Vermont: New Pay Transparency Disclosures

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APPLIES TO

All Employers with 5+ VT Employees

EFFECTIVE

July 1, 2025

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Quick Look

  • 704 now adds Vermont to the list of states that require pay transparency disclosures for applicants and employees.
  • The law applies to employers with five or more employees with any job that will be physically located in Vermont or a remote position that will predominantly perform work for an office or work location that is physically located in the state.
  • It also applies to all jobs open to internal or external candidates, including positions for transfer or promotion.

Discussion

  1. 704 now adds Vermont to the list of states that require pay transparency disclosures for applicants and employees. The law applies to employers with five or more employees with any job that will be physically located in Vermont or a remote position that will predominantly perform work for an office or work location that is physically located in the state. It also applies to all jobs open to internal or external candidates, including positions for transfer or promotion.

In each posting, covered employers must disclose the compensation or range of compensation which is the minimum and maximum annual salary or hourly wage for a job opening. The compensation must be what the employer in good faith expects to pay at the time the employer creates the job posting. Benefits and other compensation are not required to be disclosed. Job postings for tipped positions must disclose: (1) the job opening is paid on a tipped basis; and (2) the base wage or range of base wages.

 

Jobs paid on a commission basis are excluded from the law. Employers who refuse to interview, hire, promote, or employ an applicant or employee due to their exercise of rights under the law are in violation of the law. The Vermont Attorney General or state’s attorney are authorized to enforce the law which includes penalties like restitution of wages and other appropriate relief.

Action Items

  1. Update job descriptions.
  2. Conduct an equal pay audit.
  3. Implement wage ranges for appropriate positions.
  4. Update job posting procedures.
  5. Have appropriate personnel trained on the requirements.

 

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2024 ManagEase