Vermont's Pay Transparency Law Takes Effect July 1, 2025

Vermont’s pay transparency law - Act 155 (House Bill 704) – goes into effect on July 1, 2025. Are you ready? 

Like many other states that have recently passed pay transparency laws, Vermont’s law requires employers to provide certain salary information to applicants or employees. 

The law includes several key requirements: 

• Salary Disclosure: Employers must include salary ranges, defined as “the minimum and maximum annual salary or hourly wage that the employer, acting in good faith, expects to pay for the advertised job,” in written job postings for jobs physically located in Vermont and for remote jobs predominantly performed at a Vermont office.  

• Employee Requests: Current employees have the right to ask for their own salary range, and employers are obligated to provide a clear response. 

• No Retaliation: Employers cannot penalize employees who discuss wages or inquire about salary ranges. 

• Statewide Applicability: The law applies to all employers operating in Vermont with at least 5 employees, including remote employees of a company that is predominately in Vermont.  

• The Vermont Attorney General and its Civil Rights Unit will enforce the law.  

The law does not cover the following: 

• Other compensation (e.g., bonuses) or benefits.  

• Posting salary ranges for job openings or work performed a) outside of Vermont, or b) where the job is paid entirely or partly on a commission basis. 

• Posting salary ranges for job ads communicated orally (e.g., radio, television). 

With the implementation date only a few weeks away, employers with operations in Vermont need to adapt to these new requirements by reviewing their pay practices and ensuring compliance.

This may involve conducting pay audits, developing or updating a compensation structure which includes pay grades or ranges, updating job postings, and training teams on the importance of pay transparency. While these changes may present challenges, they also offer opportunities for businesses to build stronger, more trusting relationships with their workforce.