and domestic violence.
Vermont Parental and Family Leave Act
Vermont employers with 10 or more employees must provide eligible employees up to 12 weeks of unpaid, job-protected leave for the birth, adoption, or foster placement of a child. An additional 12 weeks may be required for an employee's own serious health condition or to care for a family member.
Vermont Fair Employment Practices Act
Vermont's FEPA prohibits discrimination based on race, color, religion, ancestry, national origin, sex, sexual orientation, gender identity, place of birth, age, and physical or mental condition. It applies to employers of any size.
Vermont Non-Compete Restrictions
Vermont has proposed legislation to limit non-competes for lower-income workers. As of 2025, Vermont courts apply a reasonableness test but have been increasingly critical of non-competes for employees who earn less than a moderate wage threshold.
Compliance Thresholds for Vermont Employers
1+ Employees: employees
- Vermont minimum wage applies (above federal)
- Vermont Earned Sick Time: all employers provide sick leave (paid at 6+ employees)
- Vermont Fair Employment Practices Act applies at any size
6+ Employees: employees
- Vermont Earned Sick Time: paid sick leave (up to 40 hours/year)
- Vermont Parental and Family Leave: 12 weeks (at 10+ employees)
50+ Employees: employees
- Federal FMLA applies
- ACA employer mandate
Common Questions About Vermont Employment Law
Does Vermont require paid sick leave?
Yes. Employers with 6 or more employees must provide up to 40 hours of paid sick leave per year. Smaller employers must provide unpaid sick leave. Sick time accrues at 1 hour per 52 hours worked and can be used for personal illness, family care, and domestic violence situations.
What does Vermont Parental Leave require?
Vermont employers with 10 or more employees must provide eligible employees up to 12 weeks of unpaid, job-protected leave for the birth, adoption, or foster care placement of a child. Additional leave for serious health conditions may also be required.
What is the Vermont minimum wage?
Vermont's minimum wage is above the federal floor and adjusted annually. The Vermont Department of Labor publishes current rates.
What does the Vermont Fair Employment Practices Act cover?
Vermont's FEPA applies to all employers regardless of size and covers a broad range of protected categories including race, color, religion, ancestry, national origin, sex, sexual orientation, gender identity, place of birth, age, and physical or mental condition.
Are non-competes enforceable in Vermont?
Vermont courts apply a reasonableness test to non-competes. Agreements must protect a legitimate business interest, be reasonable in duration and geographic scope, and not impose undue hardship. Vermont has shown increasing judicial skepticism toward broad non-competes.
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