For information purposes only. Employers should consider seeking the assistance of experienced employment law attorneys before implementing policy changes.

Vermont Governor Phil Scott signed into law H.B. 704, which effective July 1, 2025, requires that most written job advertisements include information concerning the type and range of monetary compensation the employer expects to offer the job applicant. The requirement applies to both internal and external job applicants and to positions into which employees can be promoted or transferred.

The law applies to Vermont employers with five or more employees and to jobs that will be physically performed within Vermont or that are remote if the employee will predominantly perform work for an office or work location that is physically located in Vermont.

Advertisements for job openings to be compensated on a commission basis need only state that commissions are paid without disclosing the compensation or range of compensation.

An employer may hire an employee for more or less than the range of compensation contained in a job advertisement, if circumstances are outside of the employer's control, such as an applicant's qualifications or labor market factors.

Ernst & Young LLP insights

In addition to the wage transparency requirement that will apply effective July 1, 2025, the law currently prohibits Vermont employers from inquiring about a prospective employee's current or past compensation, requiring that a prospective employee's compensation satisfy certain criteria, or agreeing to interview prospective employees based on their current or past compensation. (Act No. 126, effective July 1, 2018.)

Additionally, a Vermont employer may not: (1) require, as a condition of employment, that employees refrain from disclosing the amount of their wages or from inquiring about or discussing the wages of other employees, or (2) require an employee to sign a waiver or other document that purports to deny the employee the right to disclose the amount of his or her wages or to inquire about or discuss the wages of other employees. (VT Stat. Tit. 21 Sec. 495.)