Preparing for Vermont's Pay Transparency Law

On July 1, 2025, a new regulation mandating pay transparency in job advertisements will come into effect in Vermont. Signed into law by Governor Phil Scott on June 4, 2024, H.704 requires employers with at least five employees to disclose the compensation or range of compensation for any advertised position.

Key Requirements and Implications

The law encompasses positions physically located in Vermont and remote roles tied to Vermont-based offices. It covers both external and internal job postings, including opportunities for transfers or promotions. Employers must ensure all job advertisements, in any written format, include the minimum and maximum salary or hourly wage expected for the role. It does not cover general announcements about future opportunities or verbal announcements of job openings made on the radio, television, or other electronic mediums.

Exceptions are made for commission-based and tipped positions, where only the nature of the compensation needs to be disclosed, along with the base wage for tipped roles.

The law does not preclude an employer from hiring or placing an employee at a wage higher or lower than the range of compensation advertised due to circumstances outside of the employer’s control, like the qualifications of the applicants.  

Guidance from the Vermont Attorney General’s Office will be published before January 1, 2025. As written, violators will not incur fines or penalties for failing to comply with the new law.