Vermont Pay Transparency Requirements

Vermont Requires Compensation in Advertisements for Covered Job Openings

Vermont's pay transparency statute requires an employer to ensure that an advertisement for a Vermont job opening includes the compensation or range of compensation for that opening. The rule applies to employers with five or more employees and has been effective since July 1, 2025. Employers should treat the disclosure as part of the advertisement itself rather than as information that can be supplied later in the interview process. The statute covers both external and internal opportunities when they meet the definition of a Vermont job opening, so recruiting systems should not limit the compliance check to public career-site postings.

The Compensation Range Is a Good-Faith Minimum and Maximum

For ordinary salaried or hourly positions, Vermont defines the range of compensation as the minimum and maximum annual salary or hourly wage the employer expects in good faith to pay for the advertised job when it creates the advertisement. Good faith is defined as honesty in fact. The statute also recognizes that circumstances outside the employer's control, including an applicant's qualifications or labor market factors, can lead to a final rate above or below the advertised range. That does not turn the range into a placeholder. Employers should still document the genuine expected range when the advertisement is created.

Commission and Tipped Jobs Follow Special Disclosure Rules

Vermont treats commission and tipped roles differently. If a job is paid on a commission basis, whether entirely or partly, the advertisement must disclose that fact but is not required by section 495p to state the compensation range that would otherwise apply. A tipped job must disclose that it is tipped and must state the base wage or range of base wages. These distinctions matter for recruiting templates. A single salary-range field is not enough for every Vermont requisition. Employers should identify the pay model first and then present the form of disclosure required for that compensation structure.

Vermont Expressly Reaches Certain Remote Positions

The statute defines a Vermont job opening to include a remote position that will predominantly perform work for an office or work location physically located in Vermont. It excludes a position physically located outside Vermont that performs work predominantly for offices or work locations outside Vermont. This is a useful example of why remote-job coverage cannot be determined from the word remote alone. Employers should identify which office or work location the remote role predominantly serves. A nationally advertised remote role may therefore fall within Vermont's rule even when the employee does not report every day to a Vermont workplace.

Internal Candidates, Promotions and Transfers Can Be Covered

Vermont's definition of a job opening includes positions open to internal candidates, external candidates or both. It also includes positions into which current employees can transfer or be promoted. Employers that maintain separate internal mobility platforms should therefore apply the compensation-disclosure rule to covered Vermont opportunities rather than assuming the statute is limited to external recruiting. The compliance workflow should identify whether an internal move is an advertised Vermont job opening and ensure the same compensation fields are available in internal systems where the law applies.

The Five-Employee Threshold Is Low Enough to Reach Smaller Employers

Vermont defines employer for this section by reference to its fair employment practices framework and applies the compensation-advertising rule to employers with five or more employees. That is a lower numerical threshold than many other state posting statutes. Small and mid-sized organizations should therefore not assume pay transparency laws only affect large employers. Multi-state companies should store the Vermont threshold separately in their jurisdiction matrix and avoid substituting a national threshold based on another state's law.

A Vermont Posting Workflow Should Start With Job Nexus and Pay Type

A practical process asks four questions before a Vermont-related opening is advertised: does the employer meet the five-employee threshold, is the position a Vermont job opening, what compensation model applies, and what range or special disclosure is required? The answer determines whether the posting needs a standard salary or hourly range, a commission statement, or a tipped base-wage disclosure. The employer should retain the approved requisition data that supported the range and review any later deviation from it. This creates a defensible link between the advertisement and the actual compensation decision.

Frequently Asked Questions

Related Guides

• salary range requirements for remote jobs
• salary transparency laws in the United States

Official Sources

• Vermont Statutes - 21 V.S.A. section 495p
• Vermont Act 155 of 2024