Employers operating in Vermont should prepare for a significant overhaul in hiring and compensation practices as the state’s new pay transparency law — Act 155 (House Bill 704) — goes into effect on July 1, 2025.
Mirroring similar legislation across the country, the law is designed to promote fair pay practices and increase wage transparency for both job seekers and employees. Under the new requirements, employers must include salary ranges in written job postings for positions based in Vermont or for remote roles that are primarily tied to a Vermont office.Â
These ranges must reflect the minimum and maximum pay the employer expects to offer in good faith, according to Berkshire Associates.Â
The law also strengthens employee rights. Current employees may request the salary range for their own position, and employers are obligated to provide a clear and honest answer. Additionally, the law protects workers from retaliation if they discuss wages or inquire about pay ranges.
In addition to requiring salary ranges in job postings, Vermont’s new pay transparency law mandates that employers clearly disclose when a position is commission-based and does not include a salary range; for tipped roles, they must note that the job receives tips and provide the base pay or salary range.Â
The law also applies to third-party postings made on an employer’s behalf.Â
While the Vermont Attorney General’s Office is responsible for enforcement, the law does not currently outline specific penalties or allow individuals to sue for violations, according to Trusiac. However, it does protect employees from retaliation if they report non-compliance.
Who must comply?
The law applies to all employers in Vermont with five or more employees, including companies with remote workers if the business is primarily based in Vermont. It will be enforced by the Vermont Attorney General’s Office and its Civil Rights Unit.
What’s not covered?
The law does not require disclosure of bonuses, commissions, or benefits, and it excludes oral job postings, such as those made on TV or radio. It also doesn’t apply to jobs based outside of Vermont or those paid entirely or partly on commission.
With the implementation deadline fast approaching, Vermont employers should begin reviewing their compensation strategies, updating job descriptions and pay structures, and training HR teams on the new law.Â
Though compliance may involve some upfront work — like conducting pay audits or establishing formal pay bands — the move toward transparency can also help create trust, support fair pay practices, and improve recruitment outcomes in the long run.
