Vermont has passed a new pay transparency bill aimed at promoting pay equity and transparency in the workplace. This law requires employers to disclose compensation or compensation ranges in job advertisements. The law will become effective on July 1, 2025.
Applicability:
- Employers with five or more employees must comply.
- Applies to job positions physically located in Vermont and remote positions predominantly working for Vermont-based offices.
Disclosure Requirements:
- Job postings must include the minimum and maximum annual salary or hourly wage for the position.
- Commission-based positions must disclose that they are commission-based without specifying a compensation range.
- Tipped positions must disclose that they involve tips and provide the base wage or range of base wages.
Exceptions:
- General announcements that employment opportunities may exist without specifying job openings are exempt.
- Verbal announcements made in person or via electronic mediums are not covered by this requirement.
Employer Obligations:
- Employers are prohibited from discriminating or retaliating against employees or applicants exercising their rights under this law.
- Employers must conduct training for recruiters and hiring managers on the new requirements.
- Employers should review and update job postings, career sites, and compensation processes to ensure compliance.
Implementation and Compliance:
- The Vermont Attorney General’s Office will publish guidance on the law by January 1, 2025.
- Employers are encouraged to conduct pay equity audits to ensure compliance and to protect against potential litigation.
Next Steps for Employers:
- Provide training on pay transparency and equity laws
- Ensure all job postings include the required compensation information
- Update compensation processes
- Work with legal counsel to perform pay equity audits under attorney-client privilege.
Employers should begin preparations to comply with the new requirements before the law takes effect on July 1, 2025.
