Effective July 1, 2025, covered employers will be subject to pay transparency requirements for certain job postings and other written advertisements for open positions in Vermont. Paul Frank + Collins P.C. has prepared the following summary to outline these new disclosure requirements set forth by Act 155 (H. 704) (the “Act”).
Covered employers must disclose the expected compensation, or range of compensation, in written advertisements for specific job openings in Vermont. These pay disclosures must be made in good faith and should include the compensation or compensation range that the employer expects to pay at the time the advertisement is created. Employers with five or more employees and with at least one employee who works in Vermont are covered under the Act.
The Act applies to written advertisements for jobs physically located in Vermont or if the employee’s work is predominantly performed at a Vermont office or work location (e.g., remote positions). Covered advertisements, regardless of format, only include written notice of specific job openings in Vermont that are made available to potential applicants. For example, a covered advertisement may include an internal email about a job opening that a company sends its employees, or written job postings that describe a specific job opening (e.g., postings for a “Human Resources Associate” or a “Maintenance Technician”). Oral advertisements, general notices of employment opportunities (e.g., “Help Wanted” or “We are Hiring” postings), or job postings for work performed outside of Vermont are not covered.
Special rules apply to jobs that do not strictly pay on an hourly or salary basis, such as commission-based or tipped jobs. Covered advertisements for commission-based jobs must only state that fact; they are not subject to any other compensation disclosure requirements. Covered advertisements for tipped jobs must disclose that fact, as well as the range of base wages (the hourly wage that a tipped employee may receive without tips) that the employer in good faith expects to pay at the time of the job posting.
These compensation disclosure requirements do not prevent an employer from hiring an employee for more or less than the amount originally included in the job posting, so long as the reasons for doing so are beyond the employer’s control (e.g., the applicant’s qualifications or labor market factors). Thus, covered employers and employees are still permitted to negotiate pay during the application or hiring process.
———
Paul Frank + Collins P.C. advises clients on a variety of matters, including those related to employment law. Please contact a member of the Employment + Labor team if you would like guidance on complying with these new wage disclosure and pay transparency requirements.
This informational bulletin is provided as general information and is not comprehensive in nature. It should not be regarded as legal advice. This bulletin may be considered advertising in certain jurisdictions.