Beginning July 1, 2025, Vermont employers with five or more employees must provide pay transparency in all job advertisements.
What the Law Requires
Under Vermont Act 155 (H.704), passed in June 2024, employers must disclose compensation or a salary range in job postings for:
- Positions located in Vermont
- Remote roles tied to a Vermont-based office or location
This mandate covers internal and external job postings, including roles open to current employees for transfer or promotion.
Key definitions include:
- Compensation Range: The minimum and maximum annual salary or hourly wage the employer, in good faith, expects to offer at the time of posting.
- Job Advertisement: A written notice (digital or physical) about a specific job opening. General or verbal announcements without specific roles are excluded.
Protections for Employees and Applicants
The law explicitly prohibits retaliation against individuals who exercise their rights under this law. Employers can’t refuse to interview, hire, promote, or employ someone for asserting their rights to pay transparency.
Exemptions and Flexibility
The law provides limited exceptions for specific pay structures:
- Commission-based Roles: Employers must note that the role is commission-based, but aren’t required to disclose compensation ranges.
- Tipped Positions: Employers must state that the job includes tips and provide a base wage or salary range.
Employers may ultimately offer pay outside the posted range, as long as the final offer is justified by external factors such as market conditions or candidate qualifications.
Steps Employers Should Take Now
To prepare, organizations should:
- Develop Compensation Methodology: Establish a consistent and defensible method for determining salary ranges.
- Audit Job Postings: Review current job advertisements for compliance with new requirements.
- Conduct Pay Audits: Identify and address existing pay disparities.
- Train HR Teams: Ensure recruiters and hiring managers understand how to incorporate salary information into job postings.
The Vermont attorney general has provided further guidance on Act 155 to help businesses comply.
Why it Matters
Vermont’s pay transparency law is part of an overarching movement toward equitable and transparent workplace practices. Preparing early ensures compliance and strengthens your reputation as a transparent, employee-focused organization.
Need help navigating pay transparency laws? Contact us to ensure your policies are compliant and competitive.
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