Employer of Record · Vermont

Employer of Record in Vermont.
Employee Protections From Day One.

Vermont punches above its weight on employee protections — its Fair Employment Practices Act covers employers from the very first hire, Earned Sick Time is mandatory for all employers, and the state's Parental and Family Leave Act extends job-protected leave further than many larger states. Burlington is a growing tech and healthcare hub, and Vermont's workforce draws highly educated professionals. WorkGenius becomes your legal employer and manages every Vermont obligation from day one.

$13.67/hr
Minimum wage (2024, CPI-indexed)
1+ employee
VFEPA coverage threshold
Up to 8.75%
State income tax (top rate)

Vermont by the Numbers

Minimum wage
$13.67/hr
Effective 2024; Vermont indexes the minimum wage to the Consumer Price Index annually
State income tax
Up to 8.75%
Four graduated brackets: 3.35%, 6.60%, 7.60%, and 8.75% — one of the higher top rates in the US
Earned Sick Time
All employers
All employers must provide paid sick leave — 1 hour per 52 hours worked, up to 40 hours per year
Workers' compensation
Required (1+ employee)
Vermont requires workers' comp for all employers with at least one employee
Final paycheck
Next regular payday
Due on the next scheduled payday following separation
VFEPA threshold
1+ employee
Vermont Fair Employment Practices Act covers all employers with at least one employee
The Defining Law

Vermont Fair Employment Practices Act: Full Anti-Discrimination Coverage From Employee One

Vermont's Fair Employment Practices Act (VFEPA) applies to all employers with at least one employee — making Vermont one of the most expansive anti-discrimination regimes in the country by threshold. It prohibits employment discrimination based on race, color, religion, national origin, sex, sexual orientation, gender identity, age, disability, place of birth, ancestry, and — notably — credit history in most circumstances. Vermont also enacted one of the nation's first protections against employment discrimination based on credit history, recognizing that credit checks often have a disparate impact on protected classes. For out-of-state companies hiring their first Vermont employee, full VFEPA compliance applies immediately.

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The ABC Test
  • VFEPA applies to all employers with 1 or more employees — no minimum headcount
  • Covers race, color, religion, national origin, sex, sexual orientation, gender identity, age, disability, ancestry, place of birth, and credit history
  • Credit history protection is distinctive — Vermont restricts employers from using credit reports in most hiring decisions
  • The Vermont Human Rights Commission handles administrative complaints
  • Remedies include back pay, compensatory damages, and attorney's fees
  • WorkGenius ensures all Vermont employment agreements, background check policies, and onboarding materials are VFEPA-compliant from day one
Vermont Coverage

What WorkGenius Handles for Vermont

Vermont's 1-employee VFEPA threshold, universal sick time mandate, parental leave requirements, and workers' comp obligation create a full compliance stack from the very first hire.

VFEPA Compliance

WorkGenius structures all Vermont employment agreements, background check policies, and onboarding materials to meet VFEPA's requirements — including the credit history restriction. VFEPA compliance is built into every Vermont hire.

Earned Sick Time Administration

WorkGenius tracks paid sick leave accrual for every Vermont employee at 1 hour per 52 hours worked, up to 40 hours per year. We administer usage requests in compliance with Vermont's Earned Sick Time Act.

Vermont Parental and Family Leave

Vermont's Parental and Family Leave Act provides job-protected parental leave for employers with 10 or more employees (up to 12 weeks) and family leave for employers with 15 or more employees. WorkGenius administers leave requests and coordinates with federal FMLA where applicable.

Workers' Compensation Coverage

Vermont requires workers' comp for all employers with 1 or more employees. WorkGenius maintains compliant coverage from the first Vermont hire.

Vermont Wage Payment Act Compliance

Vermont requires wages to be paid at least weekly or biweekly. WorkGenius manages pay frequency, delivers final pay on the next regular payday, and maintains required wage statements.

Benefits Administration & Termination

ACA-compliant health coverage, 401(k), and disability insurance enrolled and administered. Offboarding includes final pay on the next regular payday, COBRA administration, and VFEPA-compliant separation documentation.

Vermont Compliance Dashboard
3 workers · All compliant
Live
Vermont Earned Sick Time & VFEPA Check
Passed
Earned Sick Time accrual tracking active — 1 hr per 52 hrs worked
VFEPA policy aligned (1-employee threshold)
Workers' comp enrollment confirmed (1-employee threshold)
This Week's Payroll
$13.67
Base/hr
$20.51
OT rate (1.5×)
Auto
Calculated
Weekly invoice sent
Every Friday · All-in rate
Sent
Technology-Powered

How WorkGenius Handles Vermont EOR

Vermont's Fair Employment Practices Act applies to all employers with just one employee — one of the broadest anti-discrimination thresholds in the US. WorkGenius handles Vermont's Earned Sick Time accrual, VFEPA compliance, and payroll automatically on every cycle.

  • Vermont Fair Employment Act — 1-Employee Coverage
    Vermont's Fair Employment Practices Act applies to all employers with at least one employee. WorkGenius ensures every Vermont employment agreement and policy meets VFEPA requirements from the very first hire.
  • Vermont Payroll, Automatically
    Minimum wage at $13.67/hr (CPI-indexed annually), graduated income tax up to 8.75%, SUTA at 1.0% on the first $14,100 of wages — all calculated and remitted on every pay cycle.
  • Earned Sick Time — Fully Tracked
    Vermont's Earned Sick Time Act requires all employers to provide paid sick leave accruing at 1 hour per 52 hours worked, up to 40 hours per year. WorkGenius tracks accrual and administers usage for every Vermont employee.
  • One Weekly Invoice
    A single, transparent weekly invoice covering payroll, taxes, sick time administration, benefits, and compliance. No surprises, no hidden fees.

Other Key Vermont Compliance Areas

Vermont consistently leads the US in worker protections — its obligations apply at unusually low thresholds across the board.

Vermont Fair Employment Practices Act (VFEPA)

1-employee threshold

Applies to all employers with 1 or more employees. Includes a distinctive credit history protection — employers generally cannot use an applicant's or employee's credit report in employment decisions. The Vermont Human Rights Commission enforces complaints and can award compensatory damages and attorney's fees.

Vermont Earned Sick Time Act

All employers

All Vermont employers must provide paid sick leave accruing at 1 hour per 52 hours worked, up to 40 hours per year. Leave can be used for illness, medical appointments, or domestic violence situations. Unused leave carries over year to year up to the cap.

Vermont Parental and Family Leave Act

10 / 15-employee thresholds

Employers with 10 or more employees must provide up to 12 weeks of unpaid, job-protected parental leave for birth, adoption, or foster placement. Employers with 15 or more employees must also provide up to 12 weeks for family members' serious health conditions. These protections apply in addition to federal FMLA.

Vermont Minimum Wage

CPI-indexed annually

Vermont's minimum wage is $13.67/hr in 2024, indexed to the Consumer Price Index and adjusted annually each January 1. Vermont has consistently raised its minimum wage above the federal floor for many years. WorkGenius monitors the annual CPI adjustment and updates payroll automatically.

Simple Process

How It Works in Vermont

From first conversation to fully compliant employment — typically within days.

1

Tell Us What You Need

Workers, roles, locations, and start dates. We tailor the setup to your needs.

2

We Assess & Classify

Our AI runs every worker through California's ABC test. We prepare compliant contracts and payroll setup.

3

Workers Are Employed

Onboarded with California-compliant contracts, benefits enrolled, payroll running from day one.

4

We Handle Ongoing

Payroll runs with daily OT. Taxes filed. Compliance monitored. One weekly invoice.

Vermont EOR: Common Questions

Why does Vermont's Fair Employment Practices Act apply to employers with just one employee?

Vermont made a deliberate policy choice to provide anti-discrimination protections regardless of employer size. The VFEPA covers all employers with at least one employee — including single-hire remote arrangements. This means the moment you onboard a Vermont employee, you are subject to the full range of VFEPA protections: no discrimination in hiring, compensation, promotion, or termination based on race, sex, sexual orientation, gender identity, age, disability, or credit history. WorkGenius builds VFEPA compliance into every Vermont onboarding flow.

What is Vermont's credit history employment protection?

Vermont law restricts most employers from using an applicant's or employee's credit report or credit history in employment decisions. The rationale is that credit history often correlates with protected characteristics — disability, age, national origin — and using it can have a discriminatory effect even without discriminatory intent. Limited exceptions apply for positions that require a financial fiduciary duty or that involve significant access to employer funds. WorkGenius reviews and adjusts background check procedures for Vermont hires to ensure credit-related screening is only conducted where legally permissible.

What are Vermont's Earned Sick Time requirements?

Vermont's Earned Sick Time Act requires all employers — regardless of size — to provide paid sick leave. Employees accrue 1 hour of paid sick leave for every 52 hours worked, up to 40 hours per year. Leave can be used for the employee's own illness or medical appointment, care for a family member, or situations related to domestic violence or sexual assault. Unused leave carries over year to year, but employers may limit annual usage to 40 hours. WorkGenius tracks accrual and administers usage requests for every Vermont employee.

Does Vermont have a parental or family leave law?

Yes. Vermont's Parental and Family Leave Act provides job-protected unpaid leave beyond federal FMLA. Employers with 10 or more employees must provide up to 12 weeks of parental leave for birth, adoption, or foster placement. Employers with 15 or more employees must additionally provide up to 12 weeks of family leave for a family member's serious health condition. These protections run concurrently with federal FMLA where the employee qualifies for both. WorkGenius administers Vermont leave requests and tracks concurrent federal and state leave entitlements.

What is Vermont's minimum wage and when does it change?

Vermont's minimum wage is $13.67/hr in 2024. Vermont law ties annual minimum wage increases to the Consumer Price Index — the rate adjusts each January 1 based on the prior year's inflation data. This means the minimum wage increases most years, but the exact amount is not known in advance. WorkGenius monitors the annual adjustment and updates payroll calculations automatically.

Are non-compete agreements enforceable in Vermont?

Vermont courts enforce non-compete agreements under a common law reasonableness standard, evaluating duration, geographic scope, and the type of restricted activity. Vermont has not enacted a statutory ban or cap on non-competes. However, Vermont courts tend to scrutinize non-competes carefully and will void overly broad agreements rather than reform them. WorkGenius drafts non-compete provisions that are narrowly scoped to meet Vermont's standard.

Employer of Record

Ready to Employ in Vermont Compliantly?

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