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Vermont Requires Pay Disclosure

07/03/24

Author: ADP Admin/Friday, June 28, 2024/Categories: Compliance Corner

Vermont has enacted legislation (House Bill 704), which requires employers to include salary ranges in job postings and advertisements. House Bill 704 takes effect on July 1, 2025.


The details

Under House Bill 704, Vermont employers with five or more employees must include the compensation and salary range for internal and external positions (including opportunities for transfer or promotion) that are:

  • Physically located in Vermont; or
  • Remote (where the work is predominantly performed for an office or work location that is physically located in Vermont.)

The law provides the following definitions:


Compensation and salary range: The minimum and maximum annual salary (or hourly wage) must be what an employer expects in good faith to pay for the advertised job at the time the advertisement is created.


Job advertisements: A format of written notice for a specific job opening made available to potential applicants. They do not include general announcements notifying potential applicants of non-specific employment opportunities or verbal announcements made in person or on the radio, television or other electronic mediums.

Role-Based Requirements

Commission-Based Roles

An advertisement for a job opening that is paid on a commission basis (in whole or in part) must disclose that the role is commission-based, but employers are not required to disclose the compensation or range of compensation.

Tipped Roles

An advertisement for a job opening must disclose that the role is paid on a tipped basis and must disclose the base wage or range of base wages for the job opening.


Exceptions

An employer may hire for more or less than the listed salary range as a result of circumstances outside of the employer’s control, such as an applicant’s qualifications or labor market forces.


Next steps

  • Review your hiring policies and procedures to help ensure compliance by July 1, 2025.
  • Look for further guidance from the Vermont Attorney General’s Office around January 1, 2025 (six months ahead of House Bill 704’s effective date).

Vermont has enacted legislation (House Bill 704), which requires employers to include salary ranges in job postings and advertisements. House Bill 704 takes effect on July 1, 2025.


The details

Under House Bill 704, Vermont employers with five or more employees must include the compensation and salary range for internal and external positions (including opportunities for transfer or promotion) that are:

  • Physically located in Vermont; or
  • Remote (where the work is predominantly performed for an office or work location that is physically located in Vermont.)

The law provides the following definitions:

Compensation and salary range: The minimum and maximum annual salary (or hourly wage) must be what an employer expects in good faith to pay for the advertised job at the time the advertisement is created.

Job advertisements: A format of written notice for a specific job opening made available to potential applicants. They do not include general announcements notifying potential applicants of non-specific employment opportunities or verbal announcements made in person or on the radio, television or other electronic mediums.


Role-Based Requirements

Commission-Based Roles

An advertisement for a job opening that is paid on a commission basis (in whole or in part) must disclose that the role is commission-based, but employers are not required to disclose the compensation or range of compensation.


Tipped Roles

An advertisement for a job opening must disclose that the role is paid on a tipped basis and must disclose the base wage or range of base wages for the job opening.


Exceptions

An employer may hire for more or less than the listed salary range as a result of circumstances outside of the employer’s control, such as an applicant’s qualifications or labor market forces.


Next steps

  • Review your hiring policies and procedures to help ensure compliance by July 1, 2025.
  • Look for further guidance from the Vermont Attorney General’s Office around January 1, 2025 (six months ahead of House Bill 704’s effective date).

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