VERMONT UPDATE: Compensation Disclosure in Job Advertisements

Last year, Act 155 ("An Act Relating to Disclosure of Compensation in Job Advertisements") passed with an effective date of July 1, 2025. As summer rolls on, it makes sense to revisit this law to ensure affected employers and job candidates are aware of the law and its requirements.

WHO DOES IT APPLY TO? This law applies to: (1) any employer that has five or more employees, with at least one working in the state of Vermont, and (2) anyone applying for a job in Vermont.

This is a big deal.

States like Vermont are a desirable state for the remote worker. This means that employers all over the country who have at least one employee working the the state, should assess whether this law applies to their business.

APPLIES ONLY TO WRITTEN JOB ADVERTISEMENTS. The law applies to any written job advertisements that either (1) are physically located in Vermont or, (2) a remote job that calls for work either "predominantly perform work for an office or work location that is physically located in Vermont."

Again, this is a big deal...

This means that Vermont employers with a home office in Vermont, but who recruit employees elsewhere, must ensure that their job postings adhere to Act 155.

With that being said, the new law does not apply to radio advertisements or television advertisements.

WHAT NEEDS TO BE INCLUDED IN THE ADVERTISEMENTS? The written job postings must include:

Range of Compensation - The minimum and maximum salary or hourly wage that the employer expects to pay.

WHAT IF IT IS A COMMISSION JOB? If the position is entirely or partly commission, then the written job posting only needs to state the fact that it is a commission job. There is no need to disclosure the base compensation (if any).

WHAT IF IT IS A TIPPED JOB? Job postings for tipped jobs must (1) disclose payment on a tipped basis; and (2) disclose the range of the base wages.

CAN A JOB APPLICANT OR EMPLOYEE SUE AN EMPLOYER FOR VIOLATIONS? NO...This law does not afford an individual the right to seek remedies in court. With that being said, the Office of the Attorney General, Civil Rights Unit and the Human Relations Unit of the VT Division of Human Rights have the authority to conduct investigations and impose penalties and remedies in accordance with their authority.

Employers working out of Vermont, and with employees in the Green Mountain State should educate themselves on this new law.