Vermont Payroll Laws (2024 Guide For Employers)

This article will answer the following questions about Vermont payroll laws:

• What is the Vermont minimum wage?
• How does jury duty work in Vermont?
• What are the Vermont sick leave laws?
• Is overtime mandatory in Vermont?
• How do Vermont pay periods work?

Whether you are an employer or employee in Vermont, it’s important to understand the state’s payroll laws.

Disclaimer: Despite our best efforts to provide you with accurate information on this topic at the time of writing, we cannot guarantee the accuracy of the content at the time of reading. This blog post is for informational purposes only and should not be considered legal advice. Consult an attorney for specific guidance on Vermont payroll laws.

Vermont Payroll Laws (Key Areas)

Vermont Hour Laws & Overtime Requirements (How Does It Work?)

Vermont labor laws dictate that employees who work more than 40 hours per week are entitled to overtime pay.

Employers must pay employees at a rate of 1.5 times their regular wage rate for all hours worked over 40 hours in a workweek.

However, certain exemptions apply, such as employees classified as executive, administrative, or professional under the Fair Labor Standards Act (FLSA).

Is Overtime Mandatory In Vermont?

Overtime is not necessarily mandatory in Vermont, but employers must pay eligible employees overtime wages when they work over 40 hours per week.

Employers and employees can also negotiate work schedules and overtime pay through collective bargaining agreements.

Vermont Minimum Wage (Key Insights)

Vermont Minimum Wage Rates

As of 2023, the Vermont minimum wage rate is $13.18 per hour, while the federal minimum wage remains at $7.25 per hour. Employers must pay the higher of the two rates, which in this case, is the Vermont minimum wage.

Tipped employees must receive a minimum hourly wage of $6.59, with employers making up the difference if their tips and hourly rate do not meet the standard minimum wage.

Vermont Minimum Wage & Vermont Overtime Wage

The Vermont minimum wage is the lowest hourly rate employers can pay their employees, while the Vermont overtime wage is the rate employers must pay eligible employees for hours worked over 40 in a workweek.

The overtime wage is calculated as 1.5 times the employee’s regular wage rate.

Vermont Workday Law (How Does It Work?)

Vermont does not have a specific workday law. However, the state does have regulations regarding meal and rest breaks for employees. Employees who work a shift of more than six hours must receive a 30-minute, unpaid meal break. If an employee is required to remain on the premises during the break, the break must be paid.

Vermont Sick Leave (What Do You Need To Know?)

Vermont Sick Leave Laws

Vermont labor laws require employers with six or more employees to provide earned sick time to their employees. Employees can accrue one hour of sick time for every 52 hours worked, up to a maximum of 40 hours per 12-month period. Sick leave can be used for various purposes, such as the employee’s or a family member’s illness, injury, medical appointments, or for reasons related to domestic violence, sexual assault, or stalking.

Vermont Wage Law for Minors (Key Information)

Vermont Child Labor Laws

Vermont labor laws set specific requirements and restrictions for employing minors. Minors aged 14 and 15 may work up to 18 hours per week during the school year, and no more than 3 hours per day on school days.

During the summer, they may work up to 40 hours per week, but no more than 8 hours per day. Minors aged 16 and 17 may work up to 30 hours per week during the school year, and 40 hours per week during the summer. There are also restrictions on the time of day and types of work minors can perform.

Vermont Unemployment Insurance Rates

Vermont unemployment insurance rates are determined by the employer’s experience rating, the size of the employer’s taxable payroll, and the state’s unemployment trust fund balance. Rates can range from 1.1% to 8.4% for experienced employers, with new employers typically paying a flat rate of 1% for the first two or three years. Employers are required to pay unemployment insurance taxes on the first $17,300 of each employee’s wages in 2021.

Payday Requirements

Vermont labor laws dictate that employers must pay their employees on a weekly or bi-weekly basis. Employers must also provide their employees with wage notices, which include the employee’s wage rate, hours worked, deductions, and the employer’s name, address, and telephone number.

Final Paychecks in Vermont (How Does it Work?)

Vermont labor laws require employers to issue a final paycheck to terminated employees within 72 hours of the termination.

For employees who resign voluntarily, the final paycheck must be provided on the next regularly scheduled payday or within a week of the employee’s resignation, whichever is sooner.

Do Employers Have to Pay Out PTO in Vermont?

Vermont labor laws do not require employers to pay out accrued but unused PTO (paid time off) upon an employee’s termination.

However, employers may be obligated to pay out unused PTO if it is stipulated in an employment contract, company policy, or collective bargaining agreement.

Vermont Family & Medical Leave Laws

Vermont’s Parental and Family Leave Act (VPFLA) requires employers with 10 or more employees to provide up to 12 weeks of unpaid family or medical leave in a 12-month period for eligible employees. This leave can be used for the birth of a child, adoption or placement of a child for foster care, or for the serious illness of the employee or an immediate family member. Employers are also required to provide up to four hours of leave in any 30-day period for employees to attend town meetings.

Vermont Recordkeeping & Compliance

Vermont employers must maintain accurate records of employees’ wages, hours worked, and other employment-related information. These records must be kept for a minimum of three years. Employers must also comply with state and federal laws regarding drug testing, polygraph examinations, and background checks.

Vermont Vacation & Paid Time Off (PTO)

Vermont labor laws do not require employers to provide employees with paid vacation or PTO. However, many employers choose to offer these benefits as part of a competitive compensation package. Employers should establish clear policies regarding vacation and PTO accrual, usage, and payout upon termination to avoid potential misunderstandings and legal disputes.

Vermont Jury Duty & Military Leave

Vermont employers are required to provide employees with unpaid time off for jury duty. Employers cannot retaliate against employees for fulfilling their civic duty as jurors. In addition, Vermont law requires employers to grant unpaid leave to eligible employees who are members of the U.S. armed forces or National Guard for military training or active duty.

Vermont Pay Periods & Wage Payment

Vermont labor laws require employers to establish regular pay periods for their employees. Pay periods can be weekly or bi-weekly, depending on the employer’s preference. Employers must pay employees promptly for all hours worked within each pay period, and they must provide detailed pay stubs that include information about the employee’s wage rate, hours worked, and any deductions.

Additional Vermont Labor Laws

Vermont labor laws also cover other areas such as workers’ compensation, occupational safety, sexual harassment, layoff notifications, and more. Employers must maintain a safe work environment, provide necessary workers’ compensation coverage, and adhere to federal and state laws regarding harassment and discrimination.

Vermont Payroll Laws (Closing Thoughts)

We hope this guide has provided you with some useful insights into Vermont payroll laws. With a solid understanding of minimum wage, hour laws, overtime pay, and other labor law requirements, employers can avoid legal headaches and pour their attention into productivity and performance.

Disclaimer: Not Legal Advice

This blog post provides a general overview of Vermont labor laws but does not constitute legal advice. Laws and regulations are subject to change, and there may be additional requirements or exemptions that apply to specific situations. Employers and employees should consult a qualified labor law attorney for advice on their specific circumstances.

If you have any questions about your rights or obligations as an employer or employee in Vermont, it is essential to consult with a labor law attorney to receive accurate information and guidance tailored to your situation. By seeking professional legal advice, you can ensure that you are taking the appropriate steps to comply with labor laws and protect your rights.

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