Vermont Remote Work Laws 2026
⚠️Informational only — not legal or tax advice.
Last Updated: December 2025
Applicable Period: 2026 tax year and current employment regulations
Key Characteristic: Employers with remote workers physically located in Vermont
Table of Contents
- Overview
- Key Legal Framework
- Employee Classification Standards
- Minimum Wage Information
- Overtime and Break Regulations
- Earned Sick Time Requirements
- Workers' Compensation Overview
- Other Leave Entitlements
- Anti-Discrimination Laws
- Remote Work Considerations
- Tax Information
- Resources
- Frequently Asked Questions
Overview
Vermont is generally considered worker-protective in its approach to employment regulation. According to official state sources, Vermont has implemented employment protections that include mandatory paid sick leave, annual minimum wage adjustments tied to inflation, and comprehensive workers’ compensation requirements.
General Characteristics (as of December 2025):
- State minimum wage (2025): $14.01/hour
- State minimum wage (2026): $14.42/hour (effective January 1, 2026)
- Paid sick leave: Generally required for employers meeting certain criteria
- State income tax: Graduated rates from 3.35% to 8.75%
- Meal/rest breaks: “Reasonable opportunity” to eat and use facilities
- Overtime rules: Generally follows federal FLSA
- Workers’ compensation: Generally required for employers with one or more employees
Note: These are general starting points only. Specific applicability depends on many factors including employer size, industry, and individual circumstances. Consult official sources and legal counsel for guidance on specific situations.
Source: Vermont Department of Labor – https://labor.vermont.gov/
Vermont’s laws generally apply based on where work is physically performed. According to general legal principles, workers performing work from locations within Vermont would typically be subject to Vermont employment laws, regardless of where their employer is located. However, specific situations may vary and should be evaluated by legal counsel familiar with Vermont law.
Key Legal Framework
Official State Agency Information
The Vermont Department of Labor administers employment laws in Vermont and provides guidance on wage and hour regulations, workers’ compensation, and workplace protections.
Contact Information:
- Website: https://labor.vermont.gov/
- Address: Vermont Department of Labor, P.O. Box 488, Montpelier, VT 05601-0488
- Phone: (802) 828-4000
- Wage and Hour Program: (802) 951-4083
- Workers’ Compensation: (802) 828-2286
Available Services: According to the Department’s website, services include unemployment insurance administration, workers’ compensation oversight, wage and hour enforcement, workplace safety programs, and workforce development resources.
Note: This agency provides official interpretations of state law. For legal advice on how laws apply to your specific situation, consult a licensed attorney in Vermont.
Major State Employment Statutes
The following statutes are commonly cited in employment matters. This is general information only and does not constitute legal interpretation.
1. Vermont Wage and Hour Law
Statutory Citation: 21 V.S.A. Chapter 5
Official Source: https://legislature.vermont.gov/statutes/chapter/21/005
General Provisions (as stated in the statute): According to Vermont statute, general wage and hour provisions address:
- Minimum wage requirements with annual adjustments
- Payment of wages and timing requirements
- Overtime compensation standards
- Meal and break provisions
- Recordkeeping obligations
Application to Remote Work:
These provisions generally apply based on where work is physically performed. Workers performing services from locations within Vermont would typically be subject to Vermont wage and hour law. Specific applicability depends on multiple factors. Consult the Vermont Department of Labor or legal counsel for guidance on particular circumstances.
Source: Vermont Department of Labor – https://labor.vermont.gov/wage-and-hour/wage-and-hour-laws-regs-and-rules
2. Vermont Earned Sick Time Act
Statutory Citation: 21 V.S.A. §§ 481-486
Effective Date: January 1, 2017
Official Source: https://legislature.vermont.gov/statutes/section/21/005/00482
General Overview: According to the Vermont Department of Labor, this law generally establishes requirements for accrual and use of earned sick time by eligible employees. The statute is described as providing one hour of earned sick time for every 52 hours worked, with specific provisions regarding accrual caps, usage, and carryover.
Coverage Framework: Official guidance indicates that coverage typically extends to employees whose primary place of work is in Vermont. Exemptions may apply to certain categories of workers including federal employees, certain state employees, and other specific groups defined in the statute.
Note: Actual coverage and obligations depend on specific circumstances. Employers should consult official agency guidance and legal counsel for compliance determinations.
Source: Vermont Department of Labor – https://labor.vermont.gov/earned-sick-time
3. Workers’ Compensation Law
Statutory Citation: 21 V.S.A. Chapter 9, §§ 601-711
Official Source: https://legislature.vermont.gov/statutes/chapter/21/009
General Overview: Vermont’s workers’ compensation statute is described as establishing a system for providing benefits to workers who experience work-related injuries or illnesses. According to official sources, the law generally requires employers with one or more employees to maintain workers’ compensation coverage.
Key Provisions (from statute): The statute addresses benefits for medical care, wage replacement during disability, vocational rehabilitation services, and death benefits for work-related fatalities.
Application to Remote Workers: Workers’ compensation coverage determinations involve fact-specific analysis. For remote workers, coverage questions may require evaluation of factors such as work location, nature of activities, and relationship to employment duties. Consult the Vermont Department of Labor Workers’ Compensation Division for guidance on specific situations.
Source: Vermont Department of Labor Workers’ Compensation – https://labor.vermont.gov/workers-compensation
4. Vermont Fair Employment Practices Act
Statutory Citation: 21 V.S.A. Chapter 5, Subchapter 6
Official Source: https://legislature.vermont.gov/statutes/subchapter/21/005/006
General Overview: According to statute, Vermont’s fair employment law prohibits discrimination based on protected characteristics including race, color, religion, national origin, sex, sexual orientation, gender identity, age, disability, and other categories defined in state law.
Coverage: The law is described as applying to employers with one or more employees performing services within Vermont.
Application to Remote Work: Anti-discrimination protections generally apply to employment relationships regardless of work location. Remote workers performing services for Vermont employers would typically be covered by Vermont’s fair employment provisions. Specific situations should be evaluated with legal counsel.
Source: Vermont Attorney General’s Office – https://ago.vermont.gov/
Employee Classification Standards
Vermont’s Classification Test
According to official Vermont sources, Vermont generally applies the “ABC Test” for purposes of unemployment insurance and certain other employment law determinations. This is a three-part test where all three conditions must be satisfied for a worker to be considered an independent contractor.
Statutory Authority: 21 V.S.A. § 1301(6)
Official Guidance: Vermont Department of Labor – https://labor.vermont.gov/
Tax Guidance: Vermont Department of Taxes – https://tax.vermont.gov/business/hire-employees
Important Note: Different tests may apply for different purposes. The IRS uses different criteria for federal tax purposes, while Vermont workers’ compensation law uses the “right to control” test. Classification may differ depending on the legal context.
General ABC Test Framework
According to the Vermont Department of Labor, the ABC Test presumes a worker is an employee unless the employer can demonstrate all three of the following conditions:
Part A: Freedom from Control and Direction
General Description:
Based on official guidance, this factor generally examines whether the worker is free from control or direction over the performance of services, both under any contract and in actual practice.
Considerations that may be relevant (from official guidance):
- Whether the hiring entity controls how the work is performed
- Whether the worker sets their own schedule and methods
- Whether the hiring entity provides detailed instructions
- Whether the worker has autonomy in completing tasks
- Whether the hiring entity supervises the worker’s activities
Illustrative Scenarios (for general understanding only):
Scenario 1: A software developer works exclusively for one company, follows the company’s schedule, uses company equipment, receives detailed project specifications and ongoing direction on implementation methods, and participates in regular team meetings.
General Analysis: This scenario may share characteristics commonly associated with an employment relationship because of the level of control, integration into company operations, and ongoing direction. However, actual classification depends on all facts and circumstances evaluated together.
⚠️ Important: This example is purely illustrative and does not constitute a legal determination.
Scenario 2: A graphic designer operates their own registered business, works for multiple clients simultaneously, sets their own hours, uses their own equipment and software, determines their own creative methods, and provides finished deliverables based on client specifications but without ongoing direction on how to create the work.
General Analysis: This scenario may share characteristics commonly associated with independent contractor relationships due to autonomy, multiple clients, and lack of day-to-day control. However, classification requires analysis of the complete situation including Parts B and C of the test.
⚠️ Important: This is not a determination. Classification decisions should be made with legal counsel.
Part B: Work Outside Usual Course of Business
General Description:
According to official sources, this factor typically examines whether the service is performed outside the usual course of business for which the service is performed, or outside all the places of business of the enterprise.
Considerations that may be relevant:
- Whether the work is integral to the hiring entity’s core business
- Whether the work is the type the business regularly performs
- The nature of the business compared to the nature of the work
- Whether the work is performed at the business’s location or elsewhere
Illustrative Scenarios:
Scenario 1: A restaurant hires a plumber to repair a broken pipe in the kitchen.
General Analysis: Plumbing services may be considered outside the usual course of a restaurant’s business, as restaurants are in the business of food service, not plumbing. This factor might support independent contractor status. However, all three parts of the ABC test must be satisfied, and this is not a determination.
Scenario 2: A restaurant hires someone to prepare food and serve customers on an ongoing basis.
General Analysis: Food preparation and service are integral to a restaurant’s core business. This scenario might not satisfy Part B of the ABC test, potentially supporting employee classification. However, all factors must be considered together, and actual classification requires professional evaluation.
⚠️ Critical Reminder: These examples are for general educational purposes only and do not constitute classification determinations.
Part C: Customarily Engaged in Independent Trade
General Description:
Based on official guidance, this factor generally looks at whether the individual is customarily engaged in an independently established trade, occupation, profession, or business of the same nature as the work being performed.
Considerations that may be relevant:
- Whether the worker has an established business entity (LLC, corporation)
- Whether the worker serves multiple clients
- Whether the worker has business cards, website, or other business indicia
- Whether the worker is registered to do business in Vermont
- Whether the worker advertises their services publicly
- Whether the worker has made investments in their business
Illustrative Scenarios:
Scenario 1: An individual has formed an LLC, maintains a business website, has multiple ongoing clients in the same field, carries business liability insurance, and actively markets their services to new potential clients.
General Analysis: These factors may support a finding of independently established trade or business. However, this is only one part of the three-part test, and all factors must be considered. This is not a determination of status.
Scenario 2: An individual has no business entity, works exclusively for one company, has no business website or cards, does not advertise services, and has no other clients.
General Analysis: These circumstances might suggest the individual is not customarily engaged in an independent business, potentially failing Part C of the ABC test. However, actual classification requires evaluation of all circumstances by legal counsel and appropriate agencies.
Remote Work Classification Considerations
For remote workers, classification analysis may involve additional complexities:
- Physical work location (home, co-working space, etc.) versus business location
- Nature of work relationship in virtual environment
- Level of control and independence in remote setting
- How work is assigned, supervised, and evaluated
- Integration into company’s operations and systems
According to general principles, these factors do not change the legal test but may affect how the test is applied. Classification of remote workers should be reviewed with legal counsel familiar with Vermont law and your specific circumstances.
Source: Vermont Department of Labor guidance on employee classification
Potential Consequences of Misclassification
According to Vermont Department of Labor and other official sources, worker misclassification may result in various consequences. The following is general information based on available sources:
For Employers (potential consequences may include):
- Back payment of unemployment insurance taxes
- Workers’ compensation premium adjustments
- Wage and hour claim exposure
- Penalties and interest
- Tax implications at state and federal levels
- Enforcement actions by multiple agencies
For Workers (potential impacts may include):
- Affects access to unemployment benefits
- Affects workers’ compensation coverage eligibility
- Affects wage and hour law protections
- Affects leave benefit eligibility
- May impact tax obligations
Note: The specific consequences depend on many factors including the nature and extent of misclassification, applicable laws, and agency determinations. This is general information only.
Sources:
- Vermont Department of Labor: https://labor.vermont.gov/
- Vermont Attorney General’s Office enforcement information
- Vermont Department of Taxes guidance
How to Seek Guidance on Classification
Classification questions should be addressed through appropriate channels:
- Vermont Department of Labor: (802) 828-4000 – https://labor.vermont.gov/
- Vermont Department of Taxes: https://tax.vermont.gov/business/hire-employees
- Employment attorney licensed in Vermont
- Tax professional familiar with Vermont and federal law
- IRS for federal tax classification: www.irs.gov
Minimum Wage Information
Current Rate Information (As Published by Vermont DOL)
According to the Vermont Department of Labor, Vermont law requires annual adjustments to the minimum wage based on either a 5% increase or the percentage increase of the Consumer Price Index (CPI-U), whichever is smaller.
Official Minimum Wage Rates:
| Effective Date | Standard Rate | Tipped Rate | Notes |
|---|---|---|---|
| January 1, 2025 | $14.01/hour | $7.01/hour | As announced by VT DOL |
| January 1, 2026 | $14.42/hour | $7.21/hour | As announced by VT DOL |
Statutory Authority: 21 V.S.A. § 384
Source: Vermont Department of Labor – https://labor.vermont.gov/press-release/vermont-department-labor-announces-minimum-wage-increase-starting-january-2026
Annual Adjustment Mechanism: According to statute, the minimum wage is adjusted each January 1st by the lesser of:
- 5% increase, or
- The percentage increase of the Consumer Price Index (CPI-U, U.S. city average, not seasonally adjusted)
The law provides that the minimum wage cannot decrease from one year to the next.
Tipped Employees Framework
Tipped Minimum Wage Structure: According to Vermont law, the “Basic Tipped Wage Rate” equals 50% of the full minimum wage.
Definition of Tipped Employee (from statute): Vermont law generally defines a service or tipped employee as “an employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $120.00 a month in tips for direct and personal customer service.”
Tip Credit Requirements: According to official guidance, employers may pay the tipped minimum wage provided that:
- The employee’s tips combined with the base wage equal or exceed the standard minimum wage per hour
- If tips plus base wage do not reach the standard minimum wage, the employer must make up the difference
Example Calculation (Illustrative Only): For 2026, an employee earning the tipped minimum wage of $7.21/hour must receive at least $7.21/hour in tips to reach the full minimum wage of $14.42/hour. If the employee receives only $5.00/hour in tips during a shift, the employer would generally be required to pay an additional $2.21/hour to ensure total compensation reaches $14.42/hour.
Note: This is a simplified illustration for general understanding. Actual calculations may involve additional factors. Consult Vermont DOL or payroll counsel for compliance guidance.
Source: Vermont Department of Labor – https://labor.vermont.gov/
Application to Remote Workers
According to general legal principles and Vermont Department of Labor guidance:
- Minimum wage typically applies based on where work is physically performed
- A worker performing work from a location within Vermont would generally be subject to Vermont minimum wage requirements
- The employer’s location is generally not the primary determining factor for minimum wage applicability
- Physical presence in Vermont during work performance typically triggers Vermont minimum wage coverage
However, specific situations may vary based on factors such as:
- Duration and regularity of work performed in Vermont
- Nature of the employment relationship
- Temporary versus permanent work location
- Multi-state employment arrangements
Employers with remote workers should consult Vermont DOL or legal counsel for guidance on particular circumstances.
Source: General employment law principles and Vermont DOL guidance
Exemptions from Minimum Wage
According to Vermont statute, certain categories of workers may be exempt from minimum wage requirements. The following is based on statutory language:
Categories That May Be Exempt:
- Agricultural Workers:
- Statute provides exemptions for certain agricultural employment
- Specific conditions apply based on nature and scope of agricultural work
- Executive, Administrative, and Professional Employees:
- Must meet specific duties tests
- Must meet salary thresholds (see Overtime section below)
- Classification requires detailed analysis
- Outside Sales Employees:
- Primary duties involve making sales away from employer’s place of business
- Specific criteria must be satisfied
- Certain Government and Nonprofit Workers:
- Employees of publicly supported nonprofit organizations (with exceptions for laundry employees, nurses’ aides, practical nurses)
- Specific government employees as defined in statute
- Other Categories:
- Newspaper delivery workers
- Certain domestic service workers in private homes
- Taxi drivers operating under specific conditions
⚠️ Important: Exemptions are narrowly construed and fact-specific. Do not assume an exemption applies without verification from official sources and legal counsel. Misclassification of exempt status can result in significant back pay liability.
Statutory Authority: 21 V.S.A. § 384
Source: https://legislature.vermont.gov/statutes/section/21/005/00384
Local Minimum Wage Ordinances
According to available information, Vermont does not currently have local jurisdictions with separate minimum wage rates that exceed the state minimum wage. The state minimum wage applies uniformly throughout Vermont.
However, employers should verify with local authorities if operating in specific municipalities, as local ordinances can change. Additionally, employers must comply with whichever rate is higher when federal, state, and local minimum wages differ.
Comparison Information (For Reference Only)
The following comparison is provided for general context. Each state’s laws apply based on where work is performed.
Comparison with Neighboring States (For Reference Only)
| State | 2025 Rate | 2026 Rate | Adjustment Method |
|---|---|---|---|
| Vermont | $14.01 | $14.42 | Annual CPI adjustment |
| Massachusetts | $15.00 | TBD | Legislative |
| New Hampshire | $7.25 (federal) | $7.25 (federal) | Follows federal |
| New York | $15.00–$16.50 | TBD | Varies by region |
Note: This comparison is for general reference only. Rates and adjustment mechanisms vary. Always verify current rates with official state sources.
Resources for Current Information
Vermont Department of Labor:
- Website: https://labor.vermont.gov/
- Wage and Hour Program: (802) 951-4083
- Address: 63 Pearl Street, Burlington, VT 05401-4331
U.S. Department of Labor:
- Wage and Hour Division: https://www.dol.gov/agencies/whd
- Phone: 1-866-4-USWAGE (1-866-487-9243)
Overtime and Break Regulations
A. Overtime Standards
Governing Framework: Vermont generally follows the federal Fair Labor Standards Act (FLSA) for overtime requirements, with some state-specific provisions.
Statutory Authority: 21 V.S.A. § 384
Federal Authority: Fair Labor Standards Act, 29 U.S.C. § 207
Official Source: Vermont Department of Labor – https://labor.vermont.gov/wage-and-hour/
General Overtime Threshold: According to Vermont statute and regulations:
- Overtime typically triggered after 40 hours worked in a workweek
- Rate generally required: 1.5 times the regular rate of pay
- Workweek defined as seven consecutive 24-hour periods
- Vermont does not require daily overtime (no overtime for hours over 8 in a single day)
- Vermont does not require overtime for weekend or holiday work unless weekly hours exceed 40
Applicability: According to official guidance, Vermont’s overtime law generally applies to employers with two or more employees.
Application to Remote Workers
Overtime regulations typically apply based on the nature of the work and employment relationship, not work location. According to general principles:
- Remote workers performing non-exempt work would generally be subject to the same overtime requirements as on-site workers
- Hours worked from home or remote locations count toward the 40-hour weekly threshold
- Employer’s duty to pay overtime does not change based on where work is performed
However, specific applicability depends on:
- Exemption status (see below)
- Accurate tracking of remote work hours
- Nature of remote work arrangements
Challenges for Remote Workers: Tracking compensable time for remote workers may involve additional considerations:
- After-hours email responses and communications
- Work performed outside regular scheduled hours
- On-call time in home environment
- Participation in virtual meetings outside regular hours
- Boundary between work and personal activities at home
These determinations are fact-specific. Employers should consult wage-hour counsel for guidance on tracking and compensating remote workers appropriately.
Overtime Exemptions
Vermont recognizes exemptions from overtime requirements for certain employee categories. According to federal and state law, common exemptions include:
Executive, Administrative, and Professional (EAP) Exemptions
To potentially qualify for EAP exemptions, employees generally must meet tests in three areas:
1. Salary Basis Test: The employee must be paid a predetermined salary not subject to reduction based on quality or quantity of work performed.
2. Salary Level Test: According to federal FLSA standards, the minimum salary threshold is:
- $684 per week ($35,568 annually) under current federal standards
- Note: Proposed federal rule changes announced higher thresholds ($1,128/week or $58,656 annually as of January 1, 2025), but legal challenges have affected implementation
- Employers should verify current applicable thresholds with Vermont DOL and U.S. DOL
Vermont-Specific Note: Vermont generally follows federal FLSA salary thresholds. Proposed Vermont legislation has discussed establishing separate state thresholds, but employers should verify current law.
3. Duties Test: The employee must perform exempt-level duties as defined in regulations.
General Duties Descriptions (from federal regulations):
Executive Exemption: According to U.S. DOL guidance, executive duties generally include:
- Primary duty is management of the enterprise or a department/subdivision
- Customarily and regularly directs the work of two or more employees
- Has authority to hire/fire or make recommendations given particular weight
Administrative Exemption: According to U.S. DOL guidance, administrative duties generally include:
- Primary duty is performance of office or non-manual work related to management or general business operations
- Primary duty includes exercise of discretion and independent judgment on matters of significance
Professional Exemption: According to U.S. DOL guidance, professional duties generally include:
- Primary duty requires advanced knowledge in a field of science or learning
- Advanced knowledge customarily acquired by prolonged specialized intellectual instruction
- Or, creative professional work requiring invention, imagination, originality, or talent
⚠️ Important: Job title alone does not determine exemption status. Meeting the salary threshold alone is insufficient. All three tests (salary basis, salary level, and duties) must be satisfied. Classification errors can result in significant liability for unpaid overtime, penalties, and legal fees.
Computer Professional Exemption
According to federal regulations, computer professionals may be exempt if they meet specific criteria:
Compensation Requirements:
- May be paid either salary or hourly
- If paid hourly: Federal rate is $27.63/hour (verify current rate)
- If paid salary: Must meet the general salary threshold
Plus Duties Test: Primary duties must include systems analysis, programming, software engineering, or similar skilled computer work.
Source: U.S. Department of Labor regulations, 29 C.F.R. § 541
Vermont-Specific Overtime Exemptions
According to Vermont statute, additional exemptions may apply to:
Industry-Specific Exemptions:
- Retail or service establishment employees (under certain conditions)
- Hotel, motel, or restaurant establishment employees (under certain conditions)
- Employees of amusement or recreational establishments operating 7 months or less per year
- Agricultural workers
- Certain hospital and healthcare facility employees (with restrictions)
- Employees of businesses engaged in transportation of persons or property (if federal FLSA overtime provisions don’t apply)
- Political subdivision employees
⚠️ Important Note: These exemptions have specific qualifying conditions and restrictions. Simply working in an exempt industry is not sufficient. The specific circumstances must be evaluated to determine actual exemption status.
Statutory Authority: 21 V.S.A. § 384
Source: https://legislature.vermont.gov/statutes/section/21/005/00384
Calculating the Regular Rate of Pay
According to federal regulations, the “regular rate” for overtime calculation purposes includes:
Generally Included:
- Hourly wages
- Salaries (when converted to hourly equivalent)
- Commissions
- Nondiscretionary bonuses
- Shift differentials
- Certain other forms of compensation
Generally Excluded:
- Discretionary bonuses
- Gifts and payments for special occasions
- Payments for periods when no work is performed (vacation, holiday, sick leave)
- Certain other payments defined in regulations
The regular rate calculation can be complex, particularly for employees with varied compensation structures. Consult payroll or legal counsel for guidance on calculating overtime for specific compensation arrangements.
Source: 29 C.F.R. § 778
B. Meal and Rest Break Requirements
Vermont’s Break Standards:
According to Vermont statute, employers must provide employees with “reasonable opportunities” during work periods to eat and use toilet facilities.
Statutory Authority: 21 V.S.A. § 304
Source: https://legislature.vermont.gov/statutes/section/21/005/00304
General Framework
What Vermont Law Requires: Vermont’s statute states: “An employer shall provide employees with reasonable opportunities during work periods to eat and use toilet facilities in order to protect the health and hygiene of the employee.”
What Vermont Law Does Not Specify:
- Specific duration of meal breaks
- Specific timing of breaks during shifts
- Frequency of break opportunities
- Whether breaks must be scheduled or on-demand
Interpretation: The term “reasonable opportunities” is not precisely defined in statute. What constitutes “reasonable” may vary based on:
- Length of shift
- Nature of work
- Industry practices
- Physical demands of job
- Employee needs
According to general principles, most employers provide:
- 30-minute unpaid meal break for shifts exceeding a certain length (commonly 6+ hours)
- Shorter paid rest breaks periodically during shifts (commonly 10-15 minutes per 4 hours)
However, these are common practices, not statutory requirements. Employers should consult legal counsel to determine appropriate break policies for their specific circumstances.
Federal Break Standards (Supplemental)
While Vermont’s break requirements are minimal, federal FLSA provides guidance on how breaks must be treated when employers choose to provide them:
Short Breaks (5-20 minutes): According to U.S. Department of Labor guidance, short rest breaks are generally compensable work time and must be paid.
Bona Fide Meal Periods (typically 30+ minutes): According to U.S. DOL guidance, meal periods may be unpaid if:
- The break is at least 30 minutes
- The employee is completely relieved of duties
- The employee is free to leave the workstation
- The employee is free to use the time for their own purposes
If an employee is required to perform any duties during a meal break (such as answering phones, monitoring equipment, remaining at workstation), the break must be paid.
Source: U.S. Department of Labor Fact Sheet #22 – https://www.dol.gov/agencies/whd/fact-sheets/22-flsa-hours-worked
Nursing Mothers
Vermont law provides specific break requirements for nursing mothers.
According to statute, employers must:
- Provide reasonable time, paid or unpaid, throughout the workday for employees to express breast milk
- Provide reasonable private space (not a bathroom stall) for expressing breast milk
- Allow this accommodation for up to three years after the child’s birth
Exemption: An employer may be exempt from these requirements if providing such time or space would substantially disrupt operations.
Retaliation Prohibition: Vermont law prohibits retaliation or discrimination against employees who take or attempt to take nursing mother breaks.
Statutory Authority: 21 V.S.A. § 305
Source: https://legislature.vermont.gov/statutes/section/21/005/00305
Application to Remote Workers
General Principles: Break requirements generally apply to remote workers performing work from Vermont locations. However, practical application may differ:
Considerations for Remote Work:
- How to verify breaks are actually taken
- Ensuring employees do not work during unpaid meal periods
- Documenting break compliance
- Addressing interruptions or work requests during breaks
- Monitoring after-hours work and communications
Potential Approaches (Not Legal Requirements): Employers may wish to consider:
- Clear written policies on work hours and break expectations
- Time-tracking systems that record breaks
- Training for remote workers on break policies
- Regular communication about boundaries between work and personal time
These are general considerations, not legal mandates. Employers should develop policies in consultation with legal counsel based on their specific circumstances.
Resources and Guidance
For specific questions about overtime and breaks:
Vermont Department of Labor:
- Wage and Hour Program: (802) 951-4083
- Website: https://labor.vermont.gov/wage-and-hour/
- Address: 63 Pearl Street, Burlington, VT 05401-4331
U.S. Department of Labor:
- Wage and Hour Division: 1-866-4-USWAGE (1-866-487-9243)
- Website: https://www.dol.gov/agencies/whd
Legal and Professional Resources:
- Employment attorney licensed in Vermont
- HR compliance consultant
- Payroll service provider with wage-hour expertise
⚠️ CRITICAL REMINDER: Wage and hour compliance is highly fact-specific and technical. Violations can result in significant back pay liability, penalties, and legal fees.
Earned Sick Time Requirements
Vermont Earned Sick Time Program Overview
Legal Framework:
Statutory Authority: 21 V.S.A. §§ 481-486
Effective Date: January 1, 2017 (original); July 1, 2024 (amendments)
Administering Agency: Vermont Department of Labor
Official Resource: https://labor.vermont.gov/earned-sick-time
General Program Description
According to the Vermont Department of Labor, the Earned Sick Time Act generally establishes requirements for accrual and use of paid sick time by eligible employees.
Core Framework (as stated in statute and regulations):
- Employees accrue sick time based on hours worked
- Accrual rate: 1 hour of earned sick time for every 52 hours worked
- Annual usage cap: Employers may limit use to 40 hours per 12-month period
- Carryover: Unused time generally carries over, subject to usage limits
- Waiting period: Employers may impose up to one-year waiting period for new hires
Source: Vermont Earned Sick Time Rules – https://labor.vermont.gov/sites/labor/files/doc_library/Earned-Sick-Time-Rules.pdf
Coverage Framework
Employer Coverage
According to Vermont statute as amended:
General Rule: The law generally applies to private employers with employees whose primary place of work is in Vermont.
Exemptions for Employers:
- Federal government employers
- State of Vermont employers (except as defined in statute)
- Employers in business for less than one year from date of hiring first employee
- Certain other narrow categories
Source: 21 V.S.A. § 481
Employee Eligibility
According to official guidance:
General Eligibility: An employee is generally eligible to accrue and use earned sick time if:
- The employee’s primary place of work is in Vermont
- The employee works an average of at least 18 hours per week during a year
- The employee does not fall within an exempt category
Exemptions for Employees: According to statute, exemptions may include:
- Federal employees
- Certain state employees as defined in statute
- Employees under age 18
- Per diem health care employees
- Certain temporary and seasonal employees (working 20 or fewer weeks per year in a job not intended to last more than 20 weeks)
- Other categories specifically defined in statute
Remote Workers: According to Vermont DOL guidance, the determining factor is typically the employee’s “primary place of work.” If an employee’s primary place of work is Vermont (where they physically perform work), they would generally be covered regardless of employer location.
Specific situations may require consultation with Vermont DOL:
- Employees who work in multiple states
- Employees whose primary work location changes
- Temporary assignments in Vermont
Source: Vermont Earned Sick Time Rules, Section 4
Accrual Provisions
Accrual Rate and Timing
According to statute:
Basic Accrual Rate:
- 1 hour of earned sick time for every 52 hours worked
- Includes overtime hours in the calculation of hours worked
- Accrual begins on the later of: January 1, 2017, or first day of employment
Annual Accrual Cap: Employers may limit accrual to a maximum of 40 hours per 12-month period.
For Full-Time FLSA-Exempt Employees: Employers may limit the workweek hours counted for accrual purposes to 40 hours per week for exempt employees not subject to federal overtime provisions.
Example Calculation (Illustrative Only): An employee working 40 hours per week would accrue:
- 40 hours worked ÷ 52 = 0.77 hours of sick time per week
- 0.77 hours × 52 weeks = approximately 40 hours per year (at the cap)
Note: This is a simplified calculation for general understanding. Actual accrual depends on specific circumstances including part-time status, overtime, and employer accrual policies.
Source: 21 V.S.A. § 482
Waiting Period
According to statute:
Permitted Waiting Period:
- Employers may require a waiting period for newly hired employees of up to one year
- During the waiting period, employees accrue sick time but cannot use it
- After completing the waiting period, employees may use accrued time
- The waiting period starts from the employee’s first day of employment
Source: 21 V.S.A. § 482(b)
Carryover and Annual Period
According to statute:
Carryover Requirements:
- Unused earned sick time generally carries over to the next annual period
- Employees continue to accrue earned sick time in the new period
- However, employers may limit usage (not accrual) to 40 hours per 12-month period
Annual Period Definition: Employers may establish their own annual period (12-month period) or use:
- Calendar year (January 1 – December 31)
- Employer’s existing benefit year
- Rolling 12-month period
Payment Alternative: Employers may (but are not required to) pay employees for unused earned sick time at the end of an annual period. If paid out, those hours do not carry over.
Source: 21 V.S.A. § 483(d)
Usage Provisions
Permitted Uses
According to statute, earned sick time may be used for:
1. Employee’s Own Health:
- Illness, injury, or health condition
- Medical diagnosis, care, or treatment
- Preventive medical care
2. Family Member Care:
- Care for a sick or injured family member
- Accompanying family member to medical appointments
- Helping family member obtain medical diagnosis, care, or treatment
3. Domestic Violence, Sexual Assault, or Stalking:
- Arranging for social or legal services
- Obtaining medical care or counseling
- For employee or qualifying family member who is a victim
4. Public Health or Safety Closures:
- When a family member’s school or place of care is closed for public health or safety reasons
5. Long-Term Care Assistance:
- Accompanying employee’s parent, grandparent, spouse, or parent-in-law to appointments related to long-term care
Qualifying Family Members (from statute):
- Parent
- Grandparent
- Spouse
- Child
- Brother or sister
- Parent-in-law
- Grandchild
- Foster child
Source: 21 V.S.A. § 483(a)
Usage Increments
According to statute:
Minimum Increment: If an employee’s absence is shorter than a normal workday, earned sick time must be provided in the smallest increment that:
- The employer’s payroll system uses for other absences, or
- The employer’s paid time off policy permits
However, employers are not required to permit increments shorter than one hour.
Source: 21 V.S.A. § 483(b)
Notice and Documentation
According to Vermont Department of Labor guidance:
Notice Requirements:
- Employees should provide notice consistent with employer’s reasonable notification system
- When foreseeable, employees should provide advance notice
- When not foreseeable, employees should provide notice as soon as practicable
- Employers cannot require specific reference to “earned sick time” – general sick leave request suffices
Documentation Requirements: Employers may require reasonable documentation for:
- Absences of more than three consecutive days
- Documentation may include certification from healthcare provider or other appropriate documentation based on reason for leave
However, employers cannot require:
- Disclosure of confidential medical information
- More documentation than reasonably necessary to verify eligibility
- Documentation that creates unreasonable burden or expense for employee
Source: Vermont Earned Sick Time Rules and FAQ
Rate of Payment
According to statute:
Compensation Rate: Earned sick time shall be compensated at a rate equal to the greater of:
- The normal hourly wage rate of the employee, or
- The minimum wage under Vermont law
For Non-Hourly Employees: The Vermont Earned Sick Time Rules provide detailed guidance on calculating the hourly rate for salaried and other non-hourly employees.
Overtime Rate: Earned sick time hours are not paid at overtime or premium rates, even if used during a week when the employee works overtime.
Timing of Payment: According to Vermont DOL, earned sick time must be paid on the same schedule as regular wages. Employers cannot delay compensation for earned sick time usage.
Source: 21 V.S.A. § 482(d)
Interaction with Other Leave
According to Vermont Department of Labor guidance:
Vermont Parental and Family Leave Act:
- Earned sick time may be used to receive pay during otherwise unpaid VPFLA leave
- Use of earned sick time may count toward concurrent leave under state law
- Employers should coordinate policies carefully
Employer PTO Policies:
- Employers may have policies more generous than the statutory minimum
- If an employer’s existing PTO policy provides equivalent or greater benefits, it may satisfy the earned sick time requirement
- Policies must meet all statutory requirements regarding accrual, carryover, and permitted uses
Source: Vermont Earned Sick Time Rules
Employer Obligations
According to statute and regulations, general employer obligations include:
1. Tracking and Recordkeeping:
- Maintain records of hours worked and earned sick time accrued and used
- Provide employees access to their earned sick time records
- Retention requirements apply
2. Notice to Employees:
- Provide notice of earned sick time rights
- Post required workplace posters
- Include information in employee handbooks or policies
3. Non-Retaliation:
- Cannot retaliate against employees for using or requesting earned sick time
- Cannot discriminate based on earned sick time usage
- Retaliation protections are broad
Source: 21 V.S.A. §§ 483, 486; Vermont Earned Sick Time Rules
Separation from Employment
According to statute:
No Payout Required: Employees are not entitled to payment for unused earned sick time upon separation from employment (unless employer chooses to provide payment).
Rehire Provisions:
Discharged Then Rehired: If an employee is discharged and rehired within 12 months:
- No waiting period required before using sick time
- Previously accrued sick time is not restored unless employer agrees
Voluntary Separation Then Rehired: If an employee voluntarily separates and is rehired within 12 months:
- May be required to complete waiting period again unless employer agrees otherwise
Source: 21 V.S.A. § 483(f)
Enforcement and Penalties
According to statute:
Enforcement Authority: The Vermont Department of Labor enforces the Earned Sick Time Act.
Potential Consequences for Non-Compliance: Violations may result in penalties consistent with Vermont wage and hour law, which may include:
- Payment of earned sick time that should have been provided
- Civil penalties
- Other relief deemed appropriate
Filing Complaints: Employees may file complaints with the Vermont Department of Labor’s Wage and Hour Division.
Source: 21 V.S.A. § 483(m), (n)
Application to Remote Workers
According to Vermont DOL guidance:
General Rule: Earned sick time requirements apply to employees whose primary place of work is in Vermont, regardless of employer location.
For Remote Workers:
- If a remote worker’s primary work location is Vermont (where they physically perform work), they are generally covered
- Employer’s physical location outside Vermont does not eliminate coverage
- Multi-state employers should track where employees primarily work
Compliance Considerations: Remote work arrangements may involve additional considerations:
- Determining primary place of work for employees who split time between states
- Tracking usage for distributed workforce
- Coordinating with other states’ sick leave laws for employees who work in multiple states
Employers with remote workers should consult Vermont DOL and legal counsel for guidance on specific situations.
Resources for Compliance
Vermont Department of Labor:
- Earned Sick Time Information: https://labor.vermont.gov/earned-sick-time
- Wage and Hour Program: (802) 951-4083
- File Complaint: https://labor.vermont.gov/file-on-line-wage-claim/
Official Documents:
- Vermont Earned Sick Time Rules: https://labor.vermont.gov/sites/labor/files/doc_library/Earned-Sick-Time-Rules.pdf
- FAQ: https://labor.vermont.gov/sites/labor/files/doc_library/Earned%20Sick%20Time%20FAQ%20modified.pdf
- Required Poster: Available at Vermont DOL website
Workers' Compensation Overview
Legal Framework
Statutory Authority: 21 V.S.A. Chapter 9, §§ 601-711
Administering Agency: Vermont Department of Labor, Workers’ Compensation Division
Contact Information:
- Website: https://labor.vermont.gov/workers-compensation
- Phone: (802) 828-2286
- Address: Vermont Department of Labor, Workers’ Compensation Division, P.O. Box 488, Montpelier, VT 05601-0488
Official Resources:
- Workers’ Compensation Statutes: https://legislature.vermont.gov/statutes/chapter/21/009
- Workers’ Compensation Rules: Available on Vermont DOL website
- Employer Guide: https://labor.vermont.gov/workers-compensation
General Coverage Requirements
According to Vermont statute and regulations, workers’ compensation coverage is generally described as follows:
Coverage Threshold: Vermont law generally requires employers with one or more employees to maintain workers’ compensation coverage.
System Structure: Vermont operates a system where employers may:
- Purchase coverage from private insurance carriers
- Qualify for self-insurance with approval from the Commissioner
- Participate in group self-insurance arrangements
Note: Coverage determinations can be complex and fact-specific. Employers uncertain about their obligations should consult Vermont Workers’ Compensation Division or legal counsel.
Statutory Authority: 21 V.S.A. § 687
Source: Vermont Department of Labor – https://labor.vermont.gov/workers-compensation
Coverage Standard
According to Vermont statute and case law, workers’ compensation generally covers injuries that:
- Arise out of employment, AND
- Occur in the course of employment
“Arising Out Of” Employment: According to general legal principles, this typically means the injury has a causal connection to the employment – the work contributed to or caused the injury.
“In the Course Of” Employment: This generally refers to the time, place, and circumstances of the injury – whether the injury occurred during work time, in a work location, or while engaged in work activities.
Note: Application of these standards to specific factual situations requires detailed analysis and official determination by Vermont’s Workers’ Compensation Division.
Remote Worker Coverage Considerations
⚠️ COMPLEX AND FACT-SPECIFIC: Coverage of home office injuries involves detailed factual analysis. The following is general background only.
General Legal Standard: Workers’ compensation typically covers injuries that “arise out of and in the course of employment.” Application of this standard to remote workers is fact-dependent.
Factors That May Be Considered: According to case law, official guidance, and general principles, factors that may be relevant to remote work injury determinations include:
- Whether employee was engaged in work activity at time of injury
- Whether injury occurred in designated work area
- Whether injury occurred during work hours
- Whether activity was authorized or expected by employer
- Whether activity served employer’s interests
- Nature of the injury and how it occurred
- Relationship between work duties and injury
- Whether employer provided equipment or work space setup
⚠️ Important: This list is not exhaustive and no single factor is determinative. Actual coverage depends on complete factual circumstances and official determination by Vermont Workers’ Compensation Division.
Illustrative Scenarios (For General Understanding Only)
The following scenarios are provided for general educational purposes only. They do not constitute coverage determinations or legal advice. Actual coverage depends on complete factual circumstances and official determination by Vermont Workers’ Compensation Division.
Scenario Category: Work-Related Activities in Home Office
Example Situation: Employee trips over equipment cables in home office while walking to retrieve work documents during scheduled work hours. The home office is the designated work location approved by the employer.
General Observations:
This type of scenario may share some characteristics with situations that have been found compensable in other contexts, such as:
- Activity was work-related (retrieving work documents)
- Occurred in designated work area (home office)
- During work hours and performing job duties
- Employer knew of and authorized home office setup
However, compensability would depend on complete factual analysis including:
- Specific circumstances of the injury
- Whether hazard was work-related or personal
- Employer’s knowledge and control over work environment
- Other relevant factors
⚠️ This is not a coverage determination. Actual determination would be made by Vermont Workers’ Compensation Division based on all facts.
Example Situation: Employee develops carpal tunnel syndrome from extended computer use performing work duties over several months while working remotely.
General Observations:
Repetitive stress injuries from work activities may potentially be compensable in some circumstances. Determination would depend on factors such as:
- Medical documentation establishing work-relatedness
- Whether condition arose from and in course of employment
- Nature and extent of work activities causing condition
- Expert medical testimony linking condition to work
- Other medical and factual evidence
⚠️ This is not a determination. Medical professionals and Vermont Workers’ Compensation Division must evaluate based on complete medical and factual information.
Scenario Category: Personal Comfort Activities
Example Situation: Employee injured while preparing personal meal in kitchen during lunch break while working from home.
General Observations:
Personal comfort activities unrelated to work duties may be less likely to be considered arising from employment, based on general principles. However, specific facts matter, including:
- Whether employee was relieved of all duties during break
- Whether meal preparation was related to work in any way
- Whether kitchen is part of designated work area
- Whether employer had any control over or knowledge of the activity
- Other specific circumstances
⚠️ This is general background only. Not a coverage determination. Every workers’ compensation claim requires individual evaluation.
Example Situation: Employee injured in fall while climbing stairs between home office on second floor and first floor of residence.
General Observations:
Analysis would likely consider factors such as:
- Purpose of the trip (work-related or personal)
- Whether stairs are part of work area
- Frequency and necessity of such movement for work
- Employer’s knowledge of workspace layout
- Specific circumstances of the injury
These determinations are highly fact-specific and require official adjudication.
Benefits Generally Available
According to Vermont workers’ compensation statute, benefits that may be available include:
Medical Benefits: According to statute, reasonable surgical, medical, nursing, hospital services, and other treatment as may be required.
Disability Benefits: Vermont law provides for several categories of disability benefits:
- Temporary Total Disability:
- Generally available when employee is temporarily unable to perform any work
- Typically provides compensation based on a percentage of average weekly wage
- Subject to maximum and minimum amounts set by statute
- Temporary Partial Disability:
- May be available when employee can perform some work but at reduced capacity
- Generally based on difference between pre-injury and post-injury earning capacity
- Permanent Total Disability:
- May be awarded when injury results in permanent inability to work
- Subject to statutory criteria and determinations
- Permanent Partial Disability:
- May be available for permanent impairment that does not constitute total disability
- Various methods of calculation based on nature of injury
Vocational Rehabilitation: According to statute, vocational rehabilitation services may be available to help injured workers return to suitable employment.
Death Benefits: In cases of work-related fatality, benefits may include burial expenses and ongoing payments to dependents.
Note: Specific benefit amounts and eligibility depend on injury circumstances, wage history, and statutory formulas. Consult Vermont Workers’ Compensation Division or claims administrator for benefit calculations.
Statutory Authority: 21 V.S.A. §§ 640-650
Source: https://legislature.vermont.gov/statutes/chapter/21/009
Reporting and Claim Process
According to Vermont regulations, the general process typically involves:
For Employees:
1. Report Injury to Employer: According to statute, employees must notify their employer of work-related injuries. While the law provides extended time periods in some circumstances, prompt reporting is generally advisable.
2. Seek Medical Attention: Employees should obtain necessary medical treatment. For the initial visit, employers may direct employees to specific healthcare providers.
3. File Claim if Necessary: If benefits are disputed or not provided, employees may file formal claims with Vermont Workers’ Compensation Division.
Statutory Authority: 21 V.S.A. § 656
For Employers:
1. Report to Workers’ Compensation Agency: Employers must file “Employer First Report of Injury” (Form 1) with Vermont Department of Labor.
2. Timing: According to regulations, reports should be filed promptly when employer receives notice of work-related injury.
3. Insurance Notification: Employers should also notify their workers’ compensation insurance carrier.
⚠️ Note: Deadlines are strictly enforced. Late reporting may affect claim processing and potentially result in penalties. When in doubt, report promptly and seek guidance from Vermont Workers’ Compensation Division.
Source: Vermont Workers’ Compensation Rules
2025 Legislative Updates
According to recent legislation effective July 1, 2025, changes to Vermont’s workers’ compensation system include:
Translation Services: Requirement for employers to provide translation services if an injured employee does not speak English fluently.
Penalties for Late Benefit Payments: New penalty structure (5%, 10%, or 15% depending on lateness) for late benefit payments.
Reporting Requirements: New requirement to report late payments and reasons quarterly for one year (beginning October 2025).
These updates reflect Vermont’s commitment to ensuring injured workers receive timely benefits and appropriate support.
Source: Vermont Department of Labor announcements
Best Practices for Remote Work (Recommendations Only)
The following are general recommendations compiled from various sources. They do not constitute legal requirements and may not be suitable for all situations. Consult legal counsel and safety professionals.
For Employers:
- Consider providing ergonomic equipment or guidance for home offices
- Consider documenting remote work location and approved workspace
- Consider developing clear injury reporting procedures for remote workers
- Consider safety training specific to remote work environments
- Consider clear policies on work hours and job duties
- Consider regular communication about workspace safety
For Employees:
- Consider setting up dedicated, safe work area
- Consider documenting work location and workspace setup
- Consider reporting injuries promptly to employer
- Consider maintaining clear boundaries for work hours
- Consider following employer safety guidelines
- Consider ergonomic best practices for home office
Resources and Contacts
Vermont Workers’ Compensation Division:
- Website: https://labor.vermont.gov/workers-compensation
- Phone: (802) 828-2286
- Forms: Available on Department website
- Injured Worker Information: https://labor.vermont.gov/workers-compensation/injured-workers
For Legal Advice:
- Workers’ compensation attorney
- Vermont Bar Association Referral: https://www.vtbar.org/
For Medical Questions:
- Treating physician
- Independent medical examination if required
Other Leave Entitlements
Vermont Parental and Family Leave Act (VPFLA)
Statutory Authority: 21 V.S.A. §§ 470-476
Official Source: https://legislature.vermont.gov/statutes/chapter/21/005
Vermont DOL Information: https://labor.vermont.gov/act-32-2025-vermonts-expanded-unpaid-family-parental-leave
Coverage Framework
Covered Employers:
According to statute as amended, coverage depends on the type of leave:
For Parental Leave, Bereavement Leave, Safe Leave, and Qualifying Exigency Leave:
- Employers with 10 or more employees who work an average of 30+ hours per week
For Family Leave (serious health condition):
- Employers with 15 or more employees who work an average of 30+ hours per week
Employee Eligibility:
To be eligible, employees generally must:
- Have worked for a covered employer for at least 12 months
- Have worked an average of 30+ hours per week (1,560 hours per year)
- Special rules apply for airline flight crew employees
Types of Leave Available
According to the amended statute, eligible employees may take up to 12 weeks of unpaid, job-protected leave per 12-month period for:
1. Parental Leave:
- Birth of employee’s child
- Bonding with newborn within one year of birth
- Adoption of child 18 years old or younger
- Placement of foster child (up to age 18)
- Recovery from childbirth or miscarriage
2. Family Leave:
- Employee’s own serious health condition
- Serious health condition of family member
3. Bereavement Leave:
- Death of family member (within one year of death)
- Administration or settlement of deceased family member’s estate
- Maximum: 2 weeks total, with up to 5 consecutive days
4. Safe Leave:
- Employee or family member is victim or alleged victim of domestic violence, sexual assault, or stalking
- Includes time to arrange for safety, legal services, counseling, or medical care
5. Qualifying Exigency Leave:
- Leave related to active duty service by family member in U.S. Armed Forces
- As defined in 29 C.F.R. § 825.126
Statutory Authority: 21 V.S.A. § 471
Expanded Definition of “Family Member”
The 2025 amendments significantly expanded who qualifies as a “family member.” According to statute, the term now includes:
- Spouse, civil union partner, or domestic partner
- Child (biological, adopted, foster, step, or legal ward)
- Parent (biological, adoptive, foster, step, legal guardian, or person who stood in loco parentis)
- Grandparent
- Grandchild
- Sibling
- Parent-in-law
- An individual to whom employee stood in loco parentis when under age 18
- An individual for whom employee provides caregiving responsibilities similar to parent-child relationship
The law aims to cover the wide scope of modern family types and relationships.
Source: 21 V.S.A. § 471(2)
Notice Requirements
According to statute:
For Foreseeable Leave:
- Employee must provide reasonable written notice
- Include anticipated start and end dates of leave
- For parental leave, employer may not require more than 6 weeks advance notice
For Unforeseeable Leave:
- Employee should provide notice as soon as practicable
Source: 21 V.S.A. § 472(b)
Employee Rights During Leave
According to statute:
Job Protection: Upon return from leave, employee must be offered:
- The job previously held, OR
- A comparable job with equal pay, benefits, and other terms and conditions
Benefits Continuation:
- Employer must continue to provide all worker benefits during leave period
- Employer may require employee to contribute to benefit costs at existing rate
Source: 21 V.S.A. § 472(c), (d)
Exceptions to Leave Entitlement
According to statute, employee may not be entitled to leave if employer can prove:
1. Layoff Exception: During leave period, the employee’s job would have been terminated or employee would have been laid off for reasons unrelated to the leave
2. Unique Services Exception: The employee performed unique services and hiring a permanent replacement during the leave, after giving the employee notice, was the employer’s only available alternative to prevent significant disruption or harm to the business
These exceptions require clear and convincing evidence by the employer.
Source: 21 V.S.A. § 473
Relationship with Other Laws
Federal FMLA: Vermont’s PFLA may run concurrently with federal Family and Medical Leave Act (FMLA) for eligible employees. FMLA applies to employers with 50+ employees and has its own eligibility requirements.
Earned Sick Time: Employees may choose to use accrued earned sick time for pay during otherwise unpaid VPFLA leave, when the reason for leave qualifies under both laws.
Enforcement
Retaliation Prohibited: Vermont law prohibits retaliation against employees for exercising rights under VPFLA.
Remedies: An employee may:
- Bring private lawsuit for injunctive relief, economic damages (including prospective lost wages up to one year), attorney fees, and court costs
- Lodge complaint with Office of the Attorney General (private employers)
- Lodge complaint with Vermont Human Rights Commission (state employees)
Source: 21 V.S.A. § 476
Short-Term Family Leave
In addition to the 12-week VPFLA leave, Vermont law provides for short-term family leave.
Eligibility: Employers with 2 or more employees
Amount of Leave: Up to 4 hours in any 30-day period, not to exceed 24 hours in any 12-month period
Permitted Uses:
- Participate in preschool or school activities directly related to academic advancement of employee’s child
- Attend or accompany child or family member to routine medical or dental appointments
- Accompany parent, spouse, or parent-in-law to appointments for professional services related to their care and well-being
- Respond to medical emergency involving family member
Compensation: This leave is unpaid, but employees may use accrued paid leave
Source: 21 V.S.A. § 472a
Crime Victim Leave
Vermont law provides leave rights for crime victims.
Eligibility: Employees who have worked continuously for 6 months or more, averaging at least 20 hours per week
Permitted Uses: Unpaid leave when necessary to:
- Attend deposition or court proceeding related to criminal proceeding
- Attend hearing to secure order of protection
Protections: Similar to FMLA/VPFLA protections including job protection and benefits continuation
Source: Vermont Fair Employment Practices Act provisions
Jury Duty
Vermont law provides protections for employees called for jury duty.
According to general Vermont law:
- Employers cannot penalize employees for jury service
- Specific leave provisions and compensation requirements should be verified with official sources
Military Leave
Vermont employees have rights under both federal and state law regarding military service:
Federal USERRA: The Uniformed Services Employment and Reemployment Rights Act (USERRA) provides comprehensive protections for employees in military service.
Vermont Law: Additional state protections may apply. Consult Vermont Department of Labor for state-specific requirements.
Voting Leave
According to available information, Vermont does not have a specific statute requiring employers to provide paid time off for voting. However, employers may choose to provide such leave as a matter of policy.
Employees should check with their employers regarding voting leave policies.
Anti-Discrimination Laws
Vermont Fair Employment Practices Act (FEPA)
Vermont has comprehensive anti-discrimination protections that apply to virtually all employers in the state.
Statutory Authority: 21 V.S.A. Chapter 5, Subchapter 6
Official Source: https://legislature.vermont.gov/statutes/subchapter/21/005/006
Protected Categories
According to Vermont statute, it is an unlawful employment practice to discriminate based on:
- Race
- Color
- Religion
- Ancestry
- National origin
- Sex
- Sexual orientation
- Gender identity
- Place of birth
- Crime victim status
- Age
- Disability
Source: 21 V.S.A. § 495
Covered Employers
According to statute, Vermont’s discrimination prohibitions generally apply to:
- All employers with one or more employees performing services within Vermont
- Employment agencies
- Labor organizations
This is broader than federal law, which typically requires larger employee thresholds.
Definition of Employer: Includes individuals, partnerships, labor organizations, government bodies, associations, organizations, and other businesses operating in Vermont.
Source: 21 V.S.A. § 495
Prohibited Employment Practices
According to statute, unlawful practices include:
1. Discriminatory Hiring and Employment Actions:
- Refusing to hire or employ
- Barring or discharging from employment
- Discriminating in compensation or terms, conditions, privileges of employment
2. Discriminatory Advertisements:
- Publishing or causing publication of notices or advertisements indicating preference, limitation, specification, or discrimination based on protected categories
3. Employment Agency Discrimination:
- Failing to classify properly or refer for employment
- Otherwise discriminating in employment referral services
4. Labor Organization Discrimination:
- Limiting, segregating, or qualifying membership
- Discriminating in admission to or participation in programs
5. Wage Discrimination:
- Paying different wages to employees of different protected categories for equal work requiring equal skill, effort, and responsibility under similar working conditions
Source: 21 V.S.A. § 495(a)
Harassment
Vermont law prohibits workplace harassment, which is defined broadly.
Definition of Harassment (as amended): According to statute, harassment means unwelcome conduct based on protected categories that:
- Has the purpose or effect of interfering with an individual’s work, OR
- Creates an intimidating, hostile, or offensive work environment
Forms of Harassment: May include verbal, physical, written, auditory, or visual conduct.
Threshold: A single act may constitute harassment if sufficiently severe. Conduct need not be “severe and persistent” as previously required – this standard was removed by recent amendments.
Source: 21 V.S.A. § 495h
Retaliation Prohibited
Vermont law prohibits retaliation against employees who:
- Oppose discriminatory practices
- Lodge complaints with enforcement agencies
- Testify, assist, or participate in investigations
- Are about to engage in protected activity
- Disclose, inquire about, or discuss wages
- Are believed by employer to have engaged in protected activity
Source: 21 V.S.A. § 495(a)(8)
Employer Obligations
According to statute, employers must:
1. Sexual Harassment Policy: Adopt written policy on sexual harassment, including:
- Statement that sexual harassment will not be tolerated
- Description of what constitutes sexual harassment
- Outline of disciplinary measures
- Internal complaint process
- Legal recourse options
- Directions for contacting Vermont Human Rights Commission or Attorney General
2. Policy Distribution: Provide policy to all employees in writing within 3 months of hire
3. Training (Encouraged): While not mandatory, education and training programs are encouraged for all employees and required additional training for supervisory employees
Source: 21 V.S.A. § 495h
Application to Remote Workers
Anti-discrimination protections generally apply to employment relationships regardless of where work is performed. According to general principles:
- Remote workers performing services for Vermont employers are protected
- Vermont employers must comply with Vermont anti-discrimination laws
- Harassment can occur through virtual communications (email, video calls, messaging)
- Remote work arrangements cannot be used to circumvent anti-discrimination protections
Specific situations should be evaluated with legal counsel, particularly for multi-state remote work arrangements.
Enforcement
Filing Complaints:
Private Employers:
- Office of the Attorney General, Civil Rights Unit
- Phone: (802) 828-3657
- Online complaint form available
State Employers:
- Vermont Human Rights Commission
- Phone: (802) 828-2480
- Website: https://hrc.vermont.gov/
Remedies: According to statute, remedies may include:
- Injunctive relief
- Economic damages
- Back pay and front pay
- Attorney’s fees and costs
- Other appropriate relief
Private Right of Action: Employees may also bring private lawsuits in Vermont courts.
Source: 21 V.S.A. § 495d
Federal Protections
Vermont employees are also protected by federal anti-discrimination laws including:
- Title VII of Civil Rights Act of 1964: Prohibits discrimination based on race, color, religion, sex, national origin (applies to employers with 15+ employees)
- Age Discrimination in Employment Act (ADEA): Protects workers 40 and older (applies to employers with 20+ employees)
- Americans with Disabilities Act (ADA): Prohibits disability discrimination (applies to employers with 15+ employees)
- Genetic Information Nondiscrimination Act (GINA): Prohibits genetic information discrimination
- Pregnancy Discrimination Act (PDA): Prohibits pregnancy-based discrimination
- Pregnant Workers Fairness Act (PWFA): Requires reasonable accommodations for pregnancy-related conditions
EEOC Contact:
- U.S. Equal Employment Opportunity Commission
- Website: https://www.eeoc.gov/
- Phone: 1-800-669-4000
Since Vermont law is broader than federal law in many respects (applying to all employers with 1+ employees), Vermont protections often provide greater coverage.
Resources
Vermont Resources:
- Workplaces For All: https://workplacesforall.vermont.gov/
- Vermont Human Rights Commission: https://hrc.vermont.gov/
- Attorney General Civil Rights Unit: https://ago.vermont.gov/
Federal Resources:
- U.S. Equal Employment Opportunity Commission: https://www.eeoc.gov/
- Department of Labor: https://www.dol.gov/
Legal Assistance:
- Vermont Bar Association Referral: https://www.vtbar.org/
- Vermont Legal Aid: https://www.vtlegalaid.org/
Remote Work Considerations
General Framework for Remote Workers
According to general legal principles and Vermont agency guidance, Vermont employment laws typically apply based on where work is physically performed rather than where an employer is located.
Key Principle: Workers performing services from locations within Vermont are generally subject to Vermont employment laws, including:
- Minimum wage requirements
- Overtime regulations
- Earned sick time accrual and use
- Anti-discrimination protections
- Workers’ compensation coverage (subject to specific determinations)
Employer Location: An employer’s physical location outside Vermont generally does not eliminate obligations under Vermont employment law when employees work from Vermont locations.
Multi-State Employment Considerations
For Employers with Remote Vermont Workers:
Compliance Obligations May Include:
- Registration with Vermont Department of Labor
- Vermont workers’ compensation insurance
- Vermont unemployment insurance tax registration
- Vermont income tax withholding
- Compliance with Vermont wage and hour laws
- Compliance with Vermont leave laws
- Adherence to Vermont anti-discrimination requirements
Tracking Considerations: Employers may need to:
- Track where employees physically perform work
- Maintain records of work locations for tax and insurance purposes
- Coordinate compliance with multiple states’ laws for employees who work in multiple locations
- Monitor changes in employee work location
Vermont-Specific Remote Work Policies
Employers may wish to consider addressing:
Work Location:
- Designated work locations for remote employees
- Approval processes for changes in work location
- Notification requirements when employees relocate
Work Hours and Availability:
- Expected work hours and schedules
- Availability during business hours
- After-hours communication expectations
- Overtime authorization procedures
Equipment and Workspace:
- Employer-provided equipment policies
- Home office setup guidelines
- Ergonomic recommendations
- Technology support procedures
Safety and Workers’ Compensation:
- Home workspace safety expectations
- Injury reporting procedures
- Workers’ compensation coverage information
- Ergonomic assessments (if provided)
Data Security and Confidentiality:
- Data protection requirements
- Secure network access
- Confidential information handling
- Device security requirements
Note: These are general considerations, not legal requirements. Specific policies should be developed with legal counsel based on organizational needs and applicable law.
Communication and Performance Management
Remote Work Challenges:
- Maintaining team cohesion across distances
- Performance monitoring and evaluation
- Communication tool selection and use
- Work-life boundary establishment
- Isolation and mental health considerations
Vermont Law Implications:
- Discrimination and harassment laws apply to virtual interactions
- Reasonable accommodations must be provided for disabilities in remote settings
- Retaliation protections extend to virtual workplaces
- Earned sick time and leave entitlements continue for remote workers
Vermont’s Voluntary Paid Family Leave Insurance
Program Overview: Vermont offers a voluntary paid family and medical leave insurance program that employers may choose to offer employees.
Employer Participation: According to information from Vermont Department of Labor:
- Program is voluntary for employers (as of current law)
- Employers with 2 or more employees may choose to participate
- Provides up to 60% wage replacement for up to 6 weeks
Covered Reasons:
- Bonding with child (first year after birth, adoption, or foster placement)
- Employee’s own serious health condition
- Care for family member’s serious health condition
- Care for military family member with serious injury or illness
Individual Purchase: Beginning July 2025, Vermont employees not covered through employer program and self-employed individuals may purchase coverage individually.
Note: This program is evolving. Check Vermont Department of Labor website for current program details and enrollment information.
Source: Vermont Department of Labor
Right to Request Flexible Work Arrangements
According to Vermont statute, employees have the right to request flexible work arrangements, though employers are not required to grant such requests.
What This Means:
- Employees may request changes to work schedule, hours, or location
- Employer must consider the request
- Employer may approve or deny based on business needs
- No penalty for requesting
- No guarantee of approval
Statutory Authority: 21 V.S.A. § 472c
Tax Information
Vermont Income Tax Overview
Tax Structure: Vermont has a graduated income tax system with rates ranging from 3.35% to 8.75% (as of 2025).
Official Resource: Vermont Department of Taxes – https://tax.vermont.gov/
Income Tax for Remote Workers
Workers Living and Working in Vermont
According to Vermont Department of Taxes guidance:
General Rule: If an individual lives and works remotely in Vermont, income earned during the period of time living in Vermont is subject to Vermont income tax. This applies even if:
- The person claims another state as domicile
- The employer is located outside Vermont
- The work is performed for an out-of-state company
Employer Withholding Obligation: According to Vermont tax law:
- All income earned in Vermont is considered Vermont income
- Out-of-state employers are not required to begin withholding Vermont income tax until an employee has been working from a Vermont location for 30 days
- After 30 days, Vermont withholding should begin
Source: Vermont Department of Taxes – https://tax.vermont.gov/coronavirus/working-remotely
Non-Residents Working Temporarily in Vermont
According to Vermont Department of Taxes:
Temporary Presence: Non-residents temporarily living and working in Vermont have an obligation to pay Vermont income taxes on income earned while physically present and performing work in Vermont.
Example Situation: A Massachusetts resident who temporarily relocated to Vermont and worked remotely from Vermont for 3 months would owe Vermont income tax on income earned during those 3 months.
Note: Specific situations may involve reciprocal agreements, tax credits, or other considerations. Consult tax professionals for individual circumstances.
Vermont Residents Working Remotely for Out-of-State Employers
According to Vermont tax principles:
General Treatment: Vermont residents are taxed on all income regardless of source, including income earned from out-of-state employers while working from Vermont.
Potential Credits: If the employer’s state also taxes the income, Vermont may provide a credit for taxes paid to another state to avoid double taxation. Specific credit calculations depend on tax return preparation.
Out-of-State Residents Working for Vermont Employers
According to Vermont Department of Taxes:
Physical Location Determines Tax: If a person lives outside Vermont and works remotely from their out-of-state location for a Vermont employer, the income is generally not Vermont income and is not subject to Vermont income tax.
Example: A New Hampshire resident working remotely from their New Hampshire home for a Vermont company would not owe Vermont income tax on that income (though they would owe New Hampshire taxes if applicable, and New Hampshire has no income tax).
Employer Tax Obligations
Withholding Registration
When Registration Required: Employers with employees performing work in Vermont must register for Vermont income tax withholding account.
How to Register: Through Vermont Department of Taxes myVTax system or by completing appropriate registration forms.
Official Resource: https://tax.vermont.gov/business/withholding
Withholding Requirements
Form W-4VT: Employees working in Vermont should complete Vermont Form W-4VT (Employee’s Withholding Allowance Certificate) to determine appropriate Vermont withholding.
Withholding Calculation: Based on Vermont’s graduated tax rates and employee’s withholding allowances. Vermont Department of Taxes provides withholding tables and charts.
Multi-State Workers: For employees who work in both Vermont and other states during a pay period, withholding should be apportioned based on hours worked in Vermont.
Formula: Vermont withholding = (Total withholding) × (Vermont hours / Total hours)
Source: Vermont Department of Taxes Withholding Instructions
Reporting Requirements
Quarterly Returns: Employers must file quarterly withholding returns (Form WHT-436) reporting Vermont income tax withheld.
Annual Reconciliation: Form WHT-434 (Annual Withholding Reconciliation) due last day of January, serves as transmittal for Forms W-2 or 1099.
Forms W-2: Must be filed with Vermont Department of Taxes for employees with Vermont withholding.
New Hire Reporting: Employers must report new hires to Vermont Directory of New Hires within 10 days of start date.
Unemployment Insurance Tax
Employer Obligations: Employers with employees working in Vermont must register for Vermont unemployment insurance tax.
Taxable Wage Base (2025): $15,600 per employee (subject to annual adjustment)
Tax Rates: Vary by employer based on experience rating. Contact Vermont Department of Labor for specific rate information.
Official Resource: Vermont Department of Labor – https://labor.vermont.gov/
Health Care Fund Contribution Assessment
Vermont employers may be subject to Health Care Fund Contribution Assessment.
Administration: Vermont Department of Taxes administers this assessment using the ABC Test for worker classification purposes.
Official Resource: https://tax.vermont.gov/
Multi-State Tax Considerations
Complex Situations: Remote work across state lines can create complex tax situations involving:
- Multiple state income tax obligations
- Potential double taxation
- Tax credit calculations
- Apportionment of income
- Determination of tax domicile vs. physical presence
Professional Guidance Essential: Multi-state tax situations require professional tax advice to ensure compliance with all applicable state tax laws and to minimize tax liability through proper use of credits and apportionment methods.
Resources for Tax Information
Vermont Department of Taxes:
- Website: https://tax.vermont.gov/
- Phone: (802) 828-2865 (Individual Income Tax); (802) 828-2551 (Business Tax)
- Email: tax.business@vermont.gov
- myVTax System: Online filing and account management
Internal Revenue Service:
- Website: www.irs.gov
- Phone: 1-800-829-1040 (individuals); 1-800-829-4933 (businesses)
Professional Tax Assistance:
- Certified Public Accountants (CPAs)
- Enrolled Agents
- Tax Attorneys
- Professional tax preparation services
⚠️ CRITICAL REMINDER: Tax law is complex and changes frequently. Individual tax situations vary widely based on residency, work location, income sources, deductions, and credits.
Resources
Vermont State Agencies
Vermont Department of Labor
- Website: https://labor.vermont.gov/
- Main Phone: (802) 828-4000
- Wage and Hour Program: (802) 951-4083
- Workers’ Compensation: (802) 828-2286
- Address: P.O. Box 488, Montpelier, VT 05601-0488
Services:
- Unemployment insurance
- Workers’ compensation
- Wage and hour enforcement
- Workplace safety (VOSHA)
- Workforce development
- Job search assistance
Vermont Department of Taxes
- Website: https://tax.vermont.gov/
- Individual Income Tax: (802) 828-2865
- Business Tax: (802) 828-2551
- Withholding: (802) 828-2551
- Address: P.O. Box 547, Montpelier, VT 05601-0547
Services:
- Income tax withholding registration and guidance
- Business tax information
- Online filing (myVTax system)
- Forms and publications
Vermont Attorney General’s Office – Civil Rights Unit
- Website: https://ago.vermont.gov/
- Phone: (802) 828-3657
- Address: 109 State Street, Montpelier, VT 05609-1001
Services:
- Employment discrimination complaints (private employers)
- Wage theft enforcement
- Consumer protection
- Civil rights enforcement
Vermont Human Rights Commission
- Website: https://hrc.vermont.gov/
- Phone: (802) 828-2480
- Address: 14-16 Baldwin Street, Montpelier, VT 05633-6301
Services:
- Employment discrimination complaints (state employers)
- Housing discrimination
- Public accommodations
- Investigation and enforcement
Workplaces For All
- Website: https://workplacesforall.vermont.gov/
- Resources: Employer responsibilities, employee rights, training materials
Services:
- Discrimination and harassment information
- Employer guidance
- Educational resources
- Reporting information
Federal Agencies
U.S. Department of Labor
- Website: https://www.dol.gov/
- Wage and Hour Division: 1-866-4-USWAGE (1-866-487-9243)
- OSHA: 1-800-321-6742
U.S. Equal Employment Opportunity Commission (EEOC)
- Website: https://www.eeoc.gov/
- Phone: 1-800-669-4000
- TTY: 1-800-669-6820
Internal Revenue Service
- Website: www.irs.gov
- Business Tax: 1-800-829-4933
- Individual Tax: 1-800-829-1040
Legal and Professional Resources
Vermont Bar Association
- Website: https://www.vtbar.org/
- Lawyer Referral Service: (802) 223-2020
- Find attorneys specializing in employment law
Vermont Legal Aid
- Website: https://www.vtlegalaid.org/
- Phone: 1-800-889-2047
- Free legal assistance for eligible individuals
Forms and Publications
Vermont Department of Labor Forms:
- Earned Sick Time Poster
- Parental and Family Leave Poster
- Minimum Wage Poster
- Workers’ Compensation Forms
- Available at: https://labor.vermont.gov/
Vermont Department of Taxes Forms:
- Form W-4VT (Vermont Withholding Allowance Certificate)
- Form WHT-436 (Quarterly Withholding Return)
- Form WHT-434 (Annual Reconciliation)
- Available at: https://tax.vermont.gov/forms
Required Workplace Postings
Vermont employers must post or make available various workplace notices. According to Vermont law, required postings include:
- Vermont Minimum Wage Notice
- Earned Sick Time Notice
- Parental and Family Leave Notice
- Workers’ Compensation Notice
- Unemployment Insurance Notice
- Occupational Safety and Health (VOSHA) Notice
- Equal Employment Opportunity Notice
- Fair Employment Practices Act Notice
- Whistleblower Protection Notice
- Additional federal postings as required
For Remote Workers: Employers should ensure remote workers have access to required notices through:
- Electronic distribution
- Company intranet or website
- Employee handbook
- Direct provision of PDF files
Source: Vermont Department of Labor provides posters at https://labor.vermont.gov/
Frequently Asked Questions
General Employment
Q: Does Vermont’s minimum wage apply to remote workers?
A: According to general principles, Vermont’s minimum wage typically applies based on where work is physically performed. A worker performing work from a location within Vermont would generally be subject to Vermont’s minimum wage, regardless of where their employer is located. However, specific situations may vary. Consult Vermont Department of Labor for guidance on particular circumstances.
Q: Do I need to provide earned sick time to remote employees working from Vermont?
A: According to Vermont law, earned sick time requirements generally apply to employees whose primary place of work is Vermont. If a remote employee’s primary work location is Vermont, they would typically be eligible to accrue and use earned sick time under Vermont law, subject to the statute’s eligibility requirements and exemptions. Employers should consult Vermont Department of Labor for guidance on specific situations.
Q: Can I pay Vermont remote workers less than on-site workers doing the same job?
A: Vermont’s Fair Employment Practices Act prohibits wage discrimination based on protected categories including sex, race, national origin, sexual orientation, gender identity, and disability for equal work requiring equal skill, effort, and responsibility under similar working conditions. Remote vs. on-site location alone would not typically justify different pay rates for substantially equal work. However, legitimate factors such as market rates, experience, or performance may justify different compensation. Consult legal counsel to ensure pay practices comply with anti-discrimination laws.
Workers’ Compensation
Q: Are remote workers covered by workers’ compensation?
A: Coverage of remote worker injuries under Vermont workers’ compensation law is highly fact-specific. Injuries that “arise out of and occur in the course of employment” may be covered, but determination depends on many factors including the nature of the injury, work location, work activities, employer control, and specific circumstances. Each claim must be evaluated individually by Vermont Workers’ Compensation Division. Employers should maintain workers’ compensation coverage for employees working in Vermont and consult with their insurance carrier and Vermont Workers’ Compensation Division about coverage questions. This is general information only – not a coverage determination.
Q: What if a remote worker is injured at home during work hours?
A: Whether a home office injury is covered by workers’ compensation depends on detailed factual analysis of factors such as whether the employee was engaged in work activities, whether the injury occurred in a designated work area, whether the activity served the employer’s interests, and other circumstances. Coverage determinations are made by Vermont Workers’ Compensation Division based on complete information. Employees should report work-related injuries promptly to their employer. Employers should file appropriate reports with their workers’ compensation carrier and Vermont Workers’ Compensation Division. Consult workers’ compensation professionals for guidance on specific situations.
Classification
Q: How do I determine if my remote worker is an employee or independent contractor?
A: Vermont uses the ABC Test for unemployment insurance and certain other purposes, which presumes workers are employees unless the employer proves all three conditions: (A) worker is free from control and direction; (B) work is outside the usual course of business or off premises; and (C) worker is customarily engaged in an independent trade or business. Different tests may apply for different purposes (workers’ compensation, tax withholding, etc.). Classification has significant legal and tax implications. Remote work does not change the classification tests, though it may affect how factors are analyzed. Classification decisions should be made in consultation with legal counsel and tax professionals familiar with Vermont law.
Leave and Time Off
Q: Does Vermont Parental and Family Leave Act apply to remote workers?
A: According to statute, VPFLA generally applies to employees who have worked for a covered employer for at least 12 months at an average of 30+ hours per week. The law applies based on the employment relationship, not work location. Remote employees who meet the eligibility requirements and work for covered employers (10+ employees for most leave types, 15+ for family leave) would typically be covered by VPFLA. Specific situations should be evaluated based on complete circumstances. Consult Vermont Department of Labor or legal counsel for guidance.
Q: Can Vermont employers require remote workers to use earned sick time in specific increments?
A: According to Vermont law, earned sick time must be provided in the smallest time increments that the employer’s payroll system uses for other absences or that the employer’s paid time off policy permits. However, employers are not required to permit increments shorter than one hour. The same rules apply to remote and on-site workers. Employers should apply earned sick time policies consistently. Consult Vermont Department of Labor for guidance on policy development.
Taxes
Q: Do I need to withhold Vermont income tax for remote employees working from Vermont?
A: According to Vermont Department of Taxes, if work is performed in Vermont, Vermont income tax must be withheld regardless of whether the employer is located inside or outside Vermont. Out-of-state employers are not required to begin withholding until an employee has been working from a Vermont location for 30 days, but after 30 days, withholding should begin. Employers must register for Vermont withholding account. Employees should complete Form W-4VT. This is general information – consult Vermont Department of Taxes or tax professionals for specific situations.
Q: What if my employee works from both Vermont and another state?
A: Multi-state work situations can be complex. Generally, Vermont income tax applies to income earned while physically working in Vermont. For employees who work in multiple states during a pay period, withholding may need to be apportioned based on time worked in each state. Employers should track work locations, consult Vermont Department of Taxes guidance on apportionment, and consider working with payroll professionals or tax advisors experienced in multi-state payroll. Tax filings may be required in multiple states.
Discrimination and Harassment
Q: Do Vermont’s anti-discrimination laws apply to remote work environments?
A: Yes. Vermont’s Fair Employment Practices Act prohibits discrimination and harassment based on protected categories regardless of work location. Discrimination and harassment can occur through virtual communications including email, video calls, messaging platforms, and other electronic means. Employers must maintain discrimination-free workplaces for remote workers just as for on-site workers. Harassment includes verbal, physical, written, auditory, or visual conduct. Remote work arrangements do not eliminate anti-discrimination compliance obligations. Employers should train all employees, including remote workers, on anti-discrimination policies.
Q: How do I file a discrimination complaint as a remote worker?
A: Remote workers in Vermont have the same rights to file discrimination complaints as on-site workers. Complaints against private employers can be filed with the Vermont Attorney General’s Office Civil Rights Unit (802-828-3657 or online). Complaints against state employers can be filed with Vermont Human Rights Commission (802-828-2480). Federal complaints can be filed with EEOC. Remote work status does not affect your rights or the complaint process. Consult the agencies or legal counsel for guidance on filing procedures.
General Compliance
Q: What employment law posters do I need to provide to remote workers?
A: Vermont employers must ensure remote workers have access to required workplace notices. While physical posting is not possible for fully remote workers, employers should provide access through electronic means such as company website, intranet, employee handbook, or direct distribution of PDF files. Required notices include minimum wage, earned sick time, parental and family leave, workers’ compensation, unemployment insurance, anti-discrimination, and others. Check Vermont Department of Labor website for complete list and downloadable posters at https://labor.vermont.gov/.
Q: Where can I get help understanding Vermont’s employment laws for remote workers?
A: Resources include:
- Vermont Department of Labor: (802) 828-4000 or https://labor.vermont.gov/ – for wage and hour, workers’ compensation, and workplace safety questions
- Vermont Department of Taxes: (802) 828-2551 or https://tax.vermont.gov/ – for withholding and tax questions
- Vermont Attorney General Civil Rights Unit: (802) 828-3657 – for discrimination questions
- Employment attorneys licensed in Vermont – for legal advice
- HR consultants and payroll professionals – for compliance assistance
- Accountants and tax professionals – for tax guidance