title-21•Title 21 — Labor
The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated, provided as a convenience by the Vermont General Assembly. The official text is the printed Vermont Statutes Annotated published by LexisNexis.
Chapter 1 Commissioner of Labor
§ 1 Department created; Commissioner, appointment
(a) The Department of Labor is hereby created to administer the laws relating to labor in chapter 1, subchapters 4 and 5 of chapter 3, and chapters 5, 9, and 12 through 17 of this title and other laws assigned to the Department for administration. There shall be within the Department the Apprenticeship Council and other boards, councils, and committees specially assigned to the Department.
(b) Biennially, with the advice and consent of the Senate, the Governor shall appoint a Commissioner of Labor.
(Amended 1959, No. 329 (Adj. Sess.), § 30, eff. March 1, 1961; 1967, No. 71, § 1; 2005, No. 103 (Adj. Sess.), § 1, eff. April 5, 2006.)
§ 1a Reports
The Commissioner of Labor shall prepare and submit, consistent with 2 V.S.A. § 20(a), a report on attorney’s fees, pursuant to subsection 678(c) of this title.
(Added 2003, No. 122 (Adj. Sess.), § 294n; amended 2003, No. 122 (Adj. Sess.), § 294x, eff. April 1, 2005; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 2 Cooperation with United States
With the written approval of the Governor, the Commissioner of Labor is authorized and empowered to cooperate and contract in the name and on behalf of the State with the U.S. Department of Labor in the work of inspection and investigation under the federal Fair Labor Standards Act and to accept grants and assistance from the U.S. Department of Labor for such inspection and investigation.
(Amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 3 Cooperation with Attorney General and Commissioners of Financial Regulation and of Taxes; memoranda of understanding
(a) The Attorney General and the Commissioner of Labor shall enter into a memorandum of understanding to establish a process for the referral of complaints received by the Commissioner of Labor to the Attorney General, the sharing of information, and the coordination of investigatory and enforcement resources in relation to the provisions of sections 346, 387, 712, and 1379 of this title. Notwithstanding any provision of 9 V.S.A. § 2460(a) to the contrary, the memorandum shall, at a minimum, provide for:
(1) notice from the Attorney General to the Commissioner of Labor regarding complaints received by the Attorney General that relate to a possible violation of the laws under the jurisdiction of the Commissioner;
(2) a procedure for the Commissioner of Labor to refer a complaint to the Attorney General if the employer complained of appears to be engaging in willful, substantial, or systemic violations of the provisions of chapter 5, subchapter 2 or 3 of this title, or chapter 9 or 17 of this title through the misclassification of employees;
(3) a requirement that the Commissioner of Labor shall, upon receiving a complaint against an employer that has been determined to have engaged in employee misclassification on two separate occasions during the past five years or is alleged to have misclassified five or more employees, refer the complaint to the Attorney General and coordinate with the Attorney General to investigate the complaint and, depending on the outcome of the investigation, seek any appropriate penalties pursuant to the provisions of this title and 9 V.S.A. §§ 2458-2461;
(4) the exchange of information and coordination of investigatory and enforcement resources between the Commissioner of Labor and the Attorney General; and
(5) compliance with the requirements of 20 C.F.R. Part 603 in relation to any information disclosed pursuant to section 1314 of this title.
(b) The Commissioner of Labor shall enter into separate memoranda of understanding with the Commissioner of Financial Regulation and the Commissioner of Taxes to establish a process for sharing information related to investigations of the misclassification and miscoding of workers pursuant to the laws under their jurisdiction. The memoranda shall provide, at a minimum, that any disclosure of information pursuant to section 1314 of this title shall comply with the requirements of 20 C.F.R. Part 603.
(c) The Attorney General shall enter into separate memoranda of understanding with the Commissioner of Financial Regulation and the Commissioner of Taxes to establish a process for sharing information related to an investigation by the Attorney General pursuant to sections 346, 387, 712, and 1379 of this title. Notwithstanding any provision of 9 V.S.A. § 2460(a) to the contrary, each memorandum shall, at a minimum, provide for the disclosure by the Attorney General of any instance in which he or she has determined that an employer has, through the misclassification of an employee, violated the provisions of chapter 5, subchapter 2 or 3 of this title or chapter 9 or 17 of this title and the basis for that determination.
(d) Nothing in this section shall be construed to prevent the Commissioner of Labor from investigating complaints of violations of the laws under his or her jurisdiction or enforcing those laws pursuant to the applicable provisions of this title.
(e) Information shared pursuant to this section shall be exempt from public inspection and copying under the Public Records Act and shall be kept confidential. Notwithstanding 1 V.S.A. § 317(e), the Public Records Act exemption created in this section shall continue in effect and shall not be repealed through the operation of 1 V.S.A. § 317(e).
(Added 2019, No. 85 (Adj. Sess.), § 8, eff. Feb. 20, 2020.)
§ 4 Duties as to employment and payment of wages
The Commissioner or the Commissioner’s agent shall make examinations and investigations to see that the laws pertaining to the employment of minors and the weekly payment of wages are being complied with and for such purposes may enter any place where persons are employed.
(Amended 2017, No. 74, § 30.)
§ 5 Repealed
[Repealed]
1971, No. 205 (Adj. Sess.), § 7.
§ 6 Repealed
[Repealed]
2017, No. 17, § 1.
Chapter 3 Safety
Subchapter 1 Safety Inspections
§§ 101-109 Repealed
[Repealed]
1967, No. 291 (Adj. Sess.), § 1.
§§ 111-124 Repealed
[Repealed]
1971, No. 205 (Adj. Sess.), § 7.
Subchapter 2 Boilers and Pressure Vessels
§§ 141-152 Repealed
[Repealed]
1971, No. 205 (Adj. Sess.), § 7.
Subchapter 2A Elevators and Conveyances
§ 141 Purpose; definitions
(a) The purpose of this subchapter is to ensure that elevators and other automated conveyances are correctly and safely installed and operated within the State by authorizing and enforcing rules for the design, installation, operation, and maintenance of automated people conveyances, and by licensing mechanics and inspectors who work on these conveyances.
(b) As used in this subchapter:
(1) “Board” means the Elevator Safety Review Board.
(2) “Certificate of operation” means a document issued by the Department indicating that a conveyance has passed the required safety inspection, and the conveyance may be operated for a year from the date the certificate is issued.
(3) “Commissioner” means the Commissioner of Public Safety or the Commissioner’s designee.
(4) “Conditional certificate of operation” means a document issued by the Department that permits a conveyance that is not in compliance with rules adopted under this subchapter, but, after inspection, has been deemed safe for temporary operation to operate for up to 30 days or until the conveyance is in compliance, whichever occurs earlier.
(5) “Conveyance” means an electrically driven mechanical device that moves people or materials vertically, and includes elevators, escalators, platform lifts, and stairway chairlifts.
(6) “Department” means the Department of Public Safety.
(7) “Elevator inspector” means an individual who is licensed by the Commissioner to perform safety inspections of newly installed and existing conveyances.
(8) “Elevator mechanic” means an individual who is licensed by the Commissioner to erect, construct, install, alter, service, repair, and maintain conveyances.
(9) “Public building” has the same meaning as in 20 V.S.A. § 2730.
(10) “Lift mechanic” means an individual who is licensed by the Commissioner to erect, construct, install, alter, service, repair, and maintain platform lifts and stairway chairlifts.
(Added 2001, No. 60, § 1, eff. June 16, 2001; amended 2001, No. 151 (Adj. Sess.), § 44b, eff. June 27, 2002; 2005, No. 8, § 6, eff. April 25, 2005; 2023, No. 85 (Adj. Sess.), § 59, eff. July 1, 2024.)
§ 142 Conveyances regulated
(a) This subchapter regulates the design, construction, operation, inspection, testing, maintenance, alteration, and repair of the following conveyances and associated parts that are installed in or on a public building:
(1) hoisting and lowering mechanisms equipped with a car or platform, that moves between two or more landings, including:
(A) elevators;
(B) platform lifts and stairway chairlifts;
(C) power-driven stairways; and
(D) escalators; and
(2) hoisting and lowering mechanisms equipped with a car that serves two or more landings and is designed to carry material, not people, but not including dumbwaiters.
(b) This subchapter does not cover the conveyances that are regulated by the Vermont Tramway Board, by the rules of the Vermont Occupational Safety and Health Administration, or by the federal Mine Safety and Health Act, 30 U.S.C. § 801 et seq.
(Added 2001, No. 60, § 1, eff. June 16, 2001; amended 2023, No. 85 (Adj. Sess.), § 60, eff. July 1, 2024.)
§ 143 License required
No person shall erect, construct, wire, alter, replace, or maintain any conveyance located in any public building in this State unless the person is licensed as an elevator mechanic, except that person who is licensed as a lift mechanic may erect, construct, wire, alter, replace, or maintain any conveyance located in any public building. An apprentice or helper may perform any of the activities described in this section only when a mechanic licensed under this chapter is physically present and is immediately available to direct and supervise that apprentice or helper.
(Added 2001, No. 60, § 1, eff. July 1, 2002; amended 2001, No. 151 (Adj. Sess.), § 44d, eff. June 27, 2002; 2005, No. 8, § 6a, eff. April 25, 2005.)
§ 144 Elevator Safety Review Board; members; duties
(a) The Elevator Safety Review Board is established within the Department, and shall consist of seven members, one of whom shall be the Commissioner or designee, one of whom shall be the Commissioner of Labor or designee, and five members to be appointed by the Governor as follows: one representative from a major elevator manufacturing company; one representative from an elevator servicing company; an owner or manager of a multistoried building, in which a conveyance is installed; an elevator inspector; and an individual who actually installs, maintains, and repairs conveyances. The members appointed by the Governor shall be appointed for staggered terms of three years, and shall be entitled to compensation and expenses as provided in 32 V.S.A. § 1010.
(b) The Board shall:
(1) Adopt rules regarding the following:
(A) Safety standards for the operation, maintenance, servicing, construction, alteration, installation, and inspection of conveyances covered by this subchapter. At a minimum, the Board shall adopt rules that include the Safety Code for Elevators and Escalators, ASME A17.1; the Safety Code for Existing Elevators and Escalators, ASME A17.3; the Safety Standards for Platform Lifts and Stairway Chairlifts, ASME A18.1; and Standard for the Qualification of Elevator Inspectors, ASME QEI-1. The Board shall amend the rules to include any changes or amendments to these standards within six months after the effective date of the standard changes. The Board may adopt rules to modify these standards as the Board deems necessary.
(B) Any other rule necessary to implement this subchapter.
(2) Grant variances, provided the variance provides an equal or greater level of public safety. The decision of the Board in regard to an application for a variance shall be final.
(c) The Board may:
(1) adopt rules for temporary elevator mechanic licenses in the event of an emergency; and
(2) contract with a national testing service to develop and administer licensing examinations.
(Added 2001, No. 60, § 1, eff. June 16, 2001; amended 2007, No. 153 (Adj. Sess.), § 6a.)
§ 145 Elevator mechanic license and lift mechanic license
An individual shall submit to the Commissioner a written application for an elevator mechanic or a lift mechanic license on a form provided by the Board, accompanied by the required fee. A license shall be granted to an applicant who demonstrates to the satisfaction of the Board that the applicant meets the qualifications established by the Board. An individual who holds an elevator mechanic license may work on platform lifts and stairway chairlifts without a lift mechanic license. An individual who holds only a lift mechanic license may not work on elevators without an elevator mechanic license.
(Added 2001, No. 60, § 1, eff. June 16, 2001; amended 2001, No. 151 (Adj. Sess.), § 44c, eff. June 27, 2002.)
§ 146 Elevator inspector license
An individual shall submit to the Commissioner a written application for an elevator inspector license on a form provided by the Board, accompanied by the required fee. A license shall be granted to an applicant who demonstrates to the satisfaction of the Board that the applicant meets the qualifications established by the Board.
(Added 2001, No. 60, § 1, eff. June 16, 2001.)
§ 147 Examination not required
A license for elevator mechanic or inspector shall be issued to an applicant, upon application and payment of the required fee, or to an individual who holds a comparable valid license or certification from a state that has equal or more stringent requirements.
(Added 2001, No. 60, § 1, eff. June 16, 2001.)
§ 148 Issuance and renewal of licenses; fees
(a) A license issued by the Board shall be valid for two years. The Board may renew a license, provided the applicant submits a written application for renewal accompanied by the required fee prior to expiration of the license.
(b) Applicants for license renewal shall provide evidence, satisfactory to the Board, of completion of eight hours of instruction approved by the Board, designed to ensure the continued qualifications of the applicant.
(c) License and renewal fees are as follows:
(1) Elevator mechanic license: $75.00.
(2) Elevator inspector license: $150.00.
(3) Lift mechanic license: $50.00.
(Added 2001, No. 60, § 1, eff. June 16, 2001; amended 2001, No. 151 (Adj. Sess.), § 44e, eff. June 27, 2002.)
§ 149 Civil penalties; suspension; revocation of license
After notice and hearing, the Board may suspend or revoke a license and assess administrative penalties pursuant to section 156 of this title for any of the following reasons:
(1) fraud or deceit in obtaining the license;
(2) failure to notify the Department and the owner or lessee of a conveyance of noncompliance of the conveyance with the standards adopted under this subchapter; or
(3) violation of any provisions of this subchapter.
(Added 2001, No. 60, § 1, eff. July 1, 2002.)
§ 150 Registration of conveyances
(a) The owner or lessee of a conveyance shall register the conveyance with the Department, pursuant to rules adopted by the Board. The registration shall include the type, rated load and speed, manufacturer, location, purpose, date of installation, and any additional information the Board may require.
(b) The Commissioner may, after notice and hearing, assess an administrative penalty of no more than $1,000.00 against a building owner or lessee who fails to register a conveyance as required by this subchapter.
(Added 2001, No. 60, §§ 1, 3a.)
§ 151 Permits
(a) No conveyance shall be erected, constructed, installed, or altered in a public building unless a permit has been obtained from the Department before work is commenced. Before a material alteration, as defined by rule, is begun, the conveyance shall conform to rules adopted by the Board regulating the alteration. A copy of the permit shall be kept at the construction site at all times while work is in progress.
(b) Each application for a permit shall be accompanied by a fee of $25.00, and copies of specifications and accurately scaled and fully dimensioned plans that clearly indicate location of the elevator in the building; the location of the machinery room and the equipment to be installed, relocated, or altered; all structural supporting members, including foundations; and a specification of all materials to be used and all loads to be supported or conveyed. The plans and specifications shall be sufficiently complete to illustrate all details of construction and design.
(c) A permit may be revoked for any of the following reasons:
(1) a false statement or a misrepresentation of a material fact in the application, plans, or specifications on which the permit was based;
(2) failure of the permittee to perform work in accordance with the conditions of the permit, the provisions of the application, plans, or specifications, or with the standards required by this subchapter; or
(3) failure of the permit holder to comply with any order issued pursuant to section 154 of this title.
(d) Work shall commence within six months after the date of issuance of a permit, or within a shorter period of time as the Commissioner may specify in the permit.
(e) A permit shall expire if work is suspended or abandoned for more than 60 days after work has begun, or a shorter period of time as the Commissioner may specify in the permit. For good cause shown, the Commissioner may extend this period.
(Added 2001, No. 60, § 1, eff. July 1, 2002.)
§ 152 New installations; annual inspections and registrations
(a) A new conveyance shall not be placed in operation until it has been inspected by an elevator inspector other than the installer, and a certificate of operation has been issued.
(b) Every conveyance subject to this subchapter shall be inspected annually by an elevator inspector who may charge a fee for the service as established by the Board by rule. Rules adopted by the Board under this subsection shall take into account the degree of difficulty required by the inspection, the frequency of use of the conveyance, and the mode of operation of the conveyance, such as cable, traction, hydraulic, light use, or platform lift. The inspector shall notify the Department if a conveyance is found to be in violation of this subchapter or any rule adopted under this subchapter.
(c) An elevator inspector shall issue a certificate of operation after the inspector has inspected a new or existing conveyance, and has determined that the conveyance is in compliance with this subchapter. A certificate of operation shall be renewed annually. An owner of a conveyance shall ensure that the required inspections and tests are performed at intervals that comply with rules adopted by the Board. Certificates of operation shall be clearly displayed on or in each conveyance.
(d) The Department may issue a conditional certificate of operation for a conveyance that is not in complete compliance, provided the conveyance has been inspected and determined to be safe for temporary operation. This conditional certificate of operation shall permit a conveyance to operate for no more than 180 days or until the conveyance is in compliance, whichever occurs first.
(e) The inspector shall submit $25.00 of the fee charged for each inspection to the Department for each certificate of operation issued under this subchapter.
(f) As established by the Board by rule, an inspector may charge a fee not to exceed $250.00 for each inspection, and this fee shall be subject to the provisions of 32 V.S.A. chapter 7, subchapter 6.
(g) [Repealed.]
(Added 2001, No. 60, § 1, eff. July 1, 2002; amended 2007, No. 153 (Adj. Sess.), § 6b.)
§ 153 Insurance requirements; license
A licensed elevator inspector shall submit to the Department an insurance policy, or certified copy issued by an insurance company authorized to do business in Vermont, that provides general liability coverage in an amount to be determined, by rule.
(Added 2001, No. 60, § 1, eff. June 16, 2001.)
§ 154 Enforcement
(a) The Commissioner may contract with elevator inspectors to perform random on-site inspections and tests on existing conveyances, conduct periodic inspections and tests to ensure satisfactory performance by licensed individuals, and develop public awareness programs.
(b) If the Commissioner finds a violation of this subchapter, the Commissioner may:
(1) order the owner of the premises or the owner’s agent and the individuals performing the work to correct or remove the violation;
(2) suspend or retract the permit; or
(3) order the owner, a public utility, or a private party furnishing electricity to the installation not to connect or disconnect electrical energy from the conveyance until the violation is corrected.
(Added 2001, No. 60, § 1, eff. June 16, 2001.)
§ 155 Liability
This subchapter shall not be construed to relieve any person that owns, operates, controls, maintains, erects, constructs, installs, alters, inspects, tests, or repairs any elevator or other conveyance covered by this subchapter from liability for damages to persons or property caused by any defect in any conveyance.
(Added 2001, No. 60, § 1, eff. June 16, 2001.)
§ 156 Penalty
(a) Any owner or lessee who violates any of the provisions of this subchapter shall be fined not more than $1,500.00 for each occurrence.
(b) The Commissioner may, after notice and hearing, assess an administrative penalty of not more than $1,000.00 for each violation of this subchapter.
(c) Any person who erects, constructs, wires, alters, replaces, or maintains any conveyance located in any public building in this State without being licensed as required by this subchapter, or who employs an unlicensed person to perform this work, shall be fined not more than $1,000.00 for each offense.
(Added 2001, No. 60, § 1, eff. July 1, 2002.)
§ 157 Elevator Safety Fund; creation
The Elevator Safety Fund is created for the purpose of funding the Elevator Safety Inspection and Licensing Program. All revenues from fees collected for licensing elevator mechanics and inspectors, and issuing permits and certificates of operation, shall be deposited in the Fund. The Commissioner, pursuant to an appropriation from the Fund, shall request disbursements from the Fund by the Commissioner of Finance and Management. The Fund shall be maintained by the State Treasurer and shall be managed in accordance with the provisions of 32 V.S.A. chapter 7, subchapter 5.
(Added 2001, No. 60, § 1, eff. June 16, 2001.)
Subchapter 3 Reports
§§ 191, 192 Repealed
[Repealed]
1971, No. 205 (Adj. Sess.), § 7.
Subchapter 4 General Provisions
§ 201 Occupational policy
(a) It is the policy of the State of Vermont that in their employment all persons shall be provided by their employers with safe and healthful working conditions at their workplace, and that insofar as practicable an employee shall not experience diminished health, functional capacity, or life expectancy as a result of the employee’s work experience.
(b) It is also the policy of the State that practices and procedures prescribed by an employer for performance of work or duties by the employer’s employees shall not be, insofar as practicable, dangerous to the life, body, or well-being of the employees.
(c) It is the intent of the General Assembly that:
(1) The provisions of the Occupational Safety and Health Act of 1970, as enacted by the U.S. Congress, which may be administered by a state agency, shall be administered and enforced in this State, by the State.
(2) To effectuate the policy of the State, standards promulgated under the Occupational Safety and Health Act of 1970, as amended, when applicable to employment in the State of Vermont, shall be prescribed in rules adopted under this subchapter.
(3) The State of Vermont shall cooperate with the appropriate federal agencies in carrying out the purposes of the Occupational Safety and Health Act of 1970 and the VOSHA Code of the State.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 2013, No. 96 (Adj. Sess.), § 126; 2023, No. 85 (Adj. Sess.), § 61, eff. July 1, 2024.)
§ 202 General purpose
The purpose of this chapter is to provide efficient implementation of the policy of the State expressed in section 201 of this title.
(Added 1971, No. 205 (Adj. Sess.), § 1.)
§ 203 Definitions
As used in this chapter:
(1) “Act” means the Occupational Safety and Health Act of 1970 and rules adopted pursuant to that Act, as amended.
(2) “Commissioner” means the Commissioner of Labor or designee.
(3) “Department” means the Department of Labor.
(4) “Director” means the Director of Occupational Health.
(5) “Division” means the Division of Occupational Health.
(6) “Employee” means any person engaged in service to an employer for wages, salary, or other compensation, excluding an independent contractor.
(7) “Employer” means a person, as defined pursuant to subdivision (8) of this section, who employs one or more persons.
(8) “Person” means a natural person, corporation, partnership, trust, society, club, association, or other organization, including municipalities and the State and its instrumentalities.
(9) “Place of employment” means any place where an employee is engaged in performance of the employee’s work or duties, or that is used in connection with an employee’s employment. It includes structures, buildings, machinery, equipment, tools, appliances, and materials used in connection with the employment. It also includes land and premises where an employer is carrying on any activity or business involving the use of one or more employees.
(10) “Premises” means land and the structures thereon that contains a place of employment as defined pursuant to subdivision (9) of this section.
(11) “Rule” means a rule or regulation.
(12) “VOSHA Code” means subchapters 4 and 5 of this chapter, 18 V.S.A. chapter 28, and the rules adopted pursuant to those provisions.
(13) “Review Board” means the Occupational Safety and Health Review Board.
(14) “Secretary of Labor” means the Secretary of the U.S. Department of Labor.
(15) “Secretary” means the Secretary of Human Services.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 214 (Adj. Sess.), § 17; 1979, No. 121 (Adj. Sess.), § 3; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 62, eff. July 1, 2024.)
§ 204 Rules and procedure
(a) 3 V.S.A. chapter 25, relating to administrative procedure, shall apply to this chapter and the VOSHA Code.
(b) All or part of a printed publication of standards or rules, including standards promulgated under the Act, may be made a rule or part of a rule adopted under this chapter or the VOSHA Code, by reference in the rule to the printed publication by its title and where it may be procured at the time the rule is adopted under this chapter.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 2023, No. 85 (Adj. Sess.), § 63, eff. July 1, 2024.)
§ 205 Variances
(a) In cases involving a workplace, the Secretary of Human Services, in the case of health standards, and the Commissioner, in the case of safety standards, may grant a variance from a standard or any provision of a standard adopted in a rule, under the same terms, conditions, and criteria as the Secretary of Labor may under sections 6(b)(6) and (d) of the Act.
(b) The Secretary of Human Services, in the case of health standards, and the Commissioner, in the case of safety standards, may grant a variance, tolerance, or exemption to and from any or all provisions of the VOSHA Code as found necessary and proper to avoid serious impairment of the national defense. The action shall not be taken without the written consent of a federal official authorized to make such variation, tolerance, or exemption to and from any or all provisions of the Act.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 214 (Adj. Sess.), § 8; 2023, No. 85 (Adj. Sess.), § 64, eff. July 1, 2024.)
§ 206 Inspections and investigations
(a) The Commissioner or the Director, or their agents, may enter upon a premises, upon presenting appropriate credentials to the occupant, at reasonable times, for the purpose of inspecting the premises within reasonable limits and in a reasonable manner, to determine whether the provisions of the VOSHA Code and this chapter and the rules adopted pursuant to the VOSHA Code and this chapter are being observed. If entry is refused, the Commissioner or the Director may apply to a Superior Court judge for an order to enforce the rights given to the Commissioner and the Director and their agents under this section.
(b) In making inspections and investigations, the Commissioner or the Director may require the attendance and testimony of witnesses and the production of evidence under oath. Witnesses shall be paid the same fees and mileage as are paid witnesses in Superior Court in criminal cases. In case of a contumacy, failure, or refusal of any person to obey such an order, any Superior Court within the jurisdiction of which the person is found resides, or transacts business, upon the application by the Commissioner, shall have jurisdiction to issue to the person an order requiring the person to appear to produce evidence if, as, and when so ordered, and to give testimony relating to the matter under investigation or in question. Any failure to obey such order of the court may be punished by the court as a contempt of court.
(c) No person shall give advance notice of any inspection under the VOSHA Code, without prior authority of the Commissioner or the Director, which shall be in writing.
(d) Under the VOSHA Code, the Secretary of Human Services and the Commissioner shall adopt rules regarding inspections and investigations to conform with the provisions and requirements of the Act.
(e) Subject to rules adopted by the Commissioner or Secretary, a representative of the employer and a representative authorized by the employer’s employees shall be given an opportunity to accompany the Commissioner or Secretary or the Commissioner or Secretary’s authorized agent during the physical inspection of any workplace under subsection (a) of this section for the purpose of aiding such inspection. Where there is no authorized employee representative, the Commissioner or Secretary or the Commissioner or Secretary’s authorized agent shall consult with a reasonable number of employees concerning matters of safety and health in the workplace.
(f) Any employees or representative of employees who believes that a violation of a safety or health standard exists that threatens physical harm, or that an imminent danger exists, may request an inspection by giving notice to the Commissioner or Secretary or the Commissioner or Secretary’s authorized agent of the violation or danger. The notice shall be reduced to writing, shall set forth with reasonable particularity the grounds for the notice, and shall be signed by the employees or representative of employees. A copy of the notice shall be provided the employer or the employer’s agent not later than at the time of inspection, except that, upon the request of the person giving the notice, the person’s name and the names of individual employees referred to in the notice shall not appear in the copy or on any record published, released, or made available by the Commissioner or Secretary. If upon receipt of the notification the Commissioner or Secretary determines there are reasonable grounds to believe that a violation or danger exists, the Commissioner or Secretary shall make a special inspection in accordance with the provisions of this section as soon as practicable to determine if a violation or danger exists. If the Commissioner or Secretary determines there are no reasonable grounds to believe that a violation or danger exists, the Commissioner or Secretary shall notify the employees or representative of the employees in writing of the determination.
(g) Prior to or during any inspection of a workplace, any employees or representative of employees employed in the workplace may notify the Commissioner or Secretary or any agent of the Commissioner or Secretary responsible for conducting the inspection, in writing, of any violation of this Code that they have reason to believe exists in the workplace. The Commissioner shall, by rule, establish procedures for informal review of any refusal by a representative of the Commissioner to issue a citation with respect to any such alleged violation and shall furnish the employees or representative of employees requesting the review with a written statement of the reasons for the Commissioner’s final disposition of the case.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1973, No. 214 (Adj. Sess.), § 9; 2023, No. 85 (Adj. Sess.), § 65, eff. July 1, 2024.)
§ 207 Trade secrets
All information reported to or otherwise obtained by the Commissioner or the Director, or their agents, in connection with any inspection or proceeding under this chapter or the VOSHA Code, that contains or might reveal a trade secret referred to in 18 U.S.C. § 1905 shall be considered confidential, except that such information may be disclosed to other officers or employees concerned in carrying out the provisions of this chapter or the VOSHA Code. In any proceeding, the Commissioner, Director, Board, or court shall issue such orders as may be appropriate to protect the confidentiality of trade secrets.
(Added 1971, No. 205 (Adj. Sess.), § 1.)
§ 208 Imminent danger
(a) Whenever the Commissioner finds that any workplace is in violation of any portion of the VOSHA Code or this chapter and that the violation creates a dangerous condition that can be reasonably expected to cause imminent death or serious physical harm, the Commissioner may order the workplace or any portion of the workplace to be immediately closed or order that steps be taken to avoid, correct, or remove the imminently dangerous conditions. The Commissioner may permit the presence of individuals necessary to avoid, correct, or remove the imminent danger, or to maintain the capacity of a continuous process operation to resume normal operations without complete cessation of operations, or where a cessation of operations is necessary, to permit it to be accomplished in a safe and orderly manner. On two business days’ notice to the Commissioner, an order issued under this section may be contested by filing a petition in Superior Court requesting dissolution or modification of the order. In that event, the court shall proceed to hear and to make an expeditious determination.
(b) In the event the court vacates or otherwise invalidates the Commissioner’s order based upon a finding of willful misconduct or gross negligence, the court may determine the amount of damages suffered by the employer on account of the issuance of the order and shall enter judgment in that amount for the employer.
(c) Any employer who violates an order of the Commissioner issued pursuant to subsection (a) of this section shall be fined not more than $5,000.00 per day.
(d) Notice of orders issued under this section shall be served by certified mail with return receipt requested or in person to all parties who have a recorded interest in the property where land records for the property are recorded, including owners, tenants, mortgagees, attaching creditors, lien holders, and public utilities or water companies serving the premises.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 214 (Adj. Sess.), § 10; 1985, No. 150 (Adj. Sess.), § 1; 2017, No. 11, § 50.)
§ 209 Appeals
Except as to matters provided for in subchapter 5 of this chapter, a person aggrieved by an order or action of the Commissioner under this chapter, or a rule adopted pursuant to this chapter, may appeal to the Superior Court for the order or action within 20 days after the order is issued or the action is taken. In the Superior Court, the matter will be heard de novo. Appeal may be taken to the Supreme Court from the Superior Court. The Superior Court for the county within which the appellant resides or has a place of business shall have jurisdiction.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2023, No. 85 (Adj. Sess.), § 66, eff. July 1, 2024.)
§ 210 Penalties
(a) Upon issuance of a citation under this chapter, the Review Board is authorized to assess civil penalties for grounds provided in this subsection. In assessing civil penalties, the Review Board shall follow to the degree practicable the federal procedures prescribed in rules adopted under the Act. The Review Board shall give due consideration to the appropriateness of the penalty with respect to the size of the business or operation of the employer being assessed, the gravity of the violation, the good faith of the employer, and the history of previous violations. Civil penalties shall be paid to the Commissioner for deposit with the State Treasurer, and may be recovered in a civil action in the name of the State of Vermont brought in any court of competent jurisdiction. The Commissioner shall not reduce the assessed penalties in any fiscal year by more than 50 percent.
(1) Any employer that willfully or repeatedly violates the requirements of this Code or any standard or rule adopted, or order issued pursuant to this Code may be assessed a civil penalty of not more than $126,749.00 for each violation, but not less than $5,000.00 for each willful violation.
(2) Any employer that has received a citation for a serious violation of the requirements of this Code, or any standard or rule adopted, or order issued pursuant to this Code, shall be assessed a civil penalty of up to $12,675.00 for each violation.
(3) Any employer that has received a citation for a violation of the requirements of this Code, or any standard or rule adopted, or order issued pursuant to this Code, if the violation is specifically determined not to be of a serious nature, may be assessed a civil penalty of up to $12,675.00 for each such violation.
(4) Any employer that fails to correct a violation for which a citation has been issued within the period permitted for its correction, which period shall not begin to run until the date of the final order of the Review Board, in the case of any review proceeding under section 226 of this title initiated by the employer in good faith and not solely for delay or avoidance of penalties, may be assessed a civil penalty of not more than $12,675.00 for each day during which the failure or violation continues.
(5) Any employer that willfully violates any standard or rule adopted, or order issued pursuant to this Code, and that violation caused death to any employee, shall, upon conviction, be punished by a fine of not more than $126,749.00 or by imprisonment for not more than one year, or by both.
(6) Any person who gives advance notice of any inspection to be conducted under this Code, without authority from the Commissioner or Director or designees, shall, upon conviction, be punished by a fine of not more than $ 1,000.00 or by imprisonment for not more than six months, or by both.
(7) Whoever knowingly makes any false statement, representation, or certification in any application, record, report, plan, or other document filed or required to be maintained pursuant to this Code shall, upon conviction, be punished by a fine of not more than $10,000.00 or by imprisonment for not more than six months, or by both.
(8) Any employer that violates any of the posting requirements, as prescribed under the provisions of this Code, shall be assessed a civil penalty of up to $12,675.00 for each violation.
(9)(A) As provided under the federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 and the Act, the penalties provided in subdivisions (1), (2), (3), (4), (5), and (8) of this subsection (a) shall annually, on January 1, be adjusted to reflect the increase in the Consumer Price Index, CPI-U, U.S. City Average, not seasonally adjusted, as calculated by the U.S. Department of Labor or successor agency for the 12 months preceding the previous December 1.
(B) The Commissioner shall calculate and publish the adjustment to the penalties on or before January 1 of each year, and the penalties shall apply to fines imposed on or after that date.
(b) For purposes of this section, a serious violation shall be deemed to exist in a place of employment if there is a substantial probability that death or serious physical harm could result from a condition that exists, or from one or more practices, means, methods, operations, or processes that have been adopted or are in use, in such place of employment unless the employer did not and could not, with the exercise of reasonable diligence, know of the presence of the violation.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 214 (Adj. Sess.), § 11; 1985, No. 150 (Adj. Sess.), § 2; 1991, No. 23, § 1, eff. May 3, 1991; 2003, No. 66, § 74; 2017, No. 69, § D.1, eff. June 8, 2017.)
Subchapter 5 Occupational Safety and Health
§ 221 State plan and cooperation
The State of Vermont desires to assume responsibility for the development and enforcement of occupational safety and health standards within the State. To that end, the Commissioner shall submit plans and reports to the appropriate federal official or agency, under the provisions of the Occupational Safety and Health Act of 1970 Pub. L. No. 91-596. The Department and the Division shall cooperate with the appropriate federal agencies in carrying out the purposes of the Act and the VOSHA Code.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 2023, No. 85 (Adj. Sess.), § 67, eff. July 1, 2024.)
§ 222 Application
The VOSHA Code shall apply with respect to employers, employees, and employment in or at a workplace in the State of Vermont, except that:
(1) standards applicable to products that are distributed or used in interstate commerce that are different from federal standards for such products shall not be adopted under the VOSHA Code unless the standards are required by compelling local conditions and do not unduly burden interstate commerce; and
(2) nothing in the VOSHA Code shall be construed to supersede or in any manner affect the workers’ compensation laws of this State pursuant to chapter 9 of this title, or enlarge, diminish, or affect in any other manner the common law or statutory rights, duties, or liabilities of employers and employees under any law with respect to injuries, diseases, or death of employees arising out of or in the course of employment.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 214 (Adj. Sess.), § 12; 1981, No. 165 (Adj. Sess.), § 1; 2023, No. 85 (Adj. Sess.), § 68, eff. July 1, 2024.)
§ 223 Duties
(a) Each employer shall furnish to each of the employer’s employees employment and a place of employment that are free from recognized hazards that are causing or are likely to cause death or significant physical harm to the employees; and the employer shall comply with safety and health standards adopted under the VOSHA Code.
(b) Each employee shall comply with the safety and health standards and all rules, standards, and orders of the VOSHA Code that are applicable to the employee’s own actions or conduct.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 2023, No. 85 (Adj. Sess.), § 69, eff. July 1, 2024.)
§ 224 Rules and standards
(a) The Commissioner shall adopt rules and standards necessary to implement the purposes and duties set forth in this subchapter insofar as they relate to safety and to enforcement of the VOSHA Code.
(b) The Commissioner, in consultation with the Secretary of Human Services, shall adopt rules and standards necessary to implement the purposes of the VOSHA Code and duties imposed by the Code, insofar as they relate to health.
(c) Any standard adopted under this section shall prescribe the use of labels or other appropriate forms of warning as are necessary to inform employees of all safety or health hazards to which they are exposed, relevant symptoms and appropriate emergency treatment, and proper conditions and precautions for safe use or exposure. Where appropriate, a rule shall prescribe suitable protective clothing, devices, or equipment that shall be provided by the employer, and control or technological procedures to be used in connection with the safety or health hazard; and shall provide for monitoring or measuring employee exposure at such locations and intervals and in such manner as may be necessary for the protection of employees.
(d) Where appropriate, a standard adopted in consultation with the Secretary of Human Services may prescribe the type and frequency of medical examinations or other tests that shall be made available by an employer or at the expense of the employer, to employees exposed to health hazards in employment, in order to effectively determine whether the health of the employee is adversely affected by exposure to the hazard. In the event medical examinations are in the nature of research, as determined by the Secretary of Human Services, the examinations may be furnished at the expense of the State. The results of the examinations or tests shall be furnished only to the Secretary of Human Services, the Commissioner of Health, the Director of Occupational Health, the Commissioner of Labor, and at the request of the employee, to the employee’s physician and the employee.
(e) The Commissioner, in consultation with the Secretary, in adopting standards dealing with toxic materials or harmful physical agents under this section, shall set the standard that most adequately ensures, to the extent feasible, on the basis of the best available evidence, that no employee will suffer material impairment of health or functional capacity even if the employee has regular exposure to the hazard dealt with by the standard for the period of the employee’s working life. Development of standards under this subsection shall be based upon research, demonstrations, experiments, and such other information as may be appropriate. In addition to the attainment of the highest degree of safety and health protection for the employee, other considerations shall be the latest available scientific data in the field, the feasibility of the standards, and experience gained under this and other safety and health laws. Whenever practicable, the standard adopted shall be expressed in terms of objective criteria and of the performance desired.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 214 (Adj. Sess.), § 18; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2015, No. 23, § 119; 2015, No. 87 (Adj. Sess.), § 2; 2015, No. 97 (Adj. Sess.), § 54; 2023, No. 85 (Adj. Sess.), § 70, eff. July 1, 2024.)
§ 225 Citations
(a)(1) If, upon inspection or investigation, the Commissioner or the Director or the agent of either of them finds that an employer has violated a requirement of the VOSHA Code, the Commissioner shall with reasonable promptness issue a citation to the employer and serve it on the employer by certified mail or in the same manner as a summons to the Superior Court. Each citation shall be in writing and shall describe with particularity the nature of the violation, including a reference to the provisions of the statute, standard, rule, or order alleged to have been violated, as well as the penalty, if any, proposed to be assessed pursuant to section 210 of this title. In addition, the citation shall fix a reasonable time for the abatement of the violation.
(2) By rule, the Commissioner shall adopt procedures for issuance of a notice in lieu of a citation with respect to de minimis violations that have no direct or immediate relationship to safety or health and for hearing interested parties before a civil penalty is assessed.
(b) Each citation issued under this section, or a copy or copies of the citation, shall be prominently posted, as prescribed in rules adopted by the Commissioner, at or near each place a violation referred to in the citation occurred or existed.
(c) A citation issued under this section may be served by an agent of the Commissioner, who shall make return in the same manner as sheriffs, deputy sheriffs, or constables make after serving a summons.
(d) A citation may not be issued after six months following the inspection or investigation that reveals the violation.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2009, No. 54, § 69, eff. June 1, 2009; 2017, No. 148 (Adj. Sess.), § 6, eff. May 21, 2018.)
§ 226 Enforcement
(a)(1) An employer shall, within 20 days after personal service or receipt of a citation issued under section 225 of this subchapter, notify the Commissioner that the employer wishes to appeal the citation or proposed penalty.
(2) If an employer does not notify the Commissioner as provided in this subsection and an employee does not file a notice under subsection (c) of this section, the citation and penalty, as proposed, shall be deemed a final order of the Review Board and not subject to review by any court or agency.
(b)(1)(A) If the Commissioner on inspection or investigation finds that an employer has failed to correct a violation for which a citation has been issued within the period permitted for its correction, the Commissioner shall notify the employer by certified mail of the failure and of the penalty proposed to be assessed under section 210 of this chapter by reason of the failure.
(B) The period to correct a violation shall begin to run:
(i) when a final order is entered by the Review Board in relation to review proceedings under this section that are initiated by an employer in good faith and not solely for delay or avoidance of penalties; or
(ii) on the day the citation and penalty become final under subsection (a) of this section.
(2) The employer shall have 20 days after the receipt of the notice to notify the Commissioner that the employer wishes to appeal the Commissioner’s citation or the proposed penalty. If, within 20 days after receipt of the notification issued by the Commissioner, the employer fails to notify the Commissioner that the employer intends to appeal, the citation and assessment, as proposed, shall be deemed a final order of the Review Board and not subject to review by any court or agency.
(c) If an employer notifies the Commissioner that the employer intends to contest a citation issued under section 225 of this title, or if, within 20 days after the issuance of a citation under section 225 of this title, any employee or representative of employees files a notice with the Commissioner alleging that the period of time fixed in the citation for the abatement of the violation is unreasonable, the Commissioner shall immediately advise the Review Board of the notification and the Review Board shall afford an opportunity for a hearing. Unless a notice is timely filed, the proposed penalty and, in appropriate cases, the citation shall be deemed a final order of the Review Board not subject to review by any court or agency.
(d) After hearing an appeal, the Review Board shall issue an order based on findings of fact that affirms, modifies, or vacates the Commissioner’s citation or proposed penalty, or both, or provides other appropriate relief. The order shall become final 30 days after its issuance unless judicial review is timely taken under section 227 of this title. The rules of procedure adopted by the Review Board shall provide affected employees or their representatives with an opportunity to participate as parties in a hearing under this subsection.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 214 (Adj. Sess.), § 13; 2017, No. 148 (Adj. Sess.), § 7, eff. May 21, 2018; 2021, No. 20, § 215; 2023, No. 85 (Adj. Sess.), § 71, eff. July 1, 2024.)
§ 227 Judicial review
(a)(1) Any person adversely affected or aggrieved by an order of the Review Board may appeal to any Superior Court for the county in which the violation is alleged to have occurred or where the employer has its principal office. The appeal shall be taken within 30 days following the issuance of the order.
(2) The court shall have power to grant temporary relief or a restraining order as it deems just and proper, and to make and enter upon the pleadings, testimony, and proceedings set forth in the record a decree affirming, modifying, or setting aside, in whole or in part, the order of the Review Board and enforcing the same to the extent that the order is affirmed or modified.
(3) The commencement of proceedings under this subsection shall not, unless ordered by the court, operate as a stay of the order of the Review Board.
(4) An objection that has not been raised before the Review Board shall not be considered by the court, unless the failure or neglect to raise the objection is excused by the court because of extraordinary circumstances.
(5) The findings of the Review Board with respect to questions of fact, if supported by substantial evidence on the record considered as a whole, shall be conclusive.
(6)(A) The court may order additional evidence to be taken and made a part of the record if a party applies to the court for leave to adduce additional evidence and shows to the satisfaction of the court that the additional evidence is material and that there were reasonable grounds for failure to adduce the evidence in the hearing before the Review Board.
(B) The Review Board may modify its findings as to the facts, or make new findings, by reason of additional evidence so taken and filed. If it does so, the Review Board shall file the modified or new findings and its recommendations, if any, for the modification or setting aside of its original order. New findings with respect to questions of fact that are filed by the Review Board shall be conclusive, if supported by substantial evidence on the record considered as a whole.
(7) Upon the filing of the record with it, the jurisdiction of the court shall be exclusive and its judgment and decree shall be final, except that the same shall be subject to review by the Supreme Court. Judicial review under this subsection (a) shall be considered expeditiously.
(b)(1) The Commissioner may also obtain a review or enforcement of any final order of the Review Board by filing a petition for relief in the Superior Court within the jurisdiction of which the alleged violation occurred or in which the employer has its principal office. The provisions of subsection (a) of this section shall govern proceedings under this subsection to the extent applicable.
(2) If judicial review is not sought within 30 days after service of the Review Board’s order, the Review Board’s findings of fact and order shall be conclusive in connection with any petition for enforcement that is filed by the Commissioner after the expiration of the 30-day period.
(3) In any such case, as well as in the case of a noncontested citation or notification by the Commissioner, that has become a final order of the Review Board, the clerk of the court, unless otherwise ordered by the court, shall promptly enter a decree enforcing the order and shall transmit a copy of the court decree to the Commissioner and the employer named in the petition.
(c) In any contempt proceeding brought to enforce a court decree entered pursuant to this section, the court may assess the penalties provided in addition to invoking any other available remedies
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 214 (Adj. Sess.), § 14; 1997, No. 161 (Adj. Sess.), § 16, eff. Jan. 1, 1998; 2023, No. 85 (Adj. Sess.), § 72, eff. July 1, 2024.)
§ 228 Reports
(a) Employers shall keep and file all reports and records required under the Act and any reports and records that the Commissioner or the Secretary of Human Services may require by rule.
(b) The Commissioner shall make such reports to the Secretary of the U.S. Department of Labor in such form and containing such information as the Secretary shall require.
(c)(1)(A) Each employer shall make, keep, preserve, and make available to the Secretary of the U.S. Department of Labor or the Secretary of the U.S. Department of Health and Human Services such records regarding the employer’s activities relating to the Act as the Secretary of the U.S. Department of Labor, in cooperation with the Secretary of the U.S. Department of Health and Human Services, may prescribe by regulation as necessary or appropriate for the enforcement of the Act or for developing information regarding the causes and prevention of occupational accidents and illnesses. In order to carry out the provisions of this subdivision, such regulations may include provisions requiring employers to conduct periodic inspections.
(B) The Commissioner shall also adopt rules requiring that employers, through posting of notices or other appropriate means, keep their employees informed of their protections and obligations under this Code, including the provisions of applicable standards.
(2) The Commissioner, in cooperation with the Secretary, shall adopt rules requiring employees to maintain accurate records of employee exposures to potentially toxic materials or harmful physical agents that are required to be monitored or measured under section 224 of this subchapter. The rules shall provide employees or their representative with an opportunity to observe the monitoring or measuring, and to have access to the records thereof. The rules shall also make appropriate provision for each employee or former employee to have access to records relating to the employee’s own exposure to toxic materials or harmful physical agents. Each employer shall promptly notify any employee who has been or is being exposed to toxic materials or harmful physical agents in concentrations or at levels that exceed those prescribed by an applicable occupational safety and health standard adopted under section 224 of this subchapter and shall inform any employee who is being thus exposed of the corrective action being taken.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 214 (Adj. Sess.), § 19; 2023, No. 85 (Adj. Sess.), § 73, eff. July 1, 2024.)
§ 229 Repealed
[Repealed]
2009, No. 135 (Adj. Sess.), § 26(9).
§ 230 Occupational Safety and Health Review Board
(a) The Occupational Safety and Health Review Board is created. It shall consist of three members who shall be appointed by the Governor, with the advice and consent of the Senate. The members of the Board shall be appointed for terms of six years, but initially in a manner so that one term expires in two years, one term in four years, and one term in six years. Thereafter, biennially, in the month of February, with the advice and consent of the Senate, the Governor shall appoint a person as a member of the Board for the term of six years, whose term of office shall commence on March 1 of the year in which the appointment is made. The Governor, biennially, shall designate a member of the Board to be its Chair.
(b)(1) With the approval of the Secretary of Administration, the Board may employ employees as it deems necessary, and may without such approval employ and remove a clerk and a reporter for taking and transcribing testimony in hearings before it and hearing judges that it deems necessary to hear appeals on behalf of the Board. Compensation for employees of the Board shall be fixed by the Commissioner of Human Resources.
(2) The hearing judge appointed by the Board shall hear, and make a determination upon, any proceeding instituted before the Board and any motion in connection with such a proceeding that is assigned to the hearing judge by the Chair of the Board. The hearing judge shall make a report to the Board of any determination that constitutes the hearing judge’s final disposition of the proceedings. The report of the hearing judge shall become the final order of the Board within 30 days after the report is made to the Board, unless during that period, a Board member directs that the report be reviewed by the Board.
(c) Every official act of the Board shall be entered on record, and its hearings and records shall be open to the public.
(d) The Board is authorized to adopt rules as necessary for the orderly transaction of its proceedings. Unless the Board has adopted a different rule, its proceedings shall be in accordance with the rules adopted by the Supreme Court for the Superior Courts.
(e) The office of the Board shall be located in Montpelier, but proceedings shall be held at places within the State convenient to persons appearing before it.
(f) The compensation of members of the Board shall be fixed by the Commissioner of Human Resources.
(g) The Board shall be attached to the Governor’s office for administrative purposes.
(Added 1971, No. 205 (Adj. Sess.), § 1; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1973, No. 214 (Adj. Sess.), § 15; 1981, No. 34, § 1; 2003, No. 156 (Adj. Sess.), § 15; 2023, No. 85 (Adj. Sess.), § 74, eff. July 1, 2024.)
§ 231 Employee rights
(a) No person shall discharge or in any manner discriminate against any employee because the employee has filed any complaint or instituted or caused to be instituted any proceeding under or related to this chapter or has testified or is about to testify in any such proceeding or because of the exercise by the employee on behalf of the employee or others of any right afforded by this chapter.
(b) Any employee who believes that the employee has been discharged or otherwise discriminated against by any person in violation of this section may, within 30 days after the violation occurs, file a complaint with the Commissioner alleging the discrimination. Upon receipt of the complaint, the Commissioner shall conduct an investigation of the complaint as the Commissioner deems appropriate. If, after the investigation the Commissioner determines that the provisions of this section have been violated, the Commissioner shall bring an action in any appropriate State court against the person alleged to have violated this section. In any such action, the State courts shall have jurisdiction, for cause shown, to restrain violations of subsection (a) of this section and order all appropriate relief, including rehiring or reinstatement of the employee to the employee’s former position with back pay.
(c) Within 90 days after receiving a complaint filed under this section, the Commissioner shall notify the complainant of the Commissioner’s determination under subsection (b) of this section.
(Added 1973, No. 214 (Adj. Sess.), § 20; amended 2023, No. 85 (Adj. Sess.), § 75, eff. July 1, 2024.)
§ 232 Private right of action
An employee aggrieved by a violation of section 231 of this title may bring an action in Superior Court for appropriate relief, including reinstatement, triple wages, damages, costs, and reasonable attorney’s fees. Such an action may be brought in addition to or in lieu of an action under section 231 of this title.
(Added 1989, No. 164 (Adj. Sess.).)
Subchapter 6 Boilers and Pressure Vessels
§§ 241-246 Repealed
[Repealed]
2003, No. 141 (Adj. Sess.), § 12.
Subchapter 7 Fire Safety and Prevention
§§ 251-257 Repealed
[Repealed]
2003, No. 141 (Adj. Sess.), § 12.
§ 258 Repealed
[Repealed]
2005, No. 8, § 18.
Subchapter 8 Dangerous Substances
§§ 261-264 Repealed
[Repealed]
2003, No. 141 (Adj. Sess.), § 12.
Subchapter 9 Building Energy Standards
§§ 266-269 Recodified. 2013, No. 89, § 11.
Chapter 4 Accessibility Standards for Public Buildings and Parking
Subchapter 1 Public Buildings and Parking
§§ 271-277 Repealed
[Repealed]
2003, No. 141 (Adj. Sess.), § 12.
Subchapter 2 Residential Building Standards
§ 286 Repealed
[Repealed]
2003, No. 141 (Adj. Sess.), § 12.
Chapter 5 Employment Practices
Subchapter 1 Conditions for Employment
§ 301 Medical examination, expense
It shall be unlawful for any employer, as defined in section 302 of this title, to require any employee or applicant for employment to pay the cost of a medical examination as a condition of employment.
§ 302 Definitions
As used in this subchapter:
(1) “Employer” means any individual, organization, or governmental body, including any partnership, association, trustee, estate, corporation, joint stock company, insurance company, or legal representative, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee or successor thereof, and any common carrier by mail, motor, water, air, or express company doing business in or operating within this State, and any agent of the employer, that has one or more individuals performing services for it within this State.
(2) “Employee” means every person who may be permitted, required, or directed by any employer, in consideration of direct or indirect gain or profit, to perform services.
(Amended 2007, No. 144 (Adj. Sess.), § 1; 2023, No. 85 (Adj. Sess.), § 76, eff. July 1, 2024.)
§ 303 Penalty; judicial bureau
Any employer who violates the provisions of this subchapter shall be assessed a civil penalty of not more than $100.00 for each and every violation.
(Amended 2007, No. 144 (Adj. Sess.), § 3.)
§ 304 Employment conditions
An employer shall provide an employee with reasonable opportunities during work periods to eat and to use toilet facilities in order to protect the health and hygiene of the employee.
(Added 1997, No. 115 (Adj. Sess.), § 1, eff. Jan. 1, 1999.)
§ 305 Nursing mothers in the workplace
(a) For an employee who is a nursing mother, the employer shall for three years after the birth of a child:
(1) Provide reasonable time, either compensated or uncompensated, throughout the day to express breast milk for her nursing child. The decision to provide compensated time shall be in the sole discretion of the employer, unless modified by a collective bargaining agreement.
(2) Make a reasonable accommodation to provide appropriate private space that is not a bathroom stall.
(b) An employer may be exempted from the provisions of subsection (a) of this section if providing time or an appropriate private space for expressing breast milk would substantially disrupt the employer’s operations.
(c) An employer shall not retaliate or discriminate against an employee who exercises or attempts to exercise the rights provided under this section. The provisions against retaliation in subdivision 495(a)(8) of this title and the penalty and enforcement provisions of section 495b of this title shall apply to this section.
(d) In lieu of an enforcement action through the Vermont Judicial Bureau, the Attorney General or a State’s Attorney may enforce the provisions of this section by bringing a civil action for temporary or permanent injunctive relief, economic damages, including prospective lost wages for a period not to exceed one year, and investigative and court costs. The Attorney General or a State’s Attorney may conduct an investigation of an alleged violation and enter into a settlement agreement with the employer. Such investigation shall not be a prerequisite to bringing a court action.
(Added 2007, No. 144 (Adj. Sess.), § 2; amended 2013, No. 31, § 4; 2017, No. 74, § 32.)
§ 306 Public policy of the State of Vermont; employment separation agreements
In support of the State’s fundamental interest in protecting the safety of minors and vulnerable adults, as defined in 33 V.S.A. § 6902, it is the policy of the State that no confidential employment separation agreement shall inhibit the disclosure to prospective employers and responsible licensing entities of factual information about a prospective employee’s background that would lead a reasonable person to conclude that the prospective employee has engaged in conduct jeopardizing the safety of a minor or vulnerable adult. Any provision in an agreement entered into on or after June 3, 2010 that attempts to do so is void and unenforceable.
(Added 2009, No. 157 (Adj. Sess.), § 17, eff. June 3, 2010; amended 2018, No. 5 (Sp. Sess.), § 4, eff. June 19, 2018; 2023, No. 85 (Adj. Sess.), § 77, eff. July 1, 2024.)
§ 307 Repealed
[Repealed]
2011, No. 56, § 27(2).
§ 308 Repealed
[Repealed]
2011, No. 56 § 28(2).
§ 309 Flexible working arrangements
(a)(1) An employee may request a flexible working arrangement that meets the needs of the employer and employee. The employer shall consider a request using the procedures in subsections (b) and (c) of this section at least twice per calendar year.
(2) As used in this section, “flexible working arrangement” means intermediate or long-term changes in the employee’s regular working arrangements, including changes in the number of days or hours worked, changes in the time the employee arrives at or departs from work, work from home, or job-sharing. “Flexible working arrangement” does not include vacation, routine scheduling of shifts, or another form of employee leave.
(b)(1) The employer shall discuss the request for a flexible working arrangement with the employee in good faith. The employer and employee may propose alternative arrangements during the discussion.
(2) The employer shall consider the employee’s request for a flexible working arrangement and whether the request could be granted in a manner that is not inconsistent with its business operations or its legal or contractual obligations.
(3) As used in this section, “inconsistent with business operations” includes:
(A) the burden on an employer of additional costs;
(B) a detrimental effect on aggregate employee morale unrelated to discrimination or other unlawful employment practices;
(C) a detrimental effect on the ability of an employer to meet consumer demand;
(D) an inability to reorganize work among existing staff;
(E) an inability to recruit additional staff;
(F) a detrimental impact on business quality or business performance;
(G) an insufficiency of work during the periods the employee proposes to work; and
(H) planned structural changes to the business.
(c) The employer shall notify the employee of the decision regarding the request. If the request was submitted in writing, the employer shall state any complete or partial denial of the request in writing.
(d) This section shall not diminish any rights under this chapter or pursuant to a collective bargaining agreement. An employer may institute a flexible working arrangement policy that is more generous than is provided by this section.
(e) The Attorney General, a State’s Attorney, or the Human Rights Commission in the case of State employees may enforce subsections (b) and (c) of this section by restraining prohibited acts, conducting civil investigations, and obtaining assurances of discontinuance in accordance with the procedures established in subsection 495b(a) of this title. An employer subject to a complaint shall have the rights and remedies specified in subsection 495b(a) of this title. An investigation against an employer shall not be a prerequisite for bringing an action. The Civil Division of the Superior Court may award injunctive relief and court costs in any action. There shall be no private right of action to enforce this section.
(f) An employer shall not retaliate against an employee exercising his or her rights under this section. The provisions against retaliation in subdivision 495(a)(8) of this title and the penalty and enforcement provisions of section 495b of this title shall apply to this section.
(g) Nothing in this section shall affect any legal rights an employer or employee may have under applicable law to create, terminate, or modify a flexible working arrangement.
(Added 2013, No. 31, § 6, eff. Jan. 1, 2014.)
Subchapter 2 Wages and Medium of Payment
§ 341 Definitions
As used in this subchapter:
(1) “Employee” means an individual who has entered into the employment of an employer, where the employer is unable to show that:
(A) the individual has been and will continue to be free from control or direction over the performance of the services, both under the contract of service and in fact;
(B) the service is either outside all the usual course of business for which the service is performed, or outside all the places of business of the enterprise for which the service is performed; and
(C) the individual is customarily engaged in an independently established trade, occupation, profession, or business.
(2) “Employer” means any person that employs one or more individuals.
(3) “Commissioner” means the Commissioner of Labor.
(4) “Department” means the Department of Labor.
(5) “Wages” means all remuneration payable for services rendered by an employee, including salary, commissions, and incentive pay.
(Amended 1963, No. 198, § 1; 1995, No. 184 (Act. Sess.), § 3; 2013, No. 15, § 1; 2023, No. 85 (Adj. Sess.), § 78, eff. July 1, 2024.)
§ 342 Weekly payment of wages
(a)(1) Any employer that is doing business within the State shall pay each week, in lawful money or checks, the wages earned by each employee to a day not more than six days prior to the date of payment.
(2) Notwithstanding subdivision (1) of this subsection, any employer having one or more employees that is doing business within the State may, either:
(A) after giving notice to each employee, pay biweekly or semimonthly, in lawful money or checks, each employee the wages earned by the employee to a day not more than six days prior to the date of payment; or
(B) pursuant to the terms of a collective bargaining agreement pay any employee who is subject to that agreement the wages earned by the employee to a day not more than 13 days prior to the date of payment.
(3)(A) An employee of a school district or supervisory union may elect in writing to have a set amount or set percentage of the employee’s after-tax wages withheld by the school district in a district-held bank account each pay period. The percentage or amount withheld shall be determined by the employee.
(B) At the option of the employee, the school district or supervisory union shall disburse the funds to the employee in either a single payment at the time the employee receives the employee’s final paycheck of the school year or in equal weekly or biweekly sums beginning at the end of the school year.
(C)(i) The school district or supervisory union shall disburse funds from the account in any sum as requested by the employee and, at the end of the school year or at the employee’s option over the course of the period between the current and next school year, or upon separation from employment, shall remit to the employee any remaining funds, including interest earnings, held in the account.
(ii) For employees in a bargaining unit organized pursuant to either chapter 22 of this title or 16 V.S.A. chapter 57, the school district or supervisory union shall implement this election in a manner consistent with the provisions of this subdivision and as determined through negotiations under those chapters.
(iii) For employees not in a bargaining unit, the school district or supervisory union shall, determine the manner in which to implement the provisions of this subdivision.
(b) An employee who:
(1) voluntarily leaves employment shall be paid on the last regular pay day, or if there is no regular pay day, on the following Friday;
(2) is discharged from employment shall be paid within 72 hours of discharge;
(3) is absent from his or her regular place of employment on the employer’s regular scheduled date of wages or salary payment shall be entitled to payment upon demand.
(c) With the written authorization of an employee, an employer may pay wages due the employee by any of the following methods:
(1) Deposit through electronic funds transfer or direct deposit to a checking, savings, or other deposit account maintained by or for the employee in any financial institution within or outside the State.
(2) Credit to a payroll card account, other than a checking, savings, or other deposit account described in subdivision (1) of this subsection, that is directly or indirectly established by an employer in a federally insured depository institution to which electronic fund transfers of the employee’s wages, salary, or other compensation are made on a recurring basis, provided all the following:
(A) The employer provides the employee written disclosure in plain language, in at least 10-point type, of both the following:
(i) all the employee’s wage payment options; and
(ii) the terms and conditions of the payroll card account option, including a complete list of all known fees that may be deducted from the employee’s payroll card account by the employer or the card issuer and whether third parties may assess fees in addition to the fees assessed by the employer or issuer.
(B) The employee voluntarily consents in writing to payment of wages by payroll card account after receiving the disclosures described in subdivision (A) of this subdivision (c)(2), and the employee’s consent is not a condition of hire or continued employment.
(C) The employer ensures that the payroll card account provides that during each pay period, the employee has at least three free withdrawals from the payroll card, one of which permits withdrawal of the full amount of the balance at a federally insured depository institution or other location convenient to the place of employment.
(D) None of the employer’s costs associated with the payroll card account are passed on to the employee, and the employer does not receive any financial remuneration for using the pay card at the employee’s expense.
(E)(i) At least 21 days before any change takes effect, the employer provides the employee with written notice in plain language, in at least 10-point type, of the following:
(I) any change to any of the terms and conditions of the payroll card account, including any changes in the itemized list of fees; and
(II) the employee’s right to discontinue receipt of wages by a payroll card account at any time and without penalty.
(ii) The employer may not charge the employee any additional fees until the employer has notified the employee in writing of the changes.
(F) The employer provides the employee the option to discontinue receipt of wages by a payroll card account at any time and without penalty to the employee.
(G) The payroll card issued to the employee shall be a branded-type payroll card that complies with both the following:
(i) Can be used at a PIN-based or a signature-based outlet.
(ii) The payroll card agreement prevents withdrawals in excess of the account balance and to the extent possible protects against the account being overdrawn.
(H) The employer ensures that the payroll card account provides one free replacement payroll card per year at no cost to the employee before the card’s expiration date. A replacement card need not be provided if the card has been inactive for a period of at least 12 months or the employee is no longer employed by the employer.
(I) A nonbranded payroll card may be issued for temporary purposes and shall be valid for not more than 60 days.
(J) The payroll card account shall not be linked to any form of credit, including a loan against future pay or a cash advance on future pay.
(K) The employer shall not charge the employee an initiation, loading, or other participatory fee to receive wages payable in an electronic fund transfer to a payroll card account, with the exception of the cost required to replace a lost, stolen, or damaged payroll card.
(L) The employer shall ensure that the payroll card account provides to the employee, upon the employee’s written or oral request, one free written transaction history each month that includes all deposits, withdrawals, deductions, or charges by any entity from or to the employee’s payroll card account for the preceding 60 days. The employer shall also ensure that the account allows the employee to elect to receive the monthly transaction history by electronic mail.
(d)(1) If a payroll card account is established with a financial institution as an account that is individually owned by the employee, the employer’s obligations and the protections afforded under subsection (c) of this section shall cease 30 days after the employer-employee relationship ends and the employee has been paid the employee’s final wages.
(2) Upon the termination of the relationship between the employer and the employee who owns the individual payroll card account:
(A) the employer shall notify the financial institution of any changes in the relationship between the employer and employee; and
(B) the financial institution holding the individually owned payroll card account shall provide the employee with a written statement in plain language describing a full list of the fees and obligations the employee might incur by continuing a relationship with the financial institution.
(e) The Department of Financial Regulation may adopt rules to implement subsection (c) of this section.
(f) The employer shall provide to the employee copies of the written disclosures required by subdivisions (c)(2)(A) and (E) and by subsection (d) of this section in the employee’s primary language or in a language the employee understands
(Amended 1963, No. 198, § 2; 1977, No. 44, § 1, eff. April 19, 1977; 1977, No. 244 (Adj. Sess.), § 2, eff. May 1, 1978; 1979, No. 100 (Adj. Sess.), § 1; 2009, No. 115 (Adj. Sess.), § 1, eff. May 21, 2010; 2011, No. 78 (Adj. Sess.), § 2, eff. April 2, 2012; 2011, No. 154 (Adj. Sess.), § 3; 2013, No. 15, § 2; 2023, No. 85 (Adj. Sess.), § 79, eff. July 1, 2024.)
§ 342a Investigation of complaints of unpaid wages
(a) An employee or the Department on its own motion may file a complaint that wages have not been paid to an employee, not later than two years after the date the wages were due. The Commissioner shall provide notice and a copy of the complaint to the employer by service, or by certified mail sent to the employer’s last known address, together with an order to file a response to the specific allegation in the complaint filed by the employee or the Department with the Department within 10 calendar days after receipt.
(b) The Commissioner shall investigate the complaint, and may examine the employer’s records, enter and inspect the employer’s business premises, question employees, subpoena witnesses, and compel the production of books, papers, correspondence, memoranda, and other records necessary and material to investigate the complaint. If a person fails to comply with any lawfully issued subpoena, or a witness refuses to testify to any matter on which the witness may be lawfully interrogated, the Commissioner may seek an order from the Civil Division of the Superior Court compelling testimony or compliance with the subpoena.
(c) If after the investigation wages are found to be due, the Commissioner shall attempt to settle the matter between the employer and employee. If the attempt fails, the Commissioner shall issue a written determination and order for collection, which shall specify the facts and the conclusions upon which the determination is based. The Department shall collect from the employer the amounts due and remit them to the employee. Notice of the determination and the order for collection to the employer shall be provided to all interested parties by certified mail or service.
(d) If the Commissioner determines that the unpaid wages were willfully withheld by the employer, the order for collection shall provide that the employer is liable to pay an additional amount not to exceed twice the amount of unpaid wages. One-half of the additional amount recovered above the employee’s unpaid wages shall be remitted to the employee and one-half shall be retained by the Commissioner to offset administrative and collection costs.
(e) Within 30 days after the date of the determination, the employer or employee may file an appeal from the determination to a departmental administrative law judge. The appeal shall, after notice to the employer and employee, be heard by the administrative law judge within a reasonable time. The administrative law judge shall review the complaint de novo and, after a hearing, the determination and, if applicable, order for collection shall be sustained, modified, or reversed by the administrative law judge. Prompt notice in writing of the decision of the administrative law judge and the reasons for it shall be given to all interested parties.
(f) Notwithstanding any other provision of law, the employer or employee may appeal the decision of the administrative law judge within 30 days by filing a written request with the Employment Security Board. The appeal shall be heard by the Board after notice to the employee and employer. The Board may affirm, modify, or reverse the decision of the administrative law judge solely on the basis of evidence in the record or any additional evidence it may direct to be taken. Prompt notice of the decision of the Board shall be given to the employer and employee in the manner provided by section 1357 of this title. The Board’s decision shall be final unless an appeal to the Supreme Court is taken. Testimony given at any hearing upon a complaint of unpaid wages shall be recorded, but the record need not be transcribed unless ordered. The costs of transcription shall be paid by the requesting party.
(g) The Commissioner may enforce a final order for collection under this section within two years of the date of the final order in the Civil Division of the Superior Court.
[Subsection (h) effective until July 1, 2026; see also subsection (h) effective July 1, 2026 set out below.]
(h) Information obtained from any employer, employee, or witness in the course of investigating a complaint of unpaid wages shall be confidential and shall not be disclosed or open to public inspection in any manner that reveals the employee’s or employer’s identity or be admissible in evidence in any action or proceeding other than one arising under this subchapter. However, such information may be released to any public official for the purposes provided in subdivision 1314(e)(1) of this title or to the Attorney General in relation to investigations conducted pursuant to section 346 of this subchapter as provided pursuant to the terms of the memorandum of understanding between the Attorney General and the Commissioner of Labor executed pursuant to section 3 of this title.
[Subsection (h) effective July 1, 2026; see also subsection (h) effective until July 1, 2026 set out above.]
(h) Information obtained from any employer, employee, or witness in the course of investigating a complaint of unpaid wages shall be confidential and shall not be disclosed or open to public inspection in any manner that reveals the employee’s or employer’s identity or be admissible in evidence in any action or proceeding other than one arising under this subchapter. However, such information may be released to any public official for the purposes provided in subdivision 1314(e)(1) of this title.
(Added 1965, No. 182; amended 1977, No. 244 (Adj. Sess.), § 3, eff. May 1, 1978; 1999, No. 119 (Adj. Sess.), § 19, eff. May 18, 2000; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2013, No. 15, § 3; 2013, No. 173 (Adj. Sess.), § 1; 2019, No. 85 (Adj. Sess.), § 5, eff. Feb. 20, 2020; 2019, No. 85 (Adj. Sess.), § 13, eff. July 1, 2026; 2023, No. 85 (Adj. Sess.), § 80, eff. July 1, 2024; 2025, No. 40, § 5, eff. July 1, 2025.)
§ 342b Repealed
[Repealed]
1999, No. 119 (Adj. Sess.), § 20, eff. May 18, 2000.
§ 343 Form of payment
An employer shall not pay employees with any form of evidence of indebtedness, including all scrip, vouchers, due bills, or store orders, unless the employer is in compliance with one or both of the following:
(1) The employer is a cooperative corporation in which the employee is a stockholder, in which case, the cooperative corporation shall, upon request of any shareholding employee, pay the shareholding employee as provided in section 342 of this title.
(2) Payment is made by check as defined in Title 9A or by an electronic fund transfer as provided in section 342 of this title.
(Amended 1977, No. 244 (Adj. Sess.), § 4, eff. May 1, 1978; 2009, No. 115 (Adj. Sess.), § 1, eff. May 21, 2010.)
§ 344 Assignment of future wages
(a) An assignment of future wages payable pursuant to section 342 of this subchapter shall not be valid if it is made or procured to be made to:
(1) the employer from whom the wages are to become due; or
(2) any person on behalf of the employer, or for the purpose of relieving the employer from the obligation to pay under the provisions of section 342 of this subchapter.
(b) An employer shall not require an employee to agree, as a condition of employment, to accept wages at any other period.
(Amended 2023, No. 85 (Adj. Sess.), § 81, eff. July 1, 2024.)
§ 345 Nonpayment of wages and benefits
(a) An employer who violates section 342, 343, 482, or 483 of this title shall be fined not more than $5,000.00. If the employer is a corporation, the president or other officers who have control of the payment operations of the corporation shall be considered employers and liable to the employee for actual wages due when the officer has willfully and without good cause participated in knowing violations of this subchapter.
(b) In addition to any other penalty or punishment prescribed by law, any employer who, pursuant to an oral or written employment agreement, is required to provide benefits to an employee shall be liable to the employee for actual damages caused by the failure to pay for the benefits, and where the failure to pay is knowing and willful and continues for 30 days after the payments are due shall be assessed a civil penalty by the Commissioner of not more than $5,000.00.
(c) The Commissioner may enforce collection of the penalties assessed under this section in the Civil Division of the Superior Court.
(Amended 1963, No. 188, § 1; 2013, No. 15, § 4; 2015, No. 69 (Adj. Sess.), § 5, eff. Jan. 1, 2017; 2017, No. 74, § 33; 2023, No. 85 (Adj. Sess.), § 82, eff. July 1, 2024.)
§ 345a Repealed
[Repealed]
2013, No. 15, § 5.
§ 346 Enforcement by Attorney General; employee misclassification [Repealed effective July 1, 2026]
(a) Following the referral of a complaint by the Commissioner of Labor pursuant to the provisions of section 3 of this title, the Attorney General may investigate a complaint that an employer has committed a willful, substantial, or systemic violation of section 342, 343, 348, 482, or 483 of this chapter by misclassifying an employee as an independent contractor and may enforce those provisions by restraining prohibited acts, seeking civil penalties, obtaining assurances of discontinuance, and conducting civil investigations in accordance with the procedures established in 9 V.S.A. §§ 2458-2461 as though the misclassification of an employee is an unfair act in commerce. Any employer complained against shall have the same rights and remedies as specified in 9 V.S.A. §§ 2458-2461. The Superior Court may impose the same civil penalties and investigation costs and order other relief to the State of Vermont or an aggrieved employee for the misclassification of an employee and any related violations of the provisions of this chapter as they are authorized to impose or order under the provisions of 9 V.S.A. §§ 2458 and 2461 in an unfair act in commerce. In addition, the Superior Court may order restitution of wages or other benefits on behalf of an employee and may order reinstatement and other appropriate relief on behalf of an employee.
(b)(1) The Attorney General shall share information and coordinate investigatory and enforcement resources with the Departments of Financial Regulation, of Labor, and of Taxes pursuant to the provisions of section 3 of this title.
(2) Upon receiving notice that the Attorney General has determined that an employer has committed a violation of section 342, 343, 348, 482, or 483 of this chapter by misclassifying an employee as an independent contractor, the Commissioners of Financial Regulation and of Taxes shall review whether the employer is in compliance with the insurance or tax laws that are under their jurisdiction.
(Added 2019, No. 85 (Adj. Sess.), § 4, eff. Feb. 20, 2020; amended 2021, No. 20, § 216; repealed on July 1, 2026 by 2019, No. 85 (Adj. Sess.), § 11(b).)
§ 347 Forfeiture
An employer who violates section 342 or 343 of this title shall forfeit to the individual injured twice the value thereof, to be recovered in a civil action, and all costs and reasonable attorney’s fees. However, an action may not be maintained under this section unless at the time the action is brought, the wages remain unpaid or improperly paid.
(Amended 1977, No. 244 (Adj. Sess.), § 6, eff. May 1, 1978; 1979, No. 100 (Adj. Sess.), § 2; 2013, No. 15, § 6.)
§ 348 Retaliation prohibited
(a) An employer shall not discharge or in any other manner retaliate against an employee because:
(1) the employee lodged a complaint of a violation of this subchapter;
(2) the employee has cooperated with the Commissioner in an investigation of a violation of this subchapter; or
(3) the employer believes that the employee may lodge a complaint or cooperate in an investigation of a violation of this subchapter.
(b) Any person aggrieved by a violation of this section may bring an action in the Civil Division of the Superior Court seeking compensatory and punitive damages or equitable relief, including restraint of prohibited acts, restitution of wages or benefits, reinstatement, costs, reasonable attorney’s fees, and other appropriate relief.
(Added 2013, No. 15, § 8.)
Subchapter 3 Minimum Wages
§ 381 Declaration of policy
It is the declared public policy of the State of Vermont that workers employed in any occupation should receive wages sufficient to provide adequate maintenance and to protect their health, and to be fairly commensurate with the value of the services rendered.
§ 383 Definitions
As used in this subchapter:
(1) “Commissioner” means the Commissioner of Labor or designee.
(2) “Employee” means any individual employed or permitted to work by an employer except:
(A) any individual employed in agriculture;
(B) any individual employed in domestic service in or about a private home;
(C) any individual employed by the United States;
(D) any individual employed in the activities of a public supported nonprofit organization, except laundry employees, nurses’ aides, or practical nurses;
(E) any individual employed in a bona fide executive, administrative, or professional capacity;
(F) any individual making home deliveries of newspapers or advertising;
(G) taxi-cab drivers;
(H) outside salespersons; and
(I) students working during all or any part of the school year or regular vacation periods.
(3) “Employer” means any person that employs two or more employees.
(4) “Occupation” means an industry, trade, or business or branch thereof or class of work in which workers are gainfully employed.
(Amended 1959, No. 109, eff. April 14, 1959; 1967, No. 177, § 1, eff. April 17, 1967; 1977, No. 244 (Adj. Sess.), § 7, eff. May 1, 1978; 1985, No. 80, § 2; 1993, No. 227 (Adj. Sess.), § 34; 2001, No. 47, § 1; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 84, eff. July 1, 2024.)
§ 384 Employment; wages
(a)(1) Beginning on January 1, 2022, an employer shall not employ any employee at a rate of less than $12.55, and on each subsequent January 1, the minimum wage rate shall be increased by five percent or the percentage increase of the Consumer Price Index, CPI-U, U.S. city average, not seasonally adjusted, or successor index, as calculated by the U.S. Department of Labor or successor agency, rounded to one decimal point, for the 12 months preceding the previous September 1, whichever is smaller, but in no event shall the minimum wage be decreased. The minimum wage shall be rounded off to the nearest $0.01.
(2) An employer in the hotel, motel, tourist place, and restaurant industry shall not employ a service or tipped employee at a basic wage rate less than one-half the minimum wage. As used in this subdivision, “a service or tipped employee” means an employee of a hotel, motel, tourist place, or restaurant who customarily and regularly receives more than $120.00 per month in tips for direct and personal customer service.
(3) If the minimum wage rate established by the U.S. government is greater than the rate established pursuant to subdivision (1) of this subsection for any year, the minimum wage rate for that year shall be the rate established by the U.S. government.
(b) Notwithstanding subsection (a) of this section, an employer shall not pay an employee less than one and one-half times the regular wage rate for any work done by the employee in excess of 40 hours during a workweek. However, this subsection shall not apply to:
(1) Employees of any retail or service establishment. A “retail or service establishment” means an establishment 75 percent of whose annual volume of sales of goods or services, or of both, is not for resale and is recognized as retail sales or services in the particular industry.
(2) Employees of an establishment that is an amusement or recreational establishment, if:
(A) it does not operate for more than seven months in any calendar year; or
(B) during the preceding calendar year its average receipts for any six months of that year were not more than one-third of its average receipts for the other six months of the year.
(3) Employees of an establishment that is a hotel, motel, or restaurant.
(4) Employees of hospitals, public health centers, nursing homes, maternity homes, therapeutic community residences, and residential care homes as those terms are defined in Title 18, provided:
(A) the employer pays the employee on a biweekly basis; and
(B) the employer files an election to be governed by this section with the Commissioner; and
(C) the employee receives not less than one and one-half times the regular wage rate for any work done by the employee:
(i) in excess of eight hours for any workday; or
(ii) in excess of 80 hours for any biweekly period.
(5) Employees of a business engaged in the transportation of persons or property to whom the overtime provisions of the federal Fair Labor Standards Act do not apply. However, this subsection shall apply to all other employees of such businesses.
(6) Employees of a political subdivision of this State.
(7) State employees who are covered by the federal Fair Labor Standards Act.
(8) Permanent employees of the Vermont General Assembly.
(c) However, an employer may deduct from the rates required in subsections (a) and (b) of this section:
(1) the amounts for board, lodging, apparel, rent, or utilities paid or furnished; or
(2) other items or services or such other conditions or circumstances as may be usual in a particular employer-employee relationship.
(d) For the purposes of earned sick time, an employer shall comply with the provisions required under subchapter 4B of this chapter.
(Amended 1959, No. 32, eff. Sept. 1, 1959; 1965, No. 35, § 1, eff. Oct. 1, 1965; 1967, No. 177, § 2, eff. April 17, 1967; 1969, No. 67, §§ 1, 2, eff. April 17, 1969; 1969, No. 190 (Adj. Sess.); 1971, No. 203 (Adj. Sess.); 1973, No. 265 (Adj. Sess.), eff. April 16, 1974; 1977, No. 244 (Adj. Sess.), § 8, eff. May 1, 1978; 1985, No. 80, § 1; 1987, No. 181 (Adj. Sess.); 1989, No. 131 (Adj. Sess.), § 1, eff. March 29, 1990; 1993, No. 227 (Adj. Sess.), §§ 33, 35; 1995, No. 150 (Adj. Sess.), § 1, eff. Jan. 1, 1997; 1997, No. 4, § 1; 1999, No. 21, § 1, eff. May 13, 1999; 1999, No. 119 (Adj. Sess.), § 7, eff. May 18, 2000; 2003, No. 67, § 25a; 2005, No. 82, § 1; 2007, No. 78, § 1; 2009, No. 54, § 31, eff. June 1, 2009; 2013, No. 176 (Adj. Sess.), § 1, eff. Jan. 1, 2015; 2015, No. 69 (Adj. Sess.), § 3, eff. Jan. 1, 2017; 2019, No. 86 (Adj. Sess.), § 1; 2023, No. 85 (Adj. Sess.), § 85, eff. July 1, 2024; 2023, No. 87 (Adj. Sess.), § 95, eff. March 13, 2024; 2025, No. 40, § 6, eff. July 1, 2025.)
§ 385 Administration
The Commissioner and the Commissioner’s authorized representatives have full power and authority for all the following:
(1) To enforce and administer the provisions of this chapter, including the power to conduct investigations and take any other action considered necessary or suitable for the administration of this chapter. In the discharge of duties under this chapter, the Commissioner may administer oaths, take depositions, certify to official acts, subpoena witnesses, and compel production of any documents and records necessary and material to the administration of this chapter.
(2) To enter and inspect any place of business or employment, question any employees, and investigate any records, facts, conditions, or matters that are deemed appropriate and that in any way appertain to or have a bearing upon the question of wages due under the provisions of this chapter.
(3) To require from any employer full and correct statements in writing of the wages paid to all employees employed by that employer necessary to investigate and enforce the provisions of this chapter.
(4) To determine the amount of deductions for board, lodging, or other items or services supplied by the employer or any other typical conditions or circumstances in a particular employer-employee relationship; provided, however, that in no case shall the total remuneration received by an employee, including wages, gratuities, board, lodging, or other items or services supplied by the employer, be less than the minimum wage established pursuant to section 384 of this subchapter. No deduction may be made for the care, cleaning, or maintenance of required apparel. No deduction for required apparel shall be made without the employee’s express written authorization and the deduction shall not:
(A) reduce the total remuneration received by an employee below the minimum wage established pursuant to section 384 of this subchapter;
(B) include any administrative fees or charges; or
(C) amend, nullify, or violate the terms and conditions of any collective bargaining agreement.
(Amended 2001, No. 47, § 2; 2005, No. 212 (Adj. Sess.), § 10, eff. May 29, 2006; 2007, No. 182 (Adj. Sess.), § 10, eff. June 2, 2008; 2023, No. 85 (Adj. Sess.), § 86, eff. July 1, 2024; 2025, No. 40, § 7, eff. July 1, 2025.)
§ 386 Investigations
The Commissioner may, and on a petition of 50 or more residents of the State shall, investigate any industry, business, occupation, or employment pursuant to the provisions of section 385 of this subchapter, to ascertain whether any violations of this subchapter have occurred.
(Amended 2023, No. 85 (Adj. Sess.), § 87, eff. July 1, 2024.)
§ 387 Enforcement by Attorney General; employee misclassification [Repealed effective July 1, 2026]
(a) Following the referral of a complaint by the Commissioner of Labor pursuant to the provisions of section 3 of this title, the Attorney General may investigate a complaint that an employer has committed a willful, substantial, or systemic violation of this subchapter by misclassifying an employee as an independent contractor and may enforce the provisions of this subchapter by restraining prohibited acts, seeking civil penalties, obtaining assurances of discontinuance, and conducting civil investigations in accordance with the procedures established in 9 V.S.A. §§ 2458-2461 as though the misclassification of an employee is an unfair act in commerce. Any employer complained against shall have the same rights and remedies as specified in 9 V.S.A. §§ 2458-2461. The Superior Court may impose the same civil penalties and investigation costs and order other relief to the State of Vermont or an aggrieved employee for the misclassification of an employee and any related violations of the provisions of this chapter as they are authorized to impose or order under the provisions of 9 V.S.A. §§ 2458 and 2461 in an unfair act in commerce. In addition, the Superior Court may order restitution of wages or other benefits on behalf of an employee and may order reinstatement and other appropriate relief on behalf of an employee.
(b)(1) The Attorney General shall share information and coordinate investigatory and enforcement resources with the Departments of Financial Regulation, of Labor, and of Taxes pursuant to the provisions of section 3 of this title.
(2) Upon receiving notice that the Attorney General has determined that an employer has committed a violation of this subchapter by misclassifying an employee as an independent contractor, the Commissioners of Financial Regulation and of Taxes shall review whether the employer is in compliance with the insurance or tax laws that are under their jurisdiction.
(Added 2019, No. 85 (Adj. Sess.), § 6, eff. Feb. 20, 2020; amended 2021, No. 20, § 217; repealed on July 1, 2026 by 2019, No. 85 (Adj. Sess.), § 11(b).)
§§ 388-390a Repealed
[Repealed]
1995, No. 188 (Adj. Sess.), § 4.
§ 390 Repealed
[Repealed]
2001, No. 47, § 8.
§ 390a Repealed
[Repealed]
2001, No. 47, § 3.
§ 391 Repealed
[Repealed]
(Amended 2001, No. 47, § 4.)
§ 392 Repealed
[Repealed]
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2001, No. 47, § 5; 2017, No. 11, § 51.)
§ 393 Employers’ records; notice
(a) Every employer shall keep a true and accurate record of the hours worked by each employee and of the wages paid to the employee and shall furnish to the Commissioner upon demand a sworn statement of the same. The records shall be open to inspection by the Commissioner or any authorized agent of the Department at any reasonable time.
(b) Every employer shall keep a copy of the rules posted in a conspicuous place in the area where employees are employed. The Commissioner shall furnish copies of the rules to employers without charge.
(Amended 2023, No. 85 (Adj. Sess.), § 90, eff. July 1, 2024.)
§ 394 Penalties
(a) An employer or any officer or agent of an employer, who pays, permits to be paid, or agrees to pay to any employee less than the applicable rate to which the employee is entitled pursuant to this subchapter, shall be assessed a civil penalty of not more than $100.00 for each day the employee is paid less than the rate required pursuant to this subchapter.
(b) An employer or an officer or agent of an employer, shall be assessed a civil penalty of not more than $100.00 for any of the following:
(1) failing to keep the records required pursuant to this subchapter;
(2) refusing to permit the Commissioner to enter the place of business; or
(3) failing to furnish records to the Commissioner upon demand.
(Amended 2001, No. 47, § 6; 2023, No. 85 (Adj. Sess.), § 91, eff. July 1, 2024.)
§ 395 Civil actions
An employee who is paid by an employer less than the applicable wage rate to which the employee is entitled pursuant to this subchapter, shall recover, in a civil action, twice the amount of the minimum wage established pursuant to section 384 of this subchapter less any amount actually paid by the employer, together with costs and reasonable attorney’s fees. An agreement between an employer and an employee to work for less than the wage rates established pursuant to section 384 of this subchapter shall not be a defense to the action.
(Amended 2001, No. 47, § 7; 2023, No. 85 (Adj. Sess.), § 92, eff. July 1, 2024.)
§ 396 Appeals from Commissioner’s decisions
(a) Appeals to Superior Court. Any person aggrieved by a decision of the Commissioner may appeal to the Superior Court.
(b) Procedure. The Commissioner shall forward to the court the record of the decision on appeal. The court shall consider the record and any evidence presented; may approve or set aside the Commissioner’s decision in whole or in part, as justice may require; and may refer any matter or issue arising in the proceedings to the Commissioner for further consideration. In no case shall such an appeal operate as a stay unless the Commissioner or the court to which the appeal is taken so orders.
(c) Certifying record. The Commissioner may provide to the court the record by filing either the original papers or duly certified copies of them together with a certified statement of any other facts that show the grounds of the action appealed from.
(d) Hearing. The court may take evidence or may appoint a referee to take such evidence as it may direct. A referee that is appointed shall submit a report to the court of all evidence taken together with findings of fact.
(e) Costs. In any proceedings under this subchapter, the court may award any costs it determines to be equitable and just.
(f) Appeal; Supreme Court. The decision of the Superior Court may be appealed to the Supreme Court.
(Amended 1971, No. 185 (Adj. Sess.), § 193, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3; 1997, No. 161 (Adj. Sess.), § 17, eff. Jan. 1, 1998; 2023, No. 85 (Adj. Sess.), § 93, eff. July 1, 2024.)
§ 397 Retaliation prohibited
(a) An employer shall not discharge or in any other manner retaliate against an employee because:
(1) the employee lodged a complaint of a violation of this subchapter;
(2) the employee has cooperated with the Commissioner in an investigation of a violation of this subchapter; or
(3) the employer believes that the employee may lodge a complaint or cooperate in an investigation of a violation of this subchapter.
(b) Any person aggrieved by a violation of this section may bring an action in the Civil Division of the Superior Court seeking compensatory and punitive damages or equitable relief, including restraint of prohibited acts, restitution of wages or benefits, reinstatement, costs, reasonable attorney’s fees, and other appropriate relief.
(Added 2013, No. 15, § 9.)
Subchapter 3A Notice of Potential Layoffs Act
§ 411 Definitions
As used in this subchapter:
(1) “Affected employees” means employees who may be expected to experience an employment loss as a consequence of a proposed or actual business closing or mass layoff by their employer.
(2) “Business closing” means:
(A) the permanent shutdown of a facility;
(B) the permanent cessation of operations at one or more worksites in the State that results in the layoff of 50 or more employees over a 90-day period; or
(C) the cessation of work or operations not scheduled to resume within 90 days that affects 50 or more employees.
(3) “Commissioner” means the Commissioner of Labor.
(4) “Department” means the Department of Labor.
(5) “Employer” means any person that employs:
(A) 50 or more full-time employees;
(B) 50 or more part-time employees who work at least 1,040 hours per employee per year; or
(C) a combination of 50 or more:
(i) full-time employees; and
(ii) part-time employees who work at least 1,040 hours per employee per year.
(6) “Employment loss” means the termination of employment that is the direct result of a business closing or mass layoff. An employee will not be considered to have suffered an employment loss if the employee is offered a transfer to a different site of employment within 35 miles; or if prior to the layoff notice to the employee, the employee voluntarily separates or retires or was separated by the employer for unsatisfactory performance or misconduct.
(7) “Mass layoff” means a permanent employment loss of at least 50 employees at one or more worksites in Vermont during any 90-day period. In determining whether a mass layoff has occurred or will occur, employment losses for two or more groups of employees, each of which is below this threshold but which in the aggregate exceed this threshold and which occur within any 90-day period shall be considered to be a mass layoff unless the employer demonstrates that the employment losses are the result of separate and distinct actions and causes.
(8) “Representative” means an exclusive bargaining agent as legally recognized under State or federal labor laws.
(Added 2013, No. 125 (Adj. Sess.), § 2, eff. Jan. 15, 2015.)
§ 412 Education and outreach
The Department and the Agency of Commerce and Community Development shall prepare information and materials for the purpose of informing and educating Vermont employers with regard to programs and resources that are available to assist with economic and workforce retention initiatives in order to avoid business closings and mass layoffs. The Department and the Agency of Commerce and Community Development shall also inform Vermont employers of the employers’ obligations that will be required for proper notice under the provisions of this subchapter.
(Added 2013, No. 125 (Adj. Sess.), § 2, eff. May 10, 2014.)
§ 413 Notice and wage payment obligations
(a) An employer who will engage in a closing or mass layoff shall provide notice to the Secretary of Commerce and Community Development and the Commissioner in accordance with this section to enable the State to present information on potential support for the employer and separated employees.
(b) Notwithstanding subsection (a) of this section, an employer who will engage in a closing or mass layoff shall provide notice to the Secretary of Commerce and Community Development and the Commissioner 45 days prior to the effective date of the closing or layoffs that reach the thresholds defined in section 411 of this subchapter, and shall provide 30 days’ notice to the local chief elected official or administrative officer of the municipality, affected employees, and bargaining agent, if any.
(c) The employer shall send to the Commissioner and the Secretary the approximate number and job titles of affected employees, the anticipated date of the employment loss, and the affected worksites within the time allotted for notice to the Commissioner and Secretary under subsection 413(b) or 414(b) of this subchapter. Concurrent with the notification to the affected employees, in accordance with subsection 413(b) of this subchapter, the employer shall send to the Commissioner in writing the actual number of layoffs, job titles, date of layoff, and other information as the Commissioner deems necessary for the purposes of unemployment insurance benefit processing and for accessing federal and State resources to mitigate adverse employment impacts affecting employers, employees, and communities.
(d) In the case of a sale of part or all of an employer’s business where mass layoffs will occur, the seller and the purchaser are still required to comply with the notice requirements under subsection (b) of this section.
(e) Nothing in this subchapter shall abridge, abrogate, or restrict the right of the State to require an employer that is receiving State economic development funds or incentives from being required to provide additional or earlier notice as a condition for the receipt of such funds or incentives.
(f) An employer is required to pay all unpaid wage and compensation owed to any laid-off worker, as required under this title.
(g) This section shall not apply to a nursing home in situations where Rules 2.8 and 3.14 of the Vermont Licensing and Operating Rules for Nursing Homes apply or where the CMS Requirements for Long-Term Care Facilities apply, pursuant to 42 C.F.R. §§ 483.15 and 483.70.
(Added 2013, No. 125 (Adj. Sess.), § 2, eff. Jan. 15, 2015.)
§ 414 Exceptions
(a) In the case of a business closing or mass layoff, an employer is not required to comply with the notice requirement in section 413 of this subchapter and may delay notification to the Department if:
(1) the business closing or mass layoff results from a strike or a lockout;
(2) the employer is actively attempting to secure capital or investments in order to avoid closing or mass layoffs; and the capital or investments sought, if obtained, would have enabled the employer to avoid or postpone the business closing or mass layoff, and the employer reasonably and in good faith believed that giving the notice would have precluded the employer from securing the needed capital or investment;
(3) the business closing or mass layoff is caused by business circumstances that were not reasonably foreseeable at the time the 45-day notice would have been required;
(4) the business closing or mass layoff is due to a disaster beyond the control of the employer; or
(5)(A) the business closing or the mass layoff is the result of the conclusion of seasonal employment or the completion of a particular project or undertaking; or
(B) the affected employees were hired with the understanding that their employment was limited to the duration of the season, facility, project, or undertaking.
(b) An employer that is unable to provide the notice otherwise required by this subchapter as a result of circumstances described in subsection (a) of this section shall provide as much notice as is practicable and at that time shall provide a brief statement to the Commissioner regarding the basis for failure to meet the notification period. In such situations, the mailing of the notice by certified mail or any other method approved by the Commissioner shall be considered acceptable in the fulfillment of the employer’s obligation to give notice to each affected employee under this subchapter. At the time of notice to the Commissioner, the employer shall provide the required information under subsection 413(c) of this subchapter.
(Added 2013, No. 125 (Adj. Sess.), § 2, eff. Jan. 15, 2015.)
§ 415 Violations
(a) An employer who violates subsection 413(b) or 414(b) of this subchapter is liable to each employee who lost employment for:
(1) one day of severance pay for each day after the first day in the 45-day notice period required in subsection 413(b) of this subchapter, up to a maximum of ten days’ severance pay; and
(2) the continuation, not to exceed one month after an employment loss, of existing medical or dental coverage under an employment benefit plan, if any, necessary to cover any delay in an employee’s eligibility for obtaining alternative coverage resulting directly from the employer’s violation of notice requirements.
(b) The amount of an employer’s liability under subsection (a) of this section shall be reduced by the following:
(1) any voluntary and unconditional payments made by the employer to the employee that were not required to satisfy any legal obligation;
(2) any payments by the employer to a third party or trustee, such as premiums for health benefits or payments to a defined contribution pension plan, on behalf of and attributable to the employee for the period of the violation; and
(3) any liability paid by the employer under any applicable federal law governing notification of mass layoffs, business closings, or relocations.
(c) If an employer proves to the satisfaction of the Commissioner that the act or omission that violated this subchapter was in good faith, the Commissioner may reduce the amount of liability provided for in this section. In determining the amount of such a reduction, the Commissioner shall consider any efforts by the employer to mitigate the violation.
(d) If, after an administrative hearing, the Commissioner determines that an employer has violated any of the requirements of this subchapter, the Commissioner shall issue an order including any penalties assessed by the Commissioner under this section and section 417 of this subchapter. The employer may appeal a decision of the Commissioner to the Superior Court within 30 days after the date of the Commissioner’s order.
(Added 2013, No. 125 (Adj. Sess.), § 2, eff. Jan. 15, 2015; amended 2023, No. 85 (Adj. Sess.), § 94, eff. July 1, 2024.)
§ 416 Powers of the Commissioner
(a) The Commissioner may adopt rules as necessary, pursuant to 3 V.S.A. chapter 25, to carry out this subchapter. The rules shall include provisions that allow the parties access to administrative hearings for any actions of the Department under this subchapter.
(b) In any investigation or proceeding under this subchapter, the Commissioner has, in addition to all other powers granted by law, the authority to subpoena and examine information of an employer necessary to determine whether a violation of this subchapter has occurred, including to determine the validity of any defense.
(c) Information obtained through administration of this subchapter by the Commissioner and the Secretary of Commerce and Community Development shall be confidential, except that the number of layoffs, the types of jobs affected, and work locations affected shall cease to be confidential after local government and the affected employees have been notified. The Department may provide the information collected pursuant to subsection 413(c) of this subchapter to the U.S. Department of Labor and any other governmental entities for the purposes of securing benefits for the affected employees.
(d) Neither the Commissioner nor any court shall have the authority to enjoin a business closing, relocation, or mass layoff under this subchapter.
(Added 2013, No. 125 (Adj. Sess.), § 2, eff. Jan. 15, 2015.)
§ 417 Administrative penalty
An employer who fails to give notice as required by subsection 413(b) or 414(b) of this subchapter shall be subject to an administrative penalty of $500.00 for each day that the employer was deficient in the notice to the Department. The Commissioner may waive the administrative penalty if the employer:
(1) demonstrates good cause under subsection 414(b) of this subchapter;
(2) pays to all affected employees the amounts for which the employer is liable under section 415 of this title within 30 days from the date the employer enacts the business closing or mass layoff; and
(3) pays to all affected employees any unpaid wage and compensation owed to any laid-off worker, as required under this title.
(Added 2013, No. 125 (Adj. Sess.), § 2, eff. Jan. 15, 2015.)
§ 418 Other rights
The rights and remedies provided to employees by this subchapter do not infringe upon or alter any other contractual or statutory rights and remedies of the employees. Nothing in this subchapter is intended to alter or diminish or replace any federal or State regulatory mandates for a shutdown or closure of a regulated business or entity.
(Added 2013, No. 125 (Adj. Sess.), § 2, eff. Jan. 15, 2015; amended 2017, No. 74, § 34.)
Subchapter 4 Employment of Children and Aliens
§ 430 Policy; definitions; rules
(a) It is the policy of Vermont that children shall be protected from employment in harmful and dangerous occupations. Toward this end, Vermont law should reflect federal protections regarding the employment of children, but should continue to provide additional protection for children in Vermont where particular circumstances warrant greater protection for children.
(b) As used in this subchapter:
(1) “Child” or “children” means an individual under 18 years of age.
(2) “Commissioner” means the Commissioner of Labor.
(3) “Employee” means any individual suffered or permitted to work by an employer.
(4) “Illegal child employment” means the employment of any child under 18 years of age in any work or occupation specifically prohibited by State or federal law. “Illegal child employment” does not include work performed by students as part of an educational program, provided this subchapter or federal law specifically permits this work.
(c) The Commissioner shall adopt rules to carry out the purpose and intent of this subchapter, provided the rules are consistent with federal child labor laws and rules. However, the Commissioner shall not be required to adopt or modify rules to conform with a change in federal child labor laws or regulations that weakens or eliminates an existing child labor protection policy.
(Added 2001, No. 68, § 1; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 95, eff. July 1, 2024.)
§ 431 Age limit; certificate as to eligibility of child under 16
Except as provided in this subchapter, a child under 16 years of age shall not be employed in any gainful occupation unless the child deposits with the employer a certificate from the Commissioner that states that the child is eligible for employment in accordance with the provisions of this subchapter. However, this requirement shall not apply to any child employed during vacations or before or after sessions of school when the employment is not otherwise prohibited by this subchapter.
(Amended 1999, No. 69 (Adj. Sess.), § 1; 2001, No. 68, § 2.)
§ 432 Restrictions
(a) The Commissioner shall not issue a certificate for a child under 16 years of age pursuant to section 431 of this subchapter until the Commissioner has received, examined, approved, and filed the following papers:
(1) The school record of the child properly filled out and signed by the person in charge of the school that the child last attended, giving the child’s age, address, standing in studies, rating in conduct, and attendance in days during the school year of the last full year of attendance.
(2) Evidence of the age of the child as follows:
(A) The birth certificate of the child, or a copy certified by the town clerk in a town where the certificate is a part of the public records.
(B) If the certificate or certified copy cannot be procured, a duly attested transcript of the certificate of birth or baptism or other religious record shall be conclusive evidence of the age of the child.
(C) In case no documentary proof of age is available, the Commissioner may accept an affidavit from the parent, guardian, or custodian of the child to establish the age of the child.
(3) A certificate from a physician resident in and licensed to practice in this State showing that after a thorough examination the child is found to be physically fit to be employed in the proposed occupation. When a certificate is requested for the employment of a child under 16 years of age as an actor or performer in motion pictures, theatrical productions, radio, or television, this provision may be waived at the discretion of the Commissioner.
(4) Before a certificate approving the employment of a child as an actor or performer in motion pictures, theatrical productions, radio, or television is issued by the Commissioner, the Secretary of Education must approve the substance and conditions of the educational program being provided to the child during the employment, which shall not be for more than 90 days during the school year.
(b) The Commissioner shall refuse a certificate to a child under 16 years of age unless the child has completed the elementary school course, has received an equivalent education, or has been excused from further school attendance under the provisions of 16 V.S.A. § 1123.
(Amended 1987, No. 4, § 1, eff. March 10, 1987; 2001, No. 68, § 3; 2013, No. 92 (Adj. Sess.), § 262, eff. Feb. 14, 2014; 2023, No. 85 (Adj. Sess.), § 96, eff. July 1, 2024.)
§ 433 Repealed
[Repealed]
2001, No. 68, § 16(1).
§ 434 Employment of children under 16 years of age
(a) A child under 16 years of age shall not be employed:
(1) more than eight hours in any day;
(2) more than six days in any week;
(3) earlier than seven o’clock in the morning; or
(4) after seven o’clock at night, except from June 1 through Labor Day, when a child may be permitted to work until nine o’clock at night.
(b) A child under 16 years of age shall not be employed more than three hours on any day that school is in session, and not more than a total of 18 hours during any week that school is in session.
(c)(1) Notwithstanding subsections (a) and (b) of this section, a child employed as an actor or performer in motion pictures, theatrical productions, radio, or television, or employed as a baseball bat person, may be employed until midnight or after midnight if a parent or guardian and the Commissioner of Labor have consented in writing.
(2) The Commissioner shall adopt rules regarding the permissible duties of a baseball bat person.
(d) The provisions of this section shall not apply to employment as a newspaper carrier or work connected with agriculture or domestic service.
(Added 1987, No. 4, § 2, eff. March 10, 1987; amended 1987, No. 144 (Adj. Sess.), eff. April 13, 1988; 1999, No. 69 (Adj. Sess.), § 2; 2001, No. 68, § 4; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 97, eff. July 1, 2024.)
§ 435 Examination and report
When so ordered by the Secretary of Education, the superintendent of schools for the school district or supervisory union where the child under 16 years of age resides shall examine the child for the purpose of determining the child’s eligibility for employment in accordance with the provisions of section 432 of this subchapter and shall, upon the completion of the examination, make a written report to the Secretary of Education who shall transmit a copy of the report to the Commissioner.
(Amended 2001, No. 68, § 5; 2013, No. 92 (Adj. Sess.), § 263, eff. Feb. 14, 2014; 2017, No. 74, § 35; 2023, No. 85 (Adj. Sess.), § 98, eff. July 1, 2024.)
§ 436 Employment of children under 14 years of age
A child under 14 years of age shall not be employed or permitted to work in any gainful occupation unless the occupation has been approved by the Commissioner, by rule, to be appropriate for a child under 14 years of age, and the employment occurs during vacation and before and after school. The provisions of this section shall not apply to:
(1) employment by a parent or a person standing in place of a parent employing their own child or a child in their custody in an occupation other than manufacturing, mining, or an occupation found by the U.S. Secretary of Labor to be particularly hazardous or detrimental to the child’s health or well-being;
(2) a newspaper carrier; or
(3) an actor or performer in motion pictures, theatrical productions, radio, and television.
(Amended 1987, No. 4, § 3, eff. March 10, 1987; 2001, No. 68, § 6; 2013, No. 96 (Adj. Sess.), § 127; 2023, No. 85 (Adj. Sess.), § 99, eff. July 1, 2024.)
§ 437 Employment of children; special restrictions; hours for children under 16 years of age
(a) Except as provided in section 438 of this title, a child shall not be employed or permitted to work at or on any occupations, employment, operations, or machines determined to be hazardous, by rule, by the U.S. Secretary of Labor or the Commissioner.
(b) A child under 16 years of age shall not be employed more than eight hours in any one day or more than 40 hours in any one week.
(Amended 2001, No. 68, § 7; 2013, No. 96 (Adj. Sess.), § 128; 2023, No. 85 (Adj. Sess.), § 100, eff. July 1, 2024.)
§ 438 Exceptions
A child over 14 years of age who is enrolled in a career technical education program or course duly approved by the State Board of Education may be legally employed in any of the occupations or operations named in section 437 of this title or other occupations or operations that may be in the estimation of the State Board of Education a necessary or essential part of the student’s career technical education, provided that the plant, work places, machinery, and other appliances and equipment used for instruction have been inspected for safe conditions and approved by the Commissioner.
(Amended 1991, No. 204 (Adj. Sess.), § 9; 2001, No. 68, § 8; 2013, No. 92 (Adj. Sess.), § 302, eff. Feb. 14, 2014.)
§ 439 Repealed
[Repealed]
1969, No. 218 (Adj. Sess.), § 4.
§ 440 Repealed
[Repealed]
2001, No. 68, § 16(2).
§ 441 Repealed
[Repealed]
2001, No. 68, § 16(5).
§ 442 Posting notices of hours of labor
An employer shall post in a conspicuous place in the place in which a child is employed a printed notice describing permitted and prohibited operations, occupations, and machines at which a child may be employed, stating the number of hours’ work permitted on each day of the week, the hours of commencing and stopping work, and the hours when the time allowed for meals begins and ends. The printed forms of this notice shall be provided by the Commissioner.
(Amended 2001, No. 68, § 10.)
§ 443 Repealed
[Repealed]
2001, No. 68, § 16(3).
§ 444 Repealed
[Repealed]
1969, No. 218 (Adj. Sess.), § 4.
§ 444a Employment of aliens
(a) As used in this section:
(1) “Alien” means any person not a citizen of the United States.
(2) “Employer” means any person, including any partnership, firm, corporation, or association, or any agent thereof, who engages or utilizes the personal services of one or more individuals for a salary or wage.
(3) “Illegal alien” means any person not a citizen of the United States who has entered the United States in violation of the Federal Immigration and Naturalization Act or regulations issued pursuant to the Act, who has legally entered but without the right to be employed in the country, or who has legally entered subject to a time limit but has remained illegally after the expiration of the time limit.
(b) No employer or agent for an employer shall knowingly recruit, solicit, or refer for employment, or employ, an illegal alien.
(c) No employer shall knowingly employ any alien unless the employer determines that the alien possesses the required certificate under the Federal Immigration and Naturalization Act or regulations issued pursuant to the Act, or has authorization from the U.S. Customs and Immigration Service or other appropriate federal agency.
(d) A person convicted of violating this section shall be fined not less than $100.00 or more than $300.00 for conviction of a first offense. For any subsequent offense, a person convicted of violating this section shall be fined not less than $300.00, nor more than $750.00.
(Added 1977, No. 99; amended 2023, No. 85 (Adj. Sess.), § 101, eff. July 1, 2024.)
§ 445 Repealed
[Repealed]
1969, No. 218 (Adj. Sess.), § 4.
§ 446 Duties of Commissioner as to employment of children
The Commissioner may inquire of the owner or superintendent of any place or establishment as to the employment of children, may request to see the certificate filed with the owner or superintendent, and shall ensure that the provisions of this subchapter have been complied with.
(Amended 2001, No. 68, § 11.)
§ 447 Repealed
[Repealed]
2001, No. 68, § 16(4).
§ 448 Duty of person having control of child
A person having control of a child shall not allow the child to be employed contrary to a provision of this subchapter.
(Amended 2001, No. 68, § 12.)
§ 449 General penalty
A person who violates a provision of this subchapter for which another penalty is not provided shall be fined not more than $5,000.00 for each offense and, upon a subsequent conviction, may be fined or imprisoned for not more than six months, or both.
(Amended 1981, No. 223 (Adj. Sess.), § 23; 2001, No. 68, § 13.)
§ 450 Repealed
[Repealed]
1973, No. 249 (Adj. Sess.), § 111.
§ 451 Complaints
Truant officers and all informing officers are authorized to make complaints for violations or offenses arising under this subchapter. A complaint for a violation of section 448 of this title shall be sufficient if it states that the person having control of a child has allowed such child to be employed contrary to law.
§ 452 Suspension of subchapter
The Commissioner, with the approval of the Governor, may suspend part or all of the provisions of this subchapter for a period not to exceed two months in any one year in the case of a manufacturing establishment or business, the materials and products of which are perishable and require immediate labor to prevent decay or damage.
(Amended 2001, No. 68, § 14.)
§ 453 Sale of goods made in violation of subchapter
No person, partnership, corporation, or association shall knowingly sell, offer, or expose for sale; take orders for the future delivery of; or possess with intent to sell any article, product, or compound in the production, manufacture, or distribution of which children have been employed in violation of the provisions of this subchapter, or in a manner or under conditions that would be in violation of these provisions if the employment had occurred in this State. Any complaint alleging a violation of this section shall be filed with the Commissioner, who shall investigate, and if the Commissioner determines there is sufficient evidence to substantiate the allegations, shall transmit the complaint to the Attorney General or to the State’s Attorney of the county in which the violation is alleged to have occurred. A person who violates a provision of this section shall be fined not more than $10,000.00.
(Amended 2001, No. 68, § 15.)
Subchapter 4A Parental and Family Leave
§ 470 Purpose
(a) Strong families are the foundation for a productive and competitive state. There are a growing number of single-parent families where the sole parent works and two-parent families where both parents work. Most people who work while raising families do so out of economic necessity.
(b) Leave from employment for the birth or adoption of a child or to care for a seriously ill family member addresses one of the important needs of changing family structures. The support of families is a principle recognized and valued by the State of Vermont. When employees have security about their employment and the well-being of their children, parents, and other family members, businesses benefit economically from increased worker productivity and stability.
(c) The provisions of this subchapter are enacted in recognition of the fact that both employers and employees benefit from the establishment of parental and family leave as a condition of employment.
(Added 1991, No. 260 (Adj. Sess.), § 2.)
§ 471 Definitions
As used in this subchapter:
(1) “Bereavement leave” means a leave of absence from employment or self-employment by an individual due to the death of the individual’s family member that occurs not more than one year after the family member’s death. Bereavement leave includes leave taken in relation to the administration or settlement of the deceased family member’s estate. Leave taken in relation to the administration or settlement of the deceased family member’s estate shall not occur more than one year after the family member’s death.
(2) “Domestic partner” means an individual with whom the employee has an enduring domestic relationship of a spousal nature, provided the employee and the domestic partner:
(A) have shared a residence for at least six consecutive months;
(B) are at least 18 years of age;
(C) are not married to or considered a domestic partner of another individual;
(D) are not related by blood closer than would bar marriage under State law; and
(E) have agreed between themselves to be responsible for each other’s welfare.
(3) “Domestic violence” has the same meaning as in 15 V.S.A. § 1151 and includes the definition of “abuse” in 15 V.S.A. § 1101.
(4) “Employer” means a person who for the purposes of parental leave, bereavement leave, safe leave, and leave for a qualifying exigency employs 10 or more individuals who are employed for an average of at least 30 hours per week during a year and for the purposes of family leave employs 15 or more individuals for an average of at least 30 hours per week during a year.
(5) “Employee” means a person who, in consideration of direct or indirect gain or profit, has been continuously employed by the same employer for a period of one year for an average of at least 30 hours per week or meets the service requirement set forth in 29 C.F.R. § 825.801.
(6) “Family leave” means a leave of absence from employment by an employee for one of the following reasons:
(A) the serious health condition of the employee; or
(B) the serious health condition of the employee’s family member.
(7) “Family member” means:
(A) regardless of age, an employee’s biological, adopted, or foster child; an employee’s stepchild or legal ward; a child of the employee’s spouse or civil union or domestic partner; or a child to whom the employee stands in loco parentis, regardless of legal documentation; an individual to whom the employee stood in loco parentis when the individual was under 18 years of age; or any individual for whom the employee provides caregiving responsibilities similar to those of a parent-child relationship;
(B)(i) a parent of an employee or an employee’s spouse or civil union or domestic partner, regardless of whether the relationship to the employee or the employee’s spouse or civil union or domestic partner is a biological, foster, adoptive, or step relationship;
(ii) a legal guardian of an employee or employee’s spouse or civil union or domestic partner; or
(iii) a person who stands in loco parentis for the employee or who stood in loco parentis when the employee or employee’s spouse or civil union or domestic partner was under 18 years of age;
(C) a person to whom the employee is legally married under the laws of any state or a civil union or domestic partner of an employee; or
(D) a grandparent, grandchild, or sibling of the employee or the employee’s spouse or civil union or domestic partner, regardless of whether the relationship to the employee or the employee’s spouse or civil union or domestic partner is a biological, foster, adoptive, or step relationship.
(8) “Health care provider” means a licensed health care provider or a health care provider as defined pursuant to 29 C.F.R. § 825.125.
(9) “In loco parentis” means a relationship in which an individual has day-to-day responsibilities to care for and support a child, regardless of biological or legal ties.
(10) “Parental leave” means a leave of absence from employment by an employee for one of the following reasons:
(A) the employee’s pregnancy;
(B) the employee’s recovery from childbirth or miscarriage;
(C) the birth of the employee’s child and to care for or bond with the child within one year after the child’s birth; or
(D) the initial placement of a child 18 years of age or younger with the employee for the purpose of adoption or foster care and to care for or bond with the child within one year after the placement for adoption or foster care.
(11) “Qualifying exigency” means a qualifying exigency identified pursuant to 29 C.F.R. § 825.126 that is related to active duty service by a family member in the U.S. Armed Forces.
(12) “Safe leave” means a leave of absence from employment by an employee because:
(A) the employee or the employee’s family member is a victim or alleged victim of domestic violence, sexual assault, or stalking;
(B) the employee is using leave for one of the following reasons related to domestic violence, sexual assault, or stalking:
(i) to seek or obtain medical care, counseling, or social or legal services, either for themselves or for a family member;
(ii) to recover from injuries;
(iii) to participate in safety planning, either for themselves or for a family member;
(iv) to relocate or secure safe housing, either for themselves or for a family member;
(v) to respond to a fatality or near fatality related to domestic violence, sexual assault, or stalking, either for themselves or for a family member; or
(vi) to meet with a State’s Attorney or law enforcement officer, either for themselves or for a family member; and
(C) the employee is not the perpetrator or alleged perpetrator of the domestic violence, sexual assault, or stalking.
(13) “Serious health condition” means:
(A) an accident, illness, injury, disease, or physical or mental condition that:
(i) poses imminent danger of death;
(ii) requires inpatient care in a hospital, hospice, or residential medical care facility; or
(iii) requires continuing treatment by a health care provider; or
(B) rehabilitation from an accident, illness, injury, disease, or physical or mental condition described in subdivision (A) of this subdivision (13), including treatment for substance use disorder.
(14) “Sexual assault” has the same meaning as in 12 V.S.A. § 5131.
(15) “Stalking” has the same meaning as in 12 V.S.A. § 5131.
(16) “U.S. Armed Forces” means:
(A) the U.S. Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard;
(B) a reserve component of the U.S. Army, Navy, Air Force, Marine Corps, Space Force, and Coast Guard; or
(C) the National Guard of any state.
(Added 1989, No. 83, § 1; amended 1989, No. 150 (Adj. Sess.), § 2; 1991, No. 260 (Adj. Sess.), § 3; 2023, No. 184 (Adj. Sess.), § 15, eff. July 1, 2024; 2025, No. 32, § 2, eff. July 1, 2025.)
§ 472 Leave
(a)(1) During any 12-month period, an employee shall be entitled to take unpaid leave for a period not to exceed 12 weeks:
(A) for parental leave;
(B) for family leave;
(C) for safe leave; or
(D) for a qualifying exigency.
(2) During any 12-month period, an employee may use up to two weeks out of the 12 weeks of leave available pursuant to subdivision (1) of this subsection for bereavement leave, with not more than five workdays to be taken consecutively.
(b) During the leave, at the employee’s option, the employee may use accrued sick leave, vacation leave, any other accrued paid leave, or short-term disability insurance. Utilization of accrued paid leave or short-term disability insurance shall not extend the leave provided pursuant to this section.
(c) The employer shall continue employment benefits for the duration of the leave at the level and under the conditions coverage would be provided if the employee continued in employment continuously for the duration of the leave. The employer may require that the employee contribute to the cost of the benefits during the leave at the existing rate of employee contribution.
(d) The employer shall post and maintain in a conspicuous place in and about each of the employer’s places of business printed notices of the provisions of this subchapter on forms provided by the Commissioner of Labor.
(e)(1) An employee shall give the employer reasonable written notice of intent to take leave under this section. Notice shall include the date the leave is expected to commence and the estimated duration of the leave. If the leave is for a family member, the employer may request documentation identifying the qualifying family relationship.
(2) In the case of the adoption or birth of a child, an employer shall not require that notice be given more than six weeks prior to the anticipated commencement of the leave.
(3) In the case of an unanticipated serious health condition, a miscarriage, an unanticipated need for safe leave, a premature birth, the death of a family member, or a short-notice qualifying exigency, the employee shall give the employer notice of the commencement of the leave as soon as practicable.
(4)(A) In the case of a serious health condition of the employee or a member of the employee’s family, an employer may require certification from a health care provider to verify the condition and the amount and necessity for the leave requested.
(B) An employer may require an employee to provide documentation of the need for safe leave. An employee may provide documentation from any one of the following sources:
(i) a court or a law enforcement or other government agency;
(ii) a domestic violence, sexual assault, or stalking assistance program;
(iii) a legal, clerical, medical, or other professional from whom the employee, or the employee’s family member, received counseling or other assistance concerning domestic violence, sexual assault, or stalking; or
(iv) a self-attestation by the employee describing the circumstances supporting the need for safe leave; no further corroboration shall be required unless otherwise mandated by law.
(C) An employer may require an employee to provide documentation of the need for bereavement leave. An employee may provide any of the following forms of documentation:
(i) a death certificate;
(ii) a published obituary; or
(iii) a written notice or verification of death, burial, or memorial services from a mortuary, funeral home, burial society, crematorium, religious organization, or governmental agency.
(D) An employer may require an employee to provide documentation of the need for leave for a qualifying exigency as set forth in 29 C.F.R. § 825.309.
(E) An employer shall not disclose any private medical information or information relating to a safe leave that the employer receives pursuant to this subdivision (4) except to the extent the disclosure is permitted by law and:
(i) consented to by the employee in writing;
(ii) required pursuant to a court order; or
(iii) required pursuant to State or federal law.
(5) An employee may return from leave earlier than estimated upon approval of the employer.
(6) An employee shall provide reasonable notice to the employer of the need to extend leave to the extent provided by this subchapter.
(f) Upon return from leave taken under this subchapter, an employee shall be offered the same or comparable job at the same level of compensation, employment benefits, seniority, or any other term or condition of the employment existing on the day leave began. This subsection shall not apply if, prior to requesting leave, the employee had been given notice or had given notice that the employment would terminate. This subsection shall not apply if the employer can demonstrate by clear and convincing evidence that:
(1) during the period of leave the employee’s job would have been terminated or the employee laid off for reasons unrelated to the leave or the condition for which the leave was granted; or
(2) the employee performed unique services and hiring a permanent replacement during the leave, after giving reasonable notice to the employee of intent to do so, was the only alternative available to the employer to prevent substantial and grievous economic injury to the employer’s operation.
(g)(1) An employer may adopt a leave policy more generous than the leave policy provided by this subchapter.
(2)(A) Nothing in this subchapter shall be construed to diminish an employer’s obligation to comply with any collective bargaining agreement or any employment benefit program or plan that provides greater leave rights than the rights provided by this subchapter.
(B) A collective bargaining agreement or employment benefit program or plan may not diminish rights provided by this subchapter.
(3) Notwithstanding the provisions of this subchapter, an employee may, at the time a need for parental or family leave arises, waive some or all the rights under this subchapter, provided the waiver is informed and voluntary and any changes in conditions of employment related to any waiver shall be mutually agreed upon between employer and employee.
(h) Except for the serious health condition of the employee or safe leave when the employee is the victim or alleged victim, an employee who does not return to employment with the employer who provided the leave shall return to the employer the value of any compensation that the employer paid to or on behalf of the employee during the leave, except payments for accrued leave.
(Added 1989, No. 83, § 1; amended 1991, No. 260 (Adj. Sess.), § 4; 1997, No. 41, § 1; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 102, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 16, eff. July 1, 2024; 2025, No. 18, § 30, eff. May 13, 2025; 2025, No. 32, § 3, eff. July 1, 2025.)
§ 472a Short-term family leave
(a) In addition to the leave provided in section 472 of this title, an employee shall be entitled to take unpaid leave not to exceed four hours in any 30-day period and not to exceed 24 hours in any 12-month period. An employer may require that leave be taken in a minimum of two-hour segments and may be taken for any of the following purposes:
(1) to participate in preschool or school activities directly related to the academic educational advancement of the employee’s family member, such as a parent-teacher conference;
(2) to attend or to accompany the employee’s family member to routine medical or dental appointments;
(3) to accompany the employee’s family member to other appointments for professional services related to their care and well-being; or
(4) to respond to a medical emergency involving the employee’s family member.
(b) An employee shall make a reasonable attempt to schedule appointments for which leave may be taken under this section outside of regular work hours. In order to take leave under this section, an employee shall provide the employer with the earliest possible notice, but in no case later than seven days, before leave is to be taken except in the case of an emergency. In this subsection, “emergency” means circumstances where the required seven-day notice could have a significant adverse impact on the family member of the employee.
(c) At the employee’s discretion, the employee may use accrued paid leave, including vacation and personal leave.
(Added 1997, No. 41, § 2; amended 2025, No. 18, § 30, eff. May 13, 2025; 2025, No. 32, § 4, eff. July 1, 2025.)
§ 472b Town meeting leave; employees; students
(a) Subject to the essential operation of a business or entity of State or local government, which shall prevail in any instance of conflict, an employee shall have the right to take unpaid leave from employment under this section or subsection 472(b) of this title for the purpose of attending his or her annual town meeting, provided the employee notifies the employer at least seven days prior to the date of the town meeting.
(b) A student of voting age shall have the right to attend his or her annual town meeting, and the school shall not penalize or report the student as a truant for exercising the right provided by this section.
(c) The requirement of subsection (b) shall not apply to a student who is in State custody in a secure facility.
(d) The requirement of subsection (b) shall not create an obligation for any parent, guardian, or custodian to take any affirmative action to enable the student to attend an annual town meeting.
(Added 2007, No. 124 (Adj. Sess.), § 1; amended 2013, No. 31, § 5.)
§ 472c Leave; alleged crime victims; relief from stalking or abuse
(a) As used in this section:
(1)(A) “Alleged victim” means a person who is alleged in an affidavit filed by a law enforcement official with a prosecuting attorney of competent state or federal jurisdiction to have sustained physical, emotional, or financial injury or death as a direct result of the commission or attempted commission of a crime or act of delinquency. The term “alleged victim” also includes a family member of such a person if the person:
(i) is a minor;
(ii) has been found to be incompetent;
(iii) is alleged to have suffered physical or emotional injury as a result of the violent crime or act of delinquency; or
(iv) was killed as a result of the alleged crime or act of delinquency.
(B) As used in this subdivision (a)(1):
(i) “Family member” means an individual who is not identified in the affidavit as the defendant and is the alleged victim’s:
(I) child, foster child, or stepchild;
(II) ward who lives with the alleged victim;
(III) spouse, domestic partner, or civil union partner;
(IV) sibling;
(V) grandparent;
(VI) grandchild;
(VII) parent or a parent of the alleged victim’s spouse, domestic partner, or civil union partner;
(VIII) legal guardian; or
(IX) an individual for whom the alleged victim stands in loco parentis or who stood in loco parentis for the alleged victim when the alleged victim was a child.
(ii) “Domestic partner” has the same meaning as in 17 V.S.A. § 2414.
(iii) “In loco parentis” means an individual for whom the alleged victim has day-to-day responsibilities to care for and financially support, or, in the case of the alleged victim, an individual who had such responsibility for the alleged victim when the alleged victim was a child.
(iv) “Violent crime” means a “listed crime” as that term is defined in 13 V.S.A. § 5301(7) and any comparable offense in another jurisdiction.
(2) “Employer” means an individual, organization, governmental body, partnership, association, corporation, legal representative, trustee, receiver, trustee in bankruptcy, and any common carrier by rail, motor, water, air, or express company doing business in or operating within this State.
(3) “Employee” means a person who, in consideration of direct or indirect gain or profit, has been continuously employed by the same employer for a period of six months for an average of at least 20 hours per week.
(b) In addition to the leave provided in section 472 of this title, an employee shall be entitled to take unpaid leave from employment for the purpose of attending a deposition or court proceeding related to:
(1) a criminal proceeding, when the employee is an alleged victim and the employee has a right or obligation to appear at the proceeding;
(2) a relief from abuse hearing pursuant to 15 V.S.A. § 1103, when the employee seeks the order as plaintiff;
(3) a hearing concerning an order against stalking or sexual assault pursuant to 12 V.S.A. § 5133, when the employee seeks the order as plaintiff; or
(4) a relief from abuse, neglect, or exploitation hearing pursuant to 33 V.S.A. chapter 69, when the employee is the plaintiff.
(c) During the leave, at the employee’s option, the employee may use accrued sick leave, vacation leave, or any other accrued paid leave. Use of accrued paid leave shall not extend the leave provided pursuant to this section.
(d) The employer shall continue employment benefits for the duration of the leave at the level and under the conditions coverage would be provided if the employee continued in employment continuously for the duration of the leave. The employer may require that the employee contribute to the cost of benefits during the leave at the existing rate of employee contribution.
(e) The employer shall post and maintain in a conspicuous place in and about each of its places of business printed notices of the provisions of this section on forms provided by the Commissioner of Labor.
(f)(1) Upon return from leave taken under this section, an employee shall be offered the same or comparable job at the same level of compensation, employment benefits, seniority, or any other term or condition of the employment existing on the day leave began.
(2) This subsection shall not apply if, prior to requesting leave, the employee had been given notice or had given notice that the employment would terminate.
(3) This subsection shall not apply if the employer can demonstrate by clear and convincing evidence that during the period of leave the employee’s job would have been terminated or the employee would have been laid off for reasons unrelated to the leave or the condition for which the leave was granted.
(g) An employer may adopt a leave policy more generous than the leave provided by this section. Nothing in this section shall be construed to diminish an employer’s obligation to comply with any collective bargaining agreement or any employment benefit program or plan that provides greater leave rights than the rights provided by this section. A collective bargaining agreement or employment benefit program or plan shall not diminish rights provided by this section. Notwithstanding the provisions of this section, an employee may, at the time a need for leave arises, waive some or all of the rights under this section, provided that the waiver is informed and voluntary and that any changes in conditions of employment related to the waiver shall be mutually agreed upon between the employer and the employee.
(h) Subsection (b) of this section shall not apply to an employer that provides goods or services to the general public if the employee’s absence would require the employer to suspend all business operations at a location that is open to the general public.
(Added 2017, No. 184 (Adj. Sess.), § 3; amended 2021, No. 136 (Adj. Sess.), § 1, eff. May 24, 2022.)
§ 473 Retaliation prohibited
An employer shall not discharge or in any other manner retaliate against an employee who exercises or attempts to exercise his or her rights under this subchapter. The provisions against retaliation in subdivision 495(a)(8) of this title shall apply to this subchapter.
(Added 1989, No. 83, § 1; amended 2013, No. 31, § 7; 2017, No. 74, § 36.)
§ 474 Penalties and enforcement
(a) The penalty and enforcement provisions of section 495b of this title shall apply to this subchapter.
(b) An employer may bring a civil action to recover compensation paid to the employee during leave, except payments made for accrued sick leave or vacation leave, and court costs to enforce the provisions of subsection 472(h) of this title.
(Added 1989, No. 83, § 1; amended 2013, No. 31, § 8; 2017, No. 74, § 37.)
Subchapter 4B Earned Sick Time
§ 481 Definitions
As used in this subchapter:
(1) “Employer” means any individual, organization, or governmental body, partnership, association, corporation, legal representative, trustee, receiver, trustee in bankruptcy, and any common carrier by rail, motor, water, air, or express company doing business in or operating within this State.
(2) “Combined time off” means a policy under which the employer provides time off from work for vacation, sickness, or personal reasons, and the employee has the option to use all of the leave for whatever purpose the employee chooses.
(3) “Commissioner” means the Commissioner of Labor.
(4) “Earned sick time” means discretionary time earned and accrued under the provisions of this subchapter and used by an employee to take time off from work for the purposes listed in subdivisions 483(a)(1)-(5) of this subchapter.
(5) “Employee” means a person who, in consideration of direct or indirect gain or profit, is employed by an employer for an average of no less than 18 hours per week during a year. However, the term “employee” shall not include:
(A) An individual who is employed by the federal government.
(B) An individual who is employed by an employer:
(i) for 20 weeks or fewer in a 12-month period; and
(ii) in a job scheduled to last 20 weeks or fewer.
(C) An individual that is employed by the State and is exempt or excluded from the State classified service pursuant to 3 V.S.A. § 311, but not an individual that is employed by the State in a temporary capacity pursuant to 3 V.S.A. § 331.
(D) An employee of a health care facility as defined in 18 V.S.A. § 9432(8) or a facility as defined in 33 V.S.A. § 7102(2) if the employee only works on a per diem or intermittent basis.
(E) An employee of a school district, supervisory district, or supervisory union as defined in 16 V.S.A. § 11 that:
(i) is employed pursuant to a school district or supervisory union policy on substitute educators as required by the Vermont Standards Board for Professional Educators Rule 5381;
(ii) is under no obligation to work a regular schedule; and
(iii) is not under contract or written agreement to provide at least one period of long-term substitute coverage, which is defined as 30 or more consecutive school days in the same assignment.
(F) An individual who is under 18 years of age.
(G) An individual that is either:
(i) a sole proprietor or partner owner of an unincorporated business who is excluded from the provisions of chapter 9 of this title pursuant to subdivision 601(14)(F) of this title; or
(ii) an executive officer, manager, or member of a corporation or a limited liability company for whom the Commissioner has approved an exclusion from the provisions of chapter 9 of this title pursuant to subdivision 601(14)(H) of this title.
(H) An individual who:
(i) works on a per diem or intermittent basis;
(ii) works only when he or she indicates that he or she is available to work;
(iii) is under no obligation to work for the employer offering the work; and
(iv) has no expectation of continuing employment with the employer.
(6) “Paid time off policy” means any policy under which the employer provides paid time off from work to the employee that includes a combination of one or more of the following:
(A) annual leave;
(B) combined time off;
(C) vacation leave;
(D) personal leave;
(E) sick leave; or
(F) any similar type of leave.
(Added 2015, No. 69 (Adj. Sess.), § 4, eff. Jan. 1, 2017; amended 2023, No. 85 (Adj. Sess.), § 103, eff. July 1, 2024.)
§ 482 Earned sick time
(a) An employee shall accrue not less than one hour of earned sick time for every 52 hours worked.
(b) An employer may require a waiting period for newly hired employees of up to one year. During this waiting period, an employee shall accrue earned sick time pursuant to this subchapter but shall not be permitted to use the earned sick time until after completing the waiting period.
(c) An employer may:
(1) limit the amount of earned sick time accrued pursuant to this section to a maximum of 40 hours in a 12-month period; or
(2) limit to 40 hours the number of hours in each workweek for which full-time employees not subject to the overtime provisions of the Federal Fair Labor Standards Act pursuant to 29 U.S.C. § 213(a)(1) may accrue earned sick time pursuant to this section.
(d)(1) Earned sick time shall be compensated at a rate that is equal to the greater of either:
(A) the normal hourly wage rate of the employee; or
(B) the minimum wage rate for an employee pursuant to section 384 of this title.
(2) Group insurance benefits shall continue during an employee’s use of earned sick time at the same level and conditions that coverage would be provided as for normal work hours. The employer may require that the employee contribute to the cost of the benefits during the use of earned sick time at the existing rate of employee contribution.
(e) Except as otherwise provided by subsection 484(a) of this subchapter, an employer shall calculate the amount of earned sick time that an employee has accrued pursuant to this section:
(1) as it accrues during each pay period; or
(2) on a quarterly basis, provided that an employee may use earned sick time as it accrues during each quarter.
(Added 2015, No. 69 (Adj. Sess.), § 4, eff. Jan. 1, 2017; amended 2023, No. 85 (Adj. Sess.), § 104, eff. July 1, 2024; 2025, No. 18, § 30, eff. May 13, 2025.)
§ 483 Use of earned sick time
(a) An employee may use earned sick time accrued pursuant to section 482 of this subchapter for any of the following reasons:
(1) The employee is ill or injured.
(2) The employee obtains professional diagnostic, preventive, routine, or therapeutic health care.
(3) The employee cares for a sick or injured parent, grandparent, spouse, child, brother, sister, parent-in-law, grandchild, or foster child, including helping that individual obtain diagnostic, preventive, routine, or therapeutic health treatment, or accompanying the employee’s parent, grandparent, spouse, or parent-in-law to an appointment related to that individual’s long-term care.
(4) The employee is arranging for social or legal services or obtaining medical care or counseling for the employee or for the employee’s parent, grandparent, spouse, child, brother, sister, parent-in-law, grandchild, or foster child, who is a victim of domestic violence, sexual assault, or stalking or who is relocating as the result of domestic violence, sexual assault, or stalking. As used in this section, “domestic violence,” “sexual assault,” and “stalking” shall have the same meanings as in 15 V.S.A. § 1151.
(5) The employee cares for a parent, grandparent, spouse, child, brother, sister, parent-in-law, grandchild, or foster child, because the school or business where that individual is normally located during the employee’s workday is closed for public health or safety reasons.
(b) If an employee’s absence is shorter than a normal workday, the employee shall use earned sick time accrued pursuant to section 482 of this subchapter in the smallest time increments that the employer’s payroll system uses to account for other absences or that the employer’s paid time off policy permits. Nothing in this subsection shall be construed to require an employer to permit an employee to use earned sick time in increments that are shorter than one hour.
(c) An employer may limit the amount of earned sick time accrued pursuant to section 482 of this subchapter that an employee may use to no more than 40 hours in a 12-month period.
(d)(1) Except as otherwise provided in subsection 484(a) of this subchapter, earned sick time that remains unused at the end of an annual period shall be carried over to the next annual period and the employee shall continue to accrue earned sick time as provided pursuant to section 482 of this subchapter. However, nothing in this subdivision shall be construed to permit an employee to use more earned sick time during an annual period than any limit on the use of earned sick time that is established by the employee’s employer pursuant to subsection (c) of this section.
(2) If, at an employer’s discretion, an employer pays an employee for unused earned sick time accrued pursuant to section 482 of this subchapter at the end of an annual period, then the amount for which the employee was compensated does not carry over to the next annual period.
(e) Upon separation from employment, an employee shall not be entitled to payment for unused earned sick time accrued pursuant to section 482 of this subchapter unless agreed upon by the employer.
(f)(1) An employee who is discharged by the employee’s employer after completing a waiting period required pursuant to subsection 482(b) of this subchapter and is subsequently rehired by the same employer within 12 months after the discharge from employment shall begin to accrue and may use earned sick time without a waiting period. However, the employee shall not be entitled to retain any earned sick time that accrued before the time of the discharge unless agreed to by the employer.
(2) An employee who voluntarily separates from employment after completing a waiting period required pursuant to subsection 482(b) of this subchapter and is subsequently rehired by the same employer within 12 months after the separation from employment shall not be entitled to accrue and use earned sick time without a waiting period unless agreed to by the employer.
(g) An employer shall not require an employee to find a replacement for absences, including absences for professional diagnostic, preventive, routine, or therapeutic health care.
(h) An employer may require an employee planning to take earned sick time accrued pursuant to section 482 of this subchapter to:
(1) make reasonable efforts to avoid scheduling routine or preventive health care during regular work hours; or
(2) notify the employer as soon as practicable of the intent to take earned sick time accrued pursuant to section 482 of this subchapter and the expected duration of the employee’s absence.
(i)(1) If an employee is absent from work for one of the reasons listed in subsection (a) of this section, the employee shall not be required to use earned sick time accrued pursuant to section 482 of this subchapter and the employer will not be required to pay for the time that the employee was absent if the employer and the employee mutually agree that either:
(A) the employee will work an equivalent number of hours as the number of hours for which the employee is absent during the same pay period; or
(B) the employee will trade hours with a second employee so that the second employee works during the hours for which the employee is absent and the employee works an equivalent number of hours in place of the second employee during the same pay period.
(2) Nothing in this subsection shall be construed to prevent an employer from adopting a policy that requires an employee to use earned sick time accrued pursuant to section 482 of this subchapter for an absence from work for one of the reasons set forth in subsection (a) of this section.
(j) An employer shall post notice of the provisions of this section in a form provided by the Commissioner in a place conspicuous to employees at the employer’s place of business. An employer shall also notify an employee of the provisions of this section at the time of the employee’s hiring.
(k) Use of earned sick time accrued pursuant to section 482 of this subchapter shall not diminish an employee’s rights under sections 472 and 472a of this chapter.
(l) The provisions against retaliation set forth in section 397 of this title shall apply to this subchapter.
(m) An employer who violates this subchapter shall be subject to the penalty provisions of section 345 of this title.
(n) The Commissioner shall enforce this subchapter in accordance with the procedures established in section 342a of this title. However, the appeal provision of subsection 342a(f) shall not apply to any enforcement action brought pursuant to this subsection.
(Added 2015, No. 69 (Adj. Sess.), § 4, eff. Jan. 1, 2017; amended 2023, No. 85 (Adj. Sess.), § 105, eff. July 1, 2024.)
§ 484 Compliance with earned sick time requirement
(a) An employer shall be in compliance with this subchapter if either of the following occurs:
(1) The employer offers a paid time off policy or is a party to a collective bargaining agreement that provides the employee with paid time off from work that:
(A) he or she may use for all of the reasons set forth in subsection 483(a) of this subchapter; and
(B) accrues and may be used at a rate that is equal to or greater than the rate set forth in sections 482 and 483 of this subchapter.
(2) The employer offers a paid time off policy or is a party to a collective bargaining agreement that provides the employee with at least the full amount of paid time off from work required pursuant to sections 482 and 483 of this subchapter at the beginning of each annual period and the employee may use it at any time during the annual period for the reasons set forth in subsection 483(a) of this subchapter. If the employer provides an employee with the full amount of paid time off at the beginning of each annual period, the paid time off shall not carry over from one annual period to the next as provided in subdivision 483(d)(1) of this subchapter.
(b) Nothing in this subchapter shall be construed to require an employer that satisfies the requirements of subsection (a) of this section to provide additional earned sick time to an employee that chooses to use paid time off that could be used for the reasons set forth in subdivisions 483(a)(1)-(5) of this subchapter for a different purpose.
(c) Nothing in this subchapter shall be construed to prevent an employer from providing a paid time off policy or agreeing to a collective bargaining agreement that provides a paid time off policy that is more generous than the earned sick time provided by this subchapter.
(d)(1) Nothing in this subchapter shall be construed to diminish an employer’s obligation to comply with any collective bargaining agreement or paid time off policy that provides greater earned sick time rights than the rights provided by this subchapter.
(2) Nothing in this subchapter shall be construed to preempt or override the terms of a collective bargaining agreement that is in effect before January 1, 2017.
(e) A collective bargaining agreement or paid time off policy may not diminish the rights provided by this subchapter.
(Added 2015, No. 69 (Adj. Sess.), § 4, eff. Jan. 1, 2017.)
§ 485 Severability of provisions
If any provision of this subchapter or the application of such provision to any person or circumstances shall be held invalid, the remainder of the subchapter and the application of such provisions to persons or circumstances other than those as to which it is held invalid shall not be affected thereby.
(Added 2015, No. 69 (Adj. Sess.), § 4, eff. Jan. 1, 2017.)
§ 486 New employer exemption
(a) Notwithstanding any provision of this subchapter to the contrary, new employers shall not be subject to the provisions of this subchapter for a period of one year after the employer hires its first employee.
(b) For purposes of enforcement under subsections 483(l)-(n) of this subchapter, an employer shall be presumed to be subject to the provisions of this subchapter unless the employer proves that a period of no more than one year elapsed between the date on which the employer hired its first employee and the date on which the employer is alleged to have violated the provisions of this subchapter.
(c) No employer shall transfer an employee to a second employer with whom there is, at the time of the transfer, substantially common ownership, management, or control for the purposes of either employer claiming an exemption pursuant to subsection (a) of this section.
(Added 2015, No. 69 (Adj. Sess.), § 4, eff. Jan. 1, 2017.)
§ 487 Rules
The Commissioner may adopt rules to implement the provisions of this subchapter.
(Added 2015, No. 172 (Adj. Sess.), § E.400.1, eff. Jan. 1, 2017.)
Subchapter 5 Employment Rights for Reserve and National Guard Members
§ 491 Absence on military service and training; employment and reemployment rights
(a)(1) Any member of the Reserve Components of the U.S. Armed Forces, of the Ready Reserve, or of the Vermont National Guard or the National Guard of another state shall, when called to state or federal service, receive the same benefits, privileges, and protections in employment regardless of the activation authority or location of service.
(2)(A) Upon request, a member of the Reserve Components of the U.S. Armed Forces, of the Ready Reserve, or of the Vermont National Guard or the National Guard of another state shall be entitled to a leave of absence to engage in military drill, training, or other temporary duty pursuant to state or federal military orders.
(B) A member of the Vermont National Guard or the National Guard of any state or territory who is ordered to state active duty shall be subject to the requirements of and entitled to the rights, privileges, benefits, and protections provided by the Uniformed Services Employment and Reemployment Rights Act (USERRA), 38 U.S.C. §§ 4301-4335.
(C) A leave of absence shall be with or without pay as determined by the employer.
(b) A member of or an applicant for membership in the National Guard in either federal or state status as defined in 20 V.S.A. §§ 366 and 601 shall not be denied initial employment, reemployment, retention of employment, promotion, or any benefit of employment by an employer on the basis of membership, application for membership, performance of service, application for service, or obligation to serve.
(c) An employer shall not discriminate in employment against any person because a person has taken any of the following actions:
(1) enforcement of a provision of this subchapter or federal law;
(2) testified or made a statement in connection with any proceeding under this subchapter or under federal law;
(3) assisted or participated in any investigation under this subchapter or federal law; or
(4) exercised any right provided by this subchapter or under federal law.
(Amended 1999, No. 138 (Adj. Sess.), § 6; 2007, No. 44, § 1; 2015, No. 121 (Adj. Sess.), § 1; 2021, No. 10, § 72; 2021, No. 105 (Adj. Sess.), § 406, eff. July 1, 2022.)
§ 492 Rights and benefits
(a) Any absence for military training or State active duty shall not affect the employee’s right to receive normal vacation, sick leave, bonus, advancement, and other advantages of employment normally to be anticipated in the employee’s particular position.
(b) Any person who is absent from employment necessitated by service in the National Guard as permitted under section 491 of this title shall be entitled to the reemployment rights and benefits provided in 38 U.S.C. §§ 4312-4318.
(c)(1) If any member of the Vermont National Guard with civilian employer-sponsored insurance coverage is ordered to State active duty by the Governor for up to 30 days, or if any member of the National Guard of another state who is a Vermont employee with civilian employer-sponsored insurance is ordered to state active duty by the Governor of that state for up to 30 days, the service member may, at the member’s option, continue his or her civilian health insurance under the same terms and conditions as were in effect for the month preceding the member’s call to state active duty, including a continuation of the same levels of employer and employee contributions toward premiums and cost-sharing.
(2) If a member of the Vermont National Guard is called to State active duty for more than 30 days, or if a member of the National Guard of another state who is a Vermont employee is called to state active duty for more than 30 days, the member may continue his or her civilian health insurance. For a member whose employer chooses not to continue regular contributions toward premiums and cost-sharing during the period of the member’s state active duty in excess of 30 days, the State of Vermont shall be responsible for paying the employer’s share of the premium and cost-sharing.
(3) The Office of the Adjutant General shall administer this subsection and may adopt policies, procedures, and guidelines to carry out the purposes of this subsection, including developing employee notice requirements, enforcement provisions, and a process for the State to remit the employer’s share of premiums and cost-sharing to the appropriate entities pursuant to subdivision (2) of this subsection.
(Amended 1999, No. 138 (Adj. Sess.), § 6; 2011, No. 149 (Adj. Sess.), § 6; 2015, No. 121 (Adj. Sess.), § 2.)
§ 493 Enforcement
(a) If any employer fails to comply with any of the provisions of this subchapter, the employee may bring an action in the Civil Division of the Superior Court seeking compensatory and punitive damages or equitable relief, including restraint of prohibited acts, restitution of wages or other benefits, reinstatement, costs, reasonable attorney’s fees, and other appropriate relief.
(b) The Attorney General or a State’s Attorney may enforce the provisions of this subchapter by bringing an action in Superior Court for legal and equitable relief and may conduct civil investigations in accordance with the procedures established in 9 V.S.A. §§ 2458-2461 as though a violation of this subchapter were an unfair act in commerce.
(Amended 1999, No. 138 (Adj. Sess.), § 6a; 2015, No. 121 (Adj. Sess.), § 3.)
Subchapter 5A Polygraph Protection Act
§ 494 Definitions
As used in this subchapter:
(1) “Employer” means any individual, organization, or governmental body, including a partnership, association, trustee, estate, corporation, joint stock company, insurance company, or legal representative, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee or successor thereof, and any common carrier by mail, motor, water, air, or express company doing business in or operating within this State, which has one or more individuals performing services for it within this State.
(2) “Employee” means every person who may be permitted, required, or directed by any employer, in consideration of direct or indirect gain or profit, to perform services.
(3) “Prospective employee” means an individual seeking or being sought for employment with an employer.
(4) “Employment agency” means a person who undertakes, with or without compensation, to procure, refer, recruit, or place for an employer or person, the opportunity to work for an employer.
(5) “Examiner” means any person licensed under 26 V.S.A. chapter 53.
(6) “Polygraph examination” means any procedure which involves the use of instrumentation or a mechanical device to enable or assist the detection of deception, the verification of the truthfulness, or the rendering of a diagnostic opinion regarding either of these, and includes a lie detector or similar test.
(Added 1985, No. 89.)
§ 494a Polygraph testing as condition of employment
(a) Except as provided in section 494b of this title, an employer or an employment agency shall not as a condition of employment, promotion, or change in status of employment, or as an express or implied condition of a benefit or privilege of employment, do any of the following:
(1) request or require that an employee or applicant for employment take or submit to a polygraph examination; or
(2) administer, cause to be administered, threaten to administer, or attempt to administer a polygraph examination to an employee or applicant for employment; or
(3) request or require that an employee or applicant for employment give an express or implied waiver of a practice prohibited under this subchapter.
(b) An employer shall not refuse to hire, promote, or change the status of employment of an applicant for employment because the applicant refuses or declines a polygraph examination.
(Added 1985, No. 89.)
§ 494b Employers permitted to require polygraph examinations
The following employers may require that an applicant for employment take or submit to a polygraph examination, or administer or cause to be administered a polygraph examination to an applicant for employment:
(1) the Department of Public Safety; the Department of Motor Vehicles, for applicants for law enforcement positions; the Department of Fish and Wildlife, for applicants for law enforcement positions; the Department of Liquor and Lottery and the Board of Liquor and Lottery, for applicants for investigator positions; municipal police departments and county sheriffs, as to sworn police officers and deputy sheriffs;
(2) any employer whose primary business is the wholesale or retail sale of precious metals or gems and jewelry or items made from precious metals or gems;
(3) any employer whose business includes the manufacture or the wholesale or retail sale of regulated drugs as defined in 18 V.S.A. § 4201; provided, however, that only employees who come in contact with such regulated drugs may be required to take a polygraph examination;
(4) any employer authorized or required under federal law or regulations to administer polygraph examinations.
(Added 1985, No. 89; amended 2001, No. 38, § 1; 2009, No. 5, § 1; 2019, No. 73, § 35.)
§ 494c Duties of examiner
(a) An examiner administering a polygraph examination under this subchapter shall:
(1) Prior to the examination, provide the examinee with a copy of this subchapter and a copy of all questions to be asked during the examination, which may be retained by the examinee. This does not preclude follow-up questions as long as the examiner gives the examinee a copy of the questions.
(2) Inform the examinee as follows:
(A) the examinee has the right to accept or refuse the examination;
(B) the examinee has the right to halt an examination in progress at any time;
(C) the examinee is not required to answer any questions or give any information;
(D) any information the examinee volunteers could be used against the examinee, or made available to the employer, unless otherwise specified and agreed to in writing by the examinee; and
(E) provide the examinee with a copy of the examination results and all reports or analyses done by the examiner that are shared with the employer.
(b) During a polygraph examination, an examinee shall not be asked:
(1) any questions regarding the examinee’s political, religious, or labor union affiliations;
(2) questions regarding the examinee’s sexual practices, social habits, or his or her marital relationship, unless the questions clearly relate to job performance;
(3) questions that are unrelated to job performance.
(Added 1985, No. 89.)
§ 494d Employee rights in related proceedings
No employee shall be discharged, disciplined, or discriminated against in any manner for filing a complaint or testifying in any proceeding or action involving violations of the provisions of this subchapter. An employee discriminated against in violation of the provisions of this section shall be compensated by his or her employer the amount of any loss of wages and benefits arising out of such discrimination and shall be restored to his or her previous position of employment.
(Added 1985, No. 89.)
§ 494e Penalties
Any individual violating any of the provisions of this subchapter shall be fined not less than $500.00 nor more than $1,000.00 or imprisoned not more than six months, or both, and the penalty shall not be suspended.
(Added 1985, No. 89.)
Subchapter 6 Fair Employment Practices
§ 495 Unlawful employment practice
(a) It shall be unlawful employment practice, except where a bona fide occupational qualification requires persons of a particular race, color, religion, national origin, sex, sexual orientation, gender identity, ancestry, place of birth, age, crime victim status, or physical or mental condition:
(1) For any employer, employment agency, or labor organization to harass or discriminate against any individual because of race, color, religion, ancestry, national origin, sex, sexual orientation, gender identity, place of birth, crime victim status, or age or against a qualified individual with a disability.
(2) For any person seeking employees or for any employment agency or labor organization to cause to be printed, published, or circulated any notice or advertisement relating to employment or membership indicating any preference, limitation, specification, or discrimination based upon race, color, religion, ancestry, national origin, sex, sexual orientation, gender identity, place of birth, crime victim status, age, or disability.
(3) For any employment agency to fail or refuse to classify properly or refer for employment or to otherwise harass or discriminate against any individual because of race, color, religion, ancestry, national origin, sex, sexual orientation, gender identity, place of birth, crime victim status, or age or against a qualified individual with a disability.
(4) For any labor organization to limit, segregate, or qualify its membership with respect to any individual because of race, color, religion, ancestry, national origin, sex, sexual orientation, gender identity, place of birth, crime victim status, or age or against a qualified individual with a disability.
(5) For any employer, employment agency, labor organization, or person seeking employees to discriminate against, indicate a preference or limitation, refuse properly to classify or refer, or to limit or segregate membership on the basis of a person’s having a positive test result from an HIV-related blood test.
(6) For any employer, employment agency, labor organization, or person seeking employees to request or require an applicant, prospective employee, employee, prospective member, or member to have an HIV-related blood test as a condition of employment or membership, classification, placement, or referral.
(7) For any employer, employment agency, labor organization, or person seeking employees to discriminate between employees on the basis of sex, race, national origin, sexual orientation, or gender identity or against a qualified individual with a disability by paying wages to employees of one sex, race, national origin, sexual orientation, or gender identity or an employee who is a qualified individual with a disability at a rate less than the rate paid to employees of the other sex or a different race, national origin, sexual orientation, or gender identity or without the physical or mental condition of the qualified individual with a disability for equal work that requires equal skill, effort, and responsibility and is performed under similar working conditions. An employer who is paying wages in violation of this section shall not reduce the wage rate of any other employee in order to comply with this subsection.
(A) An employer may pay different wage rates under this subsection when the differential wages are made pursuant to:
(i) A seniority system.
(ii) A merit system.
(iii) A system in which earnings are based on quantity or quality of production.
(iv) A bona fide factor other than sex, race, national origin, sexual orientation, gender identity, or physical or mental condition. An employer asserting that differential wages are paid pursuant to this subdivision (7)(A)(iv) shall demonstrate that the factor does not perpetuate a differential in compensation based on sex, race, national origin, sexual orientation, gender identity, or physical or mental condition; is job-related with respect to the position in question; and is based upon a legitimate business consideration.
(B)(i) No employer may do any of the following:
(I) Require, as a condition of employment, that an employee refrain from disclosing the amount of his or her wages or from inquiring about or discussing the wages of other employees.
(II) 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.
(ii) Unless otherwise required by law, an employer may prohibit a human resources manager from disclosing the wages of other employees.
(C) Nothing in this subdivision (a)(7) shall be construed to:
(i) create any new rights for an employer to inquire about a characteristic of an employee that is otherwise unknown to the employer upon which pay discrimination is prohibited pursuant to the provisions of this subdivision (a)(7); or
(ii) diminish an employee’s right to privacy under any other law, or pursuant to an applicable contract or collective bargaining agreement.
(8) An employer, employment agency, or labor organization shall not discharge or in any other manner discriminate against any employee because the employee:
(A) has opposed any act or practice that is prohibited under this chapter;
(B) has lodged a complaint or has testified, assisted, or participated in any manner with the Attorney General, a State’s Attorney, the Department of Labor, or the Human Rights Commission in an investigation of prohibited acts or practices;
(C) is known by the employer to be about to lodge a complaint, testify, assist, or participate in any manner in an investigation of prohibited acts or practices;
(D) has disclosed his or her wages or has inquired about or discussed the wages of other employees; or
(E) is believed by the employer to have acted as described in subdivisions (A) through (D) of this subdivision.
(b) The provisions of this section shall not be construed to limit the rights of employers to discharge employees for good cause shown.
(c) The provisions of this section prohibiting discrimination on the basis of age shall apply for the benefit of persons 18 years of age or older.
(d)(1) An employee shall not have a cause of action in negligence for any injury occurring to the employee on the account of an employer complying with subdivisions (a)(5) and (6) of this section.
(2) A person shall not have a cause of action in negligence for any injury occurring to the person on account of an employer complying with subdivisions (a)(5) and (6) of this section.
(e) The provisions of this section prohibiting discrimination on the basis of sexual orientation and gender identity shall not be construed to prohibit or prevent any religious or denominational institution or organization, or any organization operated for charitable or educational purposes, that is operated, supervised, or controlled by or in connection with a religious organization, from giving preference to persons of the same religion or denomination or from taking any action with respect to matters of employment that is calculated by the organization to promote the religious principles for which it is established or maintained.
(f) [Repealed.]
(g) Notwithstanding any provision of this subchapter, an employer shall not be prohibited from establishing and enforcing reasonable workplace policies to address matters related to employees’ gender identity, including permitting an employer to establish a reasonable dress code for the workplace.
(h) Nothing in this section shall require an employer to disclose the wages of an employee in response to an inquiry by another employee, unless the failure to do so would otherwise constitute unlawful employment discrimination. Unless otherwise required by law, nothing in this section shall require an employee to disclose his or her wages in response to an inquiry by another employee.
(i) An agreement to settle a claim of a violation of subsection (a) of this section shall not prohibit, prevent, or otherwise restrict the employee from working for the employer or any parent company, subsidiary, division, or affiliate of the employer. Any provision of an agreement to settle a claim of a violation of subsection (a) of this section that violates this subsection shall be void and unenforceable with respect to the individual who made the claim.
(j) Except for claims alleging a violation of subdivision (a)(7) of this section or disparate impact discrimination an employee shall not be required to demonstrate the existence of another employee or individual to whom the employee’s treatment can be compared to establish a violation of this section.
(k) Notwithstanding any State or federal judicial precedent to the contrary:
(1) harassment and discrimination need not be severe or pervasive to constitute a violation of this section; and
(2) behavior that a reasonable employee with the same protected characteristic would consider to be a petty slight or trivial inconvenience shall not constitute unlawful harassment or discrimination pursuant to this section.
(Added 1963, No. 196, § 1; amended 1971, No. 9, eff. Feb. 25, 1971; 1975, No. 198 (Adj. Sess.), § 1; 1981, No. 65, § 1; 1987, No. 176 (Adj. Sess.), §§ 1, 2; 1987, No. 176 (Adj. Sess.), §§ 1, 2; 1991, No. 135 (Adj. Sess.), § 15; 1999, No. 19, § 4; 1999, No. 103 (Adj. Sess.), § 1; 2001, No. 81 (Adj. Sess.), § 1, eff. April 25, 2002; 2005, No. 10, § 1; 2007, No. 41, § 18; 2013, No. 31, § 2; 2013, No. 35, § 2; 2013, No. 96 (Adj. Sess.), § 129; 2017, No. 113 (Adj. Sess.), § 145; 2017, No. 184 (Adj. Sess.), § 1; 2023, No. 6, § 249, eff. July 1, 2023; 2023, No. 80, § 1, eff. July 1, 2023.)
§ 495a Persons entering into contracts with this State
The State of Vermont and all of its contracting agencies shall include in all contracts negotiated a provision obligating the contractor to comply with this subchapter in connection with any work to be performed in this State and requiring the contractor to include a similar provision in all subcontracts for work to be performed in this State.
(1963, No. 196, § 2; amended 2023, No. 85 (Adj. Sess.), § 106, eff. July 1, 2024.)
§ 495b Penalties and enforcement
(a)(1) The Attorney General or a State’s Attorney may enforce the provisions of this subchapter by restraining prohibited acts, seeking civil penalties, obtaining assurances of discontinuance, and conducting civil investigations in accordance with the procedures established in 9 V.S.A. §§ 2458–2461 as though an unlawful employment practice were an unfair act in commerce. Any employer, employment agency, or labor organization complained against shall have the same rights and remedies as specified in 9 V.S.A. §§ 2458–2461. The Superior Courts are authorized to impose the same civil penalties and investigation costs and to order other relief to the State of Vermont or an aggrieved employee for violations of this subchapter as they are authorized to impose or order under the provisions of 9 V.S.A. §§ 2458 and 2461 in an unfair act in commerce. In addition, the Superior Courts may order restitution of wages or other benefits on behalf of an employee and may order reinstatement and other appropriate relief on behalf of an employee.
(2) Any charge or formal complaint filed by the Attorney General or a State’s Attorney against a person for unlawful discrimination or sexual harassment in violation of the provisions of this chapter shall include a statement setting forth the prohibition against retaliation pursuant to subdivision 495(a)(8) of this title.
(b) Any person aggrieved by a violation of the provisions of this subchapter may bring an action in Superior Court seeking compensatory and punitive damages or equitable relief, including restraint of prohibited acts, restitution of wages or other benefits, reinstatement, costs, reasonable attorney’s fees, and other appropriate relief.
(c) Any employer who violates the provisions of subdivision 495(a)(7) of this title shall be liable to any affected employee in the amount of the underpaid wages and an equal amount as liquidated damages, in addition to any other remedies available under this section.
(Added 1963, No. 196, § 3; amended 1975, No. 198 (Adj. Sess.), § 2; 1981, No. 65, § 2; 1999, No. 19, § 5; 2001, No. 81 (Adj. Sess.), § 2, eff. April 25, 2002; 2015, No. 97 (Adj. Sess.), § 55; 2017, No. 183 (Adj. Sess.), § 2; 2023, No. 85 (Adj. Sess.), § 107, eff. July 1, 2024.)
§ 495c Application
This subchapter shall not be construed as limiting the rights of employers to hire and fire and of labor organizations to determine the membership as long as such rights are not exercised in violation of this subchapter.
(1963, No. 196, § 4.)
§ 495d Definitions
As used in this subchapter:
(1) “Employer” means any individual, organization, or governmental body, including any partnership, association, trustee, estate, corporation, joint stock company, insurance company, or legal representative, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee, or successor thereof, and any common carrier by mail, motor, water, air, or express company doing business in or operating within this State, and any agent of such employer, that has one or more individuals performing services for it within this State.
(2) “Employee” means every person who may be permitted, required, or directed by any employer, in consideration of direct or indirect gain or profit, to perform services.
(3) “Employment agency” means every person, corporation, association, or governmental body representative thereof engaged in the business of advertising for advising, classifying, training, or referral of persons for employment within this State, or that at the direction of any employer advertises, locates, advises, classifies, trains, refers, or selects persons to engage in any employment.
(4) “Labor organization” means any organization or association that represents not less than five employees and that exists for the purpose, in whole or in part, of dealing with employers concerning grievances, labor disputes, wages, rates of pay, hours, promotions, or other terms and conditions of employment.
(5) “Individual with a disability” means any natural person who:
(A) has a physical or mental impairment that substantially limits one or more major life activities;
(B) has a history or record of such an impairment; or
(C) is regarded as having such an impairment.
(6) “Qualified individual with a disability” means:
(A) An individual with a disability who is capable of performing the essential functions of the job or jobs for which the individual is being considered with reasonable accommodation to the disability.
(B) Does not include any individual who is an alcoholic or drug abuser whose current use of alcohol or drugs prevents such individual from performing the duties of the job in question or whose employment, by reason of such current alcohol or drug abuse, would constitute a direct threat to property or the safety of others.
(7) “Physical or mental impairment” means:
(A)(i) any physiological disorder or condition, cosmetic disfigurement, or anatomical loss affecting one or more of the following body systems: neurological; musculoskeletal; special sense organs; respiratory, including speech organs; cardiovascular; reproductive; digestive; genito-urinary; hemic and lymphatic; skin; or endocrine;
(ii) any mental or psychological disorder, such as developmental disability, organic brain syndrome, emotional or mental condition or psychiatric disability, and specific learning disabilities;
(B) the term “physical or mental impairment” includes diseases and conditions such as orthopedic, visual, speech, and hearing impairments, cerebral palsy, epilepsy, muscular dystrophy, multiple sclerosis, cancer, heart disease, diabetes, intellectual disability, emotional illness, and drug addiction and alcoholism.
(8) “Substantially limits” means the degree that the impairment affects an individual’s employability. An individual with a disability who is likely to experience difficulty in securing, retaining, or advancing in employment would be considered substantially limited.
(9) “Major life activities” means functions such as caring for one’s self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, working, and receiving education or vocational training.
(10) “Has a history or record of such an impairment” means that the individual has a history of, or has been misclassified as having, a mental or physical impairment that substantially limits one or more life activity.
(11) “Is regarded as having such an impairment” means that the individual:
(A) has a physical or mental impairment that does not substantially limit major life activities but that is treated by an employer as constituting such a limitation;
(B) has a physical or mental impairment that substantially limits major life activities only as a result of the attitudes of others toward such impairment; or
(C) has none of the impairments defined in subdivision (7)(A) of this section but is treated by an employer as having such an impairment.
(12)(A) “Reasonable accommodation” means the changes and modifications that can be made in the structure of a job or in the manner in which a job is performed unless it would impose an undue hardship on the employer.
(B) “Reasonable accommodation” may include:
(i) making the facilities used by the employees, including common areas used by all employees such as hallways, restrooms, cafeterias, and lounges, readily accessible to and usable by individuals with disabilities; and
(ii) job restructuring, part-time or modified work schedules, acquisition or modification of equipment or devices, and other similar actions.
(C) Factors to be considered in determining whether an undue hardship is imposed by the requirement that reasonable accommodation be made for an individual with a disability include:
(i) the overall size of the employer’s operation with respect to the number of employees, number and type of facilities, and size of budget; and
(ii) the cost for the accommodation needed.
(13)(A) “Sexual harassment” is a form of sex discrimination and means unwelcome sexual advances, requests for sexual favors, and other verbal, physical, written, auditory, or visual conduct of a sexual nature when:
(i) submission to that conduct is made either explicitly or implicitly a term or condition of employment;
(ii) submission to or rejection of such conduct by an individual is used as a component of the basis for employment decisions affecting that individual; or
(iii) the conduct has the purpose or effect of interfering with an individual’s work or creating an intimidating, hostile, or offensive work environment.
(B) Sexual harassment need not be severe or pervasive in order to be unlawful pursuant to this subchapter.
(14) “Pregnancy-related condition” means a limitation of an employee’s ability to perform the functions of a job caused by pregnancy, childbirth, or a medical condition related to pregnancy or childbirth.
(15) “Crime victim” means any of the following:
(A) a person who has obtained a relief from abuse order issued under 15 V.S.A. § 1103;
(B) a person who has obtained an order against stalking or sexual assault issued under 12 V.S.A. chapter 178;
(C) a person who has obtained an order against abuse of a vulnerable adult issued under 33 V.S.A. chapter 69; or
(D)(i) a victim as defined in 13 V.S.A. § 5301, provided that the victim is identified as a crime victim in an affidavit filed by a law enforcement official with a prosecuting attorney of competent state or federal jurisdiction; and
(ii) shall include the victim’s child, foster child, parent, spouse, stepchild or ward of the victim who lives with the victim, or a parent of the victim’s spouse, provided that the individual is not identified in the affidavit as the defendant.
(16) “Harass” means to engage in unwelcome conduct based on an employee’s race, color, religion, national origin, sex, sexual orientation, gender identity, ancestry, place of birth, age, crime victim status, or physical or mental condition that interferes with the employee’s work or creates a work environment that is intimidating, hostile, or offensive. In determining whether conduct constitutes harassment:
(A) The determination shall be made on the basis of the record as a whole, according to the totality of the circumstances, and a single incident may constitute unlawful harassment.
(B) Incidents that may be harassment shall be considered in the aggregate with varying types of conduct and conduct based on multiple characteristics viewed in totality rather than in isolation.
(C) Conduct may constitute harassment, regardless of whether:
(i) the complaining employee is the individual being harassed;
(ii) the complaining employee acquiesced or otherwise submitted to or participated in the conduct;
(iii) the conduct is also experienced by others outside the protected class involved in the conduct;
(iv) the complaining employee was able to continue carrying out the employee’s job duties and responsibilities despite the conduct;
(v) the conduct resulted in a physical or psychological injury; or
(vi) the conduct occurred outside the workplace.
(17) “Race” includes traits associated with or perceived to be associated with race, including hair type, hair texture, hairstyles, and protective hairstyles. As used in this subdivision, the term “protective hairstyles” includes hairstyles such as individual braids, cornrows, locs, twists, Bantu knots, afros, afro puffs, and other formations, as well as wigs, headwraps, and other head coverings.
(Added 1975, No. 198 (Adj. Sess.), § 3; amended 1981, No. 65, § 3; 1993, No. 39, §§ 2, 3, eff. Oct. 1, 1993; 1999, No. 103 (Adj. Sess.), § 2; 2013, No. 96 (Adj. Sess.), § 130; 2017, No. 21, § 1, eff. Jan. 1, 2018; 2017, No. 113 (Adj. Sess.), § 146; 2017, No. 184 (Adj. Sess.), § 2; 2023, No. 80, § 2, eff. July 1, 2023; 2023, No. 92 (Adj. Sess.), § 2, eff. July 1, 2024; 2025, No. 18, § 30, eff. May 13, 2025.)
§ 495e Restitution
The Superior Courts may order restitution of wages or other benefits on behalf of a class of employees similarly situated, and may order reinstatement and other appropriate relief on behalf of a class of employees.
(Added 1975, No. 198 (Adj. Sess.), § 4, eff. July 1, 1977.)
§ 495f Exemptions
Notwithstanding any other provision of this subchapter, it is not unlawful discrimination on the basis of age or disability for any employer, employment agency or labor organization to observe the terms of a bona fide seniority system or any bona fide employee benefit plan, such as a retirement, pension, or life or health insurance plan, any of which is not a subterfuge to evade the purposes of this subchapter. No employee benefit plan, however, excuses the failure to hire any individual. No seniority system or employee benefit plan shall require or permit the involuntary retirement of any individual because of age. Mandatory retirement on account of age, necessitated under a police or firefighter retirement system, is specifically authorized.
(Added 1981, No. 65, § 4; amended 1999, No. 103 (Adj. Sess.), § 3.)
§ 495g Provision applicable to college professors
Nothing in this subchapter shall be construed to prohibit any institution of higher education as defined by section 1201(a) of the federal Higher Education Act of 1965 from retiring any employee who is serving under a contract of unlimited tenure, who attains 70 years of age. Any employee whose tenure contract is terminated may, in the discretion of the institution, be allowed to continue in the employ of the institution on a nontenured basis.
(Added 1981, No. 65, § 5; amended 2017, No. 74, § 38; 2023, No. 85 (Adj. Sess.), § 108, eff. July 1, 2024.)
§ 495h Sexual harassment
(a)(1) All employers, employment agencies, and labor organizations have an obligation to ensure a workplace free of sexual harassment.
(2) All persons who engage a person to perform work or services have an obligation to ensure a working relationship with that person that is free from sexual harassment.
(b) Every employer shall:
(1) Adopt a policy against sexual harassment that shall include:
(A) a statement that sexual harassment in the workplace is unlawful;
(B) a statement that it is unlawful to retaliate against an employee for filing a complaint of sexual harassment or for cooperating in an investigation of sexual harassment;
(C) a description and examples of sexual harassment;
(D) a statement of the range of consequences for employees who commit sexual harassment;
(E) if the employer has more than five employees, a description of the process for filing internal complaints about sexual harassment and the names, addresses, and telephone numbers of the person or persons to whom complaints should be made; and
(F) the complaint process of the appropriate State and federal employment discrimination enforcement agencies, and directions as to how to contact such agencies.
(2) Post in a prominent and accessible location in the workplace, a poster providing, at a minimum, the elements of the employer’s sexual harassment policy required by subdivision (1) of this subsection.
(3) Provide to all employees an individual written copy of the employer’s policy against sexual harassment.
(c)(1) Employers shall provide individual copies of their written policies to new employees upon their being hired.
(2) If an employer makes changes to its policy against sexual harassment, it shall provide to all employees a written copy of the updated policy.
(d) The Commissioner of Labor shall prepare and provide to employers subject to this section a model policy and a model poster, which may be used by employers for the purposes of this section.
(e) A claim that an individual did not receive the information required to be provided by this section shall not, in and of itself, result in the automatic liability of any employer to any current or former employee or applicant in any action alleging sexual harassment. An employer’s compliance with the notice requirements of this section does not insulate the employer from liability for sexual harassment of any current or former employee or applicant.
(f)(1) Employers and labor organizations are encouraged to conduct an education and training program for all new employees and members that includes at a minimum all the information outlined in this section within one year after commencement of employment.
(2) Employers and labor organizations are encouraged to conduct an annual education and training program for all employees and members that includes at a minimum all the information outlined in this section.
(3) Employers are encouraged to conduct additional training for new supervisory and managerial employees and members within one year after commencement of employment or membership, which should include at a minimum the information outlined in this section, the specific responsibilities of supervisory and managerial employees, and the actions that these employees must take to ensure immediate and appropriate corrective action in addressing sexual harassment complaints.
(4) Employers, labor organizations, and appropriate State agencies are encouraged to cooperate in making this training available.
(g)(1) An employer shall not require any employee or prospective employee, as a condition of employment, to sign an agreement or waiver that does either of the following:
(A) prohibits, prevents, or otherwise restricts the employee or prospective employee from opposing, disclosing, reporting, or participating in an investigation of sexual harassment; or
(B) except as otherwise permitted by State or federal law, purports to waive a substantive or procedural right or remedy available to the employee with respect to a claim of sexual harassment.
(2) Any provision of an agreement that violates subdivision (1) of this subsection shall be void and unenforceable.
(h)(1) An agreement to settle a claim of sexual harassment shall not prohibit, prevent, or otherwise restrict the employee from working for the employer or any parent company, subsidiary, division, or affiliate of the employer.
(2) An agreement to settle a sexual harassment claim shall expressly state that:
(A) it does not prohibit, prevent, or otherwise restrict the individual who made the claim from doing any of the following:
(i) lodging a complaint of sexual harassment committed by any person with the Attorney General, a State’s Attorney, the Human Rights Commission, the Equal Employment Opportunity Commission, or any other State or federal agency;
(ii) testifying, assisting, or participating in any manner with an investigation related to a claim of sexual harassment conducted by the Attorney General, a State’s Attorney, the Human Rights Commission, the Equal Employment Opportunity Commission, or any other State or federal agency;
(iii) complying with a valid request for discovery in relation to civil litigation or testifying in a hearing or trial related to a claim of sexual harassment that is conducted by a court, pursuant to an arbitration agreement, or before another appropriate tribunal; or
(iv) exercising any right the individual may have pursuant to State or federal labor relations laws to engage in concerted activities with other employees for the purposes of collective bargaining or mutual aid and protection; and
(B) it does not waive any rights or claims that may arise after the date the settlement agreement is executed.
(3) Any provision of an agreement to settle a sexual harassment claim that violates subdivision (1) or (2) of this subsection shall be void and unenforceable with respect to the individual who made the claim.
(4) Nothing in subdivision (2) of this subsection shall be construed to prevent an agreement to settle a sexual harassment claim from waiving or releasing the claimant’s right to seek or obtain any remedies relating to sexual harassment of the claimant by another party to the agreement that occurred before the date on which the agreement is executed.
(i)(1)(A)(i) For the purpose of assessing compliance with the provisions of this section, the Attorney General or designee, or, if the employer is the State, the Human Rights Commission or designee, may, with 48 hours’ notice, at reasonable times and without unduly disrupting business operations enter and inspect any place of business or employment, question any person who is authorized by the employer to receive or investigate complaints of sexual harassment, and examine an employer’s records, policies, procedures, and training materials related to the prevention of sexual harassment and the requirements of this section.
(ii) An employer may agree to waive or shorten the 48-hour notice period.
(iii) As used in this subsection (i), the term “records” includes de-identified data regarding the number of complaints of sexual harassment received and the resolution of each complaint.
(B) The employer shall at reasonable times and without unduly disrupting business operations make any persons who are authorized by the employer to receive or investigate complaints of sexual harassment and any records, policies, procedures, and training materials related to the prevention of sexual harassment and the requirements of this section available to the Attorney General or designee or, if the employer is the State, the Human Rights Commission or designee.
(2) Following an inspection and examination pursuant to subdivision (1) of this subsection (i), the Attorney General or the Human Rights Commission shall notify the employer of the results of the inspection and examination, including any issues or deficiencies identified, provide resources regarding practices and procedures for the prevention of sexual harassment that the employer may wish to adopt or utilize, and identify any technical assistance that the Attorney General or the Human Rights Commission may be able to provide to help the employer address any identified issues or deficiencies. If the Attorney General or the Human Rights Commission determines that it is necessary to ensure the employer’s workplace is free from sexual harassment, the employer may be required, for a period of up to three years, to provide an annual education and training program that satisfies the provisions of subdivision (4) of this subsection to all employees or to conduct an annual, anonymous working-climate survey, or both.
(3)(A) The Attorney General shall keep records, materials, and information related to or obtained through an inspection carried out pursuant to this subsection (i) confidential as provided pursuant to 9 V.S.A. § 2460(a)(4).
(B) The Human Rights Commission shall keep records, materials, and information related to or obtained through an inspection carried out pursuant to this subsection (i) confidential as provided pursuant to 9 V.S.A. § 4555.
(4) If required by the Attorney General or Human Rights Commission pursuant to subdivision (2) of this subsection, an employer shall conduct:
(A) an annual education and training program for all employees that includes at a minimum all the information outlined in this section; and
(B) an annual education and training program for supervisory and managerial employees that includes at a minimum all the information outlined in this section, the specific responsibilities of supervisory and managerial employees, and the actions that these employees must take to ensure immediate and appropriate corrective action in addressing sexual harassment complaints.
(j) The Attorney General shall adopt rules as necessary to implement the provisions of this section.
(Added 1993, No. 39, § 4, eff. Oct. 1, 1993; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2017, No. 183 (Adj. Sess.), § 1.)
§ 495i Employment based on credit information; prohibitions
(a) As used in this section:
(1) “Confidential financial information” means sensitive financial information of commercial value that a customer or client of the employer gives explicit authorization for the employer to obtain, process, and store and that the employer entrusts only to managers or employees as a necessary function of their job duties.
(2) “Credit history” means information obtained from a third party, whether or not contained in a credit report, that reflects or pertains to an individual’s prior or current:
(A) borrowing or repaying behavior, including the accumulation, payment, or discharge of financial obligations; or
(B) financial condition or ability to meet financial obligations, including debts owed, payment history, savings or checking account balances, or savings or checking account numbers.
(3) “Credit report” has the same meaning as in 9 V.S.A. § 2480a.
(b) An employer shall not:
(1) fail or refuse to hire or recruit, discharge, or otherwise discriminate against an individual with respect to employment; compensation; or a term, condition, or privilege of employment because of the individual's credit report or credit history; or
(2) inquire about an applicant’s or employee’s credit report or credit history.
(c)(1) An employer is exempt from the provisions of subsection (b) of this section if one or more of the following conditions are met:
(A) The information is required by State or federal law or regulation.
(B) The position of employment involves access to confidential financial information.
(C) The employer is a financial institution as defined in 8 V.S.A. § 11101(32) or a credit union as defined in 8 V.S.A. § 30101(5).
(D) The position of employment is that of a law enforcement officer as defined in 20 V.S.A. § 2351a, emergency medical personnel as defined in 24 V.S.A. § 2651(6), or a firefighter as defined in 20 V.S.A. § 3151(3).
(E) The position of employment requires a financial fiduciary responsibility to the employer or a client of the employer, including the authority to issue payments, collect debts, transfer money, or enter into contracts.
(F) The employer can demonstrate that the information is a valid and reliable predictor of employee performance in the specific position of employment.
(G) The position of employment involves access to an employer’s payroll information.
(2) An employer that is exempt from the provisions of subsection (b) of this section may not use an employee’s or applicant’s credit report or history as the sole factor in decisions regarding employment; compensation; or a term, condition, or privilege of employment.
(d) If an employer seeks to obtain or act upon an employee’s or applicant’s credit report or credit history pursuant to subsection (c) of this section that contains information about the employee’s or applicant’s credit score, credit account balances, payment history, savings or checking account balances, or savings or checking account numbers, the employer shall:
(1) Obtain the employee’s or applicant’s written consent each time the employer seeks to obtain the employee’s or applicant’s credit report.
(2) Disclose in writing to the employee or applicant the employer’s reasons for accessing the credit report and, if an adverse employment action is taken based upon the credit report, disclose the reasons for the action in writing. The employee or applicant has the right to contest the accuracy of the credit report or credit history.
(3) Ensure that none of the costs associated with obtaining an employee’s or an applicant’s credit report or credit history are passed on to the employee or applicant.
(4) Ensure that the information in the employee’s or applicant’s credit report or credit history is kept confidential and, if the employment is terminated or the applicant is not hired by the employer, provide the employee or applicant with the credit report or have the credit report destroyed in a secure manner that ensures the confidentiality of the information in the report.
(e) An employer shall not discharge or in any other manner discriminate against an employee or applicant who has filed a complaint of unlawful employment practices in violation of this section or who has cooperated with the Attorney General or a State’s Attorney in an investigation of such practices or who is about to lodge a complaint or cooperate in an investigation or because the employer believes that the employee or applicant may lodge a complaint or cooperate in an investigation.
(f) Notwithstanding subsection (c) of this section, an employer shall not seek or act upon credit reports or credit histories in a manner that results in adverse employment discrimination prohibited by federal or State law, including section 495 of this title and Title VII of the Civil Rights Act of 1964.
(g) This section shall apply only to employers, employees, and applicants for employment and only to employment-related decisions based on a person’s credit history or credit report. It shall not affect the rights of any person, including financial lenders or investors, to obtain credit reports pursuant to other law.
(Added 2011, No. 154 (Adj. Sess.), § 2; amended 2021, No. 20, § 218; 2021, No. 105 (Adj. Sess.), § 407, eff. July 1, 2022.)
§ 495j Criminal history records; employment applications
(a) Except as provided in subsection (b) of this section, an employer shall not request criminal history record information on its initial employee application form. An employer may inquire about a prospective employee’s criminal history record during an interview or once the prospective employee has been deemed otherwise qualified for the position.
(b)(1) An employer may inquire about criminal convictions on an initial employee application form if the following conditions are met:
(A)(i) the prospective employee is applying for a position for which any federal or State law or regulation creates a mandatory or presumptive disqualification based on a conviction for one or more types of criminal offenses; or
(ii) the employer or an affiliate of the employer is subject to an obligation imposed by any federal or State law or regulation not to employ an individual, in either one or more positions, who has been convicted of one or more types of criminal offenses; and
(B) the questions on the application form are limited to the types of criminal offenses creating the disqualification or obligation.
(2) An employer shall be permitted to inquire about criminal convictions on an initial employee application form pursuant to subdivision (1) of this subsection even if the federal or State law or regulation creating an obligation for the employer or its affiliate not to employ an individual who has been convicted of one or more types of criminal offenses also permits the employer or its affiliate to obtain a waiver that would allow the employer or its affiliate to employ such an individual.
(c) If an employer inquires about a prospective employee’s criminal history record information, the prospective employee, if still eligible for the position under applicable federal or State law, must be afforded an opportunity to explain the information and the circumstances regarding any convictions, including postconviction rehabilitation.
(d) An employer who violates the provisions of this section shall be assessed a civil penalty of up to $100.00 for each violation.
(e) As used in this section:
(1) “Criminal history record” has the same meaning as set forth in 20 V.S.A. § 2056a.
(2) “Employee” has the same meaning as set forth in section 495d of this chapter.
(3) “Employer” has the same meaning as set forth in section 495d of this chapter.
(Added 2015, No. 81 (Adj. Sess.), § 1, eff. July 1, 2017.)
§ 495k Accommodations for pregnancy-related conditions
(a)(1) It shall be an unlawful employment practice for an employer to fail to provide a reasonable accommodation for an employee’s pregnancy-related condition, unless it would impose an undue hardship on the employer.
(2) An employee with a pregnancy-related condition, regardless of whether the employee is an “individual with a disability” as defined in subdivision 495d(5) of this subchapter, shall have the same rights and be subject to the same standards with respect to the provision of a reasonable accommodation, pursuant to this subchapter, as a qualified individual with a disability as defined in subdivision 495d(6) of this subchapter.
(b) Nothing in this section shall be construed to diminish the rights, privileges, or remedies of an employee pursuant to federal or State law, a collective bargaining agreement, or an employment contract.
(c) An employer shall post notice of the provisions of this section in a form provided by the Commissioner in a place conspicuous to employees at the employer’s place of business.
(d) Nothing in this section shall be construed to indicate or deem that a pregnancy-related condition necessarily constitutes a disability.
(Added 2017, No. 21, § 2, eff. Jan. 1, 2018.)
§ 495l Social media account privacy; prohibitions
(a) As used in this section:
(1) “Social media account” means an account with an electronic medium or service through which users create, share, and interact with content, including videos, still photographs, blogs, video blogs, podcasts, instant or text messages, e-mail, online services or accounts, or internet website profiles or locations. “Social media account” does not include an account provided by an employer or intended to be used primarily on behalf of an employer.
(2) “Specifically identified content” means data, information, or other content stored in a social media account that is identified with sufficient particularity to distinguish the individual piece of content being sought from any other data, information, or content stored in the account. “Specifically identified content” shall not include a username, password, or other means of authentication for the purpose of accessing an employee’s or applicant’s social media account.
(b) An employer shall not require, request, or coerce an employee or applicant to do any of the following:
(1) disclose a username, password, or other means of authentication, or turn over an unlocked personal electronic device for the purpose of accessing the employee’s or applicant’s social media account;
(2) access a social media account in the presence of the employer;
(3) divulge or present any content from the employee’s or applicant’s social media account; or
(4) change the account or privacy settings of the employee’s or applicant’s social media account to increase third-party access to its contents.
(c) An employer shall not require or coerce an employee or applicant to add anyone, including the employer, to his or her list of contacts associated with a social media account.
(d) No agreement by an employee to waive his or her rights under this section shall be valid.
(e)(1) Nothing in this section shall preclude an employer from requesting an employee to share specifically identified content for the purpose of:
(A) complying with the employer’s legal and regulatory obligations;
(B) investigating an allegation of the unauthorized transfer or disclosure of an employer’s proprietary or confidential information or financial data through an employee’s or an applicant’s social media account; or
(C) investigating an allegation of unlawful harassment, threats of violence in the workplace, or discriminatory or disparaging content concerning another employee.
(2) Nothing in this section shall prohibit or restrict a law enforcement agency, as defined in 15 V.S.A. § 1151(5), from requesting or requiring:
(A) an applicant to provide access to the applicant’s social media account as part of a screening or fitness determination during the hiring process; or
(B) an employee to provide access to the employee’s social media account in relation to a continued fitness determination or an allegation or investigation of employee misconduct, a violation of policy, or a violation of law.
(3) Nothing in this section shall restrict or otherwise prohibit a law enforcement agency, as defined in 15 V.S.A. § 1151(5), from retaining any social media account information acquired pursuant to this subsection, provided that the information shall be protected in accordance with law and the law enforcement agency’s policy.
(4) Nothing in this section shall be construed to prevent an employer from complying with the requirements of State or federal law.
(f) Nothing in this section shall preclude an employer from requesting or requiring an employee to provide a username or password that is necessary to access an employer-issued electronic device.
(g) An employer shall not discharge or in any other manner retaliate against an employee who exercises or attempts to exercise his or her rights under this section. The provisions against retaliation in subdivision 495(a)(8) of this title and the penalty and enforcement provisions of section 495b of this title shall apply to this section.
(Added 2017, No. 37, § 1, eff. Jan. 1, 2018.)
§ 495m Salary history; employment applications
(a) An employer shall not:
(1) inquire about or seek information regarding a prospective employee’s current or past compensation from either the prospective employee or a current or former employer of the prospective employee;
(2) require that a prospective employee’s current or past compensation satisfy minimum or maximum criteria; or
(3) determine whether to interview a prospective employee based on the prospective employee’s current or past compensation.
(b) Notwithstanding subdivision (a)(1) of this section, if a prospective employee voluntarily discloses information about his or her current or past compensation, an employer may, after making an offer of employment with compensation to the prospective employee, seek to confirm or request that the prospective employee confirm that information.
(c) Nothing in this section shall be construed to prevent an employer from:
(1) inquiring about a prospective employee’s salary expectations or requirements; or
(2) providing information about the wages, benefits, compensation, or salary offered in relation to a position.
(d) As used in this section, “compensation” includes wages, salary, bonuses, benefits, fringe benefits, and equity-based compensation.
(Added 2017, No. 126 (Adj. Sess.), § 1.)
§ 495n Sexual harassment complaints; notice to Attorney General and Human Rights Commission
(a) A person that files a claim of sexual harassment pursuant to section 495b of this subchapter in which neither the Attorney General nor the Human Rights Commission is a party shall provide notice of the action to the Attorney General and the Human Rights Commission within 14 days after filing the complaint. The notice may be submitted electronically and shall include a copy of the filed complaint.
(b)(1) Upon receiving notice of a complaint in which the State is a party, the Human Rights Commission may elect to:
(A) intervene in the action to seek remedies pursuant to section 495b of this subchapter; or
(B) without becoming a party to the action, file a statement with the court addressing questions of law related to the provisions of this subchapter.
(2) Upon receiving notice of a complaint in which the State is not a party, the Attorney General may elect to:
(A) intervene in the action to seek remedies pursuant to section 495b of this subchapter; or
(B) without becoming a party to the action, file a statement with the court addressing questions of law related to the provisions of this subchapter.
(Added 2017, No. 183 (Adj. Sess.), § 7.)
§ 495o Employer communications relating to religious or political matters; employee rights
(a) An employer, or an employer’s agent, shall not discharge, discipline, penalize, or otherwise discriminate against, or threaten to discharge, discipline, penalize, or otherwise discriminate against, an employee:
(1) because the employee declines:
(A) to attend or participate in an employer-sponsored meeting that has the primary purpose of communicating the employer’s opinion about religious or political matters; or
(B) to view or participate in communications with or from the employer or the employer’s agent that have the primary purpose of communicating the employer’s opinion about religious or political matters; or
(2) as a means of requiring an employee to:
(A) attend an employer-sponsored meeting that has the primary purpose of communicating the employer’s opinion about religious or political matters; or
(B) view or participate in communications with or from the employer or the employer’s agent that have the primary purpose of communicating the employer’s opinion about religious or political matters.
(b) Nothing in this section shall be construed to:
(1) limit an employee’s right to bring a civil action for wrongful termination; or
(2) diminish or limit any rights provided to an employee pursuant to a collective bargaining agreement or employment contract.
(c) Nothing in this section shall be construed to prohibit an employer that is a religious or denominational institution or organization, or any organization operated for charitable or educational purposes, that is operated, supervised, or controlled by or in connection with a religious organization, from:
(1) communicating with its employees regarding the employer’s opinion on religious matters;
(2) requiring its employees to attend a meeting regarding the employer’s opinion on religious matters; or
(3) requiring its employees to view or participate in communications from the employer or the employer’s agent regarding the employer’s opinion on religious matters.
(d) Nothing in this section shall be construed to prohibit an employer that is a political organization, a political party, or an organization that engages, in substantial part, in political matters from:
(1) communicating with its employees regarding the employer’s opinion on political matters;
(2) requiring its employees to attend a meeting regarding the employer’s opinion on political matters; or
(3) requiring its employees to view or participate in communications from the employer or the employer’s agent regarding the employer’s opinion on political matters.
(e) Nothing in this section shall be construed to prohibit an employer or the employer’s agent from:
(1) communicating information to an employee:
(A) that the employer is required to communicate pursuant to State or federal law; or
(B) that is necessary for the employee to perform the employee’s job functions or duties;
(2) requiring an employee to attend a meeting to discuss issues related to the employer’s business or operation when the discussion is necessary for the employee to perform the employee’s job functions or duties; or
(3) offering meetings, forums, or other communications about religious or political matters for which attendance or participation is entirely voluntary.
(f)(1) The penalty and enforcement provisions of section 495b of this subchapter shall apply to this section.
(2) The provisions against retaliation in subdivision 495(a)(8) of this subchapter shall apply to this section.
(g) As used in this section:
(1) “Political matters” means matters relating to:
(A) political affiliation;
(B) elections for political office;
(C) political parties;
(D) legislative proposals;
(E) the decision to join or support any political party or political, civic, community, fraternal, or labor organization; or
(F) any combination of subdivisions (A) through (E) of this subdivision (g)(1).
(2) “Religious matters” means matters relating to:
(A) religious affiliation;
(B) religious practice;
(C) the decision to join or support any religious or denominational organization or institution; or
(D) any combination of subdivisions (A) through (C) of this subdivision (g)(2).
(Added 2023, No. 117 (Adj. Sess.), § 1, eff. July 1, 2024.)
§ 495p Disclosure of compensation to prospective employees
(a)(1) An employer shall ensure that any advertisement of a Vermont job opening shall include the compensation or range of compensation for the job opening.
(2) Notwithstanding subdivision (1) of this subsection:
(A) An advertisement for a job opening that is paid on a commission basis, whether in whole or in part, shall disclose that fact and is not required to disclose the compensation or range of compensation pursuant to subdivision (1) of this subsection (a).
(B) An advertisement for a job opening that is paid on a tipped basis shall disclose that fact and the base wage or range of base wages for the job opening.
(b)(1) The provisions of this section and any claim of retaliation under subdivision 495(a)(8) of this subchapter for asserting or exercising any rights provided pursuant to this section shall only be enforced pursuant to the provisions of 21 V.S.A. § 495b(a)(1).
(2) It shall be a violation of this section and subdivision 495(a)(8) of this subchapter for an employer to refuse to interview, hire, promote, or employ a current or prospective employee for asserting or exercising any rights provided pursuant to this section.
(c) As used in this section:
(1) “Advertisement” means written notice, in any format, of a specific job opening that is made available to potential applicants. “Advertisement” does not include:
(A) general announcements that notify potential applicants that employment opportunities may exist with the employer but do not identify any specific job openings; or
(B) verbal announcements of employment opportunities that are made in person or on the radio, television, or other electronic mediums.
(2) “Base wage” means the hourly wage that an employer pays to a tipped employee and does not include any tips received by the employee. Nothing in this section shall be construed to alter an employer’s obligations to comply with section 384 of this title.
(3) “Employer” means an employer, as defined pursuant to section 495d of this subchapter, that employs five or more employees.
(4) “Good faith” means honesty in fact.
(5) “Potential applicants” includes both current employees of the employer and members of the general public.
(6)(A) “Range of base wages” means the minimum and maximum base wages for a job opening that the employer expects in good faith to pay for the advertised job at the time the employer creates the advertisement.
(B) Nothing in this section shall be construed to prevent an employer from hiring an employee for more or less than the range of base wages contained in a job advertisement based on circumstances outside of the employer’s control, such as an applicant’s qualifications or labor market factors.
(7)(A) “Range of compensation” means the minimum and maximum annual salary or hourly wage for a job opening that the employer expects in good faith to pay for the advertised job at the time the employer creates the advertisement.
(B) Nothing in this section shall be construed to prevent an employer from hiring an employee for more or less than the range of compensation contained in a job advertisement based on circumstances outside of the employer’s control, such as an applicant’s qualifications or labor market factors.
(8)(A) “Vermont job opening” and “job opening” mean any position of employment that is:
(i) either:
(I) physically located in Vermont; or
(II) a remote position that will predominantly perform work for an office or work location that is physically located in Vermont; and
(ii) a position for which an employer is hiring, including:
(I) positions that are open to internal candidates or external candidates, or both; and
(II) positions into which current employees of the employer can transfer or be promoted.
(B) “Vermont job opening” and “job opening” does not include a position that is physically located outside of Vermont and that performs work that is predominantly for one or more offices or work locations that are physically located outside of Vermont.
(Added 2023, No. 155 (Adj. Sess.), § 1, eff. July 1, 2025.)
§ 496 Legislative leave
(a) Any employee who, in order to serve as a member of the General Assembly, must leave a full-time position in the employ of any employer, shall be entitled to a temporary or partial leave of absence for the purpose of allowing the employee to perform any official duty in connection with the employee’s elected office. The leave of absence shall not cause loss of job status, seniority, or the right to participate in insurance and other employee benefits during the leave of absence.
(b) An employee who intends to seek election to the General Assembly and to invoke, if elected, the right to a leave of absence pursuant to subsection (a) of this section, shall notify the employee’s employer of those intentions in writing within 10 days after filing the primary election nominating petition required by 17 V.S.A. § 2353 or of taking any other action required by 17 V.S.A. chapter 49, to place the employee’s name on a primary or general election ballot. An employee who fails to give notice to the employee’s employer as required by this section shall be deemed to have waived the right to a leave of absence under subsection (a) of this section.
(c) An employer who contends that granting the leave of absence required by subsection (a) of this section will cause unreasonable hardship for the employer’s business may appeal for relief by letter to the Chair of the State Labor Relations Board created by 3 V.S.A. § 921. The right to such appeal shall be waived unless it is filed within 14 days after receipt of the notice required by subsection (b) of this section. The appeal shall state the name of the employee and the reasons for the alleged unreasonable hardship. The remedy created by this subsection shall be the exclusive remedy for an employer who claims unreasonable hardship as a result of the application to the employer of subsection (a) of this section.
(d) The Chair of the State Labor Relations Board, or any member of the Board designated by the Chair, shall serve as an arbitrator in any case appealed pursuant to subsection (c) of this section. The proceedings shall include an opportunity for the employee to respond, orally or in writing, to the allegations of unreasonable hardship raised by the employer, and shall be conducted in accord with the rules of practice of the State Labor Relations Board. Within 30 days after receipt of a notice of appeal, the arbitrator shall issue an order, which shall be binding on both parties, either granting or denying the employer’s claim of unreasonable hardship. If the employer’s claim is granted, the employee shall not be entitled to the protection of subsection (a) of this section. In reaching a decision, the arbitrator shall consider, but is not limited to, the following factors:
(1) the length of time the employee has been employed by the employer;
(2) the number of employees in the employer’s business;
(3) the nature of the employer’s business;
(4) the nature of the position held by the employee and the ease or difficulty and cost of temporarily filling the position during the leave of absence; and
(5) any agreement entered into between the employee and employer as a condition of employment.
(e) This section is not applicable if the employer employs five or fewer persons immediately prior to the first day of the leave of absence.
(f) Any attorney, party, witness, or juror who, while a member of and during sessions of the General Assembly, is assigned or scheduled to appear in any court of the State of Vermont shall be entitled to a leave of absence or postponement from such judicial duties when the individual’s duties in the General Assembly are more compelling, for the purpose of allowing the member to perform any official duties in connection with the member’s elected office. The leave of absence or postponement shall not prejudice the member or the cause involved.
(Added 1979, No. 162 (Adj. Sess.); amended 1981, No. 230 (Adj. Sess.); 2023, No. 85 (Adj. Sess.), § 109, eff. July 1, 2024.)
§ 496a State funds; union organizing
An employer that is the recipient of a grant of State funds in a single grant of more than $1,000.00 shall certify to the State that none of the funds will be used to interfere with or restrain the exercise of an employee’s rights with respect to unionization and upon request shall provide records to the Secretary of Administration that attest to such certification.
(Added 2011, No. 154 (Adj. Sess.), § 4; amended 2013, No. 1, § 94, eff. March 7, 2013.)
Subchapter 7 Employment of People with Disabilities
§ 497 Purpose
The purpose of this subchapter is to carry on a continuing program to promote the employment of people with disabilities in Vermont by creating statewide interest in the rehabilitation and employment of people with disabilities and by obtaining and maintaining cooperation with all public and private groups and individuals in this field.
(1963, No. 200, § 1, eff. June 29, 1963; amended 1991, No. 168 (Adj. Sess.), § 2.)
§ 497a Committee established
There is hereby established a permanent committee to be known as the Vermont Governor’s Committee on Employment of People with Disabilities, to consist of 23 members, including one representative each from the Vermont Department of Labor’s Workforce Development Division and the Jobs for Veterans State Grant, one representative from the Department of Disabilities, Aging, and Independent Living, Vocational Rehabilitation Division and one from the Division for the Blind and Visually Impaired, one representative of the U.S. Department of Veterans Affairs, one representative of the State of Vermont Office of Veterans Affairs, and 17 members to be appointed by the Governor. The appointive members shall hold office for the term specified or until their successors are named by the Governor. The members shall receive no salary for their services as such, but the necessary expenses of the Committee shall be paid by the State.
(Added 1963, No. 200, § 2, eff. June 29, 1963; amended 1991, No. 168 (Adj. Sess.), § 3; 2005, No. 174 (Adj. Sess.), § 51; 2015, No. 51, § C.5, eff. June 3, 2015.)
§ 497b Duties
(a) The Committee shall coordinate a program to promote the employment of people with disabilities by creating statewide interest in the rehabilitation and employment of people with disabilities and by obtaining and maintaining cooperation from all public and private groups in this field. The Committee shall work in cooperation with the President’s Committee on Employment of People with Disabilities in order to carry out more effectively the purposes of this subchapter.
(b) [Repealed.]
(Added 1963, No. 200, § 3, eff. June 29, 1963; amended 1985, No. 179 (Adj. Sess.), § 2, eff. May 13, 1986; 1991, No. 168 (Adj. Sess.), § 4; 2011, No. 139 (Adj. Sess.), § 51, eff. May 14, 2012.)
§ 497c Disability Awareness Month
The month of October is designated as “Disability Awareness Month.”
(Added 1963, No. 200, § 4, eff. June 29, 1963; amended 1991, No. 168 (Adj. Sess.), § 5.)
§ 497d Powers
The Vermont Governor’s Committee on Employment of People with Disabilities is authorized to receive any gifts, grants, or donations made for any of the purposes of its program.
(1963, No. 200, § 6, eff. June 29, 1963; amended 1991, No. 168 (Adj. Sess.), § 6.)
§ 497e Funds; revenue; use
(a) The Chair of the Governor’s Committee on Employment of People with Disabilities or the Chair’s designated representative may authorize or sponsor fund-raising events and the revenue from the events shall be placed in the account of the Governor’s Committee on Employment of People with Disabilities.
(b) The Chair or the Chair’s designated representative may authorize the sale of products that relate to Vermonters with disabilities and the revenue from such sales shall be placed in the account of the Governor’s Committee on Employment of People with Disabilities.
(c) The funds credited to the Governor’s Committee on Employment of People with Disabilities shall remain in the special account from year to year and shall not be put back into the General Fund.
(d) The Governor’s Committee on Employment of People with Disabilities is also authorized to receive and keep in its account any gifts, grants, or donations.
(e) The account shall be used in accordance with any of the purposes of the Governor’s Committee on Employment of People with Disabilities program or activities, as established in this subchapter.
(Added 1975, No. 87; amended 1991, No. 168 (Adj. Sess.), § 7; 2013, No. 96 (Adj. Sess.), § 131; 2023, No. 85 (Adj. Sess.), § 110, eff. July 1, 2024.)
§ 498 Repealed
[Repealed]
1981, No. 65, § 6.
Subchapter 8 Rights of Jurors and Witnesses
§ 499 Jurors and witnesses
(a)(1) An employer shall not discharge an employee because of the employee’s service as a juror, or penalize the employee or deprive the employee of any right, privilege, or benefit in a manner that discriminates between the employee and other employees not serving as jurors.
(2) All employees shall be considered in the service of their employer during all times while serving as jurors in accordance with this section for purposes of determining seniority, fringe benefits, credit toward vacations, and other rights, privileges, and benefits of employment.
(b)(1) An employer shall not discharge an employee by reason of the employee’s absence from work while in attendance as a witness pursuant to a summons duly issued and served in any proceeding, civil or criminal, in any court of competent jurisdiction within or outside the State, or in any other proceeding before a board, commission, attorney, or other person or tribunal in the State authorized by law to hear testimony under oath.
(2) An employer shall not penalize an employee or deprive the employee of any right, privilege, or benefit in a manner that discriminates between the employee and other employees not appearing as witnesses.
(3) All employees shall be considered in the service of their employer while appearing as witnesses in accordance with this section for purposes of determining seniority, fringe benefits, credit toward vacations, and other rights, privileges, and benefits of employment.
(c) A person who violates a provision of this section shall be fined not more than $200.00.
(Added 1969, No. 228 (Adj. Sess.), § 5, eff. March 31, 1970; amended 2023, No. 85 (Adj. Sess.), § 111, eff. July 1, 2024.)
Subchapter 9 Operation of Vending Facilities by Blind and Visually Impaired
§ 501 Definitions
As used in this subchapter:
(1) “Person who is blind or visually impaired” means a person whose visual acuity with correction is no better than 20/60, or whose field of vision subtends an angle of no greater than 20 degrees.
(2) “Division” means the Division for the Blind and Visually Impaired.
(3) “State property” means any building or land owned, leased, or controlled by the Department of Buildings and General Services.
(4) “Vending facility” means a cafeteria, snack bar, cart service, concession stand, or other facility for the sale of newspapers, periodicals, confection, tobacco products, foods, beverages, and other articles or services that is operated by a person licensed under this subchapter.
(5) “Vending machine” means any coin or currency operated machine that sells food, beverages, sundries, or other retail merchandise or service, but shall not include vending machines used in connection with the operation of rest room facilities.
(Added 1983, No. 221 (Adj. Sess.), § 2; amended 1995, No. 148 (Adj. Sess.), § 4(c)(1); 2013, No. 96 (Adj. Sess.), § 132; 2023, No. 85 (Adj. Sess.), § 112, eff. July 1, 2024.)
§ 502 Duties
The Division shall have the authority to:
(1) establish vending facilities on State property;
(2) coordinate with the Commissioner of Buildings and General Services or the designee of the Commissioner for the establishment of vending facilities;
(3) issue licenses to persons who are blind or visually impaired for the operation of vending facilities on State property;
(4) provide vending facility equipment and an adequate initial stock of suitable articles to licensed persons who are blind or visually impaired;
(5) provide the necessary training and supervision to licensed persons who are blind or visually impaired;
(6) adopt rules to implement the provisions of this subchapter, including criteria for the selection and operation of vending facilities and machines, distribution of income to vendors, and grievance procedures.
(Added 1983, No. 221 (Adj. Sess.), § 2; amended 1995, No. 148 (Adj. Sess.), § 4(c)(1), eff. May 6, 1996; 2013, No. 96 (Adj. Sess.), § 133.)
§ 503 Vending machines
If it is determined by the Department of Disabilities, Aging, and Independent Living and the Department of Buildings and General Services that a vending facility is not economically feasible in a particular location, vending machines may be placed in that location. Contracts shall be awarded by the Department of Disabilities, Aging, and Independent Living in accordance with the procedures set forth in 29 V.S.A. § 161, notwithstanding the $50,000.00 limitation set forth in that section.
(Added 1983, No. 221 (Adj. Sess.), § 2; amended 1995, No. 62, § 56, eff. April 26, 1995; 1995, No. 148 (Adj. Sess.), § 4(c)(1); 2005, No. 174 (Adj. Sess.), § 52; 2023, No. 85 (Adj. Sess.), § 113, eff. July 1, 2024.)
§ 504 Income from vending facilities and machines
(a) All net income from a vending facility on State property shall accrue to the person who is blind or visually impaired and licensed to operate that facility.
(b) All net income from vending machines not placed within vending facilities on State property shall accrue to the Division.
(c) Income that accrues to the Division under this subchapter shall be used to:
(1) maintain or enhance the vending facilities program;
(2) provide benefit programs, including health insurance or pension plans for licensed persons who are blind or visually impaired who operate vending facilities; and
(3) provide vocational rehabilitation services for persons who are blind or visually impaired.
(Added 1983, No. 221 (Adj. Sess.), § 2; amended 2005, No. 71, § 135; 2013, No. 96 (Adj. Sess.), § 134; 2023, No. 85 (Adj. Sess.), § 114, eff. July 1, 2024.)
§ 505 Vending facilities; operation by other than a person who is blind or visually impaired
Where vending facilities on State property are operated by those other than persons who are blind or visually impaired on July 1, 1984, the contracts of these vending facilities may be renewed or extended. A person who does not intend to renew or extend such a contract shall so notify the Director of the Division in a timely manner. Within 30 days after the notice, the Director shall determine whether the vending facility is suited for operation by a person who is blind or visually impaired. If the Director determines that the facility is suited for operation by such person, preference in operation of the facility shall be given to a person who is blind or visually impaired.
(Added 1983, No. 221 (Adj. Sess.), § 2; amended 2013, No. 96 (Adj. Sess.), § 135; 2023, No. 85 (Adj. Sess.), § 115, eff. July 1, 2024.)
§ 506 Exemptions
The following are exempt from the provisions of this subchapter:
(1) food services or vending machines provided by hospitals or residential institutions as a direct service to patients, inmates, students, or otherwise institutionalized persons; and
(2) State property not under the control of the Department of Buildings and General Services.
(Added 1983, No. 221 (Adj. Sess.), § 2; amended 1995, No. 148 (Adj. Sess.), § 4(c)(1).)
Subchapter 10 Whistleblower Protection
§ 507 Whistleblower protection; health care employees; prohibitions; hearing; notice
(a) As used in this subchapter:
(1) The “American Nurses Credentialing Center (ANCC)” means the national organization that developed the Magnet Recognition Program. The Magnet Recognition Program recognizes excellence in nursing services and is based on quality indicators and standards of nursing practice as defined in the American Nurses Association’s Scope and Standards for Nurse Administrators. The ANCC has the authority to designate “Magnet” status to hospitals that have demonstrated their current and ongoing commitment to excellence in nursing practice.
(2) “Employee” means any person who performs services for wages or other remuneration under the control and direction of any public or private employer.
(3) “Employer” means:
(A) a hospital as defined in 18 V.S.A. § 1902(1); or
(B) a nursing home as defined in 33 V.S.A. § 7102(7).
(4) “Improper quality of patient care” means any practice, procedure, action, or failure to act of an employee or employer that violates any provisions of the Nurse Practice Act, codes of ethics, hospital policies, or any other established standards of care related to public or patient health or safety.
(5) “Law” means any law, rule, or regulation duly enacted or adopted by this State, a political subdivision of this State, or the United States.
(6) “Public body” means:
(A) the U.S. Congress, any state legislature, or any popularly elected local government body, or any member or employee thereof;
(B) any federal, State, or local judiciary, or any member or employee thereof, or any jury;
(C) any federal, State, or local regulatory, administrative, or public agency or authority, or instrumentality thereof;
(D) any federal, State, or local law enforcement agency, prosecutorial office, or police or peace officer; or
(E) any division, board, bureau, office, committee, or commission of any of the public bodies described in this subdivision.
(7) “Retaliatory action” means discharge, threat, suspension, demotion, denial of promotion, discrimination, or other adverse employment action regarding the employee’s compensation, terms, conditions, location, or privileges of employment.
(8) “Supervisor” means any person who has the authority to direct and control the work performance of an employee.
(b) No employer shall take retaliatory action against any employee because the employee does any of the following:
(1) Discloses or threatens to disclose to any person or entity any activity, policy, practice, procedure, action, or failure to act of the employer or agent of the employer that the employee reasonably believes is a violation of any law or that the employee reasonably believes constitutes improper quality of patient care.
(2) Provides information to, or testifies before, any public body conducting an investigation, a hearing, or an inquiry that involves allegations that the employer has violated any law or has engaged in behavior constituting improper quality of patient care.
(3) Objects to or refuses to participate in any activity, policy, or practice of the employer or agent that the employee reasonably believes is in violation of a law or constitutes improper quality of patient care.
(c) Subdivisions (b)(1) and (3) of this section shall not apply unless an employee first reports the alleged violation of law or improper quality of patient care to the employer, supervisor, or other person designated by the employer to address reports by employees of improper quality of patient care, and the employer has had a reasonable opportunity to address the violation. The employer shall address the violation under its compliance plan, if one exists. The employee shall not be required to make a report under this subsection if the employee reasonably believes that doing so would be futile because making the report would not result in appropriate action to address the violation.
(d) Nothing in this subchapter shall be deemed to diminish the rights, privileges, or remedies of any employee under any law or under any collective bargaining agreement or employment contract.
(Added 2003, No. 134 (Adj. Sess.), § 2; amended 2023, No. 85 (Adj. Sess.), § 116, eff. July 1, 2024.)
§ 508 Enforcement
(a) An employee aggrieved by a violation of this subchapter may:
(1) utilize any available internal process, grievance procedure, or similar process available to the employee to maintain or restore any loss of employment rights with the employer; or
(2) bring an action in the Superior Court of the county in which the violation is alleged to have occurred.
(b) The initiation or completion of an internal process, grievance procedure, or similar process under subdivision (a)(1) of this section shall not be a condition precedent to bringing an action in Superior Court under subdivision (a)(2) of this section.
(c) Not later than July 1, 2005, all hospitals as defined in 18 V.S.A. § 1902(1) shall revise their internal processes referred to in subdivision (a)(1) to include and be consistent with ANCC Magnet Recognition Program standards that support the improvement of quality patient care and professional nursing practice.
(d) If the court finds that the employer has violated subsection 507(b) of this title, the court shall order, as appropriate:
(1) reinstatement of the employee, including employment benefits, seniority, and same or equivalent position, shift schedule, or hours worked as the employee had before the retaliatory action;
(2) payment of back pay, lost wages, benefits, and other remuneration;
(3) any appropriate injunctive relief;
(4) compensatory damages;
(5) punitive damages;
(6) attorney’s fees; or
(7) any other appropriate relief.
(Added 2003, No. 134 (Adj. Sess.), § 2; amended 2023, No. 85 (Adj. Sess.), § 117, eff. July 1, 2024.)
§ 509 Notice
(a) Not later than December 1, 2004, the Commissioner of Labor shall develop and distribute to each employer a standard notice as provided in this section. Each notice shall be in clear and understandable language and shall include:
(1) a summary of this subchapter;
(2) that an employee, in order to receive the protections of this subchapter, must report, pursuant to subsection 507(c) of this title, to the employer, to the supervisor, or to the person designated to receive notifications; and
(3) a space for the name, title, and contact information of the person to whom the employee must make a report under subsection 507(c) of this title.
(b) Not later than January 1, 2005, each employer shall post the notice in the employer’s place of business to inform the employees of their protections and obligations under this subchapter. The employer shall post the notice in a prominent and accessible location in the workplace. The employer shall indicate on the notice the name or title of the individual the employer has designated to receive notifications pursuant to subsection 507(c) of this subchapter.
(c) An employer who violates this section by not posting the notice as required is liable for a civil fine of $100.00 for each day of willful violation.
(Added 2003, No. 134 (Adj. Sess.), § 2; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 118, eff. July 1, 2024.)
Subchapter 11 Drug Testing
§ 511 Definitions
As used in this subchapter:
(1) “Applicant for employment” means an individual seeking or being sought for employment with an employer.
(2) “Designated laboratory” means a laboratory designated by the Department of Health under section 518 of this title.
(3) “Drug” means a drug listed or classified by the U.S. Drug Enforcement Administration as a Schedule I drug, or its metabolites, and alcohol. It shall also mean other drugs or their metabolites that are likely to cause impairment of the individual on the job, which are: amitriptyline, amphetamines, barbiturates, benzodiazepines, cannabinoids, cocaine, doxepin, glutethimide, hydromorphone, imipramine, meperidine, methadone, methaqualone, opiates, oxycodone, pentazocine, phenytoin, phencyclidine, phenothiazines, and propoxyphene. In addition, the Commissioner of Health may, pursuant to 3 V.S.A. chapter 25, add drugs to this list not recognized as being commonly abused and likely to cause impairment of the employee on the job as of May 22, 1987.
(4) “Drug test” means the procedure of taking and analyzing body fluids or materials from the body for the purpose of detecting the presence of a regulated drug as defined in 18 V.S.A. chapter 84 or a drug as defined in subdivision (3) of this section.
(5) “Employee” means any person who may be permitted, required, or directed by any employer, in consideration of direct or indirect gain or profit, to perform services.
(6) “Employer” means any individual, organization, or governmental body, including partnership, association, trustee, estate, corporation, joint stock company, insurance company, or legal representative, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee, or successor thereof, and any common carrier by mail, motor, water, air, or express company doing business in or operating within this State, which has one or more individuals performing services for it within this State, or which has offered or may offer employment to one or more individuals.
(7) “Employment agency” means a person who undertakes, with or without compensation, to procure, refer, recruit, or place for an employer or person, the opportunity to work for an employer.
(8) “Collector” means an individual certified by a U.S. Health and Human Services approved collector certification program for each type of specimen to be collected. A “collector” shall be recertified every three years and may not be an employee of the employer for the purposes of performing a drug test based on probable cause.
(Added 1987, No. 61, § 1, eff. Sept. 1, 1987; amended 2001, No. 92 (Adj. Sess.), § 1, eff. May 1, 2002.)
§ 512 Drug testing of applicants; prohibitions; exceptions
(a) General prohibition. Except as provided in subsection (b) of this section, an employer or an employment agency shall not, as a condition of employment, do any of the following:
(1) request or require that an applicant for employment take or submit to a drug test;
(2) administer or attempt to administer a drug test to an applicant for employment; or
(3) request or require that an applicant for employment consent, directly or indirectly, to a practice prohibited under this subchapter.
(b) Exception. An employer may require an applicant for employment to submit to a drug test only if all of the following conditions are met:
(1) Conditional offer of employment. The applicant has been given an offer of employment conditioned on the applicant receiving a negative test result.
(2) Notice. The applicant received written notice of the drug testing procedure and a list of the drugs to be tested. The notice shall also state that therapeutic levels of medically prescribed drugs tested will not be reported. The notice required under this subdivision may not be waived by the applicant.
(3) Administration. The drug test is administered in accordance with section 514 of this title.
(Added 1987, No. 61, § 1, eff. Sept. 1, 1987; amended 2001, No. 92 (Adj. Sess.), § 2, eff. May 1, 2002.)
§ 513 Drug testing of employees; prohibitions; exceptions
(a) General prohibition. Except as provided in subsection (c) of this section, an employer shall not, as a condition of employment, promotion, or change of status of employment, or as an expressed or implied condition of a benefit or privilege of employment, do any of the following:
(1) request or require that an employee take or submit to a drug test;
(2) administer or attempt to administer a drug test to an employee; or
(3) request or require that an employee consent, directly or indirectly, to a practice prohibited under this subchapter.
(b) Random or company-wide tests. An employer shall not request, require, or conduct random or company-wide drug tests, except when such testing is required by federal law or regulation.
(c) Exception. Notwithstanding the prohibition in subsection (a) of this section, an employer may require an individual employee to submit to a drug test if all the following conditions are met:
(1) Probable cause. The employer or an agent of the employer has probable cause to believe the employee is using or is under the influence of a drug on the job.
(2) Employee assistance program. The employer has available for the employee tested a bona fide rehabilitation program for alcohol or drug abuse and such program is provided by the employer or is available to the extent provided by a policy of health insurance or under contract by a nonprofit hospital service corporation.
(3) Employee may not be terminated. The employee may not be terminated if the test result is positive and the employee agrees to participate in and then successfully completes the employee assistance program; however, the employee may be suspended only for the period of time necessary to complete the program, but in no event longer than three months. The employee may be terminated if, after completion of an employee assistance program, the employer subsequently administers a drug test in compliance with subdivisions (1) and (4) of this subsection and the test result is positive.
(4) Administration of test. The drug test is administered in accordance with section 514 of this title.
(Added 1987, No. 61, § 1, eff. Sept. 1, 1987.)
§ 514 Administration of tests
An employer may request an applicant for employment or an employee to submit to a drug test pursuant to this subchapter, provided the drug testing is performed in compliance with all the following requirements:
(1) Drugs to be tested. The test shall be administered only to detect the presence of alcohol or drugs, as defined in subdivision 511(3) of this title, at nontherapeutic levels.
(2) Written policy. The employer shall provide all persons tested with a written policy that identifies the circumstances under which persons may be required to submit to drug tests, the particular test procedures, the drugs that will be screened, a statement that over-the-counter medications and other substances may result in a positive test, and the consequences of a positive test result. The employer’s policy shall incorporate all provisions of this section.
(3) Blood samples. An employer may not request or require that a blood sample be drawn for the purpose of administering a drug test.
(4) Designated laboratory. The employer shall use only a laboratory designated by the Department of Health.
(5) Chain of custody. The collector shall establish a chain of custody procedure for both sample collection and testing that will ensure the anonymity of the individual being tested and verify the identity of each sample and test result.
(6) Urinalysis procedure. If a urinalysis procedure is used to screen for drugs, the employer shall:
(A) require the laboratory performing the test to confirm any sample that tests positive by testing the sample by gas chromatography with mass spectrometry or an equivalent scientifically accepted method that provides quantitative data about the detected drug or drug metabolites; and
(B) provide the person tested with an opportunity, at the person’s request and expense, to have a blood sample drawn at the time the urine sample is provided and preserved in such a way that it can be tested later for the presence of drugs.
(7) Laboratory reports. A laboratory may report that a urine sample is positive only if both the initial test and confirmation test are positive for the particular drug. Test results shall only be provided by written report in accordance with subdivision (9) of this section.
(8) Negative test results. The detection of a drug at a therapeutic level as defined by the Commissioner of Health shall be reported as a negative test result. The laboratory’s report shall not contain any information indicating the presence of a drug at a therapeutic level as defined by the Commissioner.
(9) Information to be supplied. The laboratory shall provide the medical review officer with a written report of the drug test result. The medical review officer shall review the report and discuss the results and options available with the individual tested. The written report shall include all of the following information:
(A) the unique identifier code of the person tested;
(B) the type of test conducted for both initial screening and confirmation;
(C) the results of each test;
(D) the detection level, meaning the cut-off or measure used to distinguish positive and negative samples, on both the initial screening and confirmation procedures;
(E) the name and address of the laboratory; and
(F) any other information provided by the laboratory concerning that person’s test.
(10) Preservation of samples. The collector shall ensure that a portion of any positive sample is preserved in a condition that will permit accurate retesting for a period of not less than 90 days after the person tested receives the result.
(11) Medical review officer. The employer shall contract with or employ a certified medical review officer who shall be a licensed physician with knowledge of the medical use of prescription drugs and the pharmacology and toxicology of illicit drugs. The medical review officer shall review and evaluate all drug test results, ensure compliance with this section and sections 515 and 516 of this subchapter, report the results of all tests to the individual tested, and report only confirmed drug test results to the employer.
(12) Collector. The employer shall designate a collector to collect specimens from job applicants and employees. The collector may be an employee for the purposes of collecting specimens from job applicants. The collector may not be an employee for the purposes of collecting specimens from employees for drug testing based on probable cause.
(Added 1987, No. 61, § 1, eff. Sept. 1, 1987; amended 2001, No. 92 (Adj. Sess.), § 3, eff. May 1, 2002; 2023, No. 85 (Adj. Sess.), § 119, eff. July 1, 2024.)
§ 515 Positive test results; opportunity to retest
(a) A medical review officer shall contact personally an employee or applicant who has a positive test result and explain the results and why the results may not be accurate.
(b) The medical review officer shall provide any applicant or employee who has a positive test result with an opportunity to retest a portion of the sample at an independent laboratory at the expense of the person tested and shall consider the results of the retest.
(Added 1987, No. 61, § 1, eff. Sept. 1, 1987; amended 2001, No. 92 (Adj. Sess.), § 4, eff. May 1, 2002.)
§ 516 Confidentiality
(a) Any health care information about an individual to be tested shall be collected only by a medical review officer. This information shall be confidential and shall not be released to anyone except the individual tested, and may not be obtained by court order or process, except as provided in this subchapter. In addition, a medical review officer shall not reveal the identity of an individual being tested to any person, including the laboratory.
(b) Employers, medical review officers, laboratories, and the agents of any of these, who receive or have access to information about drug test results, shall keep all information confidential. Release of such information under any other circumstance shall be solely pursuant to a written consent form signed voluntarily by the person tested, except where such release is compelled by a court of competent jurisdiction in connection with an action brought under this subchapter.
(c) If information about drug test results is released contrary to the provisions of this subchapter, it shall be inadmissible as evidence in any judicial or quasi-judicial proceeding, except in a court of competent jurisdiction in connection with an action brought under this subchapter.
(Added 1987, No. 61, § 1, eff. Sept. 1, 1987; amended 2001, No. 92 (Adj. Sess.), § 5, eff. May 1, 2002; 2015, No. 23, § 12.)
§ 517 Employer’s authority
This subchapter shall not restrict an employer’s authority to prohibit the nonprescribed use of drugs or alcohol during work hours, or restrict an employer’s authority to discipline, suspend, or dismiss an employee for being under the influence of drugs or alcohol during work hours, except as that authority is restricted under subsection 513(c)(3) of this title in reference to participation in an employee assistance program or suspension.
(Added 1987, No. 61, § 1, eff. Sept. 1, 1987.)
§ 518 Designated laboratory; rule making authority of the Commissioner
(a) The Department of Health shall designate laboratories to test body fluids or materials for drugs. Such laboratories must be able to document competency in regard to personnel, quality assurance programs, methodology and equipment, on site confirmation of positive screening tests, security, confidentiality, and expert testimony.
(b) A laboratory that fails to comply with the provisions of this subchapter relating to the confirmation and reporting of test information and the release of confidential information shall lose its designation under this subsection.
(c) The Commissioner of Health shall adopt rules pursuant to 3 V.S.A. chapter 25 establishing nontherapeutic levels of therapeutic drugs by establishing a range of values considering average medical use for each particular drug or metabolite authorized to be tested under this subchapter.
(Added 1987, No. 61.)
§ 519 Enforcement
(a) Private right of action. An applicant or employee aggrieved by a violation of this subchapter may bring a civil action for injunctive relief, damages, court costs, and attorney’s fees.
(b) Burden of proof. In a private right of action alleging that an employer has violated this subchapter, the employer has the burden of proving that the requirements of sections 513, 514, and 516 of this title have been satisfied. In any civil action alleging that a laboratory has violated the reporting or confidentiality sections of this subchapter, the laboratory shall have the burden of proving that the requirements of sections 514 and 516 of this title have been satisfied.
(c) State action to obtain civil penalty. A person who violates any provision of this subchapter shall be subject to a civil penalty of not less than $500.00 nor more than $2,000.00.
(d) State action to obtain criminal penalty. A person who knowingly violates any provision of this subchapter shall be fined not less than $500.00 nor more than $1,000.00 or shall be imprisoned not more than six months, or both.
(Added 1987, No. 61, § 1, eff. Sept. 1, 1987.)
§ 520 Repealed
[Repealed]
2017, No. 74, § 142.
Subchapter 12 Health Coverage Status
§ 561 Health coverage status discrimination prohibited
(a) For the purposes of this section:
(1) “Employee” shall have the same meaning as in 32 V.S.A. § 10502.
(2) “Employer” shall have the same meaning as in 32 V.S.A. § 10502.
(b)(1) No employer or employment agency or agent of either shall inquire about the health coverage status of a job applicant or in any way discriminate among applicants or employees on the basis of health coverage status.
(2) Nothing in this section shall prevent:
(A) an employer, employment agency, or agent from informing an applicant about the employer’s health coverage benefits; or
(B) an employer from inquiring about the health coverage status of an employee to enable the employer to determine the number of uncovered employees pursuant to 32 V.S.A. chapter 245, provided that the inquiry conforms to the employer obligations in that chapter.
(c) Any person aggrieved by a violation of the provisions of this subchapter may bring an action in Superior Court seeking compensatory and punitive damages or equitable relief, including restraint of prohibited acts, restitution of wages or other benefits, reinstatement, costs, reasonable attorney’s fees, and other appropriate relief.
(Added 2007, No. 70, § 28; amended 2023, No. 6, § 250, eff. July 1, 2023.)
Chapter 7 Mediation and Arbitration [Repealed]
§§ 501-513a Repealed
[Repealed]
1973, No. 213 (Adj. Sess.), § 3, eff. April 3, 1974.
Chapter 8 Labor Mediation and Arbitration [Repealed]
Subchapter 1 General Provisions
§§ 521-526 Repealed
[Repealed]
1995, No. 188 (Adj. Sess.), § 4.
Subchapter 2 Conciliation Procedure
§§ 531, 532 Repealed
[Repealed]
1995, No. 188 (Adj. Sess.), § 4.
Subchapter 3 Arbitration by Mutual Consent
§§ 541-543 Repealed
[Repealed]
1995, No. 188 (Adj. Sess.), § 4.
Subchapter 4 Labor Inquiry
§§ 551-554 Repealed
[Repealed]
1995, No. 188 (Adj. Sess.), § 4.
Chapter 9 Employer's Liability and Workers' Compensation
§ 601 Definitions
As used in this chapter:
(1) “Brother” and “sister” includes a stepbrother and stepsister, half-brother and half-sister, and a brother and sister by adoption, but does not include a married brother or a married sister unless dependent.
(2) “Child” includes a stepchild, adopted child, posthumous child, grandchild, and a child for whom parentage has been established pursuant to 15 V.S.A. chapter 5 but does not include a married child unless the child is a dependent.
(3) “Employer” includes any body of persons, corporate or unincorporated, public or private, and the legal representative of a deceased employer, and includes the owner or lessee of premises or other person who is virtually the proprietor or operator of the business there carried on, but who, by reason of there being an independent contractor or for any other reason, is not the direct employer of the workers there employed. If the employer is insured, “employer” includes the employer’s insurer so far as applicable. A person is not deemed to be an “employer” for the purposes of this chapter as the result of entering into a contract for services or labor with an individual who has knowingly and voluntarily waived coverage of this chapter pursuant to subdivision (14)(F) of this section.
(4) “Employment” includes public employment and, in the case of private employers, includes all employment in any trade or occupation notwithstanding that an employer may be a nonprofit corporation, institution, association, partnership, or proprietorship.
(5) “Grandchild” includes a child of an adopted child and a child of a stepchild, but does not include a stepchild of a child, a stepchild of a stepchild, a stepchild of an adopted child, or a married grandchild unless dependent.
(6) “Grandparent” includes a parent of a parent by adoption but does not include a parent of a stepparent, a stepparent of a parent, or a stepparent of a stepparent.
(7) “Injury” and “personal injury” includes occupational diseases, death resulting from injury within two years, and includes injury to and cost of acquiring and replacement of prosthetic devices, hearing aids, and eye glasses.
(8) “Insurance carrier” includes any corporation from which an employer has obtained workers’ compensation insurance or guaranty insurance in accordance with the provisions of this chapter.
(9) “Parent” includes a stepparent and a parent by adoption.
(10) “Partial disability” may be held to include diminished ability to obtain employment owing to disfigurement resulting from an injury.
(11) “Personal injury by accident arising out of and in the course of employment” includes an injury caused by the willful act of a third person directed against an employee because of that employment.
(A) In the case of constables, chiefs of police, police officers, rescue or ambulance workers, and volunteer reserve police officers in any city, town, or incorporated village, disability or death from a heart injury or heart disease incurred or aggravated and proximately caused by service in the line of duty and that becomes symptomatic within 72 hours from the date of last service in the line of duty shall be presumed to be incurred in the line of duty.
(B) In the case of firefighters, as defined in 20 V.S.A. § 3151(3) and (4), disability or death from heart injury or heart disease that becomes symptomatic within 72 hours of service in the line of duty shall be presumed to be compensable.
(C) “Line of duty” as applied to firefighters and rescue and ambulance workers means one or more of the following:
(i) Service in the worker's town or district, in answer to a call of the department, including going to and returning from a fire or emergency or participating in a fire or emergency drill, parade, test, or trial of any firefighting or emergency equipment.
(ii) Similar service in another town or district to which the department has been called for firefighting or emergency purposes.
(iii) Service under orders of any department officer in any other emergency to which the department is called in the town or district where the department is established.
(iv) Activities authorized by the department for the purpose of raising funds for the department.
(D) “Line of duty” as applied to constables, police officers, or volunteer reserve police officers means either or both of the following:
(i) Service as a police officer in answer to a complaint lodged with the department, including going to, returning from, and investigating the complaint or disorder.
(ii) Service under orders from the department or in any emergency for which the employee serves as constable, police officer, or volunteer reserve police officer.
(E) In the case of a firefighter, as defined in 20 V.S.A. § 3151(3) and (4), who dies or has a disability from a cancer listed in subdivision (iii) of this subdivision (E), the firefighter shall be presumed to have had the cancer as a result of exposure to conditions in the line of duty, unless it is shown by a preponderance of the evidence that the cancer was caused by nonservice-connected risk factors or nonservice-connected exposure, provided:
(i)(I) the firefighter completed an initial and any subsequent cancer screening evaluations as recommended by the American Cancer Society based on the age and sex of the firefighter prior to becoming a firefighter or while serving as a firefighter, and the evaluation indicated no evidence of cancer;
(II) the firefighter was engaged in firefighting duties or other hazardous activities over a period of at least five years in Vermont prior to the diagnosis; and
(III) the firefighter is under 65 years of age.
(ii) The presumption shall not apply to any firefighter who has used tobacco products at any time within 10 years of the date of diagnosis.
(iii) The disabling cancer shall be limited to leukemia, lymphoma, or multiple myeloma, and cancers originating in the bladder, brain, breast, colon, gastrointestinal tract, kidney, liver, lung, pancreas, reproductive system, skin, or thyroid.
(F) A firefighter who is diagnosed with cancer within 10 years of the last active date of employment as a firefighter shall be eligible for benefits under this subdivision. The date of injury shall be the date of the last injurious exposure as a firefighter.
(G) It is recommended that fire departments:
(i) maintain incident report records for at least 10 years; and
(ii) offer or provide annual cancer screenings to all firefighters who are employed by or who volunteer for the department.
(H)(i) In the case of firefighters and members of a rescue or an ambulance squad, disability or death resulting from lung disease or an infectious disease either one of which is caused by aerosolized airborne infectious agents or blood-borne pathogens and acquired after a documented occupational exposure in the line of duty to a person with an illness shall be presumed to be compensable, unless it is shown by a preponderance of the evidence that the disease was caused by nonservice-connected risk factors or nonservice-connected exposure. The presumption of compensability shall not be available if the employer offers a vaccine that is refused by the firefighter or rescue or ambulance worker and the firefighter or rescue or ambulance worker is subsequently diagnosed with the particular disease for which the vaccine was offered, unless the firefighter or rescue or ambulance worker’s physician deems that the vaccine is not medically safe or appropriate for the firefighter or rescue or ambulance worker.
(ii) In the case of lung disease, the presumption of compensability shall not apply to any firefighter or rescue or ambulance worker who has used tobacco products at any time within 10 years of the date of diagnosis.
(iii) A firefighter or rescue or ambulance worker shall have been diagnosed within 10 years of the last active date of employment as a firefighter or rescue or ambulance worker.
(iv) As used in this subdivision, “exposure” means contact with infectious agents such as bodily fluids through inhalation, percutaneous inoculation, or contact with an open wound, nonintact skin, or mucous membranes, or other potentially infectious materials that may result from the performance of an employee’s duties. Exposure includes:
(I) Percutaneous exposure. Percutaneous exposure occurs when blood or bodily fluid is introduced into the body through the skin, including by needle sticks, cuts, abrasions, broken cuticles, and chapped skin.
(II) Mucocutaneous exposure. Mucocutaneous exposure occurs when blood or bodily fluids come in contact with a mucous membrane.
(III) Airborne exposure. Airborne exposure means contact with an individual with a suspected or confirmed case of airborne disease or contact with air containing aerosolized airborne disease.
(I)(i) In the case of police officers, rescue or ambulance workers, firefighters, or State employees, as that term is defined pursuant to subdivision (iii)(VI) of this subdivision (11)(I), post-traumatic stress disorder that is diagnosed by a mental health professional shall be presumed to have been incurred during service in the line of duty and shall be compensable, unless it is shown by a preponderance of the evidence that the post-traumatic stress disorder was caused by nonservice-connected risk factors or nonservice-connected exposure.
(ii) A police officer, rescue or ambulance worker, firefighter, or State employee who is diagnosed with post-traumatic stress disorder within three years following the last active date of employment as a police officer, rescue or ambulance worker, firefighter, or State employee shall be eligible for benefits under this subdivision (11).
(iii) As used in this subdivision (11)(I):
(I) “Classified employee” means an employee in the classified service, as defined pursuant to 3 V.S.A. § 311.
(II) “Firefighter” means a firefighter as defined in 20 V.S.A. § 3151(3) and (4).
(III) “Mental health professional” means a person with professional training, experience, and demonstrated competence in the treatment and diagnosis of mental conditions, who is certified or licensed to provide mental health care services and for whom diagnoses of mental conditions are within the person’s scope of practice, including a physician, nurse with recognized psychiatric specialties, psychologist, clinical social worker, mental health counselor, or alcohol or drug abuse counselor.
(IV) “Police officer” means a law enforcement officer who has been certified by the Vermont Criminal Justice Council pursuant to 20 V.S.A. chapter 151.
(V) “Rescue or ambulance worker” means ambulance service, emergency medical personnel, first responder service, and volunteer personnel as defined in 24 V.S.A. § 2651.
(VI) “State employees” means:
(aa) facility employees of the Department of Corrections;
(bb) employees of the Department of Corrections who provide direct security or treatment services to offenders under supervision in the community;
(cc) classified employees of State-operated therapeutic community residences or inpatient psychiatric hospital units;
(dd) classified employees of public safety answering points;
(ee) classified employees of the Family Services Division of the Department for Children and Families;
(ff) classified employees of the Vermont Veterans’ Home;
(gg) classified employees of the Department of State’s Attorneys and Sheriffs, State’s Attorneys, and employees of the Department of State’s Attorneys and Sheriffs who are assigned to a State’s Attorney’s field office; and
(hh) classified employees in the Criminal Division of the Attorney General’s Office.
(J)(i) A mental condition resulting from a work-related event or work-related stress shall be considered a personal injury by accident arising out of and in the course of employment and be compensable if it is demonstrated by the preponderance of the evidence that:
(I) the work-related event or work-related stress was extraordinary and unusual in comparison to pressures and tensions experienced by the average employee across all occupations; and
(II) the work-related event or work-related stress, and not some other event or source of stress, was the predominant cause of the mental condition.
(ii) A mental condition shall not be considered a personal injury by accident arising out of and in the course of employment if it results from any disciplinary action, work evaluation, job transfer, layoff, demotion, termination, or similar action taken in good faith by the employer.
(12)(A) “Public employment” means the following:
(i) All officers and State employees, as defined in 3 V.S.A. § 1101, of all State agencies, departments, divisions, boards, commissions, and institutions, and the Vermont Historical Society.
(ii) Full-time State’s Attorneys and full-time Deputy State’s Attorneys.
(iii) Officers and employees of the General Assembly; provided, however, that members of the General Assembly shall be considered as public employees only for the periods that the General Assembly is in session or while engaged in duties for which compensation is provided by law.
(iv) Members of the Military Forces of the State of Vermont while in the active service of this State ordered by competent authority.
(v) Employees of towns, town school districts, incorporated school districts, incorporated villages, and fire districts.
(vi) Road commissioners or selectboard members while actually engaged in highway maintenance or construction.
(vii) Police officers, firefighters, and other municipal employees entitled to pensions.
(viii) All teachers, as defined in 16 V.S.A. § 1931. No municipality may vote to exclude teachers from the applicability of this chapter.
(ix) Personnel who are engaged by the State of Vermont in forest fire suppression under the provisions of the Northeastern Forest Fire Protection Compact, while in the active service of this State ordered by competent authority.
(x) Volunteer reserve police officers of towns and incorporated villages while acting in the line of duty, when the selectboard members or trustees vote to have those officers covered by this chapter.
(xi) Other municipal workers, including volunteer firefighters and rescue and ambulance squads while acting in any capacity under the direction and control of the fire department or rescue and ambulance squads.
(xii) Members of any regularly organized private volunteer fire department while acting in any capacity under the direction and control of the fire department.
(xiii) Members of any regularly organized private volunteer rescue or ambulance squad while acting in any capacity under the direction and control of the rescue or ambulance squad.
(xiv) Sheriffs, full-time deputy sheriffs, county clerks, judges of probate, probate registers, and clerks paid by the State of Vermont.
(B) The term “public employment” does not include:
(i) public officials who are elected by popular vote, except those mentioned in this subdivision (12);
(ii) assistant judges of the Superior Court, high bailiffs, county treasurers, or any of their deputies or subordinates;
(iii) prisoners or wards of the State; or
(iv) any person engaged by the State under retainer or special agreement.
(13) “Wages” includes bonuses and the market value of board, lodging, fuel, and other advantages that can be estimated in money and that the employee receives from the employer as a part of the employee’s remuneration but does not include any sum paid by the employer to the employee to cover any special expenses entailed on the employee by the nature of the employment.
(14) “Worker” and “employee” mean an individual who has entered into the employment of, or works under contract of service or apprenticeship with, an employer. Any reference to a worker who has died as the result of a work injury shall include a reference to the worker’s dependents, and any reference to a worker who is a minor or incompetent shall include a reference to the worker’s committee, guardian, or next friend. The term “worker” or “employee” does not include:
(A) An individual whose employment is of casual nature and not for the purpose of the employer’s trade or business.
(B) An individual engaged in amateur sports even if an employer contributes to the support of such sports.
(C) An individual engaged in agriculture or farm employment for an employer whose aggregate payroll is less than $10,000.00 in a calendar year, unless the employer notifies the Commissioner that the employer wishes to be included within the provisions of this chapter; the existence of a contract of insurance shall be considered sufficient notice.
(D) A member of the employer’s family dwelling in the employer’s house; but, if in any contract of insurance the wages or salary of such a member of the employer’s family is included in the payroll on which the premium is based, then that family member shall, in the event of sustaining an injury arising out of and in the course of employment, be deemed an employee and compensated accordingly.
(E) Any individual engaged in any type of service in or about a private dwelling unless the employer notifies the Commissioner that the employer wishes to be included within the provisions of this chapter; the existence of a contract of insurance shall be considered sufficient notice.
(F) The sole proprietor or partner owner or partner owners of an unincorporated business, provided:
(i) The individual performs work that is distinct and separate from that of the person with whom the individual contracts.
(ii) The individual controls the means and manner of the work performed.
(iii) The individual holds themselves out as in business for themselves.
(iv) The individual holds themselves out for work for the general public and does not perform work exclusively for or with another person.
(v) The individual is not treated as an employee for purposes of income or employment taxation with regard to the work performed.
(vi) The services are performed pursuant to a written agreement or contract between the individual and another person, and the written agreement or contract explicitly states that the individual is not considered to be an employee under this chapter, is working independently, has no employees, and has not contracted with other independent contractors. The written contract or agreement shall also include information regarding the right of the individual to purchase workers’ compensation insurance coverage and the individual’s election not to purchase that coverage. However, if the individual who is party to the agreement or contract under this subdivision is found to have employees, those employees may file a claim for benefits under this chapter against either or both parties to the agreement.
(G) An individual who performs services as a real estate broker or real estate salesperson, provided:
(i) the individual is licensed to broker or sell real estate pursuant to 26 V.S.A. chapter 41;
(ii) all the individual’s compensation from performing real estate broker or sales services is based on commissions from sales production or results and is not based on time worked or an hourly wage;
(iii) the services are performed pursuant to a written agreement or contract between the individual and the real estate sales or broker business or another person with whom the individual is affiliated or associated and the written agreement or contract explicitly states that the individual is not considered to be an employee under this chapter and is not eligible for coverage under this chapter; and
(iv) the individual is not treated as an employee for the purposes of federal income and employment taxation with regard to the real estate broker or sales services performed.
(H) With the approval of the Commissioner, a corporation or a limited liability company (L.L.C.) may elect to file exclusions from the provisions of this chapter. A corporation or an L.L.C. may elect to exclude up to four executive officers or managers or members from coverage requirements under this chapter. If all officers of the corporation or all managers or members of an L.L.C. make such election, receive approval, and the business has no employees, the corporation or L.L.C. shall not be required to purchase workers’ compensation coverage. If after election the officer, manager, or member experiences a personal injury and files a claim under this chapter, the employer shall have all the defenses available in a personal injury claim. However, this election shall not prevent any other individual, other than the individual excluded under this section, found to be an employee of the corporation or L.L.C. to recover workers’ compensation from either the corporation, L.L.C., or the statutory employer.
(15) “Average weekly wages” means the average weekly wages as computed under section 650 of this title.
(16) “Average compensation” means the current “average weekly wage” under section 1338 of this title, determined previous to the first day of July preceding the date of injury or when compensation is awarded, whichever is later.
(17) [Repealed.]
(18) “Maximum weekly compensation” means a sum of money equal to 150 percent of the average compensation, rounded to the next higher dollar.
(19) “Minimum weekly compensation” means a sum of money equal to 50 percent of the average compensation, rounded to the next higher dollar. However, solely for the purposes of determining permanent total or partial disability compensation where the employee’s average weekly wage computed under section 650 of this chapter is lower than the minimum weekly compensation, the employee’s weekly compensation shall be the full amount of the employee’s average weekly wages. For the purpose of determining temporary total or temporary partial disability compensation where the employee’s average weekly wage computed under section 650 of this chapter is lower than the minimum weekly compensation, the employee’s weekly compensation shall be 90 percent of the employee’s average weekly wage prior to any cost-of-living adjustment calculated under subsection 650(d) of this chapter.
(20) “Commissioner” means the Commissioner of Labor.
(21) [Repealed.]
(22) “Health care provider” means a person, partnership, corporation, facility, or institution licensed or certified or authorized by law to provide professional health care service to an individual during the individual’s medical care, treatment, or confinement.
(23) “Occupational disease” means a disease that results from causes and conditions characteristic of and peculiar to a particular trade, occupation, process, or employment, and to which an employee is not ordinarily subjected or exposed outside or away from the employment and arises out of and in the course of the employment.
(24) “Evidence that reasonably supports an action” means, for the purposes of section 643a and subsections 650(e) and 662(b) of this title, relevant evidence that a reasonable mind might accept as adequate to support a conclusion that must be based on the record as a whole and take into account whatever in the record fairly detracts from its weight.
(25) “Medical bill” means any claim, bill, or request for payment from a health care provider or employee for all or any portion of health care services provided to the employee for an injury for which the employee has filed a claim under this chapter.
(26) “Denied medical payment” or “medical bill denial” means a refusal to pay a medical bill based on the employer or insurance carrier asserting, supported by reasonable evidence, any one or more of the following:
(A) The employer or insurance carrier was not provided with sufficient information to determine the payer liability.
(B) The employer or insurance carrier was not provided with reasonable access to information needed to determine the liability or basis for payment of the claim.
(C) The employer or insurance carrier has no liability to pay a medical bill under the provisions of this chapter.
(D) The service was not reasonable or medically necessary.
(E) Another payer is liable.
(F) Another legal or factual ground for nonpayment.
(27) “Medically necessary care” means health care services for which an employer is otherwise liable under the provisions of this chapter, including diagnostic testing, preventive services, and aftercare, that are appropriate, in terms of type, amount, frequency, level, setting, and duration, to the injured employee’s diagnosis or condition. Medically necessary care must be informed by generally accepted medical or scientific evidence and consistent with generally accepted practice parameters recognized by health care professionals in the same specialties as typically provide the procedure or treatment, or diagnose or manage the medical condition; must be informed by the unique needs of each individual patient and each presenting situation; and must:
(A) help restore or maintain the injured employee’s health;
(B) prevent deterioration of or palliate the injured employee’s condition; or
(C) prevent the reasonably likely onset of a health problem or detect an incipient problem.
(28) “Aerosolized airborne infectious agents” means microbial aerosols that can enter the human body, usually through the respiratory tract, and cause disease, including mycobacterium tuberculosis, meningococcal meningitis, varicella zoster virus, diphtheria, mumps, pertussis, pneumonic plague, rubella, severe acute respiratory syndrome, anthrax, and novel influenza.
(29) “Blood-borne pathogens” means pathogenic microorganisms that are present in human blood and can cause disease in humans, including anthrax, hepatitis B virus (HBV), hepatitis C virus (HCV), human immunodeficiency virus (HIV), rabies, vaccinia, viral hemorrhagic fevers, and methicillin-resistant staphylococcus aureus.
(30) “Bodily fluids” means blood and bodily fluids containing blood or other potentially infectious materials as defined in the Vermont Occupational Safety and Health Administration Bloodborne Pathogen Standard (1910.1030). Bodily fluids also include respiratory, salivary, and sinus fluids, including droplets, sputum and saliva, mucus, and other fluids through which infectious airborne organisms can be transmitted between persons.
(31) “Medical case management” means the planning and coordination of health care services appropriate to achieve the goal of medical rehabilitation.
(A) Medical case management may include medical case assessment, including a personal interview with the injured employee; assistance in developing, implementing, and coordinating a medical care plan with health care providers in consultation with the injured employee and the employee’s family; and an evaluation of treatment results. The goal of medical case management is to provide the injured employee with reasonable treatment options to ensure that the injured employee can make an informed choice.
(B) Medical case managers shall not provide medical care or adjust claims.
(C) An injured employee shall be entitled to medical case management services if reasonably supported. Reasonable support includes a recommendation made by a health care provider or evidence demonstrating the injured employee’s medical recovery would benefit from the services, or both.
(Amended 1959, No. 222; 1965, No. 169; 1967, No. 122, § 1; 1969, No. 186 (Adj. Sess.), § 1; 1971, No. 241 (Adj. Sess.), §§ 1, 2; 1973, No. 64, § 1; 1973, No. 70, § 1; 1975, No. 177 (Adj. Sess.), § 1; 1975, No. 201 (Adj. Sess.); 1977, No. 182 (Adj. Sess.), §§ 1, 21, eff. May 3, 1978; 1981, No. 39; 1981, No. 165 (Adj. Sess.), §§ 1, 3, 4; 1981, No. 204 (Adj. Sess.), §§ 1, 2; 1983, No. 121 (Adj. Sess.), § 1, eff. March 28, 1984; 1985, No. 194 (Adj. Sess.), §§ 1, 2; 1987, No. 183 (Adj. Sess.), § 13; 1987, No. 189 (Adj. Sess.); 1993, No. 23, §§ 1, 2, eff. May 19, 1993; 1993, No. 225 (Adj. Sess.), §§ 1, 2; 1995, No. 180 (Adj. Sess.), § 38a; 1999, No. 41, §§ 2, 3; 2003, No. 132 (Adj. Sess.), §§ 4, 14, eff. May 26, 2004; 2005, No. 69, § 1; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2005, No. 108 (Adj. Sess.), § 2; 2005, No. 209 (Adj. Sess.), § 32; 2005, No. 212 (Adj. Sess.), § 11, eff. May 29, 2006; 2007, No. 42, § 2; 2009, No. 61, § 26; 2011, No. 133 (Adj. Sess.), § 3; 2011, No. 155 (Adj. Sess.), § 44; 2013, No. 86, § 1; 2013, No. 96 (Adj. Sess.), § 136; 2013, No. 161 (Adj. Sess.), § 72; 2017, No. 80, § 23; 2017, No. 113 (Adj. Sess.), § 147; 2023, No. 26, § 1, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 120, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 11, eff. July 1, 2024; 2025, No. 40, § 22, eff. July 1, 2025.)
§ 602 Process and procedure
(a) All process and procedure under the provisions of this chapter shall be as summary and simple as reasonably may be. The Commissioner may make rules not inconsistent with such provisions for carrying out the same and shall cause to be printed and furnished, free of charge, to any employer or employee such forms as he or she deems necessary to facilitate or promote the efficient administration of such provisions.
(b) The Commissioner shall determine the form in which reports are filed and what shall constitute a signature on the reports, including those filed in other than paper form, such as electronically or over telephone lines.
(c) Any communication from an employer or an insurer to a claimant that is not otherwise required to be provided on a form prescribed by the Commissioner must include a statement advising the claimant that he or she should contact the Department of Labor’s Workers’ Compensation Division to determine any right to object or appeal, as provided by law, and to seek information from the Department on the process and procedures.
(d) When an injured employee does not speak English fluently, the employer shall pay for translation services to ensure the injured employee fully understands the employee’s rights and can effectively participate in the employee’s medical recovery and the workers’ compensation claims process.
(Amended 2009, No. 146 (Adj. Sess.), § B17; 2013, No. 199 (Adj. Sess.), § 61, eff. June 24, 2014; 2025, No. 40, § 23, eff. July 1, 2025.)
§ 603 Witnesses, oaths, books, papers, records
(a) So far as it is necessary in his or her examinations and investigations and in the determination of matters within his or her jurisdiction, the Commissioner shall have power to subpoena witnesses, administer oaths, and to demand the production of books, papers, records, and documents for his or her examination.
(b) The Superior Court, a Justice of the Supreme Court, or a Superior judge shall have power to enforce by proper proceedings the attendance and testimony of witnesses and the production and examination of such books, papers, records, and documents before the Commissioner, and in the case of a corporation, the provisions of 11 V.S.A. §§ 441-444 shall apply.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 604 Manner of trying causes; evidence
The Commissioner shall not be bound by common law or statutory rules of evidence or by technical or formal rules of procedure except as provided in this chapter, but he or she may make such investigation or inquiry or conduct such hearing or trial in such manner as to ascertain the substantial rights of the parties. Declarations of the deceased employee concerning his or her accident may be received in evidence and shall be sufficient to establish the accident and the injury, if corroborated by circumstances or other evidence.
§ 605 Testimony of person outside the State, how taken
Upon the application of a party in a cause pending before the Commissioner and on such notice to the adverse party or the adverse party’s attorney as the Commissioner deems reasonable, the Commissioner may issue a commission to a person designated by the Commissioner to take the testimony of a person residing or located outside the State. The testimony shall be taken upon interrogatories settled by order of the Commissioner or upon oral examination, as the Commissioner directs.
(Amended 2023, No. 85 (Adj. Sess.), § 121, eff. July 1, 2024.)
§ 606 Determination of questions
Questions arising under the provisions of this chapter, if not settled by agreement of the interested parties with the approval of the Commissioner, shall be determined, except as otherwise provided, by the Commissioner.
(Amended 2023, No. 85 (Adj. Sess.), § 122, eff. July 1, 2024.)
§ 607 Decisions; enforcement; appeals
The decisions of the Commissioner shall be enforceable by the Superior Court under the provisions of section 675 of this chapter. From such a decision, an appeal shall lie in the same manner as other appeals from the Commissioner. However, in no case shall an appeal under this section operate as a stay unless the Commissioner or the court to which the appeal is taken orders.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2023, No. 85 (Adj. Sess.), § 123, eff. July 1, 2024.)
§ 608 Application of chapter when State not an employer
The provisions of this chapter shall not be construed so as to make the State an employer where it only renders State aid to a municipality or approves of its plans or supervisors.
§ 609 Repealed
[Repealed]
1981, No. 165 (Adj. Sess.), § 7.
§ 610 Election by State as employer
The provisions of this chapter relating to the State as an employer shall be deemed to be an election by the State where an election is required by the provisions of this chapter.
§ 611 Repealed
[Repealed]
1977, No. 182 (Adj. Sess.), § 22, eff. May 3, 1978.
§§ 612-615 Repealed
[Repealed]
1973, No. 70, § 3.
§ 616 Employments covered
(a) Except as otherwise provided in this section and other provisions of this chapter, this chapter shall apply to all employment in this State, and where provided, to employment outside of the State.
(b) This chapter does not apply to employment in any case where the laws of the United States of America provide for compensation, by an employer to his or her employee, for injury or death in employment. However, if jurisdiction is vested in this State under such laws, this chapter shall apply to the employment.
(Amended 1967, No. 51; 1973, No. 70, § 2.)
§ 617 Repealed
[Repealed]
1969, No. 186 (Adj. Sess.), § 2.
§ 618 Compensation for personal injury
(a)(1)(A) If a worker receives a personal injury by accident arising out of and in the course of employment by an employer subject to this chapter, the employer or the insurance carrier shall pay compensation in the amounts and to the person specified pursuant to the provisions of this chapter.
(B) The compensation of a person who is under guardianship shall be paid to the person’s guardian.
(2) If the injury occurred while engaged off the premises of the employer in a recreational activity that is available to the employee as part of the employee’s compensation package or as an inducement to attract employees, it shall not be considered to have occurred in the course of employment unless the Commissioner finds at least one of the following:
(A) The employer derived substantial benefit from the activity, beyond that of attracting labor or improving employee health and morale.
(B) The activity was reasonably part of the employee’s regular duties or undertaken to meet the expectations of the employer.
(C) The activity was undertaken at the request of the employer.
(3) [Repealed.]
(b) A worker who receives a personal injury by accident arising out of and in the course of employment with an employer who has failed to comply with section 687 of this title may elect to claim compensation under this chapter or to bring a civil action against the employer for full damages resulting from the work injury. In the civil action the employer has the burden of proving that the injury did not result from the employer’s negligence and that the employer’s negligence was not the proximate cause of the injury. The employer may not plead as a defense any of the following:
(1) The injury was caused by the negligence of a fellow-employee.
(2) The defense provided under 12 V.S.A. § 1036 unless the negligence was willful and with the intent of causing an injury.
(3) The employee assumed any risk in the employment.
(c) A worker shall commence a civil action under subsection (b) of this section within the three-year limitation period as provided in 12 V.S.A. § 512(4).
(d) The acceptance of any payment by an employee for a work injury shall not bar a subsequent election to pursue a civil suit under subsection (b) of this section unless the employee, with knowledge of the employee’s rights, signs a written agreement waiving the right to pursue a civil action. The agreement shall be filed with and approved by the Commissioner. If the employer fails to pay any amount due and owing under the workers’ compensation act, the waiver agreement shall be void and the employee may pursue a civil action.
(e) Any employee who prevails in a civil action under subsection (b) of this section shall be entitled to costs, interest from the date of filing the claim, and reasonable attorney’s fees.
(f)(1) If an injured worker voluntarily consents in writing, the worker may be paid compensation benefits by means of direct deposit or an electronic prepaid benefit card account in accord with the requirements of section 342 of this title.
(2) The issuer of the card shall comply with all of the requirements and provide the holder of the card with all of the consumer protections that apply to a payroll card account under the rules implementing the Electronic Fund Transfer Act, 15 U.S.C. § 1693 et seq., as amended.
(3) An electronic prepaid benefit card account may be used only for weekly payment of temporary benefits and not for the payment of a lump sum award or for permanent benefits.
(4) The Commissioner, in consultation with the Commissioner of Financial Regulation, may adopt rules to implement this section.
(Amended 1981, No. 165 (Adj. Sess.), § 1; 1997, No. 19, § 1; 1997, No. 59, § 34a, eff. June 30, 1997; 1999, No. 85 (Adj. Sess.), § 2, eff. April 19, 2000; 2003, No. 132 (Adj. Sess.), § 9, eff. May 26, 2004; 2013, No. 6, § 1; 2023, No. 85 (Adj. Sess.), § 124, eff. July 1, 2024.)
§ 619 Injuries outside State
If a worker who has been hired in this State receives personal injury by accident arising out of and in the course of such employment, he or she shall be entitled to compensation according to the law of this State even though such injury was received outside this State.
(Amended 1981, No. 165 (Adj. Sess.), § 1.)
§ 620 Worker hired outside State
If a worker who has been hired outside this State is injured while engaged in his or her employer’s business and is entitled to compensation for such injury under the law of the state where he or she was hired, he or she shall be entitled to enforce against his or her employer his or her rights in this State, if his or her rights are such that they can be reasonably determined and dealt with by the Commissioner and the court in this State.
(Amended 1981, No. 165 (Adj. Sess.), § 1.)
§ 621 Interstate commerce
The provisions of this chapter shall affect the liability of employers to employees engaged in interstate or foreign commerce or otherwise only so far as the same is permissible under the laws of the United States.
§ 622 Right to compensation exclusive
Except as provided in subsection 618(b) and section 624 of this title, the rights and remedies granted by the provisions of this chapter to an employee on account of a personal injury for which he or she is entitled to compensation under the provisions of this chapter shall exclude all other rights and remedies of the employee, the employee’s personal representatives, dependents, or next of kin, at common law or otherwise on account of such injury.
(Amended 1997, No. 19, § 2.)
§ 623 Contracts to work outside State
Employers who hire workers within this State to work outside the State may agree with such workers that the remedies under the provisions of this chapter shall be exclusive as regards injuries received outside this State by accident arising out of and in the course of such employment. All contracts of hiring in this State shall be presumed to include such an agreement.
(Amended 1981, No. 165 (Adj. Sess.), § 1.)
§ 624 Dual liability; claims, settlement procedure
(a)(1) Where the injury for which compensation is payable under the provisions of this chapter was caused under circumstances creating a legal liability to pay the resulting damages in some person other than the employer, the acceptance of compensation benefits or the commencement of proceedings to enforce compensation payments shall not act as an election of remedies, but the injured employee or the employee’s personal representative may also proceed to enforce the liability of the third party for damages in accordance with the provisions of this section.
(2) If the injured employee or the employee’s personal representative does not commence the action within one year after the occurrence of the personal injury, then the employer or its insurance carrier may, within the time for the commencement of actions established by statute, enforce the liability of the third party in the name of the injured employee or the employee’s personal representative.
(3) Not less than 30 days before the commencement of suit by any party under this section, the party shall notify, by registered mail at their last known address:
(A) the Commissioner;
(B)(i) the injured employee; or
(ii) in the event of death, the employee’s known dependents, personal representative, or known next of kin;
(C) the employee’s employer; and
(D) the workers’ compensation insurance carrier.
(4) Any party in interest shall have a right to join in the suit but the direction and control of the suit shall be with the injured employee.
(b) Prior to entry of judgment, either the employer or the employer’s insurance carrier or the employee or the employee’s personal representative may settle their claims as their interest shall appear and may execute releases for their claims. The consent of the employer, or, if insured, the insurance carrier, shall be required if the amount of the settlement by the employee or the employee’s personal representative is less than the compensation benefits that would have been payable in the future but for the provisions of this section.
(c) The settlement and release by the employee shall not be a bar to action by the employer or its insurance carrier to proceed against the third party for any interest or claim it might have.
(d) In the event the injured employee or personal representative settle the claim for injury or death, or commence proceedings on the claim against the third party before the payment of workers’ compensation, the recovery or commencement of proceedings shall not act as an election of remedies and any monies recovered shall be applied as provided in this section.
(e)(1)(A) In an action to enforce the liability of a third party, the injured employee may recover any amount that the employee or the employee’s personal representative would be entitled to recover in a civil action. Any recovery against the third party for damages resulting from personal injuries or death only, after deducting expenses of recovery, shall first reimburse the employer or its workers’ compensation insurance carrier for any amounts paid or payable under this chapter to date of recovery, and the balance shall be paid to the employee or the employee’s dependents or personal representative as soon as practicable and shall be treated as an advance payment by the employer on account of any future payment of compensation benefits.
(B) Reimbursement required under this subsection (e), except to prevent double recovery, shall not reduce the employee’s recovery of any benefit or payment provided by a plan or policy that was privately purchased by the injured employee, including uninsured-underinsured motorist coverage, or any other first party insurance payments or benefits.
(2)(A) Should the recovery against the third party for damages resulting from personal injuries or death only, after deducting expenses of recovery, be less than the full value of the claim for personal injuries or death, the reimbursement to the employer or workers’ compensation insurance carrier shall be limited to that portion of the recovery allocated for damages covered by the Workers’ Compensation Act.
(B)(i) If a court has not allocated or the parties cannot agree to the allocation of the recovered damages, either party may request that the Commissioner make an administrative determination.
(ii) Upon receiving a request, the Commissioner shall order mediation with a mediator selected from a list approved by the Commissioner.
(iii) If mediation is unsuccessful, the Commissioner may adjudicate the dispute or refer the dispute to an arbitrator approved by the Commissioner. The determination of the Commissioner or of an arbitrator approved by the Commissioner shall be final.
(iv) The cost of any mediation or arbitration shall be split equally by the parties.
(f) Expenses of recovery shall be the reasonable expenditures, including attorney’s fees, incurred in effecting the recovery. Attorney’s fees, unless otherwise agreed upon, shall be divided among the attorneys for the plaintiff as directed by the court. The expenses of recovery shall be apportioned by the court between the parties as their interests appear at the time of the recovery.
(g) Compensation benefits referred to in this section shall in each instance include all expenses incurred under sections 639 and 640 of this chapter.
(h) The injured employee or the employee’s personal representative shall be prohibited from commencing a civil action to enforce liability against the workers’ compensation insurance carrier for conducting workplace inspections, or an employer-employee safety committee except in the case of gross negligence or willful misconduct. The employee or the employee’s personal representative shall have the burden of proving gross negligence or willful misconduct.
(i) The Commissioner, by rule, may require workers’ compensation carriers to conduct periodic workplace inspections and to provide other safety-related advice to their insureds.
(j) The Commissioner shall determine, by rule, workplaces where an insured has demonstrated an unusually poor safety record, as defined by the Commissioner.
(k) Employers with unusually poor safety records, as defined by the Commissioner, shall create workplace safety committees with balanced representation between management and employees and, with the assistance of the Department, shall design and implement written accident prevention plans that shall be distributed to all employees. The Department shall issue bulletins of best safety practices.
(Amended 1959, No. 232; 1977, No. 182 (Adj. Sess.), § 2, eff. May 3, 1978; 1981, No. 165 (Adj. Sess.), § 1; 1993, No. 225 (Adj. Sess.), § 3; 1997, No. 140 (Adj. Sess.), § 2; 1999, No. 41, § 4; 2003, No. 132 (Adj. Sess.), § 15, eff. May 26, 2004; 2013, No. 199 (Adj. Sess.), § 65, eff. June 24, 2014; 2017, No. 74, § 39; 2017, No. 113 (Adj. Sess.), § 148; 2023, No. 85 (Adj. Sess.), § 125, eff. July 1, 2024; 2025, No. 18, § 31, eff. May 13, 2025.)
§ 625 Contracting out forbidden
An employer shall not be relieved in whole or in part from liability created by the provisions of this chapter by any contract, rule, regulation, or device whatsoever.
(Amended 1963, No. 134, § 1, eff. June 6, 1963.)
§§ 626-628 Repealed
[Repealed]
1981, No. 165 (Adj. Sess.), § 7.
§ 629 Repealed
[Repealed]
1989, No. 104, § 2, eff. Feb. 1, 1990.
§§ 630, 631 Repealed
[Repealed]
1981, No. 165 (Adj. Sess.), § 7.
§ 632 Compensation to dependents; burial and funeral expenses
(a)(1) If death results from the injury, the employer shall pay to the persons entitled to compensation or, if there are none, then to the personal representative of the deceased employee, the actual burial and funeral expenses not to exceed $10,000.00 and the actual expenses for out-of-state transportation of the decedent to the place of burial not to exceed $5,000.00.
(2) Every two years, the Commissioner of Labor shall evaluate the average burial and funeral expenses in the State and make a recommendation to the House Committee on Commerce and Economic Development as to whether an adjustment in compensation is warranted. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this section.
(b)(1) The employer shall also pay to or for the benefit of the following persons, for the periods prescribed in section 635 of this chapter, a weekly compensation equal to the following percentages of the deceased employee’s average weekly wages:
(A) To the spouse, if there are no dependent children, 66 2/3 percent.
(B) To the spouse, if there is one dependent child, 71 2/3 percent; or if there are two or more dependent children, 76 2/3 percent. The compensation to the spouse shall be for the use and benefit of the spouse and of the dependent children.
(C) If there is no spouse, but a dependent child or children, then to the child or children, the amount or amounts payable to a spouse with the same number of dependent children, to be divided equally among the children if more than one.
(D) If there is neither spouse nor child, but there is a dependent father or mother, then to the parent, if wholly dependent, 30 percent, or if partially dependent, 20 percent or if both parents are dependent, then one-half of the foregoing compensation to each of them. If there is no such parent, but a dependent grandparent, then to every such grandparent the same compensation as to a parent.
(E) If there is neither dependent spouse, child, parent, nor grandparent, but there is a dependent grandchild, brother, or sister, or two or more of them, to the dependents 15 percent for one dependent and five percent additional for each additional dependent, with a maximum of 25 percent to be divided equally between the dependents if more than one.
(2) The weekly compensation payment required pursuant to this subsection (b) shall not exceed the maximum weekly compensation or be lower than the minimum weekly compensation.
(Amended 1959, No. 191, § 1; 1961, No. 22; 1963, No. 191, § 1; 1965, No. 67, § 1; 1965, No. 87, § 1; 1967, No. 122, § 2; 1975, No. 177 (Adj. Sess.), § 2; 1977, No. 182 (Adj. Sess.), § 4, eff. May 3, 1978; 1985, No. 194 (Adj. Sess.), § 3; 1995, No. 107 (Adj. Sess.), § 1; 2013, No. 199 (Adj. Sess.), § 50; 2017, No. 154 (Adj. Sess.), § 27, eff. May 21, 2018; 2023, No. 85 (Adj. Sess.), § 126, eff. July 1, 2024.)
§ 633 Apportionment of compensation
The Commissioner shall, from time to time, apportion such compensation between any and all dependents named in section 632 of this title in such manner as he or she deems best and in making such apportionment he or she shall, insofar as it is possible, apportion such sum so that each dependent shall be self-supporting.
§ 634 Dependents; construction
The following persons, and they only, shall be deemed dependents and entitled to compensation under the provisions of sections 632 and 633 of this title:
(1) A child, if under 18 years of age, or incapable of self-support and unmarried, whether or not ever actually dependent upon the deceased; or a child while regularly enrolled in an approved educational or vocational training institution, who was at the time of the employee’s injury or death partially or wholly dependent on the employee, regardless of age; or a child of any age who was mentally or physically disabled at the time of the employee’s death and partially or wholly dependent upon him or her.
(2) A spouse.
(3) A parent or grandparent only if dependent, wholly or partially, upon the deceased.
(4) A grandchild, brother, or sister under 18 years of age, or incapable of self-support, and wholly dependent upon the deceased employee, or who is regularly enrolled in an approved educational or vocational training institution, and was at the time of the employee’s death, partially or wholly dependent upon the employee, regardless of age; or a grandchild, brother, or sister of any age who was mentally or physically disabled at the time of the employee’s death and partially or wholly dependent upon him or her. The relation of dependency must exist at the time of the injury.
(Amended 1967, No. 122, § 3; 1977, No. 182 (Adj. Sess.), § 5, eff. May 3, 1978; 1981, No. 204 (Adj. Sess.), § 3.)
§ 635 Periods of compensation
The compensation provided for by the provisions of this chapter shall be payable during the following periods:
(1) Spouse.
(A) To a spouse until the earlier of:
(i) 62 years of age, if at that time the spouse is entitled to benefits under the Social Security Act, as amended, or a later time when the spouse becomes entitled to benefits under the Social Security Act, as amended;
(ii) remarriage; or
(iii) death.
(B) In no event shall the spouse receive less than a sum equal to 330 times the maximum weekly compensation except when the compensation terminates by reason of death.
(2) Child. To or for a child, during dependency as defined in section 634 of this title.
(3) Parent or grandparent. To a parent or grandparent, during the continuation of a condition of actual dependency, but in no case to exceed 264 weeks.
(4) Grandchild or sibling. To or for a grandchild, brother, or sister, during dependency as defined in section 634 of this title, but in no case to exceed 264 weeks.
(Amended 1967, No. 122, § 4; 1969, No. 120, eff. April 22, 1969; 1971, No. 158 (Adj. Sess.), § 1; 1977, No. 182 (Adj. Sess.), § 6, eff. May 3, 1978; 1985, No. 194 (Adj. Sess.), § 4; 2017, No. 74, § 40; 2023, No. 85 (Adj. Sess.), § 127, eff. July 1, 2024; 2025, No. 18, § 31, eff. May 13, 2025.)
§ 636 Compensation for unexpired period; determined
Upon the cessation of compensation under section 635 of this title to or on account of any person, the compensation of the remaining persons entitled to compensation for the unexpired part of the period during which their compensation is payable shall be that which such persons would have received if they had been the only persons entitled to compensation at the time of the decedent’s death.
§ 637 Death benefits; rival claimants
Payment of death benefits by an employer in good faith to a dependent subsequent in right to another or other dependents shall protect and discharge the employer unless and until such dependent or dependents prior in right have given him notice of his, her, or their claim. In case the employer is in doubt as to the respective rights of rival claimants, he or she may apply to the Commissioner to decide between them.
§ 638 Repealed
[Repealed]
1977, No. 182 (Adj. Sess.), § 22, eff. May 3, 1978.
§ 639 Death, payment to dependents
In cases of the death of a person from any cause other than the accident during the period of payments for disability or for the permanent injury, the remaining payments for disability then due or for the permanent injury shall be made to the person’s dependents according to the provisions of sections 635 and 636 of this title, or if there are none, the remaining amount due, but not more than the actual burial and funeral expenses not to exceed $10,000.00 and the actual expenses for out-of-state transportation of the decedent to the place of burial not to exceed $5,000.00, shall be paid in a lump sum to the proper person. Every two years, the Commissioner of Labor shall evaluate the average burial and funeral expenses in the State and make a recommendation to the House Committee on Commerce and Economic Development as to whether an adjustment in compensation is warranted. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this section.
(Amended 1961, No. 66; 1963, No. 191, § 2; 1977, No. 182 (Adj. Sess.), § 7, eff. May 3, 1978; 1985, No. 194 (Adj. Sess.), § 5; 1995, No. 107 (Adj. Sess.), § 2; 2013, No. 199 (Adj. Sess.), § 51; 2017, No. 154 (Adj. Sess.), § 28, eff. May 21, 2018.)
§ 640 Medical benefits; assistive devices; home and automobile modifications
(a) An employer subject to the provisions of this chapter shall furnish to an injured employee reasonable surgical, medical, and nursing services and supplies, including prescription drugs and durable medical equipment. The employer shall provide assistive devices and modification to vehicles and residences reasonably necessary to permit an injured worker who is determined to have or expected to suffer a permanent disability, such as an ambulatory disability as defined in 20 V.S.A. § 2900 or blindness as defined in 20 V.S.A. § 2900, that substantially and permanently prevents or limits the worker’s ability to continue to live at home or perform basic life functions. In determining what devices and modifications are reasonably necessary, consideration shall be given to factors that include ownership of the residence to be modified, the length of time the worker is expected to utilize and benefit from the devices or modifications, and the extent to which the devices or modifications enhance or improve the worker’s independent functioning. The employer shall also furnish reasonable hospital services and supplies, including surgical, medical, and nursing services while the injured employee is confined in a hospital for treatment and care.
(b) An employer may designate the treating health care provider to initially treat an injured employee immediately following a compensable injury. Thereafter, the employee may select another health care provider upon giving the employer written notice of the employee’s reasons for dissatisfaction with the health care provider designated by the employer and the name and address of the health care provider selected by the employee. The Commissioner may permit an employer to refuse to reimburse a health care provider selected by the employee if notice required in this subsection is not provided to the employer unless the failure to provide notice is due to excusable neglect or inadvertence.
(c) An employer shall not withhold any wages from an employee for the employee’s absence from work for treatment of a work injury or to attend a medical examination related to a work injury. If the employee selects a new health care provider in accordance with subsection (b) of this section, the employer shall have the right to require other medical examinations as provided in this chapter.
(d) The liability of the employer to pay for medical, surgical, hospital, and nursing services and supplies, prescription drugs, and durable medical equipment provided to the injured employee under this section shall not exceed the maximum fee for a particular service, prescription drug, or durable medical equipment as provided by a schedule of fees and rates prepared by the Commissioner. The reimbursement rate for services and supplies in the fee schedule shall include consideration of medical necessity, clinical efficacy, cost-effectiveness, and safety, and those services and supplies shall be provided on a nondiscriminatory basis consistent with workers’ compensation and health care law. The Commissioner shall authorize reimbursement at a rate higher than the scheduled rate if the employee demonstrates to the Commissioner’s satisfaction that reasonable and necessary treatment, prescription drugs, or durable medical equipment is not available at the scheduled rate. An employer shall establish direct billing and payment procedures and notification procedures as necessary for coverage of medically-necessary prescription medications for chronic conditions of injured employees, in accordance with rules adopted by the Commissioner.
(e)(1) In the case of a work-related, first-aid-only injury, the employer shall file the first report of injury with the Department of Labor. The employer shall file the first report of injury with the workers’ compensation insurance carrier or pay the medical bill within 30 days after the injury.
(2) If the employer contests a claim, a first report of injury shall be forwarded to the Department of Labor and the insurer within five days after notice.
(3) If additional treatment or medical visits are required or if the employee loses more than one day of work, the claim shall be promptly reported to the workers’ compensation insurer, which shall adjust the claim.
(4) “Work-related, first-aid-only-treatment” means any one-time treatment that generates a bill for less than $750.00 and for which the employee loses no time from work except for the time for medical treatment and recovery not to exceed one day of absence from work.
(Amended 1959, No. 36, eff. March 12, 1959; 1961, No. 148, § 1; 1967, No. 122, § 5; 1989, No. 165 (Adj. Sess.); 1993, No. 225 (Adj. Sess.), § 4; 1999, No. 41, § 1; 2003, No. 132 (Adj. Sess.), § 11, eff. May 26, 2004; 2007, No. 208 (Adj. Sess.), § 8; 2017, No. 74, § 41; 2023, No. 85 (Adj. Sess.), § 128, eff. July 1, 2024.)
§ 640a Medical bills; payment; dispute
(a) Not later than 30 days following receipt of a bill from a health care provider for medical, surgical, hospital, nursing services, supplies, prescription drugs, or durable medical equipment provided to an injured employee, an employer or insurance carrier shall do one of the following:
(1) Pay or reimburse the bill.
(2) Provide written notification to the injured employee, the health care provider, and the Commissioner that the medical bill is contested or denied. The notice shall include specific reasons supporting the contest or denial, a description of any additional information needed by the employer or insurance carrier to determine liability for the medical bill, and a request that such information be submitted to the employer or insurance carrier within 30 days following receipt of the notice.
(b) Disputes regarding payment of a medical bill may be filed with the Commissioner by the injured employee or the health care provider. Disputes regarding payment of a medical bill or interest on that bill shall be determined by the Commissioner or, at the option of either party, be settled by arbitration in accordance with the Commercial Rules of the American Arbitration Association. The decision of an arbitrator shall be provided to the Commissioner, and the award may be entered as a judgment in a court of jurisdiction.
(c) If a medical bill was denied on the basis that the employer or insurance carrier was not provided with sufficient information to determine liability for payment pursuant to subdivision (a)(2) of this section, the employer or insurance carrier has 30 days following receipt of the additional information requested to pay or deny payment of the bill.
(d) Medical bills shall be paid within the time required in this section or according to the time requirements specified in a contract between the health care provider and the employer or insurance carrier.
(e) Interest shall accrue on an unpaid medical bill at the rate of 12 percent per annum calculated as follows:
(1) From the first calendar day following 30 days after the date the medical bill is received by the employer or insurance carrier for:
(A) a medical bill that was not denied; or
(B) a medical bill that was denied and written notice was not provided or not provided within 30 days after receipt of the medical bill.
(2) For a medical bill that was denied based on insufficient information and notice was provided in compliance with subdivision (a)(2) of this section, from the first calendar day following 30 days after receipt of additional information sufficient to determine liability for payment.
(3) For a medical bill that was denied and notice was provided in compliance with subsection (a) of this section, from the first calendar day following 30 days after the date of a final arbitration award, judgment, or administrative order awarding payment of the disputed medical bill.
(4) For a medical bill that is paid in accordance with a contract between the health care provider and the employer or insurance carrier, from the day following the contract payment period or as otherwise specified in the contract.
(f)(1) A health care provider shall submit a medical bill accompanied by medical documentation to the employer or insurance carrier within six months after the date the health care provider had actual knowledge that the services provided were related to a claim under this chapter.
(2) As used in this subsection (f), “medical documentation” means documentation that describes an injury and the treatment provided and includes all relevant treatment notes, medical records, and diagnostic codes with sufficient detail to review the medical necessity of the service and the appropriateness of the fee charged.
(3) Failure to submit the bill within six months does not bar payment unless the employer or insurance carrier is prejudiced by the delay. The Commissioner may extend the six-month limit if the Commissioner determines that the delay resulted from circumstances outside the control of the health care provider.
(g) A medical bill shall be submitted in a legible form with every field or data element relevant to the treatment completed and treatment coding that conforms to the criteria of the National Correct Coding Initiative. The medical bill shall be submitted in any one of the following electronic or paper formats:
(1) CMS 1500 or its electronic equivalent for medical services.
(2) UB04 or its electronic equivalent for hospital inpatient and outpatient services.
(3) ADA J515 or its electronic equivalent for dental services.
(h) The Commissioner may assess penalties as provided in section 688 of this title against an employer or insurance carrier that fails to comply with the provisions of this section and may also refer to the Commissioner of Financial Regulation any employer or insurance carrier that neglects or refuses to pay medical bills as required by this section.
(i) Any interest or penalty paid by an employer or insurance carrier under this chapter shall be excluded from the claims data reported pursuant to 8 V.S.A. § 4687.
(j) An employer or insurance carrier shall not impose on any health care provider any retrospective denial of a previously paid medical bill or any part of that previously paid medical bill, unless:
(1) The employer or insurance carrier has provided at least 30 days’ notice of any retrospective denial or overpayment recovery or both in writing to the health care provider. The notice must include:
(A) the injured employee’s name;
(B) the service date;
(C) the payment amount;
(D) the proposed adjustment; and
(E) a reasonably specific explanation of the proposed adjustment.
(2) The time that has elapsed does not exceed 12 months from the later of the date of payment of the previously paid medical bill or the date of a final determination of compensability.
(k) The retrospective denial of a previously paid medical bill shall be permitted beyond 12 months from the later of the date of payment or the date of a final determination of compensability for any of the following reasons:
(1) The employer or insurance carrier has a reasonable belief that fraud or other intentional misconduct has occurred.
(2) The medical bill payment was incorrect because the health care provider was already paid for the health services identified in the medical bill.
(3) The health care services identified in the medical bill were not delivered by the health care provider.
(4) The medical bill payment is the subject of adjustment with another workers’ compensation or health insurer.
(5) The medical bill is the subject of legal action.
(l)(1) For purposes of subsections (j) and (k) of this section, for routine recoveries as described in subdivisions (A) through (J) of this subdivision (1), retrospective denial or overpayment recovery of any or all of a previously paid medical bill shall not require 30 days’ notice before recovery may be made. A recovery shall be considered routine only if one of the following situations applies:
(A) duplicate payment to a health care provider for the same professional service;
(B) payment with respect to an individual for whom the employer or insurance carrier is not liable as of the date the service was provided;
(C) payment for a noncovered service, not to include services denied as not medically necessary, experimental, or investigational in nature, or services denied through a utilization review mechanism;
(D) erroneous payment for services due to employer or insurance carrier administrative error;
(E) erroneous payment for services where the medical bill was processed in a manner inconsistent with the data submitted by the health care provider;
(F) payment where the health care provider provides the employer or insurance carrier with new or additional information demonstrating an overpayment;
(G) payment to a health care provider at an incorrect rate or using an incorrect fee schedule;
(H) payment of medical bills for the same injured employee that are received by the employer or insurance carrier out of the chronological order in which the services were performed;
(I) payment where the health care provider has received payment for the same services from another payer whose obligation is primary; or
(J) payments made in coordination with a payment by a government payer that require adjustment based on an adjustment in the government-paid portion of the medical bill.
(2) Notwithstanding the provisions of subdivision (1) of this subsection, recoveries which, in the reasonable business judgment of the employer or insurance carrier, would be likely to affect a significant volume of claims or accumulate to a significant dollar amount shall not be deemed routine, regardless of whether one or more of the situations in subdivisions (1)(A) through (J) of this subsection apply.
(3) Nothing in this subsection shall be construed to affect the time frames established in subdivision (j)(2) or subsection (k) of this section.
(Added 2009, No. 61, § 27; amended 2023, No. 85 (Adj. Sess.), § 129, eff. July 1, 2024.)
§ 640b Request for preauthorization to determine if proposed benefits or services are necessary
(a) As used in this section:
(1) “Benefits” means medical treatment and surgical, medical, and nursing services and supplies, including prescription drugs and durable medical equipment.
(2) “Services” means medical case management services.
(b) Within 14 days after receiving a written request for preauthorization for proposed benefits and medical evidence supporting the requested benefits, a workers’ compensation insurer shall do one of the following, in writing:
(1) Authorize the benefits and notify the health care provider, the injured worker, and the Department.
(2) Deny the benefits because the entire claim is disputed and the Commissioner has not issued an interim order to pay benefits. The insurer shall notify the health care provider, the injured worker, and the Department of the decision to deny benefits.
(3) Deny the benefits if, based on a preponderance of credible medical evidence specifically addressing the proposed benefits, the benefits are unreasonable, unnecessary, or unrelated to the work injury. The insurer shall notify the health care provider, the injured worker, and the Department of the decision to deny benefits.
(4) Notify the health care provider, the injured worker, and the Department that the insurer has scheduled an examination of the employee pursuant to section 655 of this title or ordered a medical record review pursuant to section 655a of this title. Based on the examination or review, the insurer shall authorize or deny the benefits and notify the Department and the injured worker of the decision within 45 days after a request for preauthorization. The Commissioner may, in the Commissioner’s sole discretion, grant a 10-day extension to the insurer to authorize or deny benefits, and such an extension shall not be subject to appeal.
(c) If the insurer fails to authorize or deny the benefits pursuant to subsection (b) of this section within 14 days after receiving a request, the claimant or health care provider may request that the Department issue an order authorizing benefits. After receipt of the request, the Department shall issue an interim order within five days after notice to the insurer, and five days in which to respond, absent evidence that the entire claim is disputed. Upon request of a party, the Commissioner shall notify the parties that the benefits have been authorized by operation of law.
(d) If the insurer denies the preauthorization of the benefits pursuant to subdivision (b)(2), (3), or (4) of this section, the Commissioner may, on the Commissioner’s own initiative or upon a request by the claimant, issue an order authorizing the benefits if the Commissioner finds that the evidence shows that the benefits are reasonable, necessary, and related to the work injury.
(e) Within 14 days after receiving a request for preauthorization of proposed medical case management services, the insurer shall do one of the following, in writing:
(1) Authorize the services and notify the injured employee, the Department, and the treating provider recommending the services, if applicable.
(2) Deny the services because the entire claim is disputed, and the Commissioner has not issued an interim order to pay benefits. The insurer shall notify the injured employee, the Department, and the treating provider recommending the services, if applicable, of the decision to deny benefits.
(3) Deny the request if there is not reasonable support for the requested services. The insurer shall notify the injured employee, the Department, and the treating provider recommending the services, if applicable, of the decision to deny benefits.
(4) Notify the injured employee, the Department, and the treating provider recommending the services, if applicable, that the insurer has scheduled an examination of the injured employee pursuant to section 655 of this title or ordered a medical record review pursuant to section 655a of this title. Based on the examination or review, the insurer shall notify the injured employee and the Department of the decision within 45 days after a request for preauthorization. The Commissioner may, in the Commissioner’s sole discretion, grant a 10-day extension to the insurer to authorize or deny the services, and such an extension shall not be subject to appeal.
(f) If the insurer fails to authorize or deny the services pursuant to subsection (e) of this section within 14 days after receiving a request, the injured employee or the injured employee’s treating provider, if applicable, may request that the Department issue an order authorizing services. After receipt of the request, the Department shall issue an interim order within five days after notice to the insurer, and five days in which to respond, absent evidence that the entire claim is disputed. Upon request of a party, the Commissioner shall notify the parties that the services have been authorized by operation of law.
(g) If the insurer denies the preauthorization of the services pursuant to subdivision (e)(2), (3), or (4) of this section, the Commissioner may, on the Commissioner’s own initiative or upon a request by the injured worker, issue an order authorizing the services if the Commissioner finds that the evidence shows that the services are reasonably supported.
(Added 2011, No. 50, § 3; amended 2023, No. 76, § 29, eff. July 1, 2023; 2025, No. 40, § 24, eff. July 1, 2025.)
§ 640c Opioid usage deterrence
(a) In support of the State’s fundamental interest in ensuring the well-being of employees and employers, it is the intent of the General Assembly to protect employees from the dangers of prescription drug abuse while maintaining a balance between the employee’s health and the employee’s expedient return to work.
(b) As it pertains to workers’ compensation claims, the Commissioner of Labor, in consultation with the Department of Health, the State Pharmacologist, the Vermont Board of Medical Practice, and the Vermont Medical Society, shall adopt rules consistent with the best practices governing the prescription of opioids, including patient screening, drug screening, and claim adjudication for patients prescribed opioids for chronic pain. In adopting rules, the Commissioner shall consider guidelines and standards such as the Occupational Medicine Practice Guidelines published by the American College of Occupational and Environmental Medicine and other medical authorities with expertise in the treatment of chronic pain. The rules shall be consistent with the standards and guidelines under 18 V.S.A. § 4289 and any rules adopted by the Department of Health pursuant to 18 V.S.A. § 4289.
(Added 2013, No. 199 (Adj. Sess.), § 52.)
§ 641 Vocational rehabilitation
(a) When as a result of an injury covered by this chapter, an employee is unable to perform work for which the employee has previous training or experience, the employee shall be entitled to vocational rehabilitation services, including retraining and job placement, as may be reasonably necessary to restore the employee to suitable employment. Vocational rehabilitation services shall be provided as follows:
(1) The employer shall designate a vocational rehabilitation provider from a list provided by the Commissioner to initially provide services. Thereafter, absent good cause, the employee may have only one opportunity to select another vocational rehabilitation provider from a list provided by the Commissioner upon giving the employer written notice of the employee’s reasons for dissatisfaction with the designated provider and the name and address of the provider selected by the employee.
(2) The Department shall provide an injured worker with a form that includes information and employee rights. The form shall clearly and simply explain the worker’s rights, including the choice of provider, the right to challenge a determination, and reimbursement for related expenses. The worker shall sign the form and return it to the Department.
(3) The Commissioner shall adopt rules to ensure that a worker who requests services or who has been out of work for more than 90 days is timely and cost-effectively screened for benefits under this section. The rules shall:
(A) Provide that all vocational rehabilitation work, except for initial screenings, be performed by a Vermont-certified vocational rehabilitation counselor, including counselors currently certified pursuant to the rules of the Department. Initial screenings shall be performed by an individual with sufficient knowledge or experience to perform adequately the vocational rehabilitation screening functions.
(B) Provide for an initial screening to determine whether a full assessment is appropriate. An injured worker who is determined to be eligible for a full assessment shall be timely assessed and offered appropriate vocational rehabilitation services.
(C) Provide a mechanism for a periodic and timely screening of injured workers who are initially found not to be ready or eligible for a full assessment to determine whether a full assessment has become appropriate.
(D) Protect against potential conflicts of interest in the assignment and performance of initial screenings.
(E) Ensure the injured worker has a choice of a vocational rehabilitation counselor.
(4) If services are not voluntarily offered and accepted by the employee, the Commissioner, if necessary through informal hearing, may refer the employee to a qualified physician or appropriate facility for evaluation of the practicability of, need for, and kind of service, treatment, or training necessary and appropriate to render the employee fit for a remunerative occupation. Upon receipt of findings and after affording the parties an opportunity to be heard, the Commissioner may order that the services and treatment recommended, or such other rehabilitation treatment or service the Commissioner may deem necessary be provided at the expense of the employer. When vocational rehabilitation requires residence at or near a facility or institution, away from the employee’s customary residence, the reasonable cost of board, lodging, or travel, or both, shall be paid for by the employer. In addition, the employer shall pay reasonable costs of books, tools, or other basic materials required in such rehabilitation process. Refusal to accept vocational rehabilitation pursuant to an order of the Commissioner may result in loss of compensation for each week of the refusal, if the Commissioner so directs.
(5) The Commissioner may set by rule reasonable reimbursement rates for vocational rehabilitation benefits and services, provided access to vocational rehabilitation services is not diminished, and reasonable choices and access to benefits and services are maintained. The fee schedule shall require the individual vocational rehabilitation counselor who provides services to review, initial, and certify the accuracy of the billing.
(6) [Repealed.]
(b) Any person offering to provide vocational rehabilitation services to workers’ compensation recipients shall register with the Department and shall possess appropriate qualification as established by the Department by rule. The Commissioner may determine that a vocational rehabilitation service provider lacks the appropriate qualifications if the provider fails to comply with the educational and training requirements established by the Commissioner and may revoke the provider’s registration.
(c) Any vocational rehabilitation plan for a claimant presented to the employer shall be deemed valid if the employer was provided an opportunity to participate in the development of the plan and has made no objections or changes within 21 days after submission. A vocational rehabilitation counselor shall provide the employer with a written invitation to participate in plan development, including the date, time, and place to provide an opportunity to participate in the development of the plan, with a copy to the Department. The participation in the development of the plan may be conducted by telephone. The written notice shall be evidence of the opportunity to participate in plan development and shall be appended to the proposed plan.
(d) The Commissioner may adopt rules necessary to carry out the purpose of this section.
(e)(1) In support of the State’s fundamental interest in ensuring the well-being of employees and employers, it is the intent of the General Assembly that, following a workplace accident, an employee return to work as soon as possible but remain cognizant of the limitations imposed by his or her medical condition.
(2) The Commissioner shall adopt rules promoting development and implementation of cost-effective, early return-to-work programs.
(Amended 1973, No. 64, § 2; 1975, No. 177 (Adj. Sess.), § 3; 1981, No. 204 (Adj. Sess.), § 4; 1993, No. 225 (Adj. Sess.), § 5; 1997, No. 140 (Adj. Sess.), § 3; 1999, No. 97 (Adj. Sess.), § 1; 2003, No. 132 (Adj. Sess.), § 7, eff. May 26, 2004; 2005, No. 212 (Adj. Sess.), § 3, eff. May 29, 2006; 2007, No. 208 (Adj. Sess.), § 14; 2009, No. 33, § 43; 2011, No. 50, § 2; 2011, No. 133 (Adj. Sess.), § 1; 2013, No. 199 (Adj. Sess.), § 53, eff. June 24, 2014.)
§ 642 Temporary total disability benefits
(a)(1) Where the injury causes total disability for work, during the disability, but not including the first three days with the day of the accident to be counted as the first day unless the employee received full wages for that day, the employer shall pay the injured employee a weekly compensation equal to two-thirds of the employee’s average weekly wages.
(2) The weekly compensation shall be in an amount that is not more than the maximum nor less than the minimum weekly compensation.
(3) Compensation paid pursuant to this subsection shall be adjusted on the first July 1 following the receipt of 26 weeks of benefits and annually on each subsequent July 1, so that the compensation continues to bear the same percentage relationship to the average weekly wage in the State as it did at the time of injury.
[Subdivision (b)(1) effective until July 1, 2028; see also subdivision (b)(1) effective July 1, 2028 set out below.]
(b)(1) In addition to the amount paid pursuant to subsection (a) of this section, the employer shall pay the injured employee during the disability $20.00 per week for each dependent child who is under 21 years of age, provided that no other injured worker is receiving the same benefits on behalf of the dependent child or children.
[Subdivision (b)(1) effective July 1, 2028; see also subdivision (b)(1) effective until July 1, 2028 set out above.]
(b)(1) In addition to the amount paid pursuant to subsection (a) of this section, the employer shall pay the injured employee during the disability $10.00 per week for each dependent child who is under 21 years of age, provided that no other injured worker is receiving the same benefits on behalf of the dependent child or children.
(2) The amount allowed for the dependent children shall be adjusted weekly to reflect the number of dependent children during each week of payment.
(c) Notwithstanding any provision of subsection (a) or (b) of this section to the contrary:
(1) An employee’s total weekly wage replacement benefits, including any payments for a dependent child, shall not exceed 90 percent of the employee’s average weekly wage prior to applying any applicable cost of living adjustment.
(2) If the total disability continues after the third day for a period of seven consecutive calendar days or more, compensation shall be paid for the whole period of the total disability.
(Amended 1959, No. 191, § 2; 1963, No. 191, § 3; 1965, No. 67, § 2; 1965, No. 73; 1967, No. 122, § 6; 1971, No. 158 (Adj. Sess.), § 2; 1973, No. 64, § 3; 1977, No. 182 (Adj. Sess.), § 8, eff. May 3, 1978; 1981, No. 204 (Adj. Sess.), § 5; 1993, No. 225 (Adj. Sess.), § 6; 2003, No. 132 (Adj. Sess.), § 3, eff. May 26, 2004; 2023, No. 76, § 33, eff. July 1, 2023; 2023, No. 76, § 34, eff. July 1, 2028.)
§ 642a Temporary total; insurer review
The employer shall review every claim for temporary total disability benefits that continues for more than 104 weeks. Not later than 30 days after 104 weeks of continuous temporary total disability benefits have been paid, the employer shall file with the Department and the claimant a medical report from a physician that evaluates the medical status of the claimant, the expected duration of the disability, and when or if the claimant is expected to return to work. If the evaluating physician concludes that the claimant has reached a medical end result, the employer shall file a notice to discontinue.
(Added 2007, No. 208 (Adj. Sess.), § 13; amended 2023, No. 85 (Adj. Sess.), § 130, eff. July 1, 2024.)
§ 643 Period of payments
Payments shall not continue after such disability ends.
(Amended 1977, No. 182 (Adj. Sess.), § 9, eff. May 3, 1978.)
§ 643a Discontinuance of benefits
Unless an injured worker has successfully returned to work, an employer shall notify both the Commissioner and the employee prior to terminating benefits under either section 642 or 646 of this title. The notice of intention to discontinue payments shall be filed on forms prescribed by the Commissioner and shall include the date of the proposed discontinuance, the reasons for it, and, if the employee has been out of work for 90 days, a verification that the employer offered vocational rehabilitation screening and services as required under this chapter. All relevant evidence, including evidence that does not support discontinuance in the possession of the employer not already filed, shall be filed with the notice. The liability for the payments shall continue for seven days after the notice is received by the Commissioner and the employee. If the claimant disputes the discontinuance, the claimant may file with the Commissioner an objection to the discontinuance and seek an extension of 14 days. The objection to the discontinuance shall be specific as to the reasons and include supporting evidence. A copy of the objection shall be provided to the employer at the time the request is made to the Commissioner. The payments shall be made without prejudice to the employer and may be deducted from any amounts due pursuant to section 648 of this title if the Commissioner determines that the discontinuance is warranted or if otherwise ordered by the Commissioner. Every notice shall be reviewed by the Commissioner to determine the sufficiency of the basis for the proposed discontinuance. If, after review of all the evidence in the file, the Commissioner finds that a preponderance of all the evidence in the file does not reasonably support the proposed discontinuance, the Commissioner shall order that payments continue until a hearing is held and a decision is rendered. Prior to a formal hearing, an injured worker may request reinstatement of benefits by providing additional new evidence to the Department that establishes that a preponderance of all evidence now supports the claim. If the Commissioner’s decision, after a hearing, is that the employee was not entitled to any or all benefits paid between the discontinuance and the final decision, upon request of the employer, the Commissioner may order that the employee repay all benefits to which the employee was not entitled. The employer may enforce a repayment order in any court of law having jurisdiction.
(Added 2013, No. 199 (Adj. Sess.), § 54b, eff. July 1, 2023 per 2017, No. 148 (Adj. Sess.), § 5; amended 2023, No. 72, § 42, eff. June 19, 2023; 2023, No. 76, § 28, eff. June 20, 2023.)
§ 643b Reinstatement; seniority and benefits protected
(a) As used in this section:
(1) “Employer” has the same meaning as in section 601 of this chapter provided that this section shall only apply to employers who regularly employ at least 10 employees of whom at least 10 work more than 15 hours per week.
(2) “Recovery” means that the worker can reasonably be expected to perform safely the duties of the worker’s prior position or an alternative suitable position.
(b) The employer of a worker disabled by an injury compensable under this chapter shall reinstate the worker when the worker’s inability to work ceases provided recovery occurs within two years of the onset of the disability. A worker who recovers within two years of the onset of the disability shall be reinstated in the first available position suitable for the worker given the position the worker held at the time of the injury.
(c) Upon reinstatement, a worker shall regain seniority and any unused annual leave, personal leave, sick leave, and compensatory time the worker was entitled to prior to the interruption in employment, less any leave and compensatory time used during the period of interruption.
(d) The provisions of this section shall not apply if:
(1) the worker had been given notice, or had given notice, prior to sustaining the injury that employment would terminate;
(2) employment would have terminated of its own terms prior to any reinstatement the worker would otherwise be entitled to under this section;
(3) the worker fails to keep the employer informed of:
(A) the worker’s continuing interest in reinstatement;
(B) the worker’s recovery; or
(C) any change of the worker’s mailing address.
(e)(1)(A) A worker aggrieved by an employer’s failure to comply with the provisions of this section may bring an action in the Superior Court in the county in which the worker or the employer resides for damages, including punitive damages, for noncompliance and may apply for such equitable relief as may be just and proper under the circumstances.
(B) The court shall award reasonable attorney’s fees to the plaintiff if the plaintiff prevails.
(2) A copy of the complaint shall be filed with the Commissioner.
(Added 1987, No. 105, § 1; amended 2023, No. 85 (Adj. Sess.), § 131, eff. July 1, 2024.)
§ 643c Commissioner to provide notice; monitoring
The Commissioner shall notify the employer and worker of the provisions of section 643b of this title as soon as a claim is filed if, in the Commissioner’s opinion, it appears that they will be affected by the requirement for reinstatement. The Commissioner shall also request that such workers and employers supply, on a voluntary basis, information concerning requests for reinstatement, reinstatement of disabled workers, and the extent to which recourse is being sought under that section.
(Added 1987, No. 105, § 2.)
§ 643d Work search; requirements; exceptions
(a) An employer may require an employee who is receiving temporary disability benefits pursuant to section 646 of this chapter to engage in a good faith search for suitable work if:
(1) the injured employee is medically released to return to work, either with or without limitations;
(2) the employer has provided the injured employee with written notification that the employee is medically released to return to work and the notification describes any applicable limitations; and
(3) the employer cannot offer the injured employee work that the employee is medically released to do.
(b) An injured employee shall not be required to engage in a good faith search for suitable work if the employee:
(1) is already employed; or
(2) has been referred for or is scheduled to undergo one or more surgical procedures.
(c) An employer shall not require an injured employee to contact more than three employers per week as part of a good faith work search performed pursuant to this section.
(Added 2023, No. 76, § 30, eff. July 1, 2023.)
§ 644 Permanent total disability
(a) In case of the following injuries, the disability caused thereby shall be deemed total and permanent:
(1) the total and permanent loss of sight in both eyes;
(2) the loss of both feet at or above the ankle;
(3) the loss of both hands at or above the wrist;
(4) the loss of one hand and one foot;
(5) an injury to the spine resulting in permanent and complete paralysis of both legs or both arms or of one leg and of one arm; and
(6) an injury to the skull resulting in severe traumatic brain injury causing permanent and severe cognitive, physical, or psychiatric disabilities.
(b) The enumeration in subsection (a) of this section is not exclusive, and, in order to determine disability under this section, the Commissioner shall consider other specific characteristics of the claimant, including the claimant’s age, experience, training, education, and mental capacity.
(Amended 1977, No. 182 (Adj. Sess.), § 10, eff. May 3, 1978; 1999, No. 97 (Adj. Sess.), § 3; 2013, No. 96 (Adj. Sess.), § 137.)
§ 645 Amount payable
(a) In case of an injury enumerated in section 644 of this title, the employer shall pay to the injured employee 66⅔ percent of the employee’s average weekly wages, computed as provided in section 650 of this title and subject to the maximum and minimum weekly compensation rates, for the duration of the employee’s permanent total disability, but in no event shall the employee receive benefits for less than 330 weeks. Benefits under this section shall continue beyond 330 weeks if the injury results in the loss of actual earnings or earning capacity after the injured employee is as far restored as the permanent character of the injuries will permit and results in the employee having no reasonable prospect of finding regular employment.
(b) The amount of compensation payable under this section shall not include the payment of compensation under sections 640, 642, and 646. However, the payment of compensation under this section shall not occur until after the termination of compensation under section 642 or 646, or both.
(Amended 1959, No. 191, § 3; 1963, No. 191, § 4; 1965, No. 67, § 3; 1967, No. 122, § 7; 1977, No. 182 (Adj. Sess.), § 11, eff. May 3, 1978; 1981, No. 204 (Adj. Sess.), § 7.)
§ 646 Temporary partial disability benefits
(a)(1) Where the disability for work resulting from an injury is partial, beginning on the eighth day of the period of disability, the employer shall pay the injured employee a weekly compensation equal to the greater of:
(A) the difference between the amount the injured employee would be eligible to receive pursuant to section 642 of this chapter, including any applicable cost of living adjustment or dependency benefits that would be due, and the wage the injured employee earns during the period of disability; and
(B) two-thirds of the difference between the injured employee’s average weekly wage before the injury and the amount the employee earns during the period of disability.
(2) Compensation paid pursuant to this subsection shall be adjusted on the first July 1 following the receipt of 26 weeks of benefits and annually on each subsequent July 1, so that the compensation continues to bear the same percentage relationship to the average weekly wage in the State as it did at the time of injury.
[Subsection (b) repealed on July 1, 2028.]
(b)(1) In addition to the amount paid pursuant to subsection (a) of this section, the employer shall pay the injured employee during the disability $20.00 per week for each dependent child under 21 years of age, provided that no other injured worker is receiving the same benefits on behalf of the dependent child or children.
(2) The amount allowed for dependent children shall be adjusted weekly to reflect the number of dependent children during each week of payment.
(Amended 1963, No. 191, § 5; 1965, No. 67, § 4; 1967, No. 122, § 8; 1981, No. 204 (Adj. Sess.), § 8; 1991, No. 264 (Adj. Sess.), § 2; 2023, No. 76, § 31, eff. July 1, 2023; 2023, No. 76, § 32, eff. July 1, 2028.)
§ 647 Period of payment
Payments pursuant to section 646 of this chapter shall not continue after the injured employee’s temporary partial disability ends.
(Amended 1977, No. 182 (Adj. Sess.), § 12, eff. May 3, 1978; 2023, No. 85 (Adj. Sess.), § 132, eff. July 1, 2024.)
§ 648 Permanent partial disability benefits
(a) Where the injury results in a partial impairment which is permanent and which does not result in permanent total disability, compensation shall be paid during the period of total disability, as provided in sections 642 and 643 of this title, and at the termination of total disability, the employer shall pay to the injured employee 66⅔ percent of the average weekly wage, computed as provided in section 650 of this title, subject to the maximum and minimum weekly compensation rates, for a period determined by multiplying the employee’s percentage of impairment of the whole person by 330 weeks. The percentage of impairment to the whole person is the percentage of impairment to the particular body part, system, or function converted to the percentage of impairment to the whole person as provided in subsection (b) of this section.
(b) Any determination of the existence and degree of permanent partial impairment shall be made only in accordance with the whole person determinations as set out in the Fifth Edition of the American Medical Association Guides to the Evaluation of Permanent Impairment. In order to utilize any subsequent edition of the American Medical Association Guides to the Evaluation of Permanent Impairment or any other appropriate guides to the evaluation of permanent impairment, the Commissioner, in consultation with the Department of Labor Advisory Council, shall adopt a rule. The Commissioner shall adopt a supplementary schedule for injuries that are not rated by the impairment guide authorized for use by the Department to determine permanent disability.
(c) Notwithstanding the provisions of subsections (a) and (b) of this section, for the purposes of determining the payment period for any permanent partial impairment to the spine, the percentage of impairment shall be determined in accordance with rules adopted by the Commissioner according to which an injury to the spine that is evaluated as a 60 percent impairment of the whole person shall provide 330 weeks of compensation.
(d) An impairment rating determined pursuant to this section shall be reduced by any previously determined permanent impairment for which compensation has been paid, but if the combination of the prior impairment rating and the rating determined pursuant to this section would result in the employee being considered permanently totally disabled, the prior rating shall not negate a finding of permanent total disability.
(Amended 1959, No. 34, eff. March 12, 1959; 1963, No. 134, § 2, eff. June 6, 1963; 1977, No. 182 (Adj. Sess.), § 13, eff. May 3, 1978; 1993, No. 225 (Adj. Sess.), § 7, eff. April 1, 1995; 2007, No. 208 (Adj. Sess.), § 6.)
§ 649 Injuries not covered; burden of proof
Compensation shall not be allowed for an injury caused by an employee’s willful intention to injure himself, herself, or another or by or during his or her intoxication or by an employee’s failure to use a safety appliance provided for his or her use. The burden of proof shall be upon the employer if he or she claims the benefit of the provisions of this section.
§ 650 Payment; average wage; computation
(a)(1) Average weekly wages shall be computed in such manner as is best calculated to give the average weekly earnings of the worker during the 26 weeks preceding an injury.
(2) If, because of the shortness of the time during which the worker has been in the employment, or the casual nature of the employment, or the terms of the employment, it is impracticable to compute the rate of remuneration, average weekly wages of the injured worker may be based on the average weekly earnings during the 26 weeks previous to the injury earned by a person in the same grade employed at the same or similar work by the employer of the injured worker, or if there is no comparable employee, by a person in the same grade employed in the same class of employment and in the same district.
(3) If during the period of 26 weeks an injured employee has been absent from employment on account of sickness or suspension of work by the employer, then only the time during which the employee was able to work shall be used to determine the employee’s average weekly wage.
(4) If the injured employee is employed in the concurrent service of more than one insured employer or self-insurer, the total earnings from the several insured employers and self-insurers shall be combined in determining the employee’s average weekly wages, but insurance liability shall be exclusively upon the employer in whose employ the injury occurred.
(5) The average weekly wage of a volunteer firefighter, volunteer rescue or ambulance worker, volunteer reserve police officer, or volunteer as set forth in 3 V.S.A. § 1101(b)(4) who is injured in the discharge of duties as a firefighter, rescue or ambulance worker, police officer, or State agency volunteer shall be the employee’s average weekly wage in the employee’s regular employment or vocation, but the provisions of section 642 of this title relative to maximum weekly compensation and weekly net income rates shall apply.
(6) For the purpose of calculating permanent total or permanent partial disability compensation, the provisions relating to the maximum and minimum weekly compensation rate shall apply.
(7) If a worker at the time of the injury is regularly employed at a higher wage rate or in a higher grade of work than formerly during the 26 weeks preceding the injury and with larger regular wages, only the larger wages shall be taken into consideration in computing the worker’s average weekly wages.
(b) In determining the compensation to be paid to any member of the National Guard or the Vermont State Guard, if that member is not regularly employed by some other person, it shall be assumed that the member is receiving income from a business or from other employment equivalent to wages in an amount one and one-half times the maximum compensation rate for total disability. If the wages received for the performance of duties as a member of the National Guard or Vermont State Guard exceed the wages received from a regular employer, that member shall be entitled to a rate of compensation based on wages received as a member of the National Guard or Vermont State Guard.
(c) When temporary disability, either total or partial, does not occur in a continuous period but occurs in separate intervals each resulting from the original injury, compensation shall be adjusted for each recurrence of disability to reflect any increases in wages or benefits prevailing at that time. For the purpose of computation, the adjustments shall be based upon the compensation received by a person in the same grade employed in the same class of employment and in the same district.
(d)(1) Compensation computed pursuant to this section shall be adjusted annually on July 1, so that the compensation continues to bear the same percentage relationship to the average weekly wage in the State as it did at the time of injury.
(2) Temporary total or temporary partial compensation shall first be adjusted on the first July 1 following the receipt of 26 weeks of benefits.
(3) Permanent total and permanent partial compensation shall be adjusted for each July 1 following the date of injury regardless of whether indemnity benefits were paid on each intervening July 1.
(e)(1) If weekly compensation benefits or weekly accrued benefits are not paid within 21 days after becoming due and payable pursuant to an order of the Commissioner, or in cases in which the overdue benefit is not in dispute, 10 percent of the overdue amount shall be added and paid to the employee, in addition to any amounts due pursuant to subsection (f) of this section and interest and any other penalties.
(2) In the case of an initial claim, benefits are due and payable upon entering into an agreement pursuant to subsection 662(a) of this title, upon issuance of an order of the Commissioner pursuant to subsection 662(b) of this title, or if the employer has not denied the claim within 21 days after the claim is filed.
(3) Benefits are in dispute if the claimant has been provided actual written notice of the dispute within 21 days after the benefit being due and payable and the evidence reasonably supports the denial.
(4) Interest shall accrue and be paid on benefits that are found to be compensable during the period of nonpayment.
(5) The Commissioner shall promptly review requests for payment under this section and, consistent with subsection 678(d) of this title, shall allow for the recovery of reasonable attorney’s fees associated with an employee’s successful request for payment under this subsection.
(f)(1)(A) When benefits have been awarded or are not in dispute as provided in subsection (e) of this section, the employer shall establish a weekday on which payment shall be mailed or deposited and notify the claimant and the Department of that day. The employer shall ensure that each weekly payment is mailed or deposited on or before the day established.
(B) Payment shall be made by direct deposit to a claimant who elects that payment method. The employer shall notify the claimant of the claimant’s right to payment by direct deposit.
(2) If the benefit payment is not mailed or deposited on the day established, the employer shall pay to the claimant a late fee equal to the greater of $10.00 or:
(A) five percent of the benefit amount for the first payment that is made after the established day;
(B) 10 percent of the benefit amount for the second payment that is made after the established day; and
(C) 15 percent of the benefit amount for the third and any subsequent payments that are made after the established day.
(3) As used in this subsection, “paid” means the payment is mailed to the claimant’s mailing address or, in the case of direct deposit, transferred into the designated account. In the event of a dispute, proof of payment shall be established by affidavit.
(Amended 1959, No. 29, § 2, eff. March 11, 1959; 1965, No. 173; 1969, No. 261 (Adj. Sess.), § 4, eff. April 7, 1970; 1973, No. 30, §§ 1, 2; 1981, No. 165 (Adj. Sess.), § 1; 1983, No. 121 (Adj. Sess.), § 2, eff. March 28, 1984; 1993, No. 225 (Adj. Sess.), § 8; 2003, No. 132 (Adj. Sess.), § 5, eff. May 26, 2004; 2005, No. 209 (Adj. Sess.), § 33; 2005, No. 212 (Adj. Sess.), § 5, eff. May 29, 2006; 2007, No. 208 (Adj. Sess.), § 12; 2009, No. 142 (Adj. Sess.), § 15; 2019, No. 85 (Adj. Sess.), § 18, eff. Jan. 1, 2021; 2023, No. 76, § 36, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 133, eff. July 1, 2024; 2025, No. 40, § 25, eff. July 1, 2025.)
§ 651 Voluntary payments
Payments made by an employer or his or her insurer to an injured worker during the period of his or her disability, or to his or her dependents, which, by the provisions of this chapter, were not due and payable when made, may, subject to the approval of the Commissioner, be deducted from the amount to be paid as compensation.
(Amended 1977, No. 182 (Adj. Sess.), § 14, eff. May 3, 1978; 1981, No. 165 (Adj. Sess.), § 1.)
§ 652 Periodical payments; lump sum payments
(a) Upon application of either party, the Commissioner may authorize compensation to be paid monthly or quarterly instead of weekly, having regard to the welfare of the employee and the convenience of the employer.
(b) Upon application of the employee, if the Commissioner finds it to be in the best interests of the employee or the employee’s dependents, the Commissioner may order the payment of permanent disability benefits pursuant to section 644 or 648 of this chapter to be paid in a lump sum.
(c) Unless otherwise requested by the claimant, an order for a lump sum payment of permanent partial or permanent total disability benefits or a lump sum settlement of a disputed claim shall include a provision accounting for excludable expenses and prorating the remainder of the lump sum payment in the manner set forth by the Social Security Administration in order to protect the claimant’s entitlement to Social Security benefits.
(Amended 1999, No. 97 (Adj. Sess.), § 2; 2005, No. 212 (Adj. Sess.), § 7, eff. May 29, 2006; 2023, No. 85 (Adj. Sess.), § 134, eff. July 1, 2024.)
§ 653 Repealed
[Repealed]
1977, No. 182 (Adj. Sess.), § 22, eff. May 3, 1978.
§ 654 Trustee in case of lump payments; appointment; expense
Whenever, for any reason, the Commissioner deems it expedient, any lump sum that is to be paid as provided in section 653 of this title shall be paid by the employer to some bank, banking institution, or trust company to be appointed by the Commissioner as trustee to administer or apply the same for the benefit of the persons entitled thereto in the manner provided by the Commissioner. The payment of such money by the employer, evidenced by the receipt of the trustee, shall operate as a satisfaction of the compensation. In the appointment of such trustee preference shall be given, in the discretion of the Commissioner, to the choice of the employee or the dependents of the deceased employee. The expense of the administration of such trust shall be fixed by the Commissioner and shall be a charge upon the compensation so deposited.
§ 655 Procedure in obtaining compensation; medical examination; video and audio recording
After an injury and during the period of disability, if so requested by his or her employer, or ordered by the Commissioner, the employee shall submit to examination, at reasonable times and within a two-hour driving radius of the residence of the injured employee, by a duly licensed physician or surgeon designated and paid by the employer. The Commissioner may in his or her discretion permit an examination outside the two-hour driving radius if it is necessary to obtain the services of a provider who specializes in the evaluation and treatment specific to the nature and extent of the employee’s injury. The employee may make a video or audio recording of any examination performed by the insurer’s physician or surgeon or have a licensed health care provider designated and paid by the employee present at the examination. The employer may make an audio recording of the examination. The right of the employee to record the examination shall not be construed to deny to the employer’s physician the right to visit the injured employee at all reasonable times and under all reasonable conditions during total disability. If an employee refuses to submit to or in any way obstructs the examination, the employee’s right to prosecute any proceeding under the provisions of this chapter shall be suspended until the refusal or obstruction ceases, and compensation shall not be payable for the period which the refusal or obstruction continues.
(Amended 2009, No. 142 (Adj. Sess.), § 16; 2013, No. 199 (Adj. Sess.), § 62, eff. June 24, 2014.)
§ 655a Release of relevant medical records by health care providers; Department to oversee release and use of relevant medical information
(a) Health care providers examining or attending the examination of an injured worker pursuant to this chapter shall provide relevant medical records and reports as requested by the injured worker, the employer, or the Department regarding the diagnosis, condition, or treatment of the worker, permanent impairment, or any restrictions or limitations on the worker’s ability to work upon receiving a written medical release authorization from the injured worker. The authorization shall be on a form approved by the Department. If the relevance of any medical information is disputed, the Department shall determine whether the requested medical information is relevant.
(b) Medical information relevant to the specific claim includes a past history of complaints or treatment of a condition similar to that presented in the claim or other conditions related to the same body part. Information that may be requested includes:
(1) Minimum data to justify services and payment, including that on the standard paper 1500 form or electronic 837 form.
(2) Office notes of the examination relating to the injury diagnosis or treatment.
(3) Any other relevant provider records contained in the file.
(c) An injured worker shall only be obligated to sign a medical record release authorization approved by the Department.
(d) Any medical information received by the employer or the insurance carrier that is found not to be relevant to the claim may not be used to deny or limit a claim. The Commissioner may order that specific disclosure requests be denied or rescinded and may make such other interim orders as are appropriate.
(e) Any medical information received in conjunction with a claim shall be used only for the purpose of advancing or defending a claim relating to the injury or of investigating a claim of false representation or of ensuring compliance with the workers’ compensation statutes and rules.
(Added 2011, No. 50, § 4.)
§ 656 Notice of injury and claim for compensation
(a) A proceeding under the provisions of this chapter for compensation shall not be maintained unless a notice of the injury has been given to the employer as soon as practicable after the injury occurred, and unless a claim for compensation with respect to an injury has been made within six months after the date of the injury; or, in case of death, within six months after death, unless the claimant had made a claim for compensation prior to death.
(b) The date of injury, or in the case of occupational disease, the date of injurious exposure shall be the point in time when the injury or disease, and its relationship to the employment is reasonably discoverable and apparent. If that date occurs after the employee has ceased all employment, the employee shall be entitled to reasonable and necessary medical treatment necessitated by the injury and permanent partial or permanent total disability compensation based on the employee’s average weekly wage at the time of the last work-related exposure.
(c) The notice and claim may be given or made by any person claiming to be entitled to compensation or by someone in the employee’s behalf. If payments of compensation have been made voluntarily, the making of a claim within this period shall not be required. If the claim is denied after voluntary payments were made, the claimant shall commence proceedings under this chapter within six months from the date of denial.
(Amended 1993, No. 225 (Adj. Sess.), § 9; 1999, No. 41, § 5.)
§ 657 After court judgment against employee
In case, through mistake of law or fact, a suit has been brought to recover damages in any court and final judgment is against the employee, the limitation in section 656 of this title shall not begin to run until six months after such suit has been finally determined.
§ 658 Form of notice and claim
The notice and claim required under the provisions of section 656 of this title shall be in writing. Such notice shall contain the name and address of the employee; shall state in ordinary language the time, place, nature, and cause of the injury; and shall be signed by the employee or by a person in his or her behalf, or, in the event of his or her death, by any one or more of his or her dependents or by a person in their behalf. The notice and the claim may be combined.
§ 659 Giving of notice and making of claim
A notice under the provisions of this chapter shall be given to the employer, or, if the employer is a partnership, then to any one of the partners. If the employer is a corporation, then the notice may be given to any agent of the corporation upon whom process may be served, or to any officer of the corporation, or any agent in charge of the business at the place where the injury occurred. Such notice shall be given by delivering it or by sending it by mail by registered letter addressed to the employer at his, her, or its last known residence or place of business. The foregoing provisions shall apply to the making of a claim.
§ 660 Sufficiency of notice of injury
(a) A notice given under the provisions of this chapter shall not be held invalid or insufficient by reason of any inaccuracy in stating the time, place, nature, or cause of the injury, or otherwise, unless it is shown that the employer was in fact misled to the injury as a result of the inaccuracy. Want of or delay in giving notice, or in making a claim, shall not be a bar to proceedings under the provisions of this chapter, if it is shown that the employer, the employer’s agent, or representative had knowledge of the accident or that the employer has not been prejudiced by the delay or want of notice. Proceedings to initiate a claim for a work-related injury pursuant to this chapter may not be commenced after three years from the date of injury. This section shall not be construed to limit subsequent claims for benefits stemming from a timely filed work-related injury claim.
(b) Notwithstanding subsection (a) of this section, a claim for occupational disease shall be made within two years of the date the occupational disease is reasonably discoverable and apparent.
(Amended 1993, No. 225 (Adj. Sess.), § 10; 1999, No. 41, § 6; 2003, No. 132 (Adj. Sess.), § 6, eff. May 26, 2004.)
§ 660a Electronic filing of reports of injury
(a) As used in this section:
(1) “Electronic data interchange” or “EDI technology” means the computer-to-computer exchange of business transactions in a standardized structured electronic format.
(2) “Implementation plan” means the written document prepared by an insurance carrier specifying a timetable for reporting by EDI.
(3) “Reporter” means the insurer who is responsible for reporting injuries to the Department.
(b) When an insurance carrier uses electronic data interchange processes and technology, the level of record detail in the report shall be equivalent to that required in a written paper record.
(c) Each insurance carrier shall transmit data elements by electronic data interchange to the Department. An insurance carrier shall provide complete, valid, accurate data for the data as required by this section. Each electronic transmission of data shall include appropriate header and trailer records.
(d) In order to begin EDI reporting, an insurance carrier shall submit to the Commissioner an implementation plan pursuant to rules adopted by the Department.
(e) All first reports of injury shall be filed by the insurance carrier electronically. The Commissioner may grant an insurance carrier a variance if the insurance carrier documents to the satisfaction of the Commissioner that compliance would cause the insurance carrier “undue hardship,” which, for the purposes of this section, means significant difficulty or expense.
(Added 2001, No. 105 (Adj. Sess.), § 1, eff. May 15, 2002; amended 2023, No. 85 (Adj. Sess.), § 135, eff. July 1, 2024.)
§ 661 Limitation of time as regards minors and persons with a mental condition or psychiatric disability
Limitation of time provided by this chapter shall not run as against any person who is incompetent or a minor dependent so long as such person has no guardian.
(Amended 2013, No. 96 (Adj. Sess.), § 138.)
§ 662 Agreements; required payments in absence of
(a)(1) If the employer and an injured employee or the dependents of a deceased employee enter into an agreement regarding compensation payable under the provisions of this chapter, a memorandum of the agreement shall be filed with the Commissioner. If approved by the Commissioner, the agreement shall be enforceable and subject to modification as provided by sections 668 and 675 of this chapter. The Commissioner shall approve such an agreement only when the terms of the agreement conform to the provisions of this chapter.
(2)(A) A compromise agreement may be approved by the Commissioner when the Commissioner determines that the best interests of the employee or the dependents will be served by it.
(B) A compromise settlement during pendency of an appeal to Superior Court or to Supreme Court shall be effective only with the approval of the Commissioner in accordance with this section.
(b)(1) In the absence of an agreement pursuant to subsection (a) of this section, the employer or insurance carrier shall notify the Commissioner and the employee in writing that the claim is denied and the reasons for the denial.
(2) Upon the employee’s application for a hearing under section 663 of this chapter, within 60 days after, the Commissioner shall review the evidence upon which the denial is based. If the evidence does not reasonably support the denial, the Commissioner shall order that payments be made until a hearing is held and a decision is rendered.
(3) Payments pursuant to this subsection shall not be deemed an admission of liability by the employer nor shall such payments preclude subsequent agreement under subsection (a) of this section or prejudice the rights of either party to hearing or appeal under this chapter.
(4) If the Commissioner’s decision, after a hearing, is that the employee was not entitled to any or all benefits paid between the initial denial and the final decision, upon request of the employer, the Commissioner may order that the employee repay all benefits to which the employee was not entitled. The employer may enforce a repayment order in any court having jurisdiction of the amount involved.
(5) Nothing in this section shall require the Commissioner to order payments pending a hearing if the Commissioner concludes that the benefit at issue is not compensable regardless of the lack of evidence supporting the denial.
(6) For the purposes of this section, any written communication by an unrepresented claimant that questions the denial of any benefit shall be deemed to be an application for hearing under section 663 of this chapter.
(c)(1) Whenever payment of a compensable claim is refused on the basis that another employer or insurer is liable, the Commissioner, after notice to interested parties and a review of the claim, but in no event later than 30 days, shall order that payments be made by one employer or insurer until a hearing is held and a decision is rendered.
(2) For the purposes of this review, the employer or insurer at the time of the most recent personal injury for which the employee claims benefits shall be presumed to be the liable employer or insurer and shall have the burden of proving another employer’s or insurer’s liability.
(3) Payments pursuant to this subsection shall not be deemed an admission or conclusive finding of an employer’s or insurer’s liability nor shall payments preclude subsequent agreement under subsection (a) of this section or prejudice the rights of either party to a hearing or appeal under this chapter.
(d) Where more than one employer or insurer may be liable for an employee’s occupational disease, the employer in whose service the employee was last injuriously exposed to the hazard that caused the disease, and the insurance carrier, if any, on the risk when the employee was last exposed, shall be liable if it can be proven that the service for the last employer causally contributed to the disease.
(e)(1) In any dispute between employers and insurers arising under subsection (c) or (d) of this section, after payment to the claimant, the Commissioner may order that the dispute be resolved through arbitration rather than the formal hearing process under sections 663 and 664 of this chapter. Qualifications for arbitrators and standards for the arbitration process shall be established by the Commissioner by rule.
(2) If arbitration is ordered, the process shall proceed as follows:
(A) The parties shall select an arbitrator from a list provided by the Commissioner.
(B) The arbitrator shall:
(i) Determine apportionment of the liability for the claim, including costs and attorney’s fees, among the respective employers or insurers, or both. The apportionment may be limited to one or more parties. If the parties do not agree, the costs of arbitration may be apportioned among the parties by the arbitrator.
(ii) Issue a written decision, which shall be final.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1981, No. 204 (Adj. Sess.), § 9; 1983, No. 164 (Adj. Sess.), eff. April 20, 1984; 1993, No. 225 (Adj. Sess.), § 10a; 1999, No. 41, § 7; 1999, No. 97 (Adj. Sess.), § 4; 2005, No. 212 (Adj. Sess.), § 6, eff. May 29, 2006; 2023, No. 85 (Adj. Sess.), § 136, eff. July 1, 2024; 2025, No. 18, § 31, eff. May 13, 2025.)
§ 663 Hearings, where held; decision
(a) If the compensation is not fixed by agreement, either party may apply to the Commissioner for hearing and award in the premises who shall set a time and place for hearing and give at least six days’ notice thereof to the parties. The hearing shall be held at a place designated by the Commissioner. No proposed findings of fact shall be required from the parties unless ordered by the Commissioner. If ordered, the proposed findings of fact shall be submitted within 30 days after conclusion of the hearing.
(b) The decision may include abbreviated findings of fact or conclusions of law, or both, when appropriate.
(Amended 1965, No. 194, § 10; 1977, No. 182 (Adj. Sess.), § 15, eff. May 3, 1978; 2007, No. 208 (Adj. Sess.), § 11.)
§ 663a Workers’ compensation dispute mediation
(a) The Commissioner shall require mediation in certain workers’ compensation disputes. In each case, after a request for formal hearing has been filed, in accordance with the rule, the Commissioner may determine whether the disputed issue and the parties are appropriate for mediation prior to a formal hearing and whether mediation would speed resolution of the dispute without the time and expense of a hearing. If the Commissioner determines that mediation is appropriate, the Commissioner shall order the parties to attend at least one mediation session prior to a scheduled hearing. Referring a case to mediation shall not cause a delay in setting a date for the formal hearing. The Commissioner shall, by rule, determine the procedures by which cases are selected and scheduled for mediation.
(b) The costs of mediation shall be divided evenly between the claimant and the employer, unless the parties agree otherwise. The cost of the mediation, up to the amount set by rule, shall be a cost recoverable by the claimant pursuant to section 678 of this title.
(c) The Commissioner shall select or make available a list of qualified individuals to act as mediators, which may include nonattorneys, provided they are experienced in workers’ compensation, including former Department employees and insurance adjusters. The mediators shall be compensated at rates set by rule of the Commissioner.
(d) Prior to implementing this section, the Commissioner shall consult with the Department of Labor Advisory Council established by section 1306 of this title, the workers’ compensation committees of the Vermont Bar Association and the Vermont Trial Lawyers’ Association, representatives of insurers who provide workers’ compensation coverage in Vermont, and with other appropriate parties.
(Added 2007, No. 208 (Adj. Sess.), § 10.)
§ 663b Fraud
(a) Any claims of fraud submitted to the Department shall require action by the Commissioner to determine if further investigation is warranted. The Commissioner shall order the insurer to investigate specific allegations of claimant fraud and submit a written report to the Department. Once the insurer’s report is received, the Commissioner shall afford the claimant an opportunity to respond in person or in writing within 30 days. The Commissioner may order additional information to be provided to the Department from the insurer or the claimant. The Department shall issue a determination on the fraud allegation, including penalties and any reimbursement as provided under section 708 of this title. The party may appeal the decision of the Commissioner as provided under 3 V.S.A. chapter 25.
(b) An employee found to have committed fraud in order to receive compensation under this chapter shall be ordered to repay all compensation fraudulently received in addition to other administrative penalties ordered by the Department. These payments shall not be charged to the employer for purposes of calculating its experience rating.
(Added 2013, No. 199 (Adj. Sess.), § 63, eff. June 24, 2014.)
§ 664 Trial and award
Within 60 days after a hearing is held, the Commissioner shall make an award supported by findings of fact and the applicable law and shall send a copy of the award to the parties. If the employee prevails at the hearing, the Commissioner’s findings shall include the date on which the employer’s obligation to pay compensation under this chapter began. The award shall include interest at the statutory rate computed from that date on the total amount of unpaid compensation.
(Amended 1997, No. 19, § 4.)
§ 665 Repealed
[Repealed]
1985, No. 194 (Adj. Sess.), § 6.
§ 666 Manner of giving notice of hearing
Notices of hearings under the provisions of this chapter shall be given to the employee, employer, and to the insurance carrier. Such notice shall be given by delivering it or by sending it by mail, addressed to the employee, employer, and to such insurance company at his, her, or its last known residence or place of business. The foregoing provisions shall apply alike to individuals, partnerships, and corporations.
§ 667 Examination by independent medical examiners
(a)(1) When a dispute exists regarding the reasonableness and necessity of treatment for an injury, or regarding the claimant’s ability to perform suitable work, including light duty work, or regarding any other medical issue, the Commissioner may appoint an independent medical examiner to examine the employee and report to the Commissioner.
(2) Whenever a dispute exists regarding the nature and extent of any permanent partial impairment that involves permanent partial disability ratings that differ by more than 10 percent, the Commissioner shall appoint an independent medical examiner to examine the employee and report to the Commissioner the examiner’s opinion regarding the nature and extent of any permanent partial impairment. The opinion of the independent medical examiner as to degree of impairment shall be binding on the parties absent a showing of substantial error or omissions fraud or a gross departure from generally accepted medical practices.
(3) If a dispute involves permanent partial disability ratings that differ by 10 percent or less, the rating shall be determined by the Commissioner.
(b)(1) A pool of independent medical examiners shall be established to perform independent medical examinations.
(2) Representatives of management and labor shall each submit a list of health care providers as proposed members of the pool. The Commissioner shall select the common names from both lists.
(3) If, in the opinion of the Commissioner, the number of independent medical examiners in the pool is not sufficient for any reason, or does not adequately represent a range of health care providers, the Commissioner shall select additional health care providers or request additional names.
(4) All health care providers in the pool shall receive training about the nature and purpose of workers’ compensation and shall follow the guidelines developed by rule by the Commissioner.
(5) Where a dispute involves a determination of the degree of permanent partial disability, the independent medical examiner shall use the most recent edition of the American Medical Association Guides to the Evaluation of Permanent Impairment or the supplement provided by the Commissioner.
(c) The Commissioner shall determine fees to be paid to independent medical examiners for examinations pursuant to subsection 640(d) of this title. The fee shall be paid by the employer in an amount and proportion determined by the Commissioner.
(d) If a claimant fails or refuses to undergo an independent medical examination without good cause, the Commissioner may assess all or a part of the cost of the examination or any missed appointments against the claimant or may suspend payment of compensation to which the claimant may be entitled, or both.
(e) The independent medical examination report shall be admitted into evidence in any Superior Court appellate proceedings concerning the claim. The use of an independent medical examiner under this section shall not limit the right of a claimant to obtain the medical examination and report on any disputed medical issue.
(f) If an independent medical examiner is appointed, all parties to the dispute shall immediately provide the examiner with copies of all relevant medical records in their possession and shall assist the examiner in obtaining any other medical records deemed relevant to the proceedings.
(Amended 1963, No. 134, § 4, eff. June 6, 1963; 1993, No. 225 (Adj. Sess.), § 11; 2023, No. 85 (Adj. Sess.), § 137, eff. July 1, 2024.)
§ 668 Modification of awards
Upon the Commissioner’s own motion or upon the application of any party in interest upon the ground of a change in the conditions, or whenever doubts have arisen as to the jurisdiction of the Commissioner at the time the petition was presented, the Commissioner may at any time within six years of the date of award review any award by giving at least six days’ notice thereof to the parties personally, or to the attorneys appearing in the cause. On such review, the Commissioner may make an order ending, diminishing, or increasing the compensation previously awarded, subject to the maximum or minimum provided in this chapter. If it appears that the petition for hearing was presented without previous authority or that for other reason the Commissioner did not have jurisdiction in the cause, the Commissioner may make an order striking off the award, and shall state conclusions of fact and rulings of law and immediately send to the parties a copy of the award. Such a review shall not affect any money already paid.
(Amended 1993, No. 225 (Adj. Sess.), § 13.)
§ 669 Finality of award
An award of the Commissioner shall, in the absence of fraud, be conclusive between the parties except as provided in section 668 of this chapter, unless the award is appealed pursuant to sections 670 and 672 of this chapter.
(Amended 2023, No. 85 (Adj. Sess.), § 138, eff. July 1, 2024.)
§ 670 Appeals to Superior Court
Within 30 days after copies of an award have been sent as provided by this chapter, either party may appeal to the Superior Court of a county in which a civil action between the parties would be triable. Either party shall be entitled to a trial by jury.
(Amended 1963, No. 134, § 5, eff. June 6, 1963; 1971, No. 185 (Adj. Sess.), § 194, eff. March 29, 1972; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2023, No. 85 (Adj. Sess.), § 139, eff. July 1, 2024.)
§ 671 Jurisdiction; findings for new award
The jurisdiction of the Superior Court shall be limited to a review of questions of fact or questions of fact and law certified to it by the Commissioner. Upon completion of the case in Superior Court, either after trial or upon remand from the Supreme Court, the clerk shall certify the findings of the court to the Commissioner who shall issue a new order in accordance with those findings and shall promptly send to each of the parties a copy of such order. The new order shall have all the force and effect of an award made pursuant to the provisions of sections 663 and 664 of this chapter and shall supersede the award previously made by the Commissioner.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2017, No. 74, § 42; 2023, No. 85 (Adj. Sess.), § 140, eff. July 1, 2024.)
§ 672 Appeals to the Supreme Court
If an appeal is not taken under the provisions of section 670 of this chapter within the time provided, either party may transfer the cause to the Supreme Court. The jurisdiction of the Court shall be limited to a review of questions of law certified to it by the Commissioner. On such an appeal or on an appeal taken as provided in sections 670 and 671 of this chapter and coming to the Supreme Court on appeal from Superior Court, the Supreme Court may render final judgment and award execution, or may remand the cause to the Superior Court or to the Commissioner for further findings or for a new order by the Commissioner in accordance with the mandate of the Court. The Court shall, by general rules, prescribe the procedure to be followed in the case of such appeals.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2023, No. 85 (Adj. Sess.), § 141, eff. July 1, 2024.)
§ 673 Appeal in case of fraud, accident, or mistake
On petition and proof and in its discretion, the Supreme Court or Superior Court may grant leave to enter an appeal from an order of the Commissioner of Labor in cases where the petitioner has been prevented by fraud, accident, or mistake from taking or entering an appeal within the time allowed by law. On granting leave, the court shall order the petitioner to give sufficient security to prosecute the appeal to effect and pay any costs awarded against the petitioner.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 142, eff. July 1, 2024.)
§ 674 Service of petition
A petition pursuant to section 673 of this chapter shall not be sustained unless served on the adverse party within 21 days after the date of the petition and within two years after the last date upon which the appeal might have been entered in court.
(Amended 2023, No. 85 (Adj. Sess.), § 143, eff. July 1, 2024.)
§ 675 Enforcement of award
(a) If an award is made under the provisions of this chapter, including interim orders, issued pursuant to sections 643a and 662 of this title, or an agreement is approved by the Commissioner, and the employer or insurance carrier fails to comply with the award or agreement, the employee, subject to the stay provisions of subsection (b) of this section, may proceed to collect all or any part of past due installments in any court of law having jurisdiction of the amount involved. If the employee prevails, interest, reasonable attorney’s fees, and costs shall be allowed.
(b) Any award or order of the Commissioner shall be of full effect from issuance unless stayed by the Commissioner, any appeal notwithstanding. Any request for a stay shall be filed with the Commissioner at the time of filing a notice of appeal. The Commissioner, after allowing the prevailing party 10 days within which to be heard in writing on the request, shall respond within 15 days to the request for stay. The response of the Commissioner shall detail his or her reasons for granting, denying, or modifying the request and shall be a part of the record on appeal. No stay shall exist unless granted pursuant to this subsection.
(c) An employer who fails to make payment due to an employee under this chapter pursuant to an executed agreement under sections 642, 644, 646, or 648 of this title or pursuant to an interim order of the Commissioner within 15 days after the payment is due shall also pay the employee interest on the unpaid compensation at the statutory rate.
(Amended 1985, No. 194 (Adj. Sess.), § 7; 1997, No. 19, § 5.)
§ 676 Revision of decrees
Upon the filing with it of a certified copy of a decision of the Commissioner ending, diminishing, or increasing compensation previously awarded, a Superior Court that has rendered judgment as provided by this chapter shall revoke or modify its prior judgment so that it will conform to such decision.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 677 New hearings; when granted; procedure
The Commissioner may grant a new hearing in a cause determined by him or her on the ground of newly discovered evidence when a petition, setting forth the substance of such evidence, verified by the oath of the petitioner, is presented. His or her decision in granting or denying such hearing shall be final and conclusive. If a party petitions the Commissioner for a new hearing, he or she shall give the adverse party notice of such petition by a citation signed by the Commissioner served like a summons at least 12 days before the date of such hearing. A new hearing shall not be granted on a petition unless the citation to the adverse party is served within six months after the date of the order of the Commissioner.
§ 678 Costs; attorney’s fees
(a) Costs shall not be taxed or allowed either party except as provided in this section.
(b)(1) When a claimant prevails in either a formal or informal proceeding under this chapter, the Commissioner shall award the claimant necessary costs incurred in relation to the proceeding, including deposition expenses, subpoena fees, and expert witness fees.
(2) The Commissioner may allow a claimant to recover reasonable attorney’s fees when the claimant prevails.
(3) In cases for which a formal hearing is requested and the case is resolved prior to a formal hearing:
(A) the Commissioner may award reasonable attorney’s fees if the claimant retained an attorney in response to an actual or effective denial of a claim and payments were made to the claimant as a result of the attorney’s efforts; and
(B) the Commissioner shall award necessary costs if the claimant incurred the costs in response to an actual or effective denial of a claim and payments were made to the claimant as a result of the costs incurred.
(c)(1) In appeals to the Superior or Supreme Court, if the claimant prevails, the claimant shall be entitled to reasonable attorney’s fees as approved by the court; necessary costs, including deposition expenses, subpoena fees, and expert witness fees; and interest at the rate of 12 percent per annum on that portion of any award the payment of which is contested.
(2) Interest shall be computed from the date of the award of the Commissioner.
(d) By January 1, 1999 and at least every five years thereafter, the Commissioner shall amend existing rules regarding reasonable attorney’s fees awarded under subsection (a) of this section. In amending these rules, the Commissioner shall consider accessibility to legal services, appropriate inflation factors, and any other related factors consistent with the purposes of this chapter. In the event the Commissioner proposes no change in the rules in any five-year period, the Commissioner shall provide a written report to the Legislative Committee on Administrative Rules of the General Assembly explaining the reasons for not changing the rules.
(e) An attorney representing a claimant shall submit a claim for attorney’s fees and costs within 30 days following a decision in which the claimant prevails.
(Amended 1961, No. 90; 1969, No. 237 (Adj. Sess.), eff. May 1, 1970; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1981, No. 165 (Adj. Sess.), § 1; 1981, No. 204 (Adj. Sess.), § 10; 1997, No. 140 (Adj. Sess.), § 1; 2007, No. 208 (Adj. Sess.), § 16, eff. June 11, 2008; 2013, No. 199 (Adj. Sess.), § 66, eff. June 24, 2014; 2023, No. 76, § 37, eff. July 1, 2023.)
§ 679 Fees of sheriffs and witnesses
Sheriffs and witnesses shall receive the same fees for the service of process and attendance before the Commissioner as are paid sheriffs and witnesses in Superior Court.
(Amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974.)
§ 680 Preferences
All rights of compensation granted by the provisions of this chapter shall have the same preference or priority against the assets of the employer or the property of any persons described in subsection 687(b) of this title as is allowed by 9 V.S.A. § 1972.
(Amended 1997, No. 19, § 6.)
§ 681 Claims not assignable
Claims for compensation under the provisions of this chapter shall not be assignable. Compensation and claims for compensation shall be exempt from all claims of creditors, except as provided in section 682 of this chapter.
(Amended 2023, No. 85 (Adj. Sess.), § 144, eff. July 1, 2024.)
§ 682 Liens against compensation
Claims of physicians and hospitals for services rendered under the provisions of this chapter and claims of attorneys for services rendered an employee in prosecuting a claim under the provisions of this chapter shall be approved by the Commissioner. When so approved they may be enforced against compensation awards in such manner as the Commissioner may direct.
§§ 683-686 Repealed
[Repealed]
1999, No. 41, § 8(a)(2).
§ 687 Security for compensation
(a) Employers, not including State, county, or municipal bodies, shall secure compensation for their employees in one or more of the following ways:
(1) By insuring and keeping insured the payment of such compensation with any corporation or reciprocal or interinsurance exchange authorized to transact the business of workers’ compensation insurance in this State.
(2) By obtaining and keeping in force guarantee insurance with any company authorized to do such guarantee business within the State.
(3) By establishing and maintaining to the satisfaction of the Commissioner the employer’s financial responsibility necessary to secure payment by the employer of compensation according to the terms of this chapter. The Department of Financial Regulation shall provide technical assistance and a recommendation on each self-insurance application to the Commissioner. For purposes of this subdivision, the Commissioner shall, after consultation with the Commissioner of Financial Regulation, adopt rules and impose terms and conditions, including surety bonds, cash deposits, or reserves and excess risk insurance, as necessary to ensure the same security for compensation as provided under contract for workers’ compensation or guarantee insurance. The fund shall be free from attachment or trustee process so long as any liability for the compensation exists.
(4) By participating to the satisfaction of the Commissioner of Labor in a nonprofit, self-insurance corporation approved by the Commissioner of Financial Regulation under this chapter.
(b) In the event an employer fails to secure workers’ compensation as required by this section and an employee reasonably believes that he or she has received a personal injury by accident arising out of and in course of employment with that employer, then:
(1) If the employer is a corporation, the officers and majority stockholders of the corporation shall be personally liable for any benefits owed to the injured employee under this chapter.
(2) If the employer is a partnership, the partners shall be personally liable for any benefits owed to the injured employee under this chapter.
(3) If the employer is neither a corporation nor a partnership, the principals, executive officers, or controlling parties of the business, or all of these, shall be personally liable for any benefits owed to the injured employee under this chapter.
(c) Upon filing a claim for benefits under this chapter or if the employee elects to bring a civil action pursuant to subsection 618(b) of this title, the employee may obtain a lien against the property of the employer or the personal property of any persons described in subsection (b) of this section.
(d) The remedies provided in this section shall be in addition to any other remedies and penalties available under law.
(e) All insurance carriers authorized to write workers’ compensation insurance coverage in Vermont shall make available, at the written request of the employer, a workers’ compensation insurance rate that contains a deductible provision that binds the employer to reimburse the workers’ compensation insurer for at least the first $500.00 of benefits, medical or indemnity, due to an injured employee. Claims shall be adjusted and paid by the insurer, and the employer shall reimburse the insurer for the amount of the deductible.
(Amended 1971, No. 31, § 4, eff. March 31, 1971; 1981, No. 165 (Adj. Sess.), § 6; 1985, No. 194 (Adj. Sess.), § 10; 1989, No. 225 (Adj. Sess.), § 25(b); 1993, No. 225 (Adj. Sess.), §§ 14, 28a; 1995, No. 180 (Adj. Sess.), § 38(a); 1997, No. 19, § 7; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2007, No. 208 (Adj. Sess.), § 9.)
§ 687a Self-insurance by associations
(a) Any association that has been in existence in this State for five or more continuous years may establish and maintain a nonprofit corporation to secure workers’ compensation insurance for employees of participating member employers and for employees of the association. The Commissioner of Financial Regulation shall assist with the establishment of a nonprofit corporation organized for the purpose of providing compensation under this chapter.
(b) No association electing to provide workers’ compensation benefits under this chapter shall commence business for the purpose of distributing, sharing, or pooling any workers’ compensation risk until a plan for the operation of the corporation and all contracts, agreements, and any other documents underlying or implementing the plan, and all amendments to those documents, have been approved by the Commissioner of Financial Regulation.
(c) The Commissioner of Financial Regulation shall promptly adopt interim rules to assist in the formation of the nonprofit corporations and to expedite approval of any plan of operation. The Commissioner shall also adopt rules relating to the administration and operation of the nonprofit corporations in order to provide for the fiscal integrity of agreements and to provide that trade, market, and claim practices engaged in by the nonprofit corporations are equitable, fair, and consistent. In adopting these rules, the Commissioner shall recognize that the nonprofit corporations are not for profit; that they are undertaking a service to the association’s participating employers to control excessive workers’ compensation insurance premiums; and that they shall not be considered insurance companies or insurers under the laws of this State. The rules shall be modeled after the rules now in effect for intermunicipal insurance agreements authorized by 24 V.S.A. chapter 121, subchapter 6, and for captive insurance companies chartered under 8 V.S.A. chapter 141.
(d) A nonprofit corporation established under this section:
(1) Shall have as its purposes: reducing the risk of its members; safety inspections; distributing, sharing, and pooling risks; acquiring insurance, excess loss insurance, or reinsurance; and processing, paying, and defending claims of employees of employers who are members of the association.
(2) Shall have the same persons serve as directors who serve as directors of the association.
(3) Shall have the same name as the association with the additional words: “Workers’ Compensation Self-Insurance Corporation.”
(4) May enter into agreements for obtaining or effecting insurance by self-insurance, for obtaining or effecting workers’ compensation insurance from any insurer authorized to transact business in this State as an admitted or surplus lines carrier, or for obtaining and effecting insurance secured in accordance with any other method provided by law, or by combination of the provisions of this section for obtaining and effecting insurance. Agreements made pursuant to this subsection shall provide for pooling of self-insurance reserves, risks, claims and losses, and administrative services and expenses associated with the agreement among participating employers.
(e) Any contributions made to a nonprofit corporation established under this section for the purpose of distributing, sharing, or pooling risks shall be made on an actuarially sound basis, and the nonprofit corporation shall have its books, records, and financial affairs audited annually. A copy of the annual audit shall be provided to the board of directors of the association or its governing body, to each participating employer, and to the Commissioner of Financial Regulation.
(Added 1993, No. 225 (Adj. Sess.), § 31; amended 1995, No. 180 (Adj. Sess.), § 38(a).)
§ 688 Administrative penalties; insurance company’s license suspended
(a) The Commissioner, after notice and opportunity for a hearing, may assess administrative penalties of not more than $5,000.00 against any employer, insurance company, or their agents that the Commissioner finds has refused or neglected to comply with the reasonable rules of the Commissioner or any orders issued by the Commissioner, or to adjust and pay compensation and medical bills in accordance with the provisions of this chapter.
(b) The notice and opportunity for a hearing under this section shall be in accordance with 3 V.S.A. chapter 25. The Commissioner shall adopt rules regarding the amount and imposition of penalties.
(c)(1) In addition to assessing administrative penalties, the Commissioner may refer to the Commissioner of Financial Regulation any insurance company authorized to transact workers’ compensation insurance in this State that refuses or neglects to comply with the reasonable rules of the Commissioner or that neglects or refuses to properly and promptly adjust and pay compensation and medical bills in accordance with the provisions of this chapter.
(2) If, after hearing, the Commissioner of Financial Regulation finds that the insurance company has failed to comply with the rules or orders issued by the Commissioner of Labor or has failed to properly and promptly pay compensation and medical bills as provided by this chapter, the Commissioner of Financial Regulation may take appropriate action against the insurance company as provided in Title 8.
(Amended 1989, No. 225 (Adj. Sess.), § 25(b); 1993, No. 225 (Adj. Sess.), § 15; 1995, No. 180 (Adj. Sess.), § 38(a); 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 145, eff. July 1, 2024.)
§ 689 Employer compelled to insure
If an employer who secures the payment of compensation under the provisions of subdivision 687(3) of this chapter neglects or refuses to comply with the reasonable rules of the Commissioner or neglects and refuses to promptly adjust and pay all compensation and medical bills as required by law, the Commissioner may cite the employer. If on hearing it is found that such neglect or refusal is willful, the Commissioner may revoke the permission granted to the employer to secure the payment of compensation under that subdivision and compel the employer to take out insurance in an insurance company authorized to transact workers’ compensation insurance in the State in addition to penalties assessed under section 688 of this chapter.
(Amended 1993, No. 225 (Adj. Sess.), § 16; 2023, No. 85 (Adj. Sess.), § 146, eff. July 1, 2024.)
§ 690 Certificate, form; copy of policy
(a) An employer subject to the provisions of this chapter who has workers’ compensation insurance coverage pursuant to section 687 or 689 of this title shall file with the Commissioner a certificate of the insurance in a form prescribed by the Commissioner. The certificate shall include the policy number, effective date, date of expiration, operations covered, and such other information the Commissioner requests. The certificate shall be signed by a duly authorized representative of the insurance or guarantee company that issued the insurance coverage. Upon request, the insurance or guarantee company shall file with the Commissioner a copy of the contract or policy of insurance issued.
(b)(1) In addition to any other authority provided to the Commissioner pursuant to this chapter, the Commissioner may issue a written request to an employer subject to the provisions of this chapter to provide a workers’ compensation compliance statement on a form provided by the Commissioner. For the purposes of this subsection, an employer includes subcontractors and independent contractors. The form shall require all the following information sorted by job site:
(A) The number of employees employed during the entire current workers’ compensation policy term or the previous year if no policy was in effect or partially in effect prior to the request and the effective dates of the term of any policies in effect.
(B) The total number of hours for which compensation was paid.
(C) A list of all subcontractors and 1099 workers and their function on the job site for the period in question.
(D) The name of the workers’ compensation insurance carrier, the policy number, and the agent, if any.
(E) As an attachment, the insurance policy declaration pages, including how much payroll the policy is covering and a designation of the hours that provide the basis of the appropriate National Council on Compensation Insurance classification code.
(2) Any employer who fails to comply with this subsection or falsifies information on the compliance statement may be assessed an administrative penalty of not more than $5,000.00 for each week during which the noncompliance or falsification occurred and any costs and attorney’s fees required to enforce this subsection. The Commissioner may also seek injunctive relief in Washington Superior Court.
(3) A compliance statement shall be a public record, and the Commissioner shall provide a copy of a compliance statement to any person on request. An insurance company provided with a compliance statement may investigate the information in the statement. Based on evidence that an employer is not in compliance with this chapter, the Commissioner shall request a compliance statement or an amended compliance statement from the employer, investigate further, and take appropriate enforcement action.
(4) In the event the Commissioner receives a request for an employer to provide a compliance statement but finds no evidence of noncompliance with this chapter, the Commissioner shall provide timely notification of the findings to the requesting party.
(Amended 2007, No. 57, § 1; 2009, No. 54, § 80, eff. June 1, 2009.)
§ 691 Posting of notice of compliance
An employer who has complied with the provisions of this chapter relating to securing the payment of compensation to the employer’s employees and their dependents shall post and maintain, in a conspicuous place in and about each of the employer’s places of business, printed notices in a form prescribed by the Commissioner stating that fact.
(Amended 2023, No. 85 (Adj. Sess.), § 147, eff. July 1, 2024.)
§ 691a Posting of safety records
(a) In support of the State’s fundamental interest in ensuring the well-being of employees and employers, it is the intent of the General Assembly to improve the safety experience in the workplace.
(b) An employer subject to the provisions of this chapter shall post a notice in the employer’s place of business to advise employees of where they may review the employer’s record of workplace safety, including workplace injury and illness data, in accordance with rules adopted by the Commissioner. The employer’s record of workplace safety, including workplace injury and illness data, shall be available for review by employees at the employer’s place of business and the Commissioner, but shall not otherwise be public information. The posting shall be in a format approved by the Commissioner. The posting may be in a format provided by the Commissioner.
(Added 2013, No. 199 (Adj. Sess.), § 55.)
§ 692 Penalties; failure to insure; stop work orders
(a) Failure to insure. If after a hearing under section 688 of this title, the Commissioner determines that an employer has failed to comply with the provisions of section 687 of this title, the employer shall be assessed an administrative penalty of not more than $100.00 for every day for the first seven days the employer neglected to secure liability and not more than $150.00 for every day thereafter.
(b) Stop-work orders. If an employer fails to comply with the provisions of section 687 of this title after investigation by the Commissioner, the Commissioner shall issue an emergency order to that employer to stop work until the employer has secured workers’ compensation insurance. If the Commissioner determines that issuing a stop-work order would immediately threaten the safety or health of the public, the Commissioner may permit work to continue until the immediate threat to public safety or health is removed. The Commissioner shall document the reasons for permitting work to continue, and the document shall be available to the public. In addition, the employer shall be assessed an administrative penalty of not more than $250.00 for every day that the employer fails to secure workers’ compensation coverage after the Commissioner issues an order to obtain insurance and may also be assessed an administrative penalty of not more than $250.00 for each employee for every day that the employer fails to secure workers’ compensation coverage as required in section 687 of this title. When a stop-work order is issued, the Commissioner shall post a notice at a conspicuous place on the work site of the employer informing the employees that their employer failed to comply with the provisions of section 687 of this title and that work at the work site has been ordered to cease until workers’ compensation insurance is secured. The stop-work order shall be rescinded as soon as the Commissioner determines that the employer is in compliance with section 687 of this title. An employer against whom a stop-work order has been issued is prohibited from contracting, directly or indirectly, with the State or any of its subdivisions for a period of up to three years following the date of the issuance of the stop-work order, as determined by the Commissioner in consultation with the Commissioner of Buildings and General Services or the Secretary of Transportation, as appropriate. Either the Secretary or the Commissioner, as appropriate, shall be consulted in any contest of the prohibition of the employer from contracting with the State or its subdivisions.
(c) Penalty for violation of stop-work order. In addition to any other penalties, an employer who violates a stop-work order described in subsection (b) of this section is subject to:
(1) a civil penalty of not more than $5,000.00 for the first violation and a civil penalty of not more than $10,000.00 for a second or subsequent violation; or
(2) a criminal fine of not more than $10,000.00 or imprisonment for not more than 180 days, or both.
(Amended 1977, No. 182 (Adj. Sess.), § 17, eff. May 3, 1978; 1985, No. 194 (Adj. Sess.), § 8; 1993, No. 225 (Adj. Sess.), § 17; 1997, No. 19, §§ 8, 9; 2007, No. 57, § 2; 2009, No. 142 (Adj. Sess.), § 3; 2011, No. 50, § 5, eff. May 26, 2011.)
§ 693 The insurance contract
(a) Every policy of insurance and every guarantee contract covering the liability of an employer for compensation shall cover the entire liability of the employer to the employees covered by the policy or contract and also shall contain a provision setting forth the right of the employees to enforce, in their own names, the liability of the insurance carrier in whole or in part for the payment of such compensation at any time, either by filing a separate claim or by making the insurance carrier a party to the original claim.
(b) The payment in whole or in part of such compensation by either the employer or the insurance carrier shall, to the extent thereof, be a bar to the recovery against the other of the amount so paid.
(Amended 2023, No. 85 (Adj. Sess.), § 148, eff. July 1, 2024.)
§ 694 Knowledge of employer to affect insurance carrier
Policies and contracts of insurance under this chapter shall contain provisions providing that:
(1) notice or knowledge of the occurrence of an injury on the part of the employer shall be deemed notice or knowledge, as the case may be, on the part of the insurance carrier;
(2) jurisdiction of the employer shall, for the purpose of this chapter, be jurisdiction of the insurance carrier; and
(3) the insurance carrier shall in all things be bound by and subject to the orders, findings, decisions, or awards rendered against the employer for the payment of compensation under the provisions of this chapter.
(Amended 2023, No. 85 (Adj. Sess.), § 149, eff. July 1, 2024.)
§ 695 Insolvency of employer not to release insurance carrier
Policies and contracts of insurance under this chapter shall contain a provision to the effect that the insolvency or bankruptcy of the employer and the employer’s discharge in bankruptcy shall not relieve the insurance carrier from the payment of compensation for injuries or death sustained by an employee during the life of the policy or contract.
(Amended 2023, No. 85 (Adj. Sess.), § 150, eff. July 1, 2024.)
§ 696 Cancellation of insurance contracts
A policy or contract shall not be cancelled within the time specified in the policy or contract for its expiration, until at least 45 days after a notice of intention to cancel the policy or contract, on a date specified in the notice, has been filed in the office of the Commissioner and provided to the employer. The notice shall be filed with the Commissioner in accordance with rules adopted by the Commissioner and provided to the employer by certified mail. The cancellation shall not affect the liability of an insurance carrier on account of an injury occurring prior to cancellation.
(Amended 1989, No. 171 (Adj. Sess.), § 9, eff. Sept. 1, 1990; 2007, No. 57, § 3; 2013, No. 199 (Adj. Sess.), § 56.)
§ 697 Notice of intent not to renew policy
An insurance carrier who does not intend to renew a workers’ compensation insurance policy or guarantee contract covering the liability of an employer under the provisions of this chapter shall give notice of its intention to the Commissioner and the covered employer at least 45 days prior to the expiration date stated in the policy or contract. The notice shall be given to the employer by certified mail. An insurance carrier who fails to give notice shall continue the policy or contract in force beyond its expiration date for 45 days from the day the notice is received by the Commissioner and the employer. However, if, on or before the expiration of the existing insurance or guarantee contract the insurance carrier has, by delivery of a renewal contract or otherwise, offered to continue the insurance, or if the employer notifies the insurance carrier in writing that the employer does not wish the insurance continued beyond the expiration date, or if the employer complies with the provisions of section 687 of this title, then the policy will expire upon notice to the Commissioner.
(Amended 1981, No. 165 (Adj. Sess.), § 1; 1989, No. 171 (Adj. Sess.), § 10, eff. Sept. 1, 1990; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2007, No. 57, § 4; 2013, No. 199 (Adj. Sess.), § 57.)
§ 698 Insurance by State and municipalities
The State and municipalities that are liable to their employees for compensation under the provisions of this chapter may insure with an authorized insurance carrier.
§ 699 Employees not to pay for insurance
An agreement by an employee to pay any portion of the cost of insurance of any kind maintained or carried by an employer for the purpose of securing compensation under the provisions of this chapter shall be void. An employer who makes a deduction for such purpose from the wages or salary of an employee entitled to the benefits of this chapter shall be fined not more than $500.00.
§ 700 Examination of policy
At the request of a holder of a policy of workers’ compensation insurance, the Commissioner of Financial Regulation shall examine the policy to determine whether the proper assignment has been made as to classification, rates, and advance premium charged.
(Amended 1981, No. 165 (Adj. Sess.), § 1; 1989, No. 225 (Adj. Sess.), § 25(b); 1995, No. 180 (Adj. Sess.), § 38(a).)
§ 701 Reports of accidents by employers
(a) Every employer liable to pay compensation under the provisions of this chapter shall keep a record of all injuries, fatal or otherwise, sustained by the employer’s employees in the course of their employment and shall report such an injury causing an absence of one day or more, or necessitating medical attendance, to the Commissioner in writing upon forms to be procured from the Commissioner for that purpose within 72 hours, Sundays and legal holidays excluded, after the occurrence of the injury.
(b) At the termination of the disability of the injured employee, the employer shall make a final report upon forms procured from the Commissioner.
(c) If the disability extends beyond a period of 60 days, at the expiration of each 60-day period, the employer shall make a supplemental report to the Commissioner that the injured employee is still disabled and, at the termination of the disability, shall file a final report as provided in this section.
(Amended 2023, No. 85 (Adj. Sess.), § 151, eff. July 1, 2024.)
§ 702 Contents; penalty
(a) Reports submitted pursuant to section 701 of this chapter shall state:
(1) the name and nature of the business of the employer;
(2) the location of the place where the accident occurred;
(3) the name, age, sex, wages, and occupation of the injured employee;
(4) the date and hour of the accident causing the injury;
(5) the injury’s nature and cause; and
(6) any other information required by the Commissioner.
(b) An employer who refuses or neglects to make reports required pursuant to section 701 of this chapter may be assessed an administrative penalty of not more than $100.00 per violation after notice and opportunity for hearing under section 688 of this title.
(Amended 1993, No. 225 (Adj. Sess.), § 18; 2023, No. 85 (Adj. Sess.), § 152, eff. July 1, 2024.)
§ 703 Reports of payments made by employers
Within 60 days after disability, such employer or other party liable to pay the compensation provided for by this chapter shall file with the Commissioner a statement showing the total payments made or to be made for compensation and for medical services for such injured employee.
§ 704 Reports; penalty
(a) An employer upon written request of the Commissioner sent by certified mail, shall file on forms provided by the Commissioner such statistical information regarding employments, accidents arising out of or in the course of employment, and safety in employment, as the Commissioner may require.
(b) A report pursuant to subsection (a) of this section shall be required not more than once in any calendar year. Reports submitted pursuant to subsection (a) of this section shall be on uniform forms applicable to all employers from whom the information is required.
(c) An employer who refuses or neglects to file the statistical report within 30 days after a request by the Commissioner may be assessed an administrative penalty of not more than $1,000.00.
(Amended 1971, No. 158 (Adj. Sess.), § 3; 1993, No. 225 (Adj. Sess.), § 19; 2023, No. 85 (Adj. Sess.), § 153, eff. July 1, 2024.)
§ 705 Registration; penalty
Employers shall register with the Department of Labor, on forms provided by it, when commencing or ceasing business operations in the State and no fee shall be required by the State for that registration. An employer who refuses or neglects to register as required by this section may be assessed an administrative penalty of not more than $50.00.
(Amended 1993, No. 225 (Adj. Sess.), § 20; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 154, eff. July 1, 2024.)
§ 706 Construction
The provisions of sections 704 and 705 of this chapter shall not be applicable to persons operating farms for agricultural purposes.
(Amended 2023, No. 85 (Adj. Sess.), § 155, eff. July 1, 2024.)
§ 707 Repealed
[Repealed]
2003, No. 122 (Adj. Sess.), § 294(o).
§ 708 Penalty for false representation
(a) Action by the Commissioner of Labor. A person who willfully makes a false statement or representation, for the purpose of obtaining any benefit or payment under the provisions of this chapter, either for herself or himself or for any other person, after notice and opportunity for hearing, may be assessed an administrative penalty of not more than $20,000.00, and shall forfeit all or a portion of any right to compensation under the provisions of this chapter, as determined to be appropriate by the Commissioner after a determination by the Commissioner that the person has willfully made a false statement or representation of a material fact. In addition, an employer found to have violated this section is prohibited from contracting, directly or indirectly, with the State or any of its subdivisions for up to three years following the date the employer was found to have made a false statement or misrepresentation of a material fact, as determined by the Commissioner in consultation with the Commissioner of Buildings and General Services or the Secretary of Transportation, as appropriate. Either the Secretary or the Commissioner, as appropriate, shall be consulted in any contest relating to the prohibition of the employer from contracting with the State or its subdivisions.
(b) When the Department of Labor has sufficient reason to believe that an employer has made a false statement or representation for the purpose of obtaining a lower workers’ compensation premium, the Department shall refer the alleged violation to the Commissioner of Financial Regulation for the Commissioner’s consideration of enforcement pursuant to 8 V.S.A. § 3661(c).
(c) Any penalty assessed or order issued under this chapter or 8 V.S.A. § 3661 shall continue in effect against any successor employer that has one or more of the same principals or corporate officers as the employer against which the penalties were assessed or order issued and is engaged in the same or similar business.
(d) Notwithstanding the assessment of an administrative penalty under this section, a person may be prosecuted under 13 V.S.A. § 2024.
(Amended 1993, No. 225 (Adj. Sess.), § 21; 1995, No. 180 (Adj. Sess.), § 38(a); 2007, No. 57, § 5; 2009, No. 42, § 11; 2009, No. 54, § 79, eff. June 1, 2009; 2009, No. 142 (Adj. Sess.), § 5.)
§ 709 Rules of construction
In construing the provisions of this chapter, the rule of law that statutes in derogation of the common law are to be strictly construed shall not be applied. The provisions of this chapter shall be so interpreted and construed as to effect its general purpose to make uniform the law of those states that enact it.
§ 710 Unlawful discrimination
(a) No person, firm, or corporation shall refuse to employ any applicant for employment because the applicant asserted a claim for workers’ compensation benefits under this chapter or under the law of any state or of the United States. Nothing in this section shall require a person to employ an applicant who does not meet the qualifications of the position sought.
(b) No person shall discharge or discriminate against an employee from employment because the employee asserted or attempted to assert a claim for benefits under this chapter or under the law of any state or of the United States.
(c) The Department shall not include in any publication or public report the name or contact information of any individual who has alleged that an employer has made a false statement or misclassified any employees, unless it is required by law or necessary to enable enforcement of this chapter.
(d) An employer shall not retaliate or take any other negative action against an individual because the employer knows or suspects that the individual has filed a complaint or reported a violation of this chapter, or has testified, assisted, or cooperated in any manner with the Department or other appropriate governmental agency or department in an investigation of misclassification, discrimination, or other violation of this chapter.
(e) The Attorney General or a State’s Attorney may enforce the provisions of this section by restraining prohibited acts, seeking civil penalties, obtaining assurances of discontinuance, and conducting civil investigations in accordance with the procedures established in 9 V.S.A. §§ 2458-2461 as though a violation of this section were an unfair act in commerce.
(f) The provisions against retaliation in subdivision 495(a)(8) of this title and the penalty and enforcement provisions of section 495b of this title shall apply to this section.
(Added 1985, No. 194 (Adj. Sess.), § 9; amended 2009, No. 142 (Adj. Sess.), § 8, eff. June 1, 2010; 2013, No. 31, § 9; 2017, No. 74, § 43; 2017, No. 148 (Adj. Sess.), § 1.)
§ 711 Workers’ Compensation Administration Fund
(a) The Workers’ Compensation Administration Fund is created pursuant to 32 V.S.A. chapter 7, subchapter 5 to be expended by the Commissioner for the administration of the workers’ compensation and occupational disease programs. The Fund shall consist of contributions from employers made at a rate of 1.4 percent of the direct calendar year premium for workers’ compensation insurance, one percent of self-insured workers’ compensation losses, and one percent of workers’ compensation losses of corporations approved under this chapter. Disbursements from the Fund shall be on warrants drawn by the Commissioner of Finance and Management in anticipation of receipts authorized by this section.
(b)(1) Annually, the General Assembly shall establish the rate of contribution for the direct calendar year premium for workers’ compensation insurance. The rate shall equal the amount approved in the appropriations process for the program and the Department’s projection of salary and benefit increases for that fiscal year, less the amount collected in the prior calendar year under subsection (a) of this section from self-insured workers’ compensation losses and from corporations approved under this chapter, adjusted by any balance in the Fund from the prior fiscal year, divided by the total direct calendar year premium for workers’ compensation insurance for the prior year.
(2) In the event that the General Assembly does not establish the rate of contribution for the direct calendar year premium for workers’ compensation insurance for a given fiscal year, the rate shall remain unchanged from the prior fiscal year.
(Added 1993, No. 225 (Adj. Sess.), § 22; amended 1995, No. 186 (Adj. Sess.), § 3, eff. May 22, 1996; 1997, No. 59, § 34, eff. June 30, 1997; 1997, No. 155 (Adj. Sess.), § 5; 2001, No. 143 (Adj. Sess.), § 3; 2003, No. 70 (Adj. Sess.), § 1, eff. April 1, 2004; 2007, No. 76, § 22; 2007, No. 153 (Adj. Sess.), § 6; 2009, No. 47, § 10; 2009, No. 134 (Adj. Sess.), § 28; 2011, No. 33, § 5; 2017, No. 69, § D.2, eff. June 8, 2017; 2017, No. 76, § 4; 2023, No. 72, § 41, eff. June 19, 2023; 2023, No. 76, § 27, eff. July 1, 2023.)
§ 712 Enforcement by Attorney General [Repealed effective July 1, 2026]
(a) Following the referral of a complaint by the Commissioner of Labor pursuant to the provisions of section 3 of this title, the Attorney General may investigate a complaint that an employer has committed a willful, substantial, or systemic violation of section 687 or 708 of this chapter by claiming that it is not an employer as defined pursuant to subdivision 601(3) of this chapter or that an individual is not a worker or employee as defined pursuant to subdivision 601(14) of this chapter and may enforce those provisions by restraining prohibited acts, seeking civil penalties, obtaining assurances of discontinuance, and conducting civil investigations in accordance with the procedures established in 9 V.S.A. §§ 2458-2461 as though an employer that violates section 687 or 708 of this chapter by claiming that it is not an employer as defined pursuant to subdivision 601(3) of this chapter or that an individual is not a worker or employee as defined pursuant to subdivision 601(14) of this chapter is committing an unfair act in commerce. Any employer, employment agency, or labor organization complained against shall have the same rights and remedies as specified in 9 V.S.A. §§ 2458-2461. The Superior Court may impose the same civil penalties and investigation costs and order other relief to the State of Vermont or an aggrieved employee for a violation of section 687 or 708 of this chapter and any related violations of the provisions of this chapter as they are authorized to impose or order under the provisions of 9 V.S.A. §§ 2458 and 2461 in an unfair act in commerce. In addition, the Superior Court may order restitution of wages or other benefits on behalf of an employee and may order reinstatement and other appropriate relief on behalf of an employee.
(b)(1) The Attorney General shall share information and coordinate investigatory and enforcement resources with the Departments of Financial Regulation, of Labor, and of Taxes pursuant to the provisions of section 3 of this title.
(2) Upon receiving notice that the Attorney General has determined that an employer committed a violation of section 687 or 708 of this chapter by claiming that it was not an employer as defined pursuant to subdivision 601(3) of this chapter or that an individual was not a worker or employee as defined pursuant to subdivision 601(14) of this chapter, the Commissioners of Financial Regulation and of Taxes shall review whether the employer is in compliance with the insurance or tax laws that are under their jurisdiction.
(Added 2019, No. 85 (Adj. Sess.), § 1, eff. Feb. 20, 2020; repealed on July 1, 2026 by 2019, No. 85 (Adj. Sess.), § 11(b).)
Chapter 11 Compensation for Occupational Diseases [Repealed]
§§ 1001-1023 Repealed
[Repealed]
1999, No. 41, § 8(a)(1).
Chapter 12 Employee Leasing Companies
§ 1031 Definitions
As used in this chapter:
(1) “Applicant” means a person applying for a license or for a renewal of a license under this chapter.
(2) “Commissioner” means the Commissioner of Labor or the Commissioner’s designee.
(3) “Client company” means a person who enters into an agreement with an employee leasing company to lease any or all of its regular employees.
(4) “Employee leasing agreement” means an agreement, executed between an employee leasing company and a client company, pursuant to which an employee leasing company provides one or more individuals to perform services for a client company on an ongoing basis.
(5) “Employee leasing company” or “leasing company” means a person engaged in the business of providing individuals to perform ongoing services for an indefinite time period for client companies pursuant to one or more employee leasing agreements executed between the leasing company and the client company. “Employee leasing company” does not include labor organizations.
(6) “Financial responsibility” means the current and expected future condition of financial solvency sufficient to support a reasonable expectation that an employee leasing company can successfully conduct its business without jeopardizing the interests of the employees leased to the client company or the public.
(7) “Licensee” means an employee leasing company licensed under this chapter.
(8) “Temporary help company” means a person who hires its own employees and provides them to another business entity as temporary full- or part-time personnel to provide services for a finite period of time in special or unusual situations such as employee absences, temporary skill shortages, seasonal workloads, and special work assignments and projects.
(Added 1995, No. 173 (Adj. Sess.), § 1; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2017, No. 74, § 44.)
§ 1032 Commissioner; duties; rules
The Commissioner shall administer this chapter and, in consultation with the Commissioner of Financial Regulation, adopt rules to carry out the provisions of this chapter.
(Added 1995, No. 173 (Adj. Sess.), § 1; amended 1995, No. 180 (Adj. Sess.), § 38(a); 2013, No. 34, § 13.)
§ 1033 Licensure; requirements; application; fees
(a) No person shall engage in the business of employee leasing in Vermont unless the person is granted a license by the Commissioner under this chapter. Only qualified applicants as determined by the Commissioner shall be licensed.
(b) An applicant may file an application for licensure with the Commissioner on a form required by the Commissioner accompanied by a one-time, nonrefundable application fee of $100.00 and a licensing fee of $1,000.00. The applicant shall also file the following, satisfactory to the Commissioner:
(1) A list of all the controlling persons of the applicant and an affidavit from each attesting to his or her good moral character and management competence.
(2) Documentation that the applicant maintains a place of business in this State and that the applicant is licensed, if required, in the applicant’s state of domicile.
(3) Certification that the applicant does not conduct a temporary help business through the same entity as the employee leasing business.
(4) An agreement to:
(A) maintain separate records for each client company;
(B) file reports as required by law for each of its client companies; and
(C) pay unemployment contributions and workers’ compensation premiums based on the experience rating of each client company, provided that, for workers’ compensation premiums, the client company has sufficient workers’ compensation premium volume to be experience rated, otherwise the workers’ compensation premiums shall be paid the rate approved for an employer that cannot be experience rated.
(5) An acknowledgment of the applicant’s joint and several liability with its client companies for protections required by or damages due under laws designed to protect the health, safety, or welfare of an individual leased to a client company.
(6) Evidence of financial responsibility in accordance with subsection 1035(a) of this title.
(7) Evidence that the applicant has deposited securities or posted a bond, in a manner and amount approved by the Commissioner to secure the performance of the applicant’s obligations pursuant to subdivision (5) of this subsection. The amount of securities or bond shall be at least the minimum net worth required by subsection 1035(a) of this title. An employee leasing company shall not require a client company to contribute in any manner to payment of the securities or bond required under this subdivision. The Commissioner may waive the bonding or security requirement if the applicant demonstrates that it is accredited by a national accrediting entity that has been approved by the Commissioner.
(8) An agreement that the Commissioner may liquidate any securities or bond provided pursuant to subdivision (7) of this subsection upon default by the applicant in the payment of wages, benefits, workers’ compensation premiums or awards, or unemployment compensation premiums as required by this chapter.
(c) A license under this chapter shall expire one year from the date shown on the license. At least 60 days before the expiration date of the license, a licensee shall file a renewal application accompanied by the licensing fee and documentation as required by subsection (b) of this section.
(d) The Commissioner may deny, suspend, or revoke the license of an employee leasing company for any violation of this chapter.
(e) Fees collected under this section shall be credited to a special fund established and managed pursuant to 32 V.S.A. chapter 7, subchapter 5 and shall be available to the Department of Labor to offset the cost of providing those services.
(Added 1995, No. 173 (Adj. Sess.), § 1; amended 1997, No. 59, § 37, eff. June 30, 1997; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1034 Controlling person
(a) Each controlling person of an applicant or licensee shall:
(1) be at least 18 years of age; and
(2) have a personal history of honesty, trustworthiness, and fairness and a reputation for fair dealings and respect for the rights of others and for the law.
(b) For the purposes of this chapter, “controlling person” means an individual who has the authority to direct the management or policies of an employee leasing company or who is employed, appointed, or authorized by an employee leasing company to enter into contractual relationships with client companies on the employee leasing company’s behalf.
(Added 1995, No. 173 (Adj. Sess.), § 1.)
§ 1035 Financial responsibility
(a) Evidence of financial responsibility shall include an audited financial statement, prepared in accordance with generally accepted accounting principles, that demonstrates that the applicant has an adjusted net worth of at least $100,000.00 or five percent of liabilities, whichever is greater. The statement shall have been prepared within six months of the date of application by an independent certified public accountant licensed in this State.
(b) The Commissioner may audit a licensee’s financial condition if the Commissioner determines that the licensee’s financial responsibility is in question. The Commissioner may contract for the audit and charge the licensee a fee that shall not exceed the actual cost of performing the audit.
(c) Financial information submitted to the Commissioner by an applicant or licensee shall be confidential and shall not be available for public inspection. Nothing in this section shall be construed to restrict the Commissioner from sharing this information with the Attorney General, the Department of Financial Regulation, the Department of Labor, the Department of Taxes, the Secretary of State, or the U.S. Internal Revenue Service.
(Added 1995, No. 173 (Adj. Sess.), § 1; amended 1995, No. 180 (Adj. Sess.), § 38(a); 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1036 Employee leasing company; duties; deemed employer
(a) A licensee shall:
(1) register with the following within 10 days after licensure under this chapter:
(A) the Department of Labor;
(B) the Department of Taxes;
(C) the Secretary of State; and
(D) the U.S. Internal Revenue Service;
(2) make timely payment of workers’ compensation premiums and unemployment compensation on all leased employees based on the experience rating of the client company to which the employees are leased;
(3) file all reports as required by this chapter and applicable law;
(4) maintain financial responsibility and management competence;
(5) provide notification of the employment arrangement to all employees leased pursuant to an employee leasing agreement within 10 days after executing the agreement; and
(6) keep any securities or bond in effect or retain accreditation, whichever was provided pursuant to subdivision 1033(b)(7) of this chapter during the period the license is valid.
(b) Except as provided in sections 1037 and 1038 of this title, an employee leasing company licensed under this chapter shall be deemed to be the employer for the payment of wages and other employment benefits due to leased employees pursuant to the employee leasing agreement. An employee leasing company shall implement an employee grievance system and provide to each leased employee a manual that outlines the terms and conditions of employment.
(Added 1995, No. 173 (Adj. Sess.), § 1; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 156, eff. July 1, 2024.)
§ 1037 Workers’ compensation
(a) Workers’ compensation insurance premiums shall be determined and paid based on the experience rating of the client company for which the leased employee performs services, provided the client company has sufficient workers’ compensation premium volume to be experience rated, otherwise the premiums shall be the rate approved for an employer that cannot be experience rated.
(b) Both the employee leasing company and its client company shall be entitled to the exclusivity of remedy provisions of section 622 of this title provided that workers’ compensation coverage is in effect.
(c) A workers’ compensation insurer shall notify the Commissioner and the client company not later than 30 days prior to any lapse or cancellation of workers’ compensation coverage.
(Added 1995, No. 173 (Adj. Sess.), § 1; amended 2023, No. 85 (Adj. Sess.), § 157, eff. July 1, 2024.)
§ 1038 Department of Labor
(a) The Department of Labor shall charge unemployment compensation benefits against the experience rating record of the client company in accordance with the provisions of section 1325 of this title. Quarterly unemployment reports shall be filed and unemployment contributions shall be paid based on the client company’s experience rating and under the client company’s State employer account number. The Commissioner may require an employee leasing company to make weekly contribution payments. The Department shall notify both the client company and the employee leasing company of:
(1) Benefits charged against the experience rating of the client company.
(2) The contribution rate of the client company based on its status and experience as an employer.
(b) An employee leasing company shall register with the Department of Labor on a form required by the Commissioner of Labor and shall file the following with the Commissioner:
(1) a copy of each employee leasing agreement within 10 days after the agreement is executed and notice within 10 days after an agreement is terminated;
(2) payroll records for each client company; and
(3) on or before December 31 of each year, a list of each client company, including the client company’s name, address, State employer account number, and federal employer identification number.
(Added 1995, No. 173 (Adj. Sess.), § 1; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2025, No. 18, § 32, eff. May 13, 2025.)
§ 1039 Employee benefits
(a) An employee leasing company that offers employee benefit and welfare plans shall offer comparable benefits to each client company but is not required to provide comparable benefits to leased employees of different client companies.
(b) An employee leasing company that provides health insurance benefits to its leased employees shall provide those benefits only pursuant to one of the following:
(1) an insurance policy issued under 8 V.S.A. chapter 107 by an insurer or entity authorized to do business by the Commissioner of Financial Regulation; or
(2) a plan that has been qualified as a single employer plan under the provisions of the Employee Retirement Income Security Act (ERISA), 29 U.S.C. § 1001 et seq., as amended.
(c) An employee leasing company and the client company shall be jointly and severally liable for protection or damages provided under laws designed to protect the health, safety, and welfare of an employee.
(Added 1995, No. 173 (Adj. Sess.), § 1; amended 1995, No. 180 (Adj. Sess.), § 38(a); 2023, No. 85 (Adj. Sess.), § 158, eff. July 1, 2024; 2025, No. 18, § 32, eff. May 13, 2025.)
§ 1040 Collective bargaining; interference prohibited
(a) For purposes of the collective bargaining process, including the right to organize employee units based upon specific work sites, an employee leasing company shall be bound by law and liable for any violations of a collective bargaining agreement covering any of its leased employees. An employee leasing company shall not reassign leased employees or take any other action for the purpose of interfering with the terms and conditions of any collective bargaining agreement or organizational activity.
(b) Nothing in this chapter shall be construed to relieve a client company of its obligations under any applicable law or to reduce or diminish any rights of leased employees to organize or collectively bargain.
(Added 1995, No. 173 (Adj. Sess.), § 1.)
§ 1041 Prohibitions; penalty
Any person who conducts the business of employee leasing or holds themselves out as an employee leasing company without being licensed under this chapter shall be fined not more than $15,000.00.
(Added 1995, No. 173 (Adj. Sess.), § 1.)
§ 1042 Unprofessional conduct
Unprofessional conduct includes:
(1) failure to maintain financial responsibility and management competence;
(2) occupational advertising that is intended or tends to deceive the public;
(3) failure to comply with substantial provisions of State or federal law governing the conduct of an employee leasing company; and
(4) conviction of a crime related to the conduct of the business of employee leasing by a controlling person of a licensee.
(Added 1995, No. 173 (Adj. Sess.), § 1; amended 2025, No. 18, § 32, eff. May 13, 2025.)
§ 1043 Enforcement; appeals
(a) The Commissioner may revoke, suspend, restrict, or place on probation the license of any employee leasing company, after a hearing, for a violation of any provision of this chapter or for a violation of any law relating to the conduct of the business of employee leasing. The Commissioner may charge the licensee the actual cost of any investigation undertaken at the direction of the Commissioner in response to any complaint filed against the licensee.
(b) A person may appeal an action taken by the Commissioner under this section to the Superior Court.
(Added 1995, No. 173 (Adj. Sess.), § 1.)
Chapter 13 Apprenticeship
§ 1111 Definitions
As used in this chapter:
(1) “Accessibility” means the design, construction, development, and maintenance of facilities, information and communication technology, programs, and services so that all people, including people with disabilities, can fully and independently use them. “Accessibility” includes the provision of accommodations and modifications to ensure equal access to employment and participation in activities for people with disabilities, the reduction or elimination of physical and attitudinal barriers to equitable opportunities, a commitment to ensuring that people with disabilities can independently access every outward-facing and internal activity or electronic space, and the pursuit of best practices such as universal design.
(2) “Advanced standing” means a process for reviewing and granting credit for prior related work experience or related technical instruction for an incoming apprentice or career seeker that allows the individual to accelerate the completion of the registered apprenticeship program.
(3) “Apprentice” means an individual who is:
(A) 16 years of age or older, except when a higher minimum age standard is otherwise fixed by law;
(B) employed to learn an apprenticeable occupation under the standards of apprenticeship established under section 1117, standards of apprenticeship, of this title; and
(C) registered with the Department.
(4) “Apprenticeable occupation” means an occupation approved by the federal Office of Apprenticeship or by the Department as an occupation that:
(A) is specified, identified, and commonly recognized throughout an industry;
(B) involves skills that are customarily learned in a practical way through a structured, systematic program of on-the-job supervised learning;
(C) involves the progressive attainment of manual, mechanical, or technical skills and knowledge that, in accordance with the industry standard for the occupation, would require the completion of a minimum of 2,000 hours or one-year of on-the-job learning to attain; and
(D) requires related technical instruction to supplement the on-the-job learning.
(5) “Apprenticeship agreement” means a written agreement, on forms approved by the Department under section 1119, registered apprentices, of this title, between an apprentice and either the apprentice’s program sponsor or an apprenticeship committee acting as agent for the program sponsor, that contains the terms and conditions of the employment and training of the apprentice.
(6) “Apprenticeship program” or “local apprenticeship training program” means a program registered with the Department or the federal Office of Apprenticeship that includes a written plan containing all terms and conditions for the qualification, recruitment, selection, employment, and training of apprentices, as minimally required under 29 C.F.R. Parts 29 and 30.
(7) “Certificate of completion” means a document issued by the Department that certifies that the named apprentice has met all the requirements set forth in an apprenticeship program.
(8) “Certificate of registration” means a document issued by the Department that certifies that the named sponsor’s apprenticeship program meets the requirements for registration under section 1115, program registration, of this title and identifies the registration status as either provisional or permanent.
(9) “Competency” means the attainment of knowledge, skills, and abilities in a subject area, as specified by an occupational skill standard and demonstrated by an appropriate written or hands-on proficiency measurement.
(10) “Commissioner” means the Commissioner of the Vermont Department of Labor.
(11) “Department” means the Vermont Department of Labor.
(12) “Director” or “State Director” means the director of the Vermont Registered Apprenticeship Program.
(13) “Diversity” means the practice of including the many communities, identities, races, ethnicities, backgrounds, abilities, cultures, and beliefs of Vermonters, including underserved communities.
(14) “Equity” means the consistent and systemic fair, just, and impartial treatment of all individuals, including individuals who belong to underserved communities that have been denied such treatment.
(15) “Fringe benefits” means benefits, including health insurance, retirement benefits, paid vacations and holidays, sick leave, and similar benefits that are incidents of employment.
(16) “Inclusion” means the recognition, appreciation, and use of the talents and skills of employees of all backgrounds.
(17) “Interim credential” means a credential issued by the Department, upon request of a sponsor, that certifies specific competency attainment by an apprentice.
(18) “Journey-worker” means a worker who has attained a level of skill, abilities, and competencies recognized within an industry as having mastered the skills and competencies required for the occupation. The term may also refer to a mentor, technician, specialist, or other skilled worker who has documented proficient skills and knowledge of an occupation, either through formal apprenticeship or through practical on-the-job experience and formal training, or to describe any person who has achieved recognition in the person’s profession as a “master.”
(19) “Mentor” or “supervisor” means a journey-worker who assists in a registered apprenticeship program and who works with or oversees the work of an apprentice, assigns tasks, reviews performance, and is generally someone who facilitates personal and professional growth in the apprentice by sharing the knowledge learned through years of experience on the job.
(20) “National Guideline Standards” means a template of high-quality apprenticeship program standards submitted by a labor union, trade or industry association, employer, workforce intermediary, education provider, or other organizations with national scope, which standards may be certified by the federal Office of Apprenticeship.
(21) “National Program Standards of Apprenticeship” or “National Program Standards” (NPS) are programs that are registered by the federal Office of Apprenticeship on a national basis and that consist of occupational standards that any Vermont employer may sign on to or under which any individual may be apprenticed.
(22) “Nontraditional apprenticeship population” means a group of individuals, such as individuals from the same gender, race, or ethnicity, the members of which comprise fewer than 25 percent of the program participants in an apprenticeable occupation.
(23) “Nontraditional apprenticeship industry or occupation” refers to an industry sector or occupation that represents fewer than 10 percent of apprenticeable occupations or the programs under the national apprenticeship system.
(24) “Office of Apprenticeship” means the part of the U. S. Department of Labor responsible for the National Apprenticeship System and the implementing regulations.
(25) “Pre-apprentice” means a participant in a registered pre-apprenticeship program.
(26) “Pre-apprenticeship program” means a training model or program that prepares individuals for acceptance into an apprenticeship program and that is registered by the Department as provided in section 1123 of this chapter, pre-apprenticeship program, or, as applicable, the federal Office of Apprenticeship.
(27) “Provisional registration” or “provisional approval” means a temporary approval status granted to newly registered programs that lasts one year and is followed by an evaluation to determine whether it will:
(A) qualify for permanent recognition;
(B) maintain provisional status until more information is available to make a complete program assessment; or
(C) commence the process for deregistration.
(28) “Quality assurance assessment” means a comprehensive review conducted by the Department regarding all aspects of an apprenticeship program’s performance, including determining whether:
(A) apprentices are receiving on-the-job training consistent with the schedule outlined in the registered standards for the apprenticeship program;
(B) scheduled wage increases are consistent with the registered standards for the apprenticeship program;
(C) related technical instruction through the appropriate curriculum and delivery systems is compliant with any relevant federal and State standards; and
(D) the Department is receiving notification of all new apprentices in a registered apprenticeship program, apprentices who leave a registered apprenticeship program, and apprentices who complete the registered apprenticeship program within 45 business days of those changes.
(29) “Registration agency” means the Vermont Department of Labor acting as the designated State Apprenticeship Agency, which may also be referred to as the “Vermont Registered Apprenticeship Program.”
(30) “Related technical instruction” or “related instruction” means an organized and systematic form of instruction, concurrent with on-the-job training, designed to provide an apprentice with the knowledge of the theoretical and technical subjects related to the apprentice’s occupation. Such instruction may be accomplished through classroom, occupational, or industrial courses, or by correspondence courses of equivalent value, electronic media, or other forms of self-study approved by the Department.
(31) “Sponsor” means an employer, a joint labor-management organization, a trade association, a professional association, a labor organization, an education and training provider, or a qualified intermediary that is applying to register, administer, and operate an apprenticeship program.
(32) “State Apprenticeship Agency” means the Vermont Department of Labor as the federally designated apprenticeship agency and may also refer to the “Vermont Registered Apprenticeship Program.”
(33) “Underserved communities” means the populations sharing a particular characteristic, as well as geographic communities, who have been systematically denied a full opportunity to participate in aspects of economic, social, and civic life. This term includes individuals who belong to communities of color, such as Black and African American, Hispanic and Latino, Native American, Alaskan Native and Indigenous, Asian American, Native Hawaiian and Pacific Islander, Middle Eastern, and North African persons. It also includes individuals who belong to communities that face discrimination based on sex, sexual orientation, and gender identity, including lesbian, gay, bisexual, transgender, queer, gender non-conforming, and non-binary (LGBTQ+ persons); persons who face discrimination based on pregnancy or pregnancy-related conditions; parents; and caregivers. It also includes individuals who belong to communities that face discrimination based on their religion and disability; first-generation professionals or first-generation college students; individuals with limited English proficiency; immigrants; individuals who belong to communities that may face employment barriers based on older age or former incarceration; persons who live in rural areas; veterans and military spouses; and persons otherwise adversely affected by persistent poverty, discrimination, or inequality. Individuals may belong to more than one underserved community and face intersecting barriers.
(34) “Vermont Apprenticeship Advisory Board” or “Board” means the entity created in section 1114, Vermont Apprenticeship Advisory Board, of this title and described as a “State Apprenticeship Council” in 29 C.F.R. Part 29 that supports Vermont’s registered apprenticeship system.
(35) “Youth apprentice” means a participant, 16 or 17 years of age, in a youth apprenticeship program.
(36) “Youth apprenticeship program” means a program registered by the Department as provided in section 1124, youth apprenticeship programs, of this title or, as applicable, by the federal Office of Apprenticeship.
(Added 2023, No. 55, § 1, eff. July 1, 2023; amended 2023, No. 85 (Adj. Sess.), § 159, eff. July 1, 2024.)
§ 1112 State Apprenticeship Agency
(a) The Department is the federally designated State Apprenticeship Agency and has the responsibility to oversee apprenticeship programs and apprentices in Vermont.
(b) The Department shall take all necessary steps as required and permitted by law to maintain its status as the State Apprenticeship Agency and its recognition by the federal Office of Apprenticeship under 29 C.F.R. § 29.13.
(Added 2023, No. 55, § 1, eff. July 1, 2023; amended 2023, No. 85 (Adj. Sess.), § 160, eff. July 1, 2024.)
§ 1113 Vermont Registered Apprenticeship Program
(a) Purpose.
(1) The Vermont Registered Apprenticeship Program shall develop and regulate apprenticeship programs, pre-apprenticeship, and youth apprenticeship programs that are industry-driven, high-quality career pathways in partnership with employers to attract, train, and develop talent.
(2) The Vermont Registered Apprenticeship Program shall coordinate with State and local workforce development entities that serve individuals seeking employment and shall partner with State and local education and economic development leaders to expand the use of apprenticeship programs as a workforce and economic development strategy.
(b) Administration. The Vermont Registered Apprenticeship Program shall be administered by the Department and shall employ a Director of Apprenticeship who shall serve as the primary point of contact with the federal Office of Apprenticeship and who shall have overall responsibility for the administration of the Vermont Registered Apprenticeship Program.
(c) Operation. The Vermont Registered Apprenticeship Program shall:
(1) develop, register, monitor, and maintain records of program standards for apprenticeship programs, pre-apprenticeship programs, and youth apprenticeship programs;
(2) promote and provide technical support to employers, sponsors, education and training providers, workforce and economic development providers, jobseekers, and apprentices related to apprenticeship programs;
(3) develop and support strategies that promote diversity, equity, accessibility, and inclusion in apprenticeship programs;
(4) expand the number of apprenticeship programs and opportunities to meet employer and worker needs;
(5) administer apprenticeship programs and apprenticeship agreements, including issuing certificates of program registration, certificates of completion, interim credentials, and apprentice registration cards to comply with intra-and interstate requirements;
(6) maintain a publicly available list and information about apprenticeship programs and sponsors;
(7) determine, evaluate, and approve standards for the registration of an apprenticeship program;
(8) perform quality assurance assessments and monitor programs;
(9) maintain records related to program registration and deregistration, apprentices enrollment and completion, compliance reviews and investigations, and any other matters required by State or federal law;
(10) report on program outcomes;
(11) deregister programs that are not in compliance with the requirements of this chapter;
(12) develop and submit regular strategic and implementation plans, including the State Plan for Equal Employment Opportunity in Apprenticeship, as required by 29 C.F.R. Part 30;
(13) promote and develop reciprocity agreements with other states to support the recognition of apprenticeship programs and enable portability of credentials;
(14) assist in the adoption and implementation of National Guideline Standards or National Program Standards;
(15) coordinate alignment in apprenticeship program development and implementation with employers, sponsors, education and training providers, and other stakeholders; and
(16) maximize available State and federal funding to expand the availability of apprenticeship programs to Vermont employers and workers.
(d) Powers and duties.
(1) The Commissioner shall:
(A) adopt rules to implement the Vermont Registered Apprenticeship Program, ensuring that it complies with State law and federal regulations;
(B) promote equality of opportunity in apprenticeship programs pursuant to the State Plan for Equal Employment Opportunity in Apprenticeship as required by 29 C.F.R. Part 30;
(C) support the integration of apprenticeship programs into the education, workforce, and economic development systems in the State;
(D) establish journey-worker to apprentice ratios and procedures for variance requests for ratios in accordance with section 1116, ratios, of this title, except that the ratio in youth apprenticeship programs shall not exceed 1:1;
(E) safeguard the rights of employers and apprentices engaged in an apprenticeship program; and
(F) direct the distribution of funds to support apprentices and apprenticeship programs.
(2) The Director shall:
(A) advise the Commissioner on the adoption of rules concerning the Vermont Registered Apprenticeship Program;
(B) approve new apprenticeable occupations in consultation with the Board;
(C) approve and oversee the development, registration, monitoring, and maintenance of program standards for apprenticeship, pre-apprenticeship, and youth apprenticeship programs; and
(D) approve and oversee the registration of apprentices, maintenance of apprenticeship agreements, and issue certificates of completion and interim credentials.
(e) Strategic planning and reporting. The Vermont Registered Apprenticeship Program shall:
(1) develop and disseminate a strategic plan once every five years, beginning on July 1, 2024;
(2) prepare and submit to the Vermont General Assembly an annual report on the status of the Vermont Registered Apprenticeship Program on or before December 1 of each year that includes:
(A) general program statistics, including a list of programs by county;
(B) an analysis of apprentices in the program disaggregated by age, race, sex, gender identity, New American status, Veteran status, disability, industry, and education status, including participation in career and technical education;
(C) nontraditional occupations by gender and race;
(D) new occupations approved;
(E) an analysis of the average starting and ending wage by occupation;
(F) new sponsors, employers, or industries involved with programs over the previous period;
(G) a summary of how allocated funds were used and analysis of the impact of those funds; and
(H) summary of significant activities of the program.
(Added 2023, No. 55, § 1, eff. July 1, 2023; amended 2023, No. 85 (Adj. Sess.), § 161, eff. July 1, 2024.)
§ 1114 Vermont Apprenticeship Advisory Board
(a) Creation and purpose. The Vermont Apprenticeship Advisory Board is established to advise the Department, sponsors, employers, and related-instruction providers and to promote the development and strengthening of apprenticeship programs.
(b) Members and terms.
(1) The Board shall be composed of the following members:
(A) the Commissioner of Labor or designee, who shall serve as the Chair;
(B) the Director, who shall serve as the Secretary;
(C) the Secretary of Education or designee;
(D) a member of the State Workforce Development Board, appointed by the Chair of the Board;
(E) two representatives of a recognized union organization representing occupations with an apprenticeship program, appointed by the Governor;
(F) two representatives of employer program sponsors, appointed by the Governor;
(G) one representative of related instruction or training from an adult or secondary career technical education program, appointed by the Governor;
(H) two representatives from underserved communities, appointed by the Governor.
(2) A member other than the Commissioner of Labor, the Director, and the Secretary of Education shall be appointed to a term of three years, except as follows:
(A) The member appointed pursuant to subdivision (1)(D) of this subsection (b) shall serve an initial term of one year.
(B) The members appointed pursuant to subdivisions (1)(E)–(F) of this subsection (b) shall serve initial terms of two years.
(3) If a member fails to complete the member’s full term, the Governor shall appoint a new member to complete the remainder of the term.
(4) A member shall serve at the pleasure of the Governor.
(5) Members not compensated for their time otherwise shall receive a per diem stipend for days of service to the Board and may be reimbursed for their necessary expenses incurred in attendance at meetings and in the performance of their official duties pursuant to 32 V.S.A. § 1010.
(c) Duties. The Board shall:
(1) Receive and review reports from the Department regarding provisional and registered apprenticeship programs, including programs under development and program deregistration proceedings.
(2) Advise the Department on the creation of new apprenticeable occupations.
(3) Advise the Commissioner on requests for ratio variances.
(4) Advise the Department on policies and procedures developed by the Department and on adoption of rules.
(5) Provide technical guidance for identifying and promoting best practices in operating apprenticeship programs.
(6) Create and convene working groups that are tasked with specific activities related to improving the quality, safety, diversity, and alignment of apprenticeship programs. Working group membership is not limited to appointed members of the Board and shall be selected and serve at the discretion of the Chair.
(d) Meetings.
(1) The Board shall meet at least quarterly, or more frequently at the request of the Chair, to accomplish the objectives of the Vermont Apprenticeship Advisory Board.
(2) The Board shall adhere to Vermont’s Open Meeting law, including requirements for public meeting notices, publishing agendas, and recording minutes.
(e) The Board shall have the administrative, technical, and legal assistance of the Department.
(Added 2023, No. 55, § 1, eff. July 1, 2023.)
§ 1115 Program registration and operation
(a) Application.
(1) A sponsor may apply with the Vermont Registered Apprenticeship Program for review and approval of a request to register a local apprentice training program within the State.
(2) A local apprentice training program is registered upon its acceptance and recording by the Vermont Registered Apprenticeship Program as meeting the basic standards and requirements for approval of such a program and in compliance with rules established by the Commissioner.
(b) Eligibility for registration of an apprenticeship program.
(1) To be eligible for registration an employer or sponsor must:
(A) be registered as a business in “active” status with the Secretary of State’s Office and the business name and address must match that of the business requesting to be registered as a program;
(B) be current and in good standing with the Department of Taxes;
(C) be current and in good standing with the Department of Labor’s Unemployment Insurance program;
(D) be compliant with the Department of Labor’s Workers’ Compensation program; and
(E) meet any occupation specific requirements as established by the Vermont Registered Apprenticeship Program for specific occupations.
(2) Employers or sponsors found not to meet the requirements of subsection (b) of this section shall be given notice and allowed 30 business days to resolve any outstanding issue before action is taken on the registration request.
(3) An employer that seeks to register using National Program Standards (NPS) or National Guideline Standards (NGS) shall meet the requirements of this section.
(c) Procedure for registering an apprenticeship program.
(1) An employer or sponsor’s request to register an apprenticeship program shall be submitted to the Director using the form and submission method published on the Department’s website.
(2) Incomplete submissions shall not be considered.
(3) A complete request shall include:
(A) written and complete standards of apprenticeship, including minimum qualifications;
(B) a work process schedule for each occupation;
(C) related technical instruction outline for each occupation;
(D) selection procedures, including procedures for advanced standing; and
(E) a wage schedule for each occupation.
(4) An employer or program sponsor shall identify any proprietary information or processes within the registration request. Proprietary information obtained from an employer or program sponsor in the administration of this chapter shall be held confidential and shall not be disclosed or open to public inspection without the written authorization of the employer or program sponsor.
(d) Review; provisional and permanent approval.
(1) The Vermont Registered Apprenticeship Program shall review all requests to register an apprenticeship program for initial conformity with requirements established in 29 C.F.R. § 29.3, 29 C.F.R. Part 30, this chapter, and with any additional requirements established by the Vermont Registered Apprenticeship Program.
(2) An apprenticeship program that meets the standards for registration shall be given provisional registration for a period of one year.
(3) An initial provisional registration certificate shall be issued by the Director.
(4) The Vermont Registered Apprenticeship Program shall review an apprenticeship program for quality and conformity with the requirements of this chapter at the end of the first year after registration.
(5) An apprenticeship program that conforms to the requirements may have its registration made permanent or may continue to be provisionally registered until the end of its first training cycle or until enough information regarding compliant operation can be made available.
(6) When an apprenticeship program has completed its provisional review period and is found to be compliant, the Director shall issue a certificate of permanent registration.
(e) Ongoing review.
(1) The Department shall conduct subsequent reviews of every registered apprenticeship program every five years.
(2) If it is found that an apprenticeship program is not in operation or does not conform to the requirements of this chapter, the Department shall deregister that program in accordance with section 1120, deregistration, of this title.
(f) Union participation.
(1) An apprenticeship program may be proposed for registration by an employer, group of employers, or an industry association.
(2) If a standard or a collective bargaining agreement or other instrument exists for one or more of the employers or an industry association, that provides for participation by a union and concerns any aspect of the operation of the substantive matters of an apprenticeship program, a written acknowledgment by the union about the terms of the proposed program and any objections it may have shall accompany the program registration request.
(g) Certificate. If the Vermont Registered Apprenticeship Program approves an apprenticeship program, it shall register that apprenticeship program and issue a sponsor approval certificate indicating the approval status as provisional or permanent and may include an expiration date or similar notice that communicates the relationship with the program review cycle.
(h) National programs.
(1) Organizations with a national or multistate footprint wishing to adopt and implement National Guideline Standard programs within the State shall notify the Director within 45 business days of the planned start date of the apprenticeship program.
(2) National Program Standard holders who wish to afford Vermont residents the opportunity to apprentice in a NPS program shall notify the Director within 45 business days and shall follow other minimal requirements as may be required by the Vermont Registered Apprenticeship Program for reciprocal approval.
(i) Program operation.
(1) Probationary employment. A sponsor shall submit the name of a person in a period of probationary employment as an apprentice under an apprenticeship program within 45 days after the start of employment to the Vermont Registered Apprenticeship Program to establish the apprentice in probationary status.
(2) Changes in status. A sponsor shall notify the Vermont Registered Apprenticeship Program, using methods and procedures approved by the Director, within 45 business days after a registered apprentice:
(A) successfully completes an apprenticeship program;
(B) transfers to other programs with the same sponsor or to other sponsors;
(C) is suspended;
(D) is canceled; or
(E) is reinstated.
(3) Program changes.
(A) A sponsor shall not make a change to an apprenticeship program unless the change is approved by the Vermont Registered Apprenticeship Program.
(B) To make a change to an apprenticeship program, a sponsor shall submit a request to the Vermont Registered Apprenticeship Program.
(C) The Director shall approve or deny the requested change within 90 business days from receipt of the request.
(D) If approved, the change will be recorded and acknowledged by the Vermont Registered Apprenticeship Program within 90 business days.
(E) If denied, the Vermont Registered Apprenticeship Program shall notify the sponsor of the disapproval and the reason for the disapproval and provide the appropriate technical assistance.
(Added 2023, No. 55, § 1, eff. July 1, 2023; amended 2023, No. 85 (Adj. Sess.), § 162, eff. July 1, 2024.)
§ 1116 Ratios
(a) Ratios; variances.
(1)(A) Except as otherwise provided in this section, the ratio of apprentices to journey-workers shall be 1:1.
(B) For each apprentice who completes 2,000 hours of on-the-job training, the ratio may increase to 2:1.
(C) The ratio shall not exceed two apprentices for each journey-worker unless a variance to the ratio is approved by the Commissioner.
(D) Variances shall not be permitted for youth apprenticeships.
(2)(A) A sponsor or an employer may request to modify the ratio of journey-worker to apprentices for one or more years of an apprenticeship program.
(B) The request shall be in writing and include the following information:
(i) the capacity of the employer to maintain the quality of supervision of on-the-job training set forth in their program standards with added apprentices;
(ii) the impact of higher ratios on the learning experience of existing apprentices and steps taken to ensure that apprentices are not disadvantaged in the quality of their on-the-job learning, mentoring, and supervision by higher ratios; and
(iii) an occupational safety analysis that describes the specific risks to apprentices, journey-workers, and the general public and what steps will be taken to mitigate each risk.
(3)(A) The Commissioner, with advice from the Director, the Director of the Vermont Occupational Safety and Health Administration, and the Board shall review the request and respond in writing within 90 days after receipt of the request.
(B) In evaluating a request, the Commissioner may affirm or modify a ratio upon a determination that the new ratio:
(i) will not endanger the safety of apprentices or the journey-worker; and
(ii) will not materially impair the quality of the on-the-job training.
(4) Nothing in this section shall be construed as prohibiting a sponsor or employer from establishing a ratio that permits or requires more than one journey-worker for each apprentice or as invalidating a collective bargaining agreement that permits or requires more than one journey-worker for each apprentice.
(5)(A) In a period of emergency declared by the Governor, the Commissioner may approve a higher ratio for one or more employers or sponsors without the need for an individual written request. The Commissioner shall receive advice from the Board prior to issuing a blanket ratio variance under this subsection.
(B) When the period of emergency expires, any ratio variances approved by the Commissioner under this subdivision (5) shall terminate and the sponsor shall comply with the requirements of this section governing ratios.
(b) National Program Standards programs. Employers who participate in a National Apprenticeship Standards Program whose approved ratio is greater than 1:1 shall operate under the State’s default 1:1 ratio requirement unless a variance is approved under this section.
(Added 2023, No. 55, § 1, eff. July 1, 2023; amended 2023, No. 85 (Adj. Sess.), § 163, eff. July 1, 2024.)
§ 1117 Standards of apprenticeship
(a) An apprenticeship program shall conform to the standards identified in this section to be eligible for approval and registration by the Vermont Registered Apprenticeship Program.
(b) A program sponsor shall have an organized, written plan specifying program standards that embody the terms and conditions of employment, training, and supervision of one or more apprentices in an apprenticeable occupation and subscribed to by a sponsor who has undertaken to carry out the local apprentice training program.
(c) The written plan shall contain provisions that address the following:
(1) Apprenticeable occupation. The employment and training of the apprentices in an apprenticeable occupation.
(2) Term and modality of program. The term of the program measured using either a time-based approach, competency-based approach, or a hybrid approach.
(A) The time-based approach measures skill acquisition through the individual apprentice’s completion of a minimum of 2,000 hours to a maximum of 10,000 hours of on-the-job learning as described in a work process schedule.
(B) The competency-based approach measures skill acquisition through the individual apprentice’s successful demonstration of acquired skills and knowledge, as verified by the program sponsor, and cannot be less than one year in length. Programs utilizing this approach shall require apprentices to complete an on-the-job learning component. The program standards shall address how on-the-job learning will be integrated into the apprenticeship program, describe competencies, and identify appropriate means of testing and evaluation for such competencies.
(C) The hybrid approach measures the individual apprentice’s skill acquisition through a combination of specified minimum number of hours of on-the-job learning and the successful demonstration of competency as described in a work process schedule.
(D) The determination of the appropriate approach for the apprenticeship program standards is made by the program sponsor, subject to the approval by the Vermont Registered Apprenticeship Program.
(3) Work process. An outline of the work processes in which the apprentice will receive supervised work experience and on-the-job training and the allocation of the approximate amount of time to be spent in each major process.
(4) Related instruction and instructor requirements. An organized description of related instruction and technical subjects related to the occupation that shall include a minimum of 144 hours of related technical instruction for each year of apprenticeship. Instruction and technical subjects may be accomplished through media such as classroom, occupational or industry courses, electronic media, or other instruction approved by the Vermont Registered Apprenticeship Program. Every apprenticeship instructor shall:
(A) Meet the Agency of Education’s requirements for a career and technical education instructor or be a subject matter expert, which is an individual, such as a journey-worker, who is recognized within an industry as having expertise in a specific occupation.
(B) Have training in teaching techniques and adult learning styles. This training may occur not later than one year after the apprenticeship instructor has started to provide the related technical instruction.
(5) Wage schedule. A schedule of progressively increasing wages to be paid to an apprentice consistent with the skill acquired. The entry wage shall not be less than minimum wage or 50 percent of the journey-worker rate, whichever is highest, for adult registered apprentices, unless a higher wage is required by other applicable State law or rules or federal law or regulations, or by collective bargaining agreement. For purposes of this subdivision, “journey-worker rate” is the rate of pay established by the sponsor for an apprentice who has met all of the skill, knowledge, and competency requirements for that occupation.
(6) Fringe benefits. Fringe benefits made available to nonapprentices within the company shall also be available to apprentices registered in the company’s apprenticeship program.
(7) Apprentice performance evaluation. Provision for periodic review and evaluation of the apprentice’s performance on the job and in related instruction and the maintenance of appropriate progress records, including maintaining records of hours worked for those apprentices in time-based programs.
(8) Ratio. Provision for a numeric ratio of apprentices to journey-workers consistent with proper supervision, training, safety, and continuity of employment and with applicable provisions in collective bargaining agreements, except where such ratios are expressly prohibited by the collective bargaining agreement. The ratio language shall be specific and clearly described as to its application to the job site, workforce, department, or plant. The ratio shall comply with the requirements set forth in this chapter. Any variances requested to the set ratio shall be approved in advance of the variance being applied to the apprenticeship program.
(9) Probationary period. A probationary period reasonable in relation to the full apprenticeship term, with full credit given for such period toward completion of apprenticeship. The probationary period cannot exceed 25 percent of the length of the apprenticeship program, or one year, whichever is shorter.
(10) Equipment and facilities. Provision for adequate and safe equipment and facilities for training and supervision, and safety training for apprentices on the job and in related instruction.
(11) Minimum qualifications. Facially neutral, minimum qualifications required by the sponsor for persons entering the apprenticeship program, with an eligible starting age of not less than 16 years of age, or 18 years of age if required by State law or rules or by federal law or regulations.
(12) Placement. Provision for the placement of an apprentice under a written apprenticeship agreement that meets the requirements of this chapter and 29 C.F.R. § 29.7 is approved by the Vermont Registered Apprenticeship Program, and directly, or by reference, incorporates the standards of the apprenticeship program as part of the agreement.
(13) Registration cards. Provision that identifies the need for a card to be produced that confirms the registration status of an apprentice in an approved occupation.
(14) Advanced Standing. Provision for the granting of advanced standing or credit for demonstrated competency, acquired experience, training, or skills, that shall be applied to all applicants equally with commensurate wages for any progression step so granted.
(15) Transfer. Provision for transfer of an apprentice between apprenticeship programs and within an apprenticeship program. Such a transfer shall be based on agreement between the apprentice and the affected apprenticeship committees or program sponsors, and shall comply with the following requirements:
(A) the transferring apprentice shall be provided a transcript of related instruction and on-the-job learning by the program sponsor;
(B) the transfer shall be to the same occupation; and
(C) a new apprenticeship agreement shall be executed when the transfer occurs between program sponsors.
(16) Qualified training personnel. Assurance of qualified training personnel and adequate supervision on the job.
(17) Completion. Provision for recognition for successful completion of apprenticeship evidenced by an appropriate certificate issued by the Vermont Registered Apprenticeship Program.
(18) Interim and stackable credentials. Apprenticeship program standards that utilize the competency-based or hybrid approach for progression through an apprenticeship and that choose to issue interim credentials shall clearly identify the interim credentials, demonstrate how these credentials link to the components of the apprenticeable occupation, and establish the process for assessing an individual apprentice’s demonstration of competency associated with the interim credential. Further, interim credentials shall only be issued for recognized components of an apprenticeable occupation thereby linking interim credentials specifically to the knowledge, skills, and abilities associated with those components of the apprenticeable occupation.
(19) Registration agency. Identification of the Vermont Department of Labor as the registration agency.
(20) Program modifications. Provision for the registration, cancellation, and deregistration of the apprenticeship program and for the prompt submission of any program standard modification or amendment to the Vermont Registered Apprenticeship Program for approval.
(21) Registering apprentices. Provision for apprenticeship agreements, modifications, and amendments; notice to the Vermont Registered Apprenticeship Program of persons who have successfully completed apprenticeship programs within 45 days after completion of all requirements; and notice of transfers, suspensions, and cancellations of apprenticeship agreements and a statement of the reasons for the action, transfer, suspension, or cancellation.
(22) Cancellation. Provision for the authority to cancel an apprenticeship agreement during the probationary period by either party without cause.
(23) Equal Employment Opportunity. Provision for compliance with 29 C.F.R. Part 30, including the equal opportunity pledge prescribed in 29 C.F.R. § 30.3(c); an affirmative action program complying with 29 C.F.R. § 30.4 and a method for the selection of apprentices complying with 29 C.F.R. § 30.10, or compliance with parallel requirements contained in the Department’s State Plan for Equal Employment Opportunity in Apprenticeship adopted under 29 C.F.R. Part 30 and approved by federal Office of Apprenticeship. The apprenticeship standards shall also include a statement that the program will be conducted, operated, and administered in conformity with applicable provisions of 29 C.F.R. Part 30, as amended, or if applicable the State Plan for Equal Employment Opportunity in Apprenticeship.
(24) Contact information. The name, physical address, telephone number, and e-mail address for the appropriate individual with authority under the apprenticeship program to receive, process, and make disposition of complaints.
(25) Recordkeeping. Provision for recording and maintenance of all records concerning apprenticeship as may be required by the Vermont Registered Apprenticeship Program and other applicable law.
(Added 2023, No. 55, § 1, eff. July 1, 2023; amended 2023, No. 85 (Adj. Sess.), § 164, eff. July 1, 2024.)
§ 1118 Apprenticeship program minimum enrollment; evaluation
(a) Minimum number of apprentices. An apprenticeship program, including occupations registered to the program, shall have at least one registered apprentice, except for the following specified periods of time if the periods do not exceed one year:
(1) between the date when the apprenticeship program is registered and the date of registration for its first apprentice; or
(2) between the date that the apprenticeship program graduates an apprentice and the date of registration for the next apprentice or apprentices in the program.
(b) Evaluation. The Vermont Registered Apprenticeship Program shall adopt tools and factors to evaluate the performance of apprenticeship programs, including the following:
(1) quality assurance assessments;
(2) Equal Employment Opportunity compliance reviews; and
(3) completion rates.
(A)(i) To evaluate completion rates, the Vermont Registered Apprenticeship Program shall review an apprenticeship program’s completion rates in comparison to the national average for completion rates.
(ii) Based on review, the Vermont Registered Apprenticeship Program may provide technical assistance to apprenticeship programs with completion rates lower than the national average.
(B) Cancellation of apprenticeship agreements during the probationary period shall not have an adverse impact on a sponsor’s completion rate.
(Added 2023, No. 55, § 1, eff. July 1, 2023.)
§ 1119 Apprentices registered; agreement
(a) Apprentices shall be individually registered under a registered sponsor and in an apprenticeship program.
(b) Registration is complete when the sponsor files a signed, completed apprenticeship agreement with the Vermont Registered Apprenticeship Program and it is reviewed and approved by the Department.
(c) An apprenticeship agreement shall contain:
(1) the names and signatures of the apprentice, the program sponsor or employer, and of a parent or guardian of the apprentice if the apprentice is a minor;
(2) the date of birth and Social Security number of the apprentice;
(3) the contact information of the program sponsor and Vermont Registered Apprenticeship Program;
(4) a statement of the occupation in which the apprentice is to be trained and the beginning date and duration of apprenticeship;
(5) a statement showing:
(A) the number of hours to be spent by the apprentice in work on-the-job in a time-based program or a description of the skill sets to be attained by completion of a competency-based program, including the on-the-job learning component;
(B) the minimum number of hours to be spent by the apprentice and a description of the skill sets to be attained by completion of hybrid program; and
(C) the number of hours to be spent in related technical instruction in subjects related to the occupation, which is required to be not less than 144 hours per year;
(6) a statement setting forth a schedule of the work processes in the occupation or industry divisions in which the apprentice is to be trained and the approximate time to be spent at each process;
(7) a statement of the graduated scale of wages to be paid to the apprentice and whether or not the required related instruction is compensated;
(8) statements providing:
(A) for a specific period of probation during which the apprenticeship agreement may be cancelled by either party to the agreement upon written notice to the registration agency without adverse impact on the sponsor; and
(B) that, after the probationary period, the apprenticeship agreement may be:
(i) cancelled at the request of the apprentice; or
(ii) suspended or cancelled by the sponsor, for good cause, with due notice to the apprentice and a reasonable opportunity for corrective action and with written notice to the apprentice and to the Vermont Registered Apprenticeship Program of the final action taken;
(9) a reference incorporating as part of the agreement the standards of the apprenticeship program as they exist on the date of the agreement and as they may be amended during the period of the agreement;
(10) a statement that the apprentice will be accorded equal opportunity in all phases of apprenticeship employment and training, without discrimination because of race, color, religion, ancestry, national origin, sex, sexual orientation, gender identity, place of birth, crime victim status, genetic information, age, qualified disability, incarceration history, or any other category protected by State or federal law;
(11) the name, physical address, telephone number, and e-mail address of the appropriate authority designated under the apprenticeship program to receive, process, and make disposition of controversies or differences arising out of the apprenticeship agreement when the controversies or differences cannot be adjusted locally or resolved in accordance with the established procedure or applicable collective bargaining provisions;
(12) to conform to the federal Equal Employment Opportunity Act of 1972, 42 U.S.C. chapter 21, subchapter VI and for affirmative action compliance in apprenticeship programs, the voluntary disclosure of the apprentice’s race, sex, gender identity, sexual orientation, ethnicity, and disability status; and
(13) if the apprentice completed secondary school in Vermont and is between 18 and 25 years of age, the name of the secondary school from which the apprentice is a graduate, and if the apprentice attended a regional CTE center, the name of the center where the apprentice received technical education while in secondary school.
(d) An apprenticeship agreement shall not be modified unless it is in writing and signed by the parties.
(Added 2023, No. 55, § 1, eff. July 1, 2023; amended 2023, No. 85 (Adj. Sess.), § 165, eff. July 1, 2024.)
§ 1120 Deregistration of a registered apprenticeship program
(a) Deregistration. Deregistration of an apprenticeship program shall occur upon the voluntary action of the sponsor by submitting a request for cancellation of the registration or by the Vermont Registered Apprenticeship Program instituting formal deregistration proceedings in accordance with this section.
(b) Deregistration at the request of the sponsor. The Vermont Registered Apprenticeship Program may cancel the registration of an apprenticeship program by written acknowledgement of such request stating the following:
(1) that the registration is cancelled at the sponsor’s request, and the effective date thereof;
(2) that, within 15 business days after the date of the acknowledgment, the sponsor will notify all apprentices of the cancellation and the effective date;
(3) that the cancellation automatically deprives the apprentice of individual registration;
(4) that the deregistration of the program removes the apprentice from coverage for federal purposes that require the U.S. Secretary of Labor’s approval of an apprenticeship program; and
(5) that all apprentices are referred to the Vermont Registered Apprenticeship Program for information about potential transfer to other registered apprenticeship programs.
(c) Deregistration by the Vermont Registered Apprenticeship Program upon reasonable cause.
(1)(A) Deregistration proceedings may be undertaken when the apprenticeship program is not conducted, operated, or administered in accordance with the program’s registered provisions or with the requirements of this chapter, including:
(i) failure to provide on-the-job learning;
(ii) failure to provide related technical instruction;
(iii) failure to pay the apprentice a progressively increasing schedule of wages consistent with the apprentices’ skills acquired; or
(iv) persistent and significant failure of the program to operate or perform successfully.
(B) For purposes of this section, persistent and significant failure to perform successfully occurs when a program sponsor consistently fails to register at least one apprentice, shows a pattern of poor quality assessment results over a period of several years, demonstrates an ongoing pattern of very low completion rates over a period of several years, or shows no indication of improvement in the areas identified by the Vermont Registered Apprenticeship Program during a review process as requiring corrective action.
(C) Where it has been determined that the program is not being operated in accordance with the registered standards or with the requirements of this chapter, the Vermont Registered Apprenticeship Program shall notify the program sponsor in writing.
(2) A notice of deregistration sent to the program sponsor’s contact person shall:
(A) be sent by registered or certified mail, with return receipt requested;
(B) state the shortcomings and the remedy required; and
(C) state that a determination of reasonable cause for deregistration will be made unless corrective action is effected within 30 business days after receiving the notice.
(3) Upon request by the sponsor for good cause, the 30-business-day term may be extended for another 30 business days. During the period for corrective action, the Vermont Registered Apprenticeship Program shall assist the sponsor in every reasonable way to achieve conformity.
(4) If the required correction is not completed within the allotted time, the Vermont Registered Apprenticeship Program shall send a notice to the sponsor, by registered or certified mail, return receipt requested, stating the following:
(A) the notice is sent under this section;
(B) the deficiencies that were called to the sponsor’s attention, the remedial measures requested, with the dates of the occasions and letters, and that the sponsor has failed or refused to take corrective action;
(C) based upon the stated deficiencies and failure to remedy them, a determination has been made that there is reasonable cause to deregister the program and the program may be deregistered unless, within 15 business days following the receipt of this notice, the sponsor requests a hearing with the Vermont Registered Apprenticeship Program; and
(D) if the sponsor does not request a hearing, the entire matter will be submitted to the Commissioner for a decision on the record with respect to registration.
(5) Every order of deregistration shall contain a provision that the sponsor, within 15 business days after the effective date of the order, notify all registered apprentices of the deregistration of the apprenticeship program, the effective date thereof, that the cancellation automatically deprives the apprentice of individual registration, that the deregistration removes the apprentice from coverage for Federal purposes that require the Secretary of Labor’s approval of an apprenticeship program, and that all apprentices are referred to the Vermont Registered Apprenticeship Program for information about potential transfer to other apprenticeship programs.
(d) Reinstatement. An apprenticeship program deregistered under this section may be reinstated upon presentation to the Vermont Registered Apprenticeship Program of adequate evidence that the apprenticeship program is operated in accordance with this chapter.
(Added 2023, No. 55, § 1, eff. July 1, 2023; amended 2023, No. 85 (Adj. Sess.), § 166, eff. July 1, 2024.)
§ 1121 Limitations
Nothing in this chapter or in an apprenticeship agreement may be construed to invalidate:
(1) the at-will nature of employment in Vermont;
(2) any apprenticeship provision in a collective bargaining agreement between employers and employees establishing more stringent apprenticeship standards; or
(3) any special provision for veterans, minorities, or women in the standards, apprentice qualifications, or operation of an apprenticeship program or in the apprenticeship agreement that is not otherwise prohibited by law, Executive Order, or authorized regulation or rule.
(Added 2023, No. 55, § 1, eff. July 1, 2023.)
§ 1122 Complaints
(a) Any controversy or difference arising under an apprenticeship agreement that cannot be resolved by the parties and that is not covered by a collective bargaining agreement may be submitted by an apprentice, or the apprentice’s authorized representative, to the Vermont Registered Apprenticeship Program for review.
(b)(1) The complaint shall be in writing and signed by the complainant, or authorized representative, and shall be submitted within 60 business days following the event that gave rise to the complaint.
(2) The complaint shall set forth the specific matters complained of, together with relevant facts and circumstances.
(3) Copies of pertinent documents and correspondence shall accompany the complaint.
(c)(1) The Vermont Registered Apprenticeship Program shall render a determination within 90 business days after receipt of the complaint, based upon such investigation of the matters submitted as may be found necessary, and the record before it.
(2) During the 90-day period, the Vermont Registered Apprenticeship Program shall make reasonable efforts to affect a satisfactory resolution between the parties involved.
(3) If so resolved, the parties shall be notified that the case is closed.
(4) Where a determination is rendered, copies shall be sent to all interested parties.
(d)(1) This section is not applicable to any complaint concerning discrimination or other equal opportunity matters.
(2) All such complaints shall be submitted, processed, and resolved in accordance with applicable provisions in 29 C.F.R. Part 30 or applicable provisions of the Vermont Department of Labor State Plan for Equal Employment Opportunity in Apprenticeship.
(e) Nothing in this section precludes an apprentice from pursuing any other remedy authorized under federal or State law.
(Added 2023, No. 55, § 1, eff. July 1, 2023.)
§ 1123 Pre-apprenticeship programs
(a) A pre-apprenticeship program is one that is designed to prepare individuals to enter and succeed in an apprenticeship program by providing instruction and skill development opportunities to attain competency needed to enter a related apprenticeship program.
(b) A pre-apprenticeship program may be registered by the Department after successfully demonstrating:
(1) the program is carried out by a sponsor that has a written agreement with at least one sponsor of an apprenticeship program;
(2) the program engages an active, advisory partnership with an industry leader or sector partnership to inform the training and education services necessary for a pre-apprenticeship program;
(3) there is sufficient demand in an apprenticeship program at the completion of a pre-apprenticeship program to support a transition from the pre-apprenticeship program to an apprenticeship program;
(4) the program follows a written plan for related instruction and work-based learning or training that was developed in consultation with the sponsor or sponsors of the apprenticeship program;
(5) the program includes mentoring, career exposure, career planning, and career awareness activities;
(6) the program includes paid work-based learning or training, to the extent practicable, or unpaid work-based learning or training in which an employer or industry partnership and a related technical instruction provider collaborate to design the learning or training that will introduce participants to the skills, competencies, and materials used in one or more apprenticeable occupations;
(7) to the extent appropriate and practicable, the program meets related technical instruction requirements that include enabling an individual to attain a secondary school diploma or its recognized equivalent that enables a pre-apprentice to enter into an apprenticeship; and
(8) the program includes, when relevant, any agreement for advanced standing for the pre-apprentice upon entering a registered apprenticeship program.
(Added 2023, No. 55, § 1, eff. July 1, 2023.)
§ 1124 Youth apprenticeship programs
(a) A youth apprenticeship program is one that prepares a youth apprentice for acceptance into an apprenticeship program and is designed for youth apprentices who start the program while still enrolled in high school.
(b) A youth apprenticeship program may be registered by the Department after submitting the following information:
(1) a written plan that articulates the work processes and how a youth apprentice will receive supervised work experience and on-the-job training or training in an experiential setting;
(2) how time spent by a youth apprentice in each major work process will be spent or that specifies how competencies or proficiencies are aligned between their high school education and the youth apprenticeship program, and that states which graduation requirements will be met;
(3) a description of the mentoring that will be provided to the youth apprentice;
(4) a description or timeline explaining the periodic reviews and evaluations of the youth apprentices performance on the job and in related technical instruction;
(5) a process for maintaining appropriate progress records, including the reviews and evaluations;
(6) a description of related classroom-based instruction, which may be fulfilled through dual or concurrent enrollment in secondary or post-secondary courses;
(7) whether and how the program is aligned with high school diploma requirements and career clusters;
(8) whether the program meets the related technical instruction requirements for an apprenticeship program;
(9) if a program includes paid work, a progressively increasing, clearly defined schedule of wages to be paid to the youth apprentice as skills are mastered;
(10) how the program prepares the youth apprentice for placement in further education, employment, or an apprenticeship program; and
(11) the terms by which the program grants advanced standing or credit to individuals applying for the youth apprenticeship with demonstrated competency or acquired experience, training, or skills.
(Added 2023, No. 55, § 1, eff. July 1, 2023.)
§ 1125 Career pathway alignment with apprenticeship programs
(a) The Vermont Registered Apprenticeship Program shall coordinate with other State agencies and departments in the furtherance of registered apprenticeship as a training model that can advance equity, provide Vermonters with access to good paying careers, and make available untapped talent for Vermont employers.
(b)(1) The Vermont Registered Apprenticeship Program shall provide technical assistance and training to sponsors on an ongoing basis related to developing or modifying their minimum qualifications, equal opportunity requirements, promotion of diversity, apprentice selection procedures, and other requirements for advanced standing in their standards of apprenticeship.
(2) The Program shall provide technical assistance and training with assistance from Vocational Rehabilitation, including HireAbility, and the Division for Blind and Visual Impairments; the Agency of Education, including Adult Education and Literacy, Career Technical Education, and Special Education Transition Specialists; the Office of Veterans Affairs; and other workforce partners.
(3) The Program shall provide necessary technical assistance, training, and support to sponsors to promote the adoption of pre-apprenticeship programs for individuals with disabilities, refugees, individuals for whom English is not the primary spoken language, adults with limited literacy and numeracy skills or who do not have a high school diploma or equivalent, and other groups who are excluded from access to high-wage careers and participation in the registered apprenticeship system because they do not meet the minimum qualifications established in standards of apprenticeship.
(c) The Vermont Registered Apprenticeship Program shall develop policies and procedures for the registration of pre-apprenticeship and youth apprenticeship programs meeting the definition established in this chapter and that may be included in career pathway alignment efforts.
(d) The Vermont Registered Apprenticeship program, working with the Agency of Education, shall develop program guidelines for youth apprenticeships that start while an apprentice is still in high school and that can be included as part of the Agency’s career pathways efforts in addition to the Vermont Registered Apprenticeships Program’s efforts to align talent pipelines between education providers and registered apprenticeship program sponsors.
(Added 2023, No. 55, § 1, eff. July 1, 2023.)
Chapter 14 Youth in Agriculture, Natural Resources, and Food Production [Repealed]
§ 1152 Youth in Agriculture, Natural Resources, and Food Production Consortium; creation [Repealed]
(Added 2003, No. 122 (Adj. Sess.), § 164a; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2013, No. 92 (Adj. Sess.), § 265, eff. Feb. 14, 2014; repealed by 2021, No. 134 (Adj. Sess.), § 4, eff. May 24, 2022.)
Chapter 15 Vermont Employment Service
§ 1201 Acceptance by State
The State of Vermont hereby accepts the provisions of the Act of Congress, approved June 6, 1933, entitled “An act to provide for the establishment of a national employment system and for cooperation with the states in the promotion of such system, and for other purposes.”
§ 1202 Commissioner of Labor as agent
The Commissioner of Labor is hereby designated and constituted the agent of the State of Vermont for the purposes of the Act, with full power to cooperate with all authorities of the United States having powers or duties under the Act and to do and perform all things necessary to secure to the State of Vermont the benefits of the Act in the promotion and maintenance of a system of public employment offices.
(Amended 1959, No. 329 (Adj. Sess.), § 22; 1961, No. 210, § 15, eff. July 11, 1961; 1981, No. 66, § 5(b), eff. May 1, 1981; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1203 Employment Service Division; creation; rules
(a) There is hereby created, under the direction of the Commissioner of Labor, a division to be known as the Vermont Employment Service Division, responsible for administering a system of public employment offices for the purpose of assisting employers to secure employees and workers to secure employment.
(b) The Commissioner is authorized and directed to establish Division offices in various locations in the State as the Commissioner deems necessary and to adopt rules not inconsistent with any of the provisions of this chapter.
(c) The Commissioner shall appoint the director, assistants, and other employees of the Vermont Employment Service Division in accordance with the regulations prescribed by the Secretary of the U.S. Department of Labor.
(Amended 1959, No. 329 (Adj. Sess.), § 22; 1961, No. 210, § 15, eff. July 11, 1961; 1981, No. 66, § 5(b), eff. May 1, 1981; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 167, eff. July 1, 2024.)
§ 1204 Receipt of funds
The State Treasurer is authorized to receive, on behalf of this State, all funds granted to it pursuant to 29 U.S.C. § 49 et seq.
(Amended 2023, No. 85 (Adj. Sess.), § 168, eff. July 1, 2024.)
§ 1205 Contractual special services
The Commissioner of Labor may enter into agreements to provide customized or special services that are beyond basic services required by federal statute, provided that such services do not interfere with the Department’s statutory purposes and programs. The Department may charge for services provided under this section. Charges collected under this section shall be credited to separate special funds for each type of service agreement, and shall be available to the Department to offset the costs of each type of service.
(Added 1997, No. 155 (Adj. Sess.), § 65; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1206 Termination
This chapter may be terminated by the Governor at any time, upon notice to the U.S. Department of Labor, when in his or her judgment the need for the same no longer exists. However, such notice of termination shall not be effective until the close of the U.S. fiscal year in which the notice is given.
Chapter 16 Displaced Homemakers [Repealed]
§§ 1231, 1232 Repealed
[Repealed]
(Added 1991, No. 44, § 1; repealed by 2023, No. 6, § 251, eff. July 1, 2023.)
§ 1233 Repealed
[Repealed]
(Repealed by 2023, No. 6, § 251, eff. July 1, 2023.)
Chapter 16A Domestic and Sexual Violence Survivors' Transitional Employment Program
§ 1251 Purpose
The purpose of the domestic and sexual violence survivors’ transitional employment program is to provide temporary, partial wage replacement to individuals who must leave employment, without good cause attributable to the employer, because of circumstances directly resulting from domestic violence, sexual assault, or stalking.
(Added 2005, No. 49, § 1.)
§ 1252 Definitions
For the purposes of this chapter:
(1) “Commissioner” means the Commissioner of Labor or the Commissioner’s designee.
(2) “Department” means the Department of Labor.
(3) “Domestic and sexual violence” means domestic violence, sexual assault, or stalking as defined in 15 V.S.A. § 1151.
(4) “Weekly payment” means an amount determined in accordance with section 1338 of this title.
(Added 2005, No. 49, § 1; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1253 Eligibility
The Commissioner shall make all determinations for eligibility under this chapter. An individual shall be eligible for up to 26 weekly payments when the Commissioner determines that the individual voluntarily left work due to circumstances directly resulting from domestic and sexual violence, provided the individual:
(1) Leaves employment for one of the following reasons:
(A) The individual reasonably fears that the domestic and sexual violence will continue at or en route to or from the place of employment.
(B) The individual intends to relocate in order to avoid future domestic and sexual violence against the individual or a member of the individual’s family.
(C) The individual reasonably believes that leaving the employment is necessary for the safety of the individual or a member of the individual’s family.
(D) The individual is physically or emotionally unable to work as a result of experiencing domestic or sexual violence as certified by a medical professional. The certification shall be reviewed by the Commissioner every six weeks and may be renewed until the individual is able to work or the benefits are exhausted.
(2) Complies with all the following:
(A) Prior to leaving employment has pursued reasonable alternatives to leaving the employment, which may include seeking a protection order, relocating to a secure place, or seeking reasonable accommodation from the employer, such as a transfer or different assignment. Failure to pursue reasonable alternatives may be excused if the individual establishes that pursuit of alternatives is likely to:
(i) be futile;
(ii) increase the risk of future incidents of domestic and sexual violence;
(iii) not adequately address the specific circumstances that led to the individual’s decision to separate from employment.
(B) Provides the Department with satisfactory documentation of the domestic and sexual violence. The documentation may include a sworn statement from the individual attesting to the abuse, law enforcement or court records, or other documentation from an attorney or legal advisor, member of the clergy, or health care provider, as defined in 18 V.S.A. § 9432(9). Information relating to the domestic and sexual violence, including the claimant’s statement and corroborating evidence, provided to the Department shall not be disclosed by the Department unless the claimant has signed a consent to disclose form. In the event the Department is legally required to release this information without consent by the claimant, the Department shall notify the claimant at the time the notice or request for release of information is received by the Department and prior to releasing the requested information.
(C) Has been found ineligible for unemployment solely on the basis of the separation from employment.
(Added 2005, No. 49, § 1; amended 2013, No. 72, § 35d; 2017, No. 74, § 47.)
§ 1254 Conditions
An individual shall be eligible to receive payments with respect to any week, only if the Commissioner finds that the individual complies with all of the following requirements:
(1) files a claim certifying that he or she did not work during the week;
(2) is not eligible for unemployment compensation benefits; and
(3) is working with the Department to determine work readiness and taking reasonable steps as determined by the Commissioner to become employed.
(Added 2005, No. 49, § 1; amended 2013, No. 72, § 35e.)
§ 1255 Procedures
(a) The Commissioner or designee shall review all claims for payment and shall promptly provide written notification to the individual of any claim that is denied and the reasons for the denial.
(b) Within 30 days after receipt of a denial, the individual may appeal the determination to the Commissioner by requesting a review of the decision. On appeal to the Commissioner, the individual may provide supplementary evidence to the record. The Commissioner shall review the record within seven working days after the notice of the appeal is filed and promptly notify the individual in writing of the Commissioner’s decision. The decision of the Commissioner shall become final unless an appeal to the Supreme Court is taken within 30 days after the date of the Commissioner’s decision.
(Added 2005, No. 49, § 1; amended 2013, No. 72, § 35f; 2023, No. 85 (Adj. Sess.), § 169, eff. July 1, 2024.)
§ 1256 Notification to the public
The Department shall take reasonable measures to provide information to the public about the Program, including publishing information on the Department’s website and providing timely materials related to the Program to public agencies of the State and organizations that work with domestic and sexual violence survivors, including law enforcement, State’s Attorneys, community justice centers, the Center for Crime Victim Services, the Vermont Network Against Domestic and Sexual Violence (the Network), and any others deemed appropriate by the Commissioner in consultation with the Network.
(Added 2023, No. 76, § 46, eff. July 1, 2023.)
Chapter 17 Unemployment Compensation
Subchapter 1 General Benefits
§ 1301 Definitions
As used in this chapter:
(1) “Benefits” and “compensation” mean the money payments payable to an individual, as provided in this chapter, with respect to the individual’s unemployment.
(2) “Commissioner” means the Commissioner of Labor or the Commissioner’s authorized representative.
(3) “Contributions” means the money payments to the State Unemployment Compensation Trust Fund required by this chapter.
(4) “Employing unit” means any individual or type of organization, including any partnership, association, labor organization as defined in the National Labor Relations Act, 29 U.S.C. § 152(5), trust, estate, joint stock company, insurance company, or corporation, whether domestic or foreign, or the receiver, trustee in bankruptcy, trustee, or successor thereof, or the legal representative of a deceased person, any federal, state, or local governmental entity, which has had in its employ one or more individuals performing services for it within this State. All individuals performing services within this State for any employing unit that maintains two or more separate establishments within this State shall be deemed to be employed by a single employing unit for all the purposes of this chapter.
(5) “Employer” includes:
(A) Any employing unit that in any calendar quarter in either the current or preceding calendar year paid for service in employment, as defined pursuant to subdivision (6) of this section, wages of $1,500.00 or more, or for some portion of a day in each of 20 different calendar weeks, whether or not the weeks were consecutive, in either the current or the preceding calendar year, had in employment at least one individual (irrespective of whether the same individual was in employment in each such day). When an employing unit described in either this subdivision (A) or subdivision (B) of this subdivision (5) becomes an employer within any calendar year, it shall be subject to this chapter for the whole of the calendar year.
(B)(i) Any employing unit for which service in employment for a religious, charitable, educational, or other organization as defined in subdivision (6)(A)(ix) of this section is performed, except as provided in subdivision (C) of this subdivision (5).
(ii) Any employing unit for which service in employment for the State and any of its instrumentalities, for a hospital or an institution of higher education as defined in subdivision (6)(A)(x)(I) of this section is performed, except as provided in subdivision (5)(C) of this section.
(iii) Any employing unit for which service in employment for the State or any political subdivision as defined in subdivision (6)(A)(x)(II) of this section is performed, except as provided in subdivision (5)(C) of this section.
(iv) Any employing unit for which agricultural labor as described in subdivision (6)(A)(vii)(I) of this section is performed.
(v) Any employing unit for which domestic service in employment as described in subdivision (6)(A)(viii) is performed.
(C) An employing unit as described in subdivisions (5)(A) and (B) of this section except:
(i) In determining whether or not an employing unit for which service other than domestic service is also performed is an employer under this subdivision (5), the wages earned or the employment of an employee performing domestic service as described in subdivision (5)(B)(v) of this section shall not be taken into account unless the total cash remuneration paid in any calendar quarter for domestic services is $1,000.00 or more.
(ii) In determining whether or not an employing unit for which service other than agricultural labor is also performed is an employer under this subdivision (5), the wages earned or the employment of an employee performing service in agricultural labor shall not be taken into account unless the agricultural labor is in accordance with subdivision (6)(A)(vii)(I) of this section. If an employing unit is determined an employer of agricultural labor, the employing unit shall be determined an employer for purposes of subdivision (5)(A) of this section.
(D) Any individual or employing unit that acquired the organization, trade, or business of another that at the time of the acquisition was an employer subject to this chapter.
(E)(i) Any employing unit that filed with and had approved by the Commissioner, on the proper forms prescribed and supplied by the Commissioner, its written election to become fully subject to this chapter for not less than two calendar years. The employing unit, not otherwise subject to this chapter, that files with the Commissioner its written election to become an employer subject to this chapter for not less than two calendar years, shall, with the written approval of the election by the Commissioner, become an employer subject to this chapter to the same extent as all other employers, as of the date stated in the approval.
(ii) Any employing unit for which services that are excluded from the term “employment” by subdivisions (6)(A)(ix) and (6)(C)(i) and (ii) of this section are performed may, by election and approval, elect that all services performed by individuals in its employ, in one or more establishments or places of business, shall be deemed to constitute employment for all the purposes of this chapter for not less than two calendar years. Upon the written approval of the election by the Commissioner the services shall be deemed to constitute employment subject to this chapter from the date stated in the approval.
(iii) Any such employing unit may cease to be subject under either subdivision (5)(E)(i) or (ii) of this section, as of January 1, of any calendar year subsequent to the two calendar years, only if at least 30 days prior to the first day of January it files with the Commissioner a written notice of its intention to cancel the election. This requirement may be waived by the Commissioner for good cause.
(F) Any employing unit that acquires a part of the organization, trade, or business of another, which part, if a separate organization, trade, or business, would have been an employer. Any employing unit that acquires the organization, trade, or business, or acquires substantially all the assets of another employing unit, if the employment record of the acquiring employing unit subsequent to such an acquisition, together with the employment record of the acquired unit prior to the acquisition, both within the same calendar year, would be sufficient to constitute an employing unit an “employer.”
(G) Any employing unit not an employer by reason of any other provision of this subdivision (5) for which, within either the current or preceding calendar year, service is or was performed with respect to which the employing unit is liable for any federal tax against which credit may be taken for contributions required to be paid into a state unemployment fund; or that, as a condition for approval of this chapter for full tax credit against the tax imposed by the Federal Unemployment Tax Act, is required, pursuant to the Act, to be an “employer” under this chapter.
(6)(A)(i) “Employment,” subject to the other provisions of this subdivision (6), means service within the jurisdiction of this State performed by an employee, as defined in subsections 3306(i) and (o) of the Federal Unemployment Tax Act, including service in interstate commerce, performed for wages or under any contract of hire, written or oral, expressed or implied. Services partly within and partly outside this State may by election as provided in subdivision (5)(E)(i) of this section be treated as if wholly within the jurisdiction of this State. If an employing unit has elected to come under the provisions of a similar act of a state where a part of the services of an employee are performed, the Commissioner, upon approving the election as to the employee, may treat the services covered by the election as having been performed wholly outside the jurisdiction of this State.
(ii) The term “employment” includes an individual’s entire service, performed within, or both within and outside, this State if the service is localized in this State. Service shall be deemed to be localized within a state if:
(I) the service is performed entirely within the state; or
(II) the service is performed both within and outside the state but the service performed outside the state is incidental to the individual’s service within the state; for example, is temporary or transitory in nature or consists of isolated transactions.
(iii) The term “employment” includes an individual’s entire service, performed within, or both within and outside, this State if the service is not localized in any state but some of the service is performed in this State and:
(I) the individual’s base of operations is in this State;
(II) if there is no base of operations, then the place from which the service is directed or controlled is in this State; or
(III) the individual’s base of operations or place from which the service is directed or controlled is not in any state in which some part of the service is performed, but the individual’s residence is in this State.
(iv) The term “employment” includes an individual’s service wherever performed within the United States, the Virgin Islands, or Canada, if:
(I) the service is not covered under the unemployment compensation law of any other state, the Virgin Islands, or Canada; and
(II) the place from which the service is directed or controlled is in this State.
(v) The term “employment” includes the service of an individual who is a citizen of the United States, performed outside the United States in the employ of an American employer (other than service that is deemed “employment” under the provisions of subdivisions (6)(A)(ii), (iii), or (iv) of this section or the parallel provisions of another state’s law), if:
(I) the employer’s principal place of business in the United States is located in this State; or
(II) the employer has no place of business in the United States, but the employer is an individual who is a resident of this State; or the employer is a corporation that is organized under the laws of this State; or the employer is a partnership or a trust and the number of the partners or trustees who are residents of this State is greater than the number who are residents of any one other state; or
(III) none of the criteria of subdivisions (6)(A)(v)(I) and (II) of this section is met but the employer has elected coverage in this State or, the employer having failed to elect coverage in any state, the individual has filed a claim for benefits, based on such service under the law of this State.
(IV) An “American employer,” for purposes of this subdivision (6)(A)(v), means a person who is:
(aa) an individual who is a resident of the United States; or
(bb) a partnership, if two-thirds or more of the partners are residents of the United States; or
(cc) a trust, if all of the trustees are residents of the United States; or
(dd) a corporation organized under the law of the United States or of any state.
(vi) The term “employment” also includes all service performed by an officer or member of the crew of an American vessel on or in connection with the vessel, provided that the operating office, from which the operations of the vessel operating on navigable waters within or within and outside the United States is ordinarily and regularly supervised, managed, directed, and controlled, is within this State.
(vii) The term “employment” also includes all service performed by an individual in agricultural labor as defined in subdivision (6)(C)(i)(I) of this section when:
(I) The service is performed for a person who:
(aa) during any calendar quarter in either the current or the preceding calendar year paid remuneration in cash of $20,000.00 or more to individuals employed in agricultural labor; or
(bb) for some portion of a day in each of 20 different calendar weeks, whether or not the weeks were consecutive, in either the current or the preceding calendar year, employed in agricultural labor 10 or more individuals, regardless of whether they were employed at the same moment of time.
(II) The service is not performed in agricultural labor if performed by an individual who is an alien admitted to the United States to perform service in agricultural labor pursuant to 8 U.S.C. §§ 1101(a)(15)(H) and 1184(c), provided that if 26 U.S.C. § 3306 (Federal Unemployment Tax Act, definitions) is amended to include the service in the definition of employment in agricultural labor then the service shall be employment in agricultural labor under this chapter.
(III) For the purposes of this subdivision (6)(A)(vii), any individual who is a member of a crew furnished by a crew leader to perform service in agricultural labor for any other person shall be treated as an employee of the crew leader:
(aa) if the crew leader holds a valid certificate of registration under the Migrant Seasonal Agricultural Worker Protection Act, 29 U.S.C. § 1801 et seq.; or substantially all the members of the crew operate or maintain tractors, mechanized harvesting or cropdusting equipment, or any other mechanized equipment, that is provided by such crew leader; and
(bb) if the individual is not an employee of the other person within the meaning of subdivision (6)(A) of this section.
(IV) For the purposes of this subdivision (vii), in the case of any individual who is furnished by a crew leader to perform service in agricultural labor for any other person and who is not treated as an employee of the crew leader under subdivision (6)(A)(vii)(III) of this section:
(aa) the other person and not the crew leader shall be treated as the employer of the individual; and
(bb) the other person shall be treated as having paid cash remuneration to the individual in an amount equal to the amount of cash remuneration paid to the individual by the crew leader (either on the crew leader’s own behalf or on behalf of the other person) for the service in agricultural labor performed for the other person.
(V) For the purposes of this subdivision (vii), the term “crew leader” means an individual who:
(aa) furnishes individuals to perform service in agricultural labor for any other person;
(bb) pays (either on the crew leader’s own behalf or on behalf of the other persons) the individuals furnished by the crew leader for the service in agricultural labor performed by them; and
(cc) has not entered into a written agreement with the other person under which the individual is designated as an employee of the other person.
(viii) The term “employment” also includes domestic service as used in subdivision (6)(C)(ii) of this section in a private home, a local college club, or local chapter of a college fraternity or sorority, performed for a person who paid cash remuneration of $1,000.00 or more in any calendar quarter in the current calendar year or the preceding calendar year to individuals employed in domestic service.
(ix) The term “employment” also includes service for any employing unit performed by an individual in the employ of a religious, charitable, educational, or other organization if the service is excluded from “employment” as defined in the Federal Unemployment Tax Act solely by reason of 26 U.S.C. § 3306(c)(8) of that act.
(x)(I) The term “employment” also includes service for any employing unit that is performed by an individual in the employ of this State or any of its instrumentalities, or in the employ of this State and one or more other states or their instrumentalities, for a hospital or institution of higher education located in this State, provided that the service is excluded from “employment” as defined in the Federal Unemployment Tax Act solely by reason of 26 U.S.C. § 3306(c)(7) and is not excluded from “employment” under subdivision (6)(C)(vii) of this section.
(II) The term “employment” also includes service for any employing unit that is performed by an individual in the employ of this State or any political subdivision of the State or any of its instrumentalities or any instrumentality of one or more of them; and service performed for this State or any political subdivision of this State and one or more other states or political subdivisions of another state or any instrumentality of them that is wholly owned by the states or political subdivisions, provided that the service is excluded from “employment” as defined in the Federal Unemployment Tax Act by 26 U.S.C. § 3306(c)(7) and is not excluded from “employment” under subdivision (6)(C)(vii) of this section.
(B) Services performed by an individual for wages shall be deemed to be employment subject to this chapter unless and until it is shown to the satisfaction of the Commissioner that:
(i) the individual has been and will continue to be free from control or direction over the performance of the services, both under the individual’s contract of service and in fact;
(ii) the service is either outside the usual course of the business for which the service is performed or the service is performed outside of all the places of business of the enterprise for which the service is performed; and
(iii) the individual is customarily engaged in an independently established trade, occupation, profession, or business.
(C) The term “employment” does not include:
(i)(I) Service performed by an individual in agricultural labor except as provided in subdivision (6)(A)(vii) of this section. As used in this subdivision (6)(C), the term “agricultural labor” means any remunerated service performed:
(aa) on a farm, in the employ of any person, in connection with cultivating the soil, or in connection with raising or harvesting any agricultural or horticultural commodity, including the raising, shearing, feeding, caring for, training, and management of livestock, bees, poultry, and fur-bearing animals and wildlife;
(bb) in the employ of the owner or tenant or other operator of a farm, in connection with the operation, management, conservation, improvement, or maintenance of the farm and its tools and equipment or in salvaging timber or clearing land of brush and other debris left by a hurricane, if the major part of the service is performed on a farm;
(cc) in connection with the production or harvesting of any commodity defined as an agricultural commodity pursuant to the Agricultural Marketing Act, 12 U.S.C. § 1141j, or in connection with the operation or maintenance of ditches, canals, reservoirs, or waterways, not owned or operated for profit, used exclusively for supplying and storing water for farming purposes;
(dd) in the employ of the operator of a farm in handling, planting, drying, packing, packaging, processing, freezing, grading, storing, or delivering to storage or to market or to a carrier for transportation to market, in its unmanufactured state, any agricultural or horticultural commodity, but only if the operator produced more than one-half of the commodity with respect to which the service is performed;
(ee) in the employ of a group of operators of farms, or a cooperative organization of which the operators are members, in the performance of service described in subdivision (dd) of this subdivision (C)(i)(I), but only if the operators produced more than one-half of the commodity with respect to which the service is performed; or
(ff) on a farm operated for profit if the service is not in the course of the employer’s trade or business.
(II) As used in subdivision (6)(C)(i)(I) of this section, the term “farm” includes stock; dairy; poultry; fruit; fur-bearing animal; truck farms; plantations; ranches; nurseries; ranges; greenhouses or other similar structures used primarily for the raising of agricultural or horticultural commodities; and orchards.
(III) The provisions of subdivisions (dd) and (ee) of subdivision (6)(C)(i)(I) of this section shall not be deemed to be applicable with respect to service performed in connection with commercial canning or commercial freezing or in connection with any agricultural or horticultural commodity after its delivery to a terminal market for distribution for consumption.
(ii) Domestic service in a private home except as provided in subdivision (6)(A)(viii) of this section.
(iii)(I) Service not in the course of the employer’s trade or business performed in any calendar quarter by an employee, unless the cash remuneration paid for that service is $50.00 or more and the service is performed by an individual who is regularly employed by the employer to perform the service. For purposes of this subdivision (6)(C)(iii), an individual shall be deemed to be regularly employed by an employer during a calendar quarter if:
(aa) on each of 24 days during the quarter the individual performs for the employer for some portion of the day service not in the course of the employer’s trade or business; or
(bb) the individual was regularly employed, as defined pursuant to subdivision (aa) of this subdivision (6)(C)(iii), by the employer in the performance of the service during the preceding calendar quarter.
(II) The term “service not in the course of the employer’s trade or business” includes service that does not promote or advance the trade or business of the employer. Services performed for a corporation do not come within the exception.
(iv) Service performed by an individual in the employ of the individual’s child or spouse, and service performed by a minor in the employ of the minor’s parent; or service by one member of a family to another under circumstances that, under the general law, do not give rise to the relation of employer and employee.
(v) Service performed in the employ of the U.S. government or of an instrumentality of the United States, provided that if the U.S. Congress permits states to require that the U.S. government or any instrumentalities of the United States make payments into an unemployment fund under a state unemployment compensation act, then, to the extent permitted by federal law, and from and after the date on which the permission becomes effective, the provisions of this chapter shall be applicable to the U.S. government or its instrumentalities, in the same manner, to the same extent, and on the same terms as to all other employers, employing units, individuals, and services. If the provisions of this chapter become applicable to the U.S. government and its instrumentalities and, in any year, the State is not certified by the Secretary of Labor under 26 U.S.C. § 3304, then the payments required of the U.S. government or its instrumentalities with respect to that year shall be deemed to have been erroneously collected under section 1337 of this subchapter and shall be refunded by the Commissioner from the Fund in accordance with the provisions of section 1337.
(vi) Service performed in the employ of a governmental entity referred to in subdivision (6)(A)(x) of this section if the service is performed by an individual in the exercise of duties:
(aa) as an elected official;
(bb) as a member of a legislative body, or a member of the judiciary, of a state or political subdivision;
(cc) as a member of the Vermont National Guard or Air National Guard;
(dd) as an employee serving on a temporary basis in case of fire, storm, snow, earthquake, flood, or similar emergency; or
(ee) in a position that, pursuant to the laws of this State, is designated as a policymaking or advisory position the performance of the duties of which ordinarily does not require more than eight hours per week.
(vii) For the purposes of subdivisions (6)(A)(ix) and (6)(A)(x) of this section, the term “employment” does not include service performed:
(I) in the employ of a church or convention or association of churches, or an organization that is operated primarily for religious purposes and that is operated, supervised, controlled, or principally supported by a church or convention or association of churches;
(II) by a duly ordained, commissioned, or licensed minister of a church in the exercise of the individual’s ministry or by a member of a religious order in the exercise of duties required by the order;
(III) [Repealed.]
(IV) by an individual performing rehabilitative or remunerative work in a facility operated for the purpose of:
(aa) carrying out a program of rehabilitation for individuals whose earning capacity is limited due to being an elder or having a disability or injury; or
(bb) providing remunerative work for individuals who because of having a disability cannot be readily absorbed in the competitive labor market;
(V) by an individual receiving work relief or work training as part of an unemployment work-relief or work-training program assisted or financed in whole or in part by any federal agency or an agency of a state or political subdivision of a state; or
(VI) by an inmate of a custodial or penal institution.
(viii) Service with respect to which unemployment compensation is payable under an unemployment compensation system established by an act of Congress, provided that the Commissioner is authorized and directed to enter into agreements with the proper agencies under such an act of Congress, which agreements shall become effective 10 days after publication in one or more newspapers of general circulation in this State, to provide reciprocal treatment to individuals who have, after acquiring potential rights to unemployment compensation under the act of Congress, acquired rights to benefits under this chapter.
(ix) Service performed with respect to which unemployment compensation is payable under the Railroad Unemployment Insurance Act, 45 U.S.C. chapter 11.
(x) Service as an officer or member of a crew of an American vessel performed on or in connection with the vessel, if the operating office, from which the operations of the vessel operating on navigable waters within or outside the United States are ordinarily and regularly supervised, managed, directed, and controlled, is outside this State.
(xi) Service performed on or in connection with a vessel that is not an American vessel by an individual, if the individual performs services on and in connection with the vessel when outside the United States. As used in this subdivision (xi) and subdivision (6)(C)(x) of this section, “American vessel” means any vessel documented or numbered under the laws of the United States, and includes any vessel that is neither documented or numbered under the laws of the United States nor documented under the laws of any foreign country, if its crew performs services solely for one or more citizens or residents of the United States or corporations organized under the laws of the United States or of any state.
(xii) Service performed by an individual in, or as an officer or member of the crew of a vessel while it is engaged in, the catching, taking, harvesting, cultivating, or farming of any kind of fish, shellfish, crustacea, sponges, seaweeds, or other aquatic forms of animal and vegetable life, including service performed by any such individual as an ordinary incident to any such activity, except:
(I) service performed in connection with the catching or taking of salmon or halibut, for commercial purposes; and
(II) service performed on or in connection with a vessel of more than 10 net tons, determined in the manner provided for determining the register tonnage of merchant vessels under the laws of the United States.
(xiii) Service performed in any calendar quarter in the employ of any organization exempt from income tax under Section 501(a) (other than an organization described in Section 401(a)) or under Section 521 of the federal Internal Revenue Code, if the remuneration for the service is less than $50.00.
(xiv) Service performed in the employ of a school, college, or university, if the service is performed by a student who is enrolled and is regularly attending classes at the school, college, or university, or by the spouse of such a student, if the spouse is advised at the time the spouse commences to perform the service that the employment of the spouse to perform the service is provided under a program to provide financial assistance to the student by the school, college, or university, and the employment will not be covered by any program of unemployment insurance.
(xv) Service performed by an individual under 22 years of age who is enrolled at a nonprofit or public educational institution that normally maintains a regular faculty and curriculum and normally has a regularly organized body of students in attendance at the place where its educational activities are carried on as a student in a full-time program, taken for credit at such institution, that combines academic instruction with work experience, if the service is an integral part of the program and the institution has so certified to the employer. This subdivision (xv) shall not apply to service performed in a program established for or on behalf of an employer or group of employers.
(xvi) Service performed in the employ of a hospital, if the service is performed by a patient of the hospital, as defined in this section.
(xvii) Service performed by an individual for a person as an insurance agent or as an insurance solicitor, if all the service performed by the individual for the person is performed for remuneration solely by way of commission.
(xviii) Service performed by an individual for a person as a salesman, agent, or solicitor if the state law requires the individual to be registered or licensed to engage in the performance of the service and if the individual in the performance of the service is an independent contractor under common law rules and if the individual performs all such service for remuneration solely by way of commission.
(xix) Service performed by an individual engaged in the harvesting of timber or in the transportation of timber from the place where harvested to market, or service performed by an individual engaged as a stone artisan, including sculpting, etching, or carving quarried stone, when:
(I) the individual has been and will continue to be free from control or direction over the performance of the services, both under the individual’s contract of service and in fact;
(II) the individual is customarily engaged in an independently established trade, occupation, profession, or business; and
(III) the individual furnishes substantially all of the equipment, tools, and supplies necessary in carrying out the individual’s contractual obligations to the individual’s clients.
(xx) Service performed by a full-time student as defined in subdivision (III) of this subdivision (6)(C)(xx) in the employ of an organized camp if:
(I) the camp:
(aa) did not operate for more than seven months in the calendar year and did not operate for more than seven months in the preceding calendar year; or
(bb) had average gross receipts for any six months in the preceding calendar year that were not more than 33 1/3 percent of its average gross receipts for the other six months in the preceding calendar year; and
(II) the full-time student performed services in the employ of the camp for less than 13 calendar weeks in the calendar year, provided that if the individual does not enroll in the immediately succeeding academic year or term, then the services of the individual as defined in this subsection shall be deemed to be employment for all purposes under this chapter.
(III) As used in this subdivision (6)(C)(xx), an individual shall be treated as a full-time student for any period:
(aa) during which the individual is enrolled as a full-time student at an educational institution; or
(bb) that is between academic years or terms if the individual was enrolled as a full-time student at an educational institution for the immediately preceding year or term and there is a reasonable assurance that the individual will be so enrolled for the immediately succeeding academic year or term.
(xxi) Service performed by a direct seller if the individual is in compliance with all the following:
(I) The individual is engaged in the trade or business of selling or soliciting the sale of consumer products, including services or other intangibles, in the home or a location other than in a permanent retail establishment, including whether the sale or solicitation of a sale is to any buyer on a buy-sell basis, a deposit-commission basis, or any similar basis for resale by the buyer or any other person.
(II) Substantially all the remuneration, whether or not received in cash, for the performance of the services described in subdivision (I) of this subdivision (6)(C)(xxi) is directly related to sales or other output, including the performance of services, rather than to the number of hours worked.
(III) The services performed by the individual are performed pursuant to a written contract between the individual and the person for whom the services are performed, and the contract provides that the individual will not be treated as an employee for federal and state tax purposes.
(D) Notwithstanding any other provisions of this subdivision (6), service with respect to which a tax is required to be paid under any federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund or which as a condition for full tax credit against the tax imposed by the Federal Unemployment Tax Act is required to be covered under this chapter.
(7) “Employment office” means a free public employment office, or branch thereof, of the Vermont Employment Service Division, or an office maintained by another state as a part of a state-controlled system of free public employment offices, or by a federal agency or any agency of a foreign government charged with the administration of an unemployment compensation program or free public employment office, or such other agencies as the U.S. Secretary of Labor may approve.
(8) “Fund” means the Unemployment Compensation Trust Fund established by this chapter, to which all contributions required and from which all benefits provided under this chapter shall be paid.
(9) “Total” and “partial” unemployment shall be determined as follows:
(A) An individual shall be deemed “totally unemployed” in any week during which the individual performs no services and with respect to which no wages are earned by the individual.
(B) An individual shall be deemed “partially unemployed” in any week of less than full-time work if the wages earned by the individual with respect to the week are less than the weekly benefit amount the individual would be entitled to receive if totally unemployed and eligible.
(C) As used in this subdivision (9), “wages” includes only that part of remuneration in any one week rounded to the next higher dollar that is in excess of the amount specified in section 1338a of this subchapter.
(D) An individual’s week of unemployment shall be deemed to commence only after the individual’s registration at an employment office, except as the Vermont Employment Security Board may by rule otherwise prescribe.
(10) “State” means the states of the United States of America, the Commonwealth of Puerto Rico, the District of Columbia, and the Virgin Islands.
(11) “Unemployment Compensation Administration Fund” means the Unemployment Compensation Administration Fund established by this chapter, from which administrative expenses under this chapter shall be paid.
(12) “Wages” means all remuneration paid for services rendered by an individual, including commissions and bonuses and the cash value of all remuneration paid in any medium other than cash. Gratuities customarily received by an individual in the course of the individual’s employment from persons other than the individual’s employer and reported by the individual to the individual’s employer shall be treated as wages paid by the individual’s employer. The reasonable cash value of remuneration paid in any medium other than cash shall be estimated and determined in accordance with rules adopted by the Board. The term “wages” does not include:
(A) The amount of any payment (including any amount paid by an employer for insurance or annuities, or into a fund, to provide for any such payment) made to, or on behalf of, an employee or any of the employee’s dependents under a plan or system established by an employer that makes provision for the employer’s employees generally (or for the employer’s employees generally and their dependents) or for a class or classes of the employer’s employees (or for a class or classes of the employer’s employees and their dependents), on account of:
(i) sickness or accident disability (but, in the case of payments made directly to an employee or any of the employee’s dependents, this subdivision (i) shall exclude from the term “wages” only payments that are received under a workers’ compensation law);
(ii) medical or hospitalization expenses in connection with sickness or accident disability; or
(iii) death.
(B) Any payment on account of sickness or accident disability, or medical or hospitalization expenses in connection with sickness or accident disability, made by an employer to, or on behalf of, an employee after the expiration of six calendar months following the last calendar month in which the employee worked for the employer.
(C) Any payment made to, or on behalf of, an employee or the employee’s beneficiary:
(i) from or to a trust described in 26 U.S.C. § 401(a) that is exempt from tax under 26 U.S.C. § 501(a) at the time of the payment unless the payment is made to an employee of the trust as remuneration for services rendered as the employee and not as a beneficiary of the trust; or
(ii) under or to an annuity plan that, at the time of the payment, is a plan described in 26 U.S.C. § 403(a).
(D) The payment by an employer (without deduction from the remuneration of the employee) of the tax imposed upon an employee under 26 U.S.C. § 3101.
(E) Any amounts received from the federal government by members of the National Guard and reserve components of the U.S. Armed Forces as drill pay, including longevity pay and allowances.
(F) If the definition of “wages” in 26 U.S.C. § 3306, Federal Unemployment Tax Act, is amended to no longer exclude any or all of the payments or amounts enumerated in subdivisions (A) through (E) of this subdivision (12), then payments or amounts no longer excluded from the federal definition shall be included in the definition of “wages” under this this subdivision (12), effective on the effective date of the amendment to the Federal Unemployment Tax Act.
(G) Any foster care payments excluded from the definition of gross income under 26 U.S.C. § 131.
(13) “Week” means a period or periods of seven consecutive days, as the Board may by rule prescribe.
(14) “Calendar quarter” means a period of three consecutive calendar months ending on March 31, June 30, September 30, or December 31, or the equivalent of such a period as the Board may by rule prescribe.
(15) An individual’s “weekly benefit amount” with respect to any week means the amount of benefits the individual would be entitled to receive for the week if totally unemployed and eligible for benefits for the week.
(16)(A) “Benefit year,” with respect to any individual, means the one- year period beginning with the first day of the week with respect to which the individual first files a valid claim for benefits in accordance with section 1346 of this subchapter, and thereafter the one-year period beginning with the first day of the first week with respect to which the individual next files such a claim for benefits after the termination of the individual’s last preceding benefit year.
(B) [Repealed.]
(17) “Base period” means:
(A) The period made up of the first four of the most recently completed five calendar quarters immediately preceding the first day of a claimant’s benefit year.
(B) For any individual who fails to meet the eligibility requirements of section 1338 of this subchapter in the base period set forth pursuant to subdivision (A) of this subdivision (17), the Commissioner shall make a redetermination of entitlement based upon a base period that consists of the last four completed calendar quarters immediately preceding the first day of the claimant’s benefit year.
(C) For any individual who fails to qualify for benefits under subdivisions (A) and (B) of this subdivision (17), the Commissioner shall make a redetermination of entitlement based upon a base period that consists of the last three completed calendar quarters and all wages paid prior to the effective date of the claimant’s initial claim in the calendar quarter in which the initial claim was filed.
(D) All wages that fall within the “base period” of valid claims under this section shall not be available for reuse in qualifying for any subsequent benefit years under section 1338 or 1318 of this subchapter.
(18)(A) “Institution of higher education” means an educational institution that:
(i) admits as regular students only individuals having a certificate of graduation from a high school, or the recognized equivalent of such a certificate;
(ii) is legally authorized in this State to provide a program of education beyond high school;
(iii) provides an educational program for which it awards a bachelor’s or higher degree, or provides a program that is acceptable for full credit toward such a degree, a program of post-graduate or post-doctoral studies, or a program of training to prepare students for gainful employment in a recognized occupation; and
(iv) is a public or other nonprofit institution.
(B) Notwithstanding any provision of this subdivision (18) to the contrary, all colleges and universities in this State are institutions of higher education for purposes of this chapter.
(19) “Hospital” means an institution that has been licensed, certified, or approved by the Department of Health as a hospital, or an institution that is operated by the State of Vermont or any of its instrumentalities as a hospital.
(20) “Rate year” means the period beginning on July 1 of a year and ending on June 30 of the following year.
(21) “Bona fide employer” means the federal government, state governments and political subdivisions of state governments, railroads, tax exempt nonprofit organizations, established agricultural employers, employers liable under the unemployment compensation laws of this State, and an employer who has been assigned an employer identification number by the U.S. Internal Revenue Service.
(22) “Rounding” means, notwithstanding any other provisions of this chapter to the contrary, any amount of unemployment compensation payable to any individual for any week, if not an even dollar amount, shall be rounded to the next lower full dollar amount.
(23) “Valid claim” means a claim for benefits filed by an individual who, at the time of filing the claim, has had sufficient wages in employment with an employer or employers to qualify for benefits pursuant to section 1338 of this title. The filing of a valid claim is a prerequisite to the making of a determination of an individual’s eligibility for benefits under section 1343 of this title and a determination of an individual’s disqualification for benefits under section 1344 of this title.
(24) “Self-employment”:
(A) Except as provided in subdivision (B) of this subdivision (24), an individual shall be deemed “self-employed” or “engaged in self-employment” in any week during which the individual is engaged, not in the employ of another, in the formation, development, or operation of a trade, business, enterprise, profession, or any other activity that the individual has undertaken for the purpose of producing income and that is in the form of a sole proprietorship, partnership, joint venture, or other similar entity.
(B) An individual who is able to work and available for full-time work shall not be deemed to be self-employed or engaged in self-employment solely by reason of continued participation without substantial change during a period of unemployment in any activity undertaken while customarily employed by an employer in full-time work (whether or not such work constituted employment) and continued subsequent to separation from such work when the activity is not engaged in as a primary source of livelihood. Earnings from such a sideline activity shall not constitute wages or disqualifying income for unemployment purposes.
(25) “Child” includes an individual’s biological child, foster child, adoptive child, stepchild, a child for whom the individual is listed as a parent on the child’s birth certificate, a legal ward of the individual, a child of the individual’s spouse, or a child that the individual has day-to-day responsibilities to care for and financially support.
(26) “Spouse” includes an individual’s domestic partner or civil union partner. As used in this subdivision, “domestic partner” means another individual with whom an individual has an enduring domestic relationship of a spousal nature, provided that the individual and the individual’s domestic partner:
(A) have shared a residence for at least six months;
(B) are at least 18 years of age;
(C) are not married to, in a civil union with, or considered the domestic partner of another individual;
(D) are not related by blood closer than would bar marriage under State law; and
(E) have agreed between themselves to be responsible for each other’s welfare.
(Amended 1959, No. 10, eff. Feb. 27, 1959; 1959, No. 33, eff. March 11, 1959; 1959, No. 107, § 1, eff. April 10, 1959; 1959, No. 120, eff. Jan. 1, 1960; 1959, No. 262, § 35, eff. June 11, 1959; 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, §§ 15, 16, eff. July 11, 1961; 1963, No. 84,§§ 1, 2; 1963, No. 122, eff. June 3, 1963; 1965, No. 64, eff. Jan. 1, 1966; 1967, No. 43, § 1, eff. March 23, 1967; 1967, No. 184, eff. April 17, 1967; 1967, No. 247 (Adj. Sess.), § 1, eff. Feb. 20, 1968; 1971, No. 77, § 1, eff. Dec. 31, 1971; 1971, No. 184 (Adj. Sess.), § 7, eff. March 29, 1972; 1973, No. 74, § 1, eff. April 14, 1973; 1975, No. 40; 1977, No. 64, §§ 1-7, 21, 22; 1979, No. 53; 1979, No. 120 (Adj. Sess.), §§ 1-5, eff. April 14, 1980; 1981, No. 66, § 5(b), eff. May 1, 1981; 1981, No. 86, § 8, eff. May 10, 1981; 1983, No. 16, §§ 1, 2, 10, 12, eff. April 4, 1983; 1985, No. 50, §§ 1-3; 1985, No. 146 (Adj. Sess.), § 3; 1987, No. 31, eff. May 8, 1987; 1987, No. 66; 1987, No. 227 (Adj. Sess.) §§ 1, 3, eff. May 26, 1988; 1991, 1987, No. 82, § 1; 1991 No. 183 (Adj. Sess.), § 1; 1993, No. 227 (Adj. Sess.), § 17; 1997, No. 101 (Adj. Sess.), §§ 1, 6; 2003, No. 131 (Adj. Sess.), § 2; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2005, No. 136 (Adj. Sess.), § 1; 2007, No. 104 (Adj. Sess.), § 1; 2013, No. 96 (Adj. Sess.), § 139; 2023, No. 53, § 124, eff. June 8, 2023; 2023, No. 76, § 39, eff. July 1, 2023; 2023, No. 76, § 40, eff. July 1, 2024; 2023, No. 85 (Adj. Sess.), § 170, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 5, eff. July 1, 2024; 2025, No. 18, § 33, eff. May 13, 2025.)
§ 1301a Department of Labor; composition
The Department of Labor, created by 3 V.S.A. § 212, shall consist of a Commissioner of Labor, the Vermont Employment Security Board, the Vermont Workforce Development Division, the Economic and Labor Market Information Division, the Workforce Development Council, the Unemployment Insurance and Wages Division, and the Workers’ Compensation and Safety Division. The Chair of the Employment Security Board shall be the Commissioner of Labor ex officio. The Deputy Commissioner of Labor or a designee chosen by the Commissioner may serve as Chair in the absence of the Commissioner as the Commissioner’s designee.
(Added 1959, No. 329 (Adj. Sess.) § 20, eff. March 1, 1961; amended 1981, No. 66, § 2, eff. May 1, 1981; 2005, No. 212 (Adj. Sess.), § 13, eff. May 29, 2006; 2011, No. 162 (Adj. Sess.), § E.401.11.)
§ 1301b Repealed
[Repealed]
2001, No. 142, § 302c.
§ 1302 Vermont Employment Security Board; composition; duties
(a)(1) There is created a board of three members to be known as the Vermont Employment Security Board.
(2)(A) One member, who will serve as the chair of the Board, shall be the Commissioner of Labor, ex officio.
(B) The two other members of the Board shall be appointed by the Governor, with the advice and consent of the Senate. The term of each appointed member shall be six years.
(C) Biennially, in the month of February, with the advice and consent of the Senate, the Governor shall appoint a person as a member of the Board for the term of six years, whose term of office shall commence March 1 of the year in which the appointment is made.
(D) Any appointment to fill a vacancy shall be for the unexpired term.
(E) In case of a vacancy by resignation, the member resigning shall continue in office until that member’s successor is appointed.
(3) Not more than two members of the Board shall be members of the same political party.
(4) The Governor may at any time remove an appointed member of the Board for gross inefficiency, neglect of duty, malfeasance, misfeasance, or nonfeasance in office.
(b)(1) The Board may hear and decide all matters appealed to it under this chapter. It shall determine its own methods of procedure.
(2) The Board may, with the approval of the Governor, adopt, amend, suspend, or rescind such rules as it considers necessary and consistent with this chapter. The rules of the Board shall have the force and effect of law after public hearing thereon of which reasonable notice has been given, and after filing with the Secretary of State, and publication in such manner as the Board shall prescribe.
(3) The Board may administer oaths, take depositions, certify to official acts, and subpoena witnesses and compel the production of books, papers, correspondence, memoranda, and other records necessary and material in the discharge of its duties imposed by this chapter.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 1, eff. July 11, 1961; 2023, No. 53, § 134, eff. June 8, 2023; 2023, No. 85 (Adj. Sess.), § 171, eff. July 1, 2024.)
§ 1303 Compensation
The Commissioner of Labor shall be paid an annual salary, as provided by 32 V.S.A. § 1003, and necessary expenses incurred in the performance of the Commissioner’s duties. Each other member of the Board shall be paid a per diem fixed by the Emergency Board while engaged in work connected with his or her official duties and shall be entitled to his or her actual and necessary expenses when away from home in discharge of such duties. All vouchers for salary, per diem, or expenses of a member shall be approved by the other members of the Board before payment thereof.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 2, eff. July 11, 1961; 1981, No. 66, § 5(b), eff. May 1, 1981; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1304 Quorum
Any two members of the Board shall constitute a quorum to transact business. No vacancy shall impair the right of the remaining members to exercise all of the powers of the Board, as long as a majority remain.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 3, eff. July 11, 1961.)
§ 1305 Divisions; Comprehensive Employment and Training Office
There is hereby established within the Department of Labor, the Vermont Employment Service Division, the Unemployment Compensation Division, and the Comprehensive Employment and Training Office. Each division and office shall be responsible for the discharge of its distinctive function. Each division and office shall be so far as is practicable a separate administrative unit with respect to personnel, budget, and duties.
(Amended 1959, No. 329 (Adj. Sess.), § 21, eff. March 1, 1961; 1981, No. 66, § 3, eff. May 1, 1981; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1305a Comprehensive Employment and Training Office
(a) With the approval of the Governor, the Commissioner shall appoint a Director of the Comprehensive Employment and Training Office and fix his or her salary. The Director shall serve at the pleasure of the Commissioner. The Commissioner may appoint such other personnel and may organize the Office as he or she deems necessary to carry out its functions and duties, and may delegate such powers and authority to the Director of the Office as he or she deems necessary for its efficient administration.
(b) The Comprehensive Employment and Training Office shall provide job training and employment opportunities for economically disadvantaged, unemployed, and underemployed persons through a system of federal and State programs, and is hereby authorized to serve on behalf of the Governor, through the Commissioner of Labor, as the prime sponsor in accordance with the Comprehensive Employment and Training Act (P.L. 95-524); provided further, that such responsibilities and authorization shall continue only so long as the federal government provides funds to execute such responsibilities.
(Added 1981, No. 66, § 4, eff. May 1, 1981; amended 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1305b Repealed
[Repealed]
1995, No. 45, § 4.
§ 1307 Commissioner of Labor, duties and powers of
The Commissioner of Labor shall administer this chapter. The Commissioner may employ such persons, make such expenditures, require such reports, make such investigations, and take such other action as he or she considers necessary or suitable to that end. In the discharge of his or her duties imposed by this chapter, the Commissioner may administer oaths, take depositions, certify to official acts, and subpoena witnesses and compel the production of books, papers, correspondence, memoranda, and other records necessary and material to the administration of this chapter.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 4, eff. July 11, 1961; 1981, No. 66, § 5(b), eff. May 1, 1981; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1308 Organization
The Commissioner shall determine the method of procedure in accordance with the provisions of this chapter. Notwithstanding any requirement in this chapter that the Commissioner mail notices and determinations, the Commissioner may provide claimants and employers with the option to authorize communications from the Commissioner to be delivered electronically.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2025, No. 40, § 9, eff. July 1, 2025.)
§ 1309 Reports; solvency of Trust Fund
(a)(1) On or before January 31 of each year, the Commissioner shall submit to the Governor and the Chairs of the Senate Committees on Economic Development, Housing and General Affairs and on Finance and the House Committees on Commerce and Economic Development and on Ways and Means a report covering the administration and operation of this chapter during the preceding calendar year.
(2) The report shall include:
(A) a balance sheet of the monies in the Fund and data as to probable reserve requirements based upon accepted actuarial principles, with respect to business activity, and other relevant factors for the longest available period;
(B) recommendations for amendments of this chapter as the Board considers proper; and
(C) an accounting of the amount of supplemental benefits paid to claimants pursuant to subdivision 1338(e)(2) of this chapter.
(b) Whenever the Commissioner believes that the solvency of the Fund is in danger or the balance of the Fund drops below $180,000,000.00, the Commissioner shall promptly inform the Governor and the Chairs of the Senate Committees on Economic Development, Housing and General Affairs and on Finance and the House Committees on Commerce and Economic Development and on Ways and Means and make recommendations for preserving an adequate level in the Trust Fund. The provisions of 2 V.S.A. § 20(d) (expiration of required reports) shall not apply to the report to be made under this section.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 5, eff. July 11, 1961; 2009, No. 124 (Adj. Sess.), § 1; 2013, No. 142 (Adj. Sess.), § 36; 2021, No. 51, § 13, eff. June 1, 2021.)
§ 1310 Repealed
[Repealed]
1959, No. 329 (Adj. Sess.), § 59, eff. March 1, 1961.
§ 1311 Employees
Subject to other provisions of this chapter, the Commissioner is authorized to appoint a Deputy Commissioner and such officers, accountants, attorneys, and employees as may be necessary in the performance of the Commissioner’s duties. The Commissioner may delegate to any person appointed pursuant to the provisions of this section any power and authority the Commissioner deems reasonable and proper for the effective administration of this chapter, and may, in the Commissioner’s discretion, bond any person handling monies or signing checks pursuant to the provisions of this chapter.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1971, No. 191 (Adj. Sess.), § 12; 1985, No. 225 (Adj. Sess.), § 16; 2023, No. 85 (Adj. Sess.), § 172, eff. July 1, 2024.)
§ 1311a Professional training for employees
The Commissioner, using grant funds made available by the United States, may, to the extent permitted and subject to the approval of the Governor, provide professional training for the Department’s employees by contracting with educational institutions for short courses or other forms of intensive instruction.
(Added 1959, No. 137, eff. April 22, 1959; amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1981, No. 66, § 5(b), eff. May 1, 1981; 2021, No. 20, § 219.)
§ 1312 Publication of rules and reports
The Commissioner shall make available for distribution to the public the text of this chapter, the Board’s rules, the Commissioner’s annual reports to the Governor, and any other material the Commissioner considers relevant and suitable. The Commissioner shall furnish the materials made available to the public pursuant to this section to any person upon request.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 6, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 173, eff. July 1, 2024.)
§ 1313 Repealed
[Repealed]
2003, No. 122 (Adj. Sess.), § 294(o).
§ 1314 Reports and records; separation information; determination of eligibility; failure to report employment information; disclosure of information to other State agencies to investigate misclassification or miscoding
(a) The Commissioner may require any employing unit to keep true and accurate records and make reports covering persons employed by it respecting employment, wages, hours, unemployment, and related matters as the Commissioner deems reasonably necessary for the effective administration of this chapter. The records shall be open to inspection and subject to being copied by the Commissioner or the Commissioner’s authorized representatives at any reasonable time and as often as may be necessary.
(b) On request of the Commissioner, an employing unit shall report, within 10 days after the mailing or personal delivery of the request, employment and separation information with respect to a claimant and the wages paid to a claimant.
(c) If an employing unit fails to comply adequately with the provisions of subsection (b) of this section and section 1314a of this subchapter, the Commissioner shall determine the benefit rights of a claimant upon the available information. Prompt notice in writing of the determination shall be given to the employing unit. The employing unit may request or authorize the Commissioner to provide notice of the determination electronically. The determination shall be final with respect to a noncomplying employer as to any charges against its experience-rating record for benefits paid to the claimant before the week following the receipt of the employing unit’s reply. The employing unit’s experience rating record shall not be relieved of these charges, notwithstanding any other provision of this chapter, unless the Commissioner determines that failure to comply was due to unavoidable accident or mistake.
(d)(1) Except as otherwise provided in this chapter, information obtained from any employing unit or individual in the administration of this chapter and determinations as to the benefit rights of any individual shall be held confidential and shall not be disclosed or open to public inspection in any manner revealing the individual’s or employing unit’s identity, nor be admissible in evidence in any action or proceeding other than one arising out of this chapter, or to support or facilitate an investigation by a public agency identified in subdivision (e)(1) of this section.
(2) An individual or an individual’s duly authorized agent may be supplied with information from those records to the extent necessary for the proper presentation of the individual’s claims for benefits or to inform the individual of the individual’s existing or prospective rights to benefits. An employing unit may be furnished with information, as the Commissioner deems proper, to enable it to fully discharge its obligations and safeguard its rights under this chapter.
(3) Automatic data processing services and systems and programming services within the Department of Labor shall be the responsibility and under the direct control of the Commissioner in the administration of this chapter and chapter 15 of this title.
(4) Notwithstanding the provisions in subdivision (3) of this subsection, the Department of Labor shall, at the request of the Agency of Administration, perform services for other departments and agencies of the State that are within the capacity of its data processing equipment and personnel, provided that the services can be accomplished without undue interference with the designated work of the Department of Labor.
(e)(1) Subject to restrictions adopted by the Board by rule, information from unemployment insurance records may be made available to any public officer or public agency of this or any other state or the federal government dealing with the administration or regulation of relief, public assistance, unemployment compensation, a system of public employment offices, wages and hours of employment, workers’ compensation, misclassification or miscoding of workers, occupational safety and health, or a public works program for purposes appropriate to the necessary operation of those offices or agencies. The Commissioner may also make information available to colleges, universities, and public agencies of the State for use in connection with research projects of a public service nature and to the Vermont Economic Progress Council with regard to the administration of 32 V.S.A. chapter 105, subchapter 2, but no person associated with those institutions or agencies may disclose that information in any manner that would reveal the identity of any individual or employing unit from or concerning whom the information was obtained by the Commissioner.
(A) The Department of Labor shall participate in the income and eligibility verification procedures under the Deficit Reduction Act of 1984, Pub. L. No. 98-369, which provides for the exchange of information among state agencies administering programs funded with federal monies provided under the Temporary Assistance for Needy Families (TANF) block grant, Medicaid, Supplemental Nutrition Assistance Program (SNAP), SSI, Unemployment Compensation, and any other state program under a plan approved under Title I, X, XIV, or XVI of the Social Security Act.
(B) The Department of Labor is designated as the Vermont agency for the collection of wage records on workers covered under this chapter, as required by the Deficit Reduction Act of 1984, Pub. L. No. 98-369.
(2)(A)(i) The Department of Labor shall disclose, upon request, to officers or employees of any state or local child support enforcement agency any wage information or other information material to the location of an individual, the individual’s assets, or the individual’s place of employment or other source of income contained in the Department’s unemployment compensation claim records with respect to an identified individual that is contained in those records.
(ii) The term “state or local child support enforcement agency” means any agency of a state or political subdivision of a state operating pursuant to a plan described in 42 U.S.C. § 654 that has been approved by the Secretary of Health and Human Services under 42 U.S.C. chapter 7, subchapter IV, part D.
(B) The requesting agency shall agree that information provided under this subsection is to be used only for the following purposes:
(i) establishing and collecting child support obligations from, and locating, individuals owing such obligations that are being enforced pursuant to a plan described in 42 U.S.C. § 654 that has been approved by the Secretary of Health and Human Services under 42 U.S.C. chapter 7, subchapter IV, part D; and
(ii) establishing parentage and expediting procedures relating to establishing parentage pursuant to 42 U.S.C. § 666.
(3)(A) The Department of Labor shall disclose, upon request, to officers and employees of the U.S. Department of Agriculture and any state agency, with respect to an identified individual, any of the following information that is contained in its records:
(i) wage information;
(ii) whether the individual is receiving, has received, or has made application for unemployment compensation and the amount of any compensation being received or to be received by the individual;
(iii) the current or most recent home address of the individual; and
(iv) whether the individual has refused an offer of employment and, if so, a description of the employment offered and the associated terms, conditions, and rate of pay.
(B) As used in this subdivision (e)(3), “state agency” means any agency described in 7 U.S.C. § 2012(s) that administers the Supplemental Nutrition Assistance Program.
(C) The requesting agency shall agree that the information shall be used only for purposes of determining the applicant’s eligibility for benefits, or the amount of benefits, under the Supplemental Nutrition Assistance Program established under 7 U.S.C. chapter 51.
(D) The information shall not be released unless the requesting agency agrees to reimburse the costs involved for furnishing the information.
(E) In addition to the requirements of this subdivision, all other requirements with respect to confidentiality of information obtained in the administration of this chapter and the sanctions imposed for improper disclosure of information obtained in the administration of this chapter shall apply to the use of the information by the officers and employees of any state agency or the U.S. Department of Agriculture.
(4)(A)(i) The Department of Labor shall disclose, upon request, to officers or employees of any state or local agency charged with administering TANF, any wage information with respect to an identified individual that is contained in its records, which is necessary for the purpose of determining an individual’s eligibility for aid or services or the amount of the aid or services to needy families with children.
(ii) As used in this subdivision (e)(4), “state or local agency charged with administering TANF” means any such agency administering a plan approved under 42 U.S.C. chapter 7, subchapter IV, part A.
(B) The information requested shall not be released unless the requesting TANF agency agrees to reimburse the Department of Labor for the costs involved in furnishing the information.
(C) The requesting agency shall agree that the requested information shall be used only for the purposes authorized in subdivision (e)(4)(A) of this section.
(5)(A) The Department of Labor shall disclose to officers or employees of the Federal Parent Locator Service (FPLS) or National New Hire Directory any employment, wage, and unemployment compensation claim information contained in its claim records that may be useful in locating an absent parent or the parent’s employer solely for purposes of administering the child support enforcement provisions of 42 U.S.C. chapter 7, subchapter IV.
(B) The requesting Federal Parent Locator Service shall agree that the requested information shall be used only for purposes authorized in 42 U.S.C. § 503(h)(1).
(C) The information requested shall not be released unless the requesting Federal Parent Locator Service agrees to reimburse the Department of Labor for the costs involved in furnishing the requested information.
(6)(A) The Department of Labor shall disclose, upon request, to officers or employees of the Department of Housing and Urban Development (HUD) and to representatives of a public housing agency any wage information and unemployment compensation benefit information that is contained in its records with respect to an identified individual applying for or participating in any housing assistance program administered by HUD that is necessary for the purposes of determining the individual’s eligibility for benefits or the amount of benefits under a HUD housing assistance program. As used in this subdivision (e)(6), the term “public housing agency” means any agency described in 42 U.S.C. § 1437a(b)(6) that is authorized to engage in or assist in the development or operation of low-income housing.
(B) HUD or the requesting public housing agency shall agree that the requested information shall be used only for purposes of determining an individual’s eligibility for benefits or the amount of benefits under a HUD housing assistance program and that it will comply with the provisions of 20 C.F.R. § 603.7 and the limitations on the use of the information set forth in Pub. L. No. 100-628, § 904(c)(2).
(C) The information requested shall not be released unless the individual about whom the requested information relates has signed a consent form, approved by the Secretary of HUD, that permits the release of the requested information.
(D) The information requested shall not be released unless HUD or the requesting public housing agency agrees to reimburse the Department of Labor for the costs involved in furnishing the requested information.
(7)(A) The Department of Labor shall disclose, upon request, to officers and employees of the Vermont Center for Crime Victim Services, with respect to an identified individual, the name and address of the individual’s employer.
(B) The Center and the Department shall develop an agreement that complies with 20 C.F.R. § 603.6, and the Center shall comply with the confidentiality requirements of 20 C.F.R. § 603.7.
[Subdivision (e)(8) effective until July 1, 2026; see also subdivision (e)(8) effective July 1, 2026 set out below.]
(8) The Department of Labor shall disclose, upon request:
(A) to the Attorney General and employees of the Office of the Attorney General, information necessary for the Attorney General to investigate a complaint and enforce the provisions of this chapter as provided pursuant to section 1379 of this chapter; and
(B) to the Commissioners of Financial Regulation and of Taxes and employees of the Departments of Financial Regulation and of Taxes, information necessary to investigate misclassification or miscoding of workers under the insurance and tax laws that are under their jurisdiction.
[Subdivision (e)(8) effective July 1, 2026; see also subdivision (e)(8) effective until July 1, 2026 set out above.]
(8) [Repealed.]
(f) Nothing contained in this section shall be deemed to interfere with the disclosure of certain information obtained under this chapter as provided in sections 1315, 1316, and 1317 of this title or to interfere with disclosure to the Internal Revenue Service of the U.S. Department of the Treasury or to any state for purposes of the Federal Unemployment Tax Act or for the purposes of taxation of unemployment compensation benefits paid to individuals by this Department. Information may be exchanged with the Vermont Department of Taxes for the purpose of establishing liability of employers for unemployment compensation purposes or identifying employers affected by Vermont tax laws. Information reported to the Department of Labor may be provided to the Vermont Department of Taxes for the purposes of assessment and collection of Vermont taxes, including identifying nonfilers of the State tax; locating and identifying persons in debt to the Department of Taxes; and verifying eligibility for tax credits, tax adjustments, or other tax benefits.
(g) All written or oral reports, or other communications, from an employer or the employer’s workers to each other, or to the Commissioner or any of the Commissioner’s agents, representatives, or employees, made in connection with the requirements and administration of this chapter or the rules adopted pursuant to this chapter, shall be absolutely privileged and shall not be made the subject matter or basis for any suit for slander or libel in any court of this State, unless they are false in fact and malicious in intent.
(h) Any employing unit that fails to report employment and separation information with respect to a claimant and wages paid to a claimant required under subsection (b) of this section shall be subject to a penalty of $100.00 for each report not received by the prescribed due date. The penalty imposed pursuant to this subsection shall be collected in the manner provided for the collection of contributions in section 1329 of this subchapter and shall be paid into the contingent fund established in section 1365 of this subchapter. If the employing unit demonstrates that its failure was due to a reasonable cause, the Commissioner may waive the penalty.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1965, No. 26, eff. April 14, 1965; 1967, No. 89; 1973, No. 168 (Adj. Sess.); 1975, No. 62, § 1, eff. April 18, 1975; 1979, No. 120 (Adj. Sess.), § 6, eff. Jan. 1, 1980; 1981, No. 66, § 5(a), eff. May 1, 1981; 1981, No. 194 (Adj. Sess.), § 1; 1985, No. 50, §§ 4, 5; 1987, No. 278 (Adj. Sess.), § 3, eff. June 21, 1988; 1989, No. 132 (Adj. Sess.), §§ 1, 2; 1991, No. 186 (Adj. Sess.), § 34, eff. May 7, 1992; 1993, No. 177 (Adj. Sess.), § 1; 1997, No. 63, §§ 19, 19a, eff. Sept. 1, 1997; 2003, No. 70 (Adj. Sess.), § 63, eff. March 1, 2004; 2003, No. 92 (Adj. Sess.), § 4; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2005, No. 184 (Adj. Sess.), § 14; 2009, No. 54, § 69a, eff. June 1, 2009; 2009, No. 124 (Adj. Sess.), § 8; 2009, No. 142 (Adj. Sess.), § 6; 2011, No. 50, § 7, eff. May 26, 2011; 2013, No. 131 (Adj. Sess.), § 125; 2013, No. 179 (Adj. Sess.), § E.400; 2015, No. 157 (Adj. Sess.), § H.3, eff. Jan. 1, 2017; 2017, No. 74, § 48; 2019, No. 85 (Adj. Sess.), § 3, eff. Feb. 20, 2020; 2019, No. 85 (Adj. Sess.), § 12, eff. July 1, 2026; 2021, No. 20, § 220; 2023, No. 85 (Adj. Sess.), § 174, eff. July 1, 2024; 2025, No. 40, § 10, eff. July 1, 2025.)
§ 1314a Quarterly wage reporting; misclassification; penalties
(a)(1) Each employing unit that is an employer that has individuals in employment as defined in subdivision 1301(6) of this chapter shall file with the Commissioner on forms supplied by the Commissioner a detailed wage report for each calendar quarter that contains each individual worker’s name, Social Security number, gross wages paid during each calendar quarter, and any other information the Commissioner deems necessary in the administration of this chapter.
(2) In addition to other information required by this section, the wage reports required by this subsection shall include for each worker paid by the hour the worker’s gender and the worker’s hourly wage.
(b) Reports required by subsection (a) of this section shall be filed with the Commissioner by the last day of the calendar month following the calendar quarter for which the report is submitted.
(c) An employing unit that is not an employer shall, upon request of the Commissioner, submit reports on forms furnished by the Commissioner regarding employment, wages, hours of employment, unemployment, and related matters that the Commissioner deems necessary in the administration of this chapter.
(d) Reports required by subsection (c) of this section shall be submitted to the Commissioner not later than 10 calendar days after the date the Commissioner’s request was sent electronically or mailed to the employing unit.
(e) On request of the Commissioner, any employing unit or employer shall report, within 10 days after the mailing, electronic delivery, or personal delivery of the request, separation information for a claimant, any disqualifying income the claimant may have received, and any other information that the Commissioner may require to determine the claimant’s eligibility for unemployment compensation. The Commissioner shall make a request when:
(1) the claimant’s eligibility is dependent upon:
(A) wages paid during an incomplete calendar quarter in which the claimant was separated; or
(B) the last completed quarter; and
(2) obtaining the information will result in more timely benefit payments.
(f)(1) Any employing unit or employer that fails to:
(A) File a report required by this section shall be subject to an administrative penalty of $100.00 for each report not received by the prescribed due dates.
(B) Properly classify an individual regarding the status of employment shall be subject to an administrative penalty of not more than $5,000.00 for each improperly classified employee. In addition, an employer found to have violated this section is prohibited from contracting, directly or indirectly, with the State or any of its subdivisions for up to three years following the date the employer was found to have failed to properly classify, as determined by the Commissioner in consultation with the Commissioner of Buildings and General Services or the Secretary of Transportation, as appropriate. Either the Secretary or the Commissioner, as appropriate, shall be consulted in any appeal relating to prohibiting the employer from contracting with the State or its subdivisions.
(2)(A) Penalties under this subsection (f) shall be collected in the same manner as contributions under section 1329 of this title and shall be paid into the Contingent Fund established in section 1365 of this title.
(B) If the employing unit demonstrates that its failure was due to a reasonable cause, the Commissioner may waive or reduce the penalty.
(g)(1) Notwithstanding any other provisions of this section, the Commissioner may, where practicable, require any employing unit to file the reports required pursuant to subsections (a) through (d) of this section, or any departmental registration required prior to submitting the reports required by this section, in an electronic media form.
(2) The Commissioner may waive the requirement that an employing unit submit a report in an electronic media form if the employing unit attests that it is unable to file the required report in that form.
(Added 1985, No. 50, § 6; amended 1985, No. 146 (Adj. Sess.), § 4; 1987, No. 227 (Adj. Sess.), § 2, eff. May 26, 1988; 1989, No. 132 (Adj. Sess.), § 3; 1997, No. 101 (Adj. Sess.), § 2; 1999, No. 119 (Adj. Sess.), § 10, eff. May 18, 2000; 2001, No. 56, § 1; 2009, No. 142 (Adj. Sess.), § 9; 2013, No. 173 (Adj. Sess.), § 2; 2019, No. 91 (Adj. Sess.), § 29, eff. July 1, 2020; 2023, No. 85 (Adj. Sess.), § 175, eff. July 1, 2024; 2025, No. 40, § 11, eff. July 1, 2025.)
§ 1315 State-federal cooperation
In the administration of this chapter, the Commissioner shall:
(1) cooperate with the Secretary of Labor to the fullest extent consistent with the provisions of this chapter;
(2) make reports, in a form and containing information required by the Secretary of Labor;
(3) comply with any provisions the Secretary of Labor deems necessary to ensure the correctness and verification of the reports; and
(4) comply with the regulations prescribed by the Secretary of Labor governing the expenditures of sums allotted and paid to the State under 42 U.S.C. chapter 7, subchapter III for the purpose of assisting in the administration of this chapter.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 176, eff. July 1, 2024.)
§ 1316 Furnishing data
Upon request the Commissioner shall furnish to any agency of the United States charged with the administration of public works or assistance through public employment the name, address, ordinary occupation, and employment status of each recipient of benefits and the recipient’s rights to further benefits under this chapter.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 177, eff. July 1, 2024.)
§ 1317 Railroad Retirement Board
The Commissioner may make available to the Railroad Retirement Board such records relating to the administration of this chapter as that Board deems necessary for its purposes in administering the federal Railroad Unemployment Insurance Act and may furnish copies of such records to the Board at the latter’s expense.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961.)
§ 1318 Reciprocal benefit arrangements
(a) The Commissioner is authorized to enter into arrangements with the appropriate agencies of other states or the federal government under which potential rights to benefits accumulated under the unemployment compensation laws of other states or under federal law, or both, may constitute the basis for the payment of benefits through a single appropriate agency under terms that the Commissioner finds will be fair and reasonable to all affected interests and will not result in any substantial loss to the Fund. The Commissioner is authorized to reimburse a state or federal agency for benefits paid by that agency upon the basis of wages received in employment subject to this chapter or to receive from a state or federal agency amounts paid from the Fund upon the basis of wages received in employment subject to the laws of the state or to federal law.
(b) The Commissioner shall participate in any arrangements for the payment of compensation on the basis of combining an individual’s wages and employment covered under this chapter with the individual’s wages and employment covered under the unemployment compensation laws of other states that are approved by the U.S. Secretary of Labor in consultation with the state unemployment compensation agencies as reasonably calculated to ensure the prompt and full payment of compensation in such a situation and that include provisions for:
(1) applying the base period of a single state law to a claim involving the combining of an individual’s wages and employment covered under two or more state unemployment compensation laws; and
(2) avoiding the duplicate use of wages and employment by reason of the combination pursuant to subdivision (1) of this subsection (b).
(c)(1) Reimbursements paid from the Fund pursuant to this section shall be deemed to be benefits for the purposes of this chapter.
(2) No charge on account of reimbursements paid pursuant to subdivision (1) of this subsection (c) shall be made to an employer’s experience rating record under subsection 1325(a) of this subchapter.
(3) Benefits paid from the Fund to an individual, under arrangements entered into pursuant to this section, shall not be charged to an employer’s experience rating record under subsection 1325(a) of this subchapter when the benefits would not have been payable to the individual but for this section because the individual lacked wages in employment necessary to qualify for benefits under section 1338 of this subchapter.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1969, No. 189 (Adj. Sess.), § 1, eff. April 9, 1970; 1971, No. 77, § 2, eff. Dec. 31, 1971; 2023, No. 85 (Adj. Sess.), § 178, eff. July 1, 2024.)
§ 1319 Agreements for collection and payment of contributions
Notwithstanding the provisions of subdivision 1301(6)(A) of this title, the Commissioner is authorized to enter into reciprocal agreements with the appropriate agencies of other states or the federal government adjusting the collecting and payment of contributions by employers for services of individuals not performed wholly within the jurisdiction of this State. Under the agreements, services may be agreed to be considered for all purposes, in the Commissioner’s discretion, as wholly within or wholly outside of the jurisdiction of this State.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2021, No. 20, § 221.)
§ 1320 Investigations; general powers
(a)(1) The Commissioner is authorized to conduct investigations, secure and transmit information, make available services and facilities, and exercise the other powers provided pursuant to this chapter as the Commissioner deems necessary or appropriate to facilitate the administration of any unemployment compensation or public employment service law.
(2) The Commissioner is also authorized to accept and utilize information, services, and facilities made available to this State by any agency charged with the administration of any other unemployment compensation or public employment service law.
(3) To the extent permissible under the laws and constitution of the United States, the Commissioner of Labor is authorized to enter into or cooperate in arrangements under which facilities and services provided under this chapter and facilities and services provided under the unemployment compensation law of any foreign government may be utilized for the taking of claims and the payment of benefits under this chapter, or under a similar law of the foreign government.
(b) On request of an agency that administers an employment security law of another state or of a foreign government, and that has found in accordance with the provisions of its law that an individual is liable to repay benefits received under the law, the Commissioner may collect from the individual the amount of benefits to be refunded to the agency, and the amounts may be collected by civil action in the name of the Commissioner acting as agent for the agency.
(c) Records, with any necessary authentication of the records, required in the prosecution of any criminal action brought by another state or foreign government for misrepresentation to obtain benefits under the law of this State shall be made available to the agency administering the employment security law of the other state or foreign government for the purpose of the prosecution.
(d)(1) The Commissioner may begin and prosecute civil proceedings in any other state to collect contributions, penalties, and interest legally due under this chapter.
(2) The officials of other states that extend a like comity to this State may sue for the collection of contributions, interest, and penalties imposed by those other states, in the courts of this State. In any such case, the Commissioner of Labor may, through the Commissioner’s legal assistant, begin and conduct the suit for the other state.
(3) The courts of this State shall recognize and enforce liability for those contributions, interest, and penalties imposed by other states that extend a like comity to this State.
(e) The Commissioner may enter into or cooperate in arrangements or reciprocal agreements with authorized agencies of other states by which:
(1) overpayments of benefits as determined under this chapter may be recovered by offset from benefits otherwise payable under the unemployment compensation law of another state; and
(2) overpayments of benefits as determined under the unemployment compensation law of another state may be recovered by offset from benefits otherwise payable under this chapter.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1967, No. 88, eff. April 12, 1967; 1981, No. 66, § 5(b), eff. May 1, 1981; 1991, No. 183 (Adj. Sess.), § 2; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 179, eff. July 1, 2024.)
§ 1321 Contributions; taxable wage base changes
(a) Payment of contributions. Contributions shall accrue and become payable by each employer for each calendar year in which the employer is subject to this chapter, with respect to wages paid for employment, as defined in subdivision 1301(6) of this subchapter, occurring during the calendar year, except as otherwise provided in this section. The contributions shall become due and be payable at times and in installments prescribed by the Board.
(b) Base of contributions. The term “wages” shall not include that part of remuneration that, after remuneration equal to $13,000.00 on January 1, 2011, and $16,000.00 on January 1, 2012, has been paid in a calendar year to an individual by an employer with respect to employment during a calendar year, unless that part of the remuneration is subject to a tax under a federal law imposing a tax against which credit may be taken for contributions required to be paid into a state unemployment fund. After January 1, 2012, whenever the Unemployment Compensation Fund has a positive balance and all advances made to the State Unemployment Compensation Fund pursuant to Title XII of the Social Security Act have been repaid as of June 1, the base of contribution amount shall be adjusted on January 1 of the following year by the same percentage as any increase in the State annual average wage as calculated pursuant to subsection 1338(g) of this subchapter. When the unemployment contribution rate schedule established by subsection 1326(e) of this subchapter is reduced to schedule III, the base of contribution amount shall be reduced by $2,000.00 on January 1 of the following year and shall be adjusted annually thereafter on January 1 of the following year by the same percentage as any increase in the State annual average wage as calculated pursuant to subsection 1338(g) of this subchapter. When the unemployment contribution rate schedule established by subsection 1326(e) of this subchapter is reduced to schedule I, the base of contribution amount shall be reduced by $2,000.00 on January 1 of the following year and shall be adjusted annually thereafter on January 1 of the following year by the same percentage as any increase in the State annual average wage as calculated pursuant to subsection 1338(g) of this subchapter. For the purposes of this subsection:
(1) any employer who acquired the entire or a distinct and severable portion of the organization, trade, or business of an employer shall be treated as a single unit with its predecessor for the calendar year in which the acquisition occurs; and
(2) the term employment shall include service constituting employment under any unemployment compensation law of another state.
(c)(1) Financing benefits paid to employees of nonprofit organizations.
(A) Benefits paid to employees of nonprofit organizations shall be financed in accordance with the provisions of this subsection (c).
(B) As used in this subsection (c), “nonprofit organization” means an organization, or group of organizations, described in Section 501(c)(3) of the U.S. Internal Revenue Code that is exempt from income tax under Section 501(a) of the Internal Revenue Code.
(2) Liability for contributions and election of reimbursement. Any nonprofit organization that, pursuant to subdivision 1301(5)(B)(i) of this chapter, is or becomes subject to this chapter shall pay contributions under the provisions of this section unless it elects, in accordance with this subsection, to pay to the Commissioner for the Unemployment Insurance Trust Fund an amount equal to the amount of regular benefits and of one-half of the extended benefits paid that is attributable to service in the employ of the nonprofit organization to individuals for weeks of unemployment that begin during the effective period of the election.
(A) [Repealed.]
(B) Any nonprofit organization that becomes subject to this chapter may elect to become liable for payments in lieu of contributions for a period of not less than 12 months by filing a written notice of its election with the Commissioner not later than 30 days immediately following the date of the determination that the organization is subject to this chapter.
(C) Any nonprofit organization that makes an election in accordance with subdivision (B) of this subdivision (c)(2) shall continue to be liable for payments in lieu of contributions until it files with the Commissioner a written notice terminating its election not later than 30 days prior to the beginning of the calendar year for which the termination shall first be effective.
(D) Any nonprofit organization that has been paying contributions under this chapter may elect to become liable for payments in lieu of contributions by filing with the Commissioner not later than 30 days prior to the beginning of any calendar year a written notice of election to become liable for payments in lieu of contributions. An election under this subdivision (c)(2)(D) shall not be terminable by the organization for that year and the next year.
(E) The Commissioner may for good cause extend the period within which a notice of election, or a notice of termination, must be filed and may permit an election to be retroactive.
(F) The Commissioner, in accordance with any applicable rules adopted by the Board, shall notify each nonprofit organization of any determination that the Commissioner makes with regard to its status as an employer and the effective date of any election that the organization makes and of any termination of an election. The determinations shall be subject to reconsideration and to appeal and review in accordance with the provisions of section 1337a of this title.
(3) Reimbursement payments. Payments in lieu of contributions shall be made in accordance with the provisions of this subdivision, including either subdivision (A) or (B).
(A) At the end of each calendar quarter, or at the end of any other period as determined by the Commissioner, the Commissioner shall bill each nonprofit organization, or group of nonprofit organizations, that has elected to make payments in lieu of contributions for an amount equal to the full amount of regular benefits plus one-half of the amount of extended benefits paid during the quarter or other prescribed period that is attributable to service in the employ of the organization.
(B)(i) Each nonprofit organization that has elected payments in lieu of contributions may request permission to make payments as provided in this subdivision (c)(3)(B). Payment pursuant to the provisions of this subdivision (c)(3)(B) shall become effective upon approval of the Commissioner.
(ii) At the end of each calendar quarter, the Commissioner shall bill each nonprofit organization approved to make payments pursuant to the provisions of this subdivision (c)(3)(B) for an amount representing a percentage of its total payroll for the immediately preceding calendar year that the Commissioner determines to be appropriate based on the average benefit costs attributable to service in the employ of nonprofit organizations during the preceding calendar year. The Commissioner may determine a different rate for any organization that did not pay wages throughout the four calendar quarters of the preceding calendar year.
(iii) At the end of each calendar year, the Commissioner may modify the quarterly percentage of payroll thereafter payable by the nonprofit organization in order to minimize excess or insufficient payments.
(iv) At the end of each calendar year, the Commissioner shall determine whether the total of payments for the year made by a nonprofit organization is less than, or in excess of, the total amount of regular benefits plus one-half of the amount of extended benefits paid to individuals during the taxable year based on wages attributable to service in the employ of the organization. Each nonprofit organization whose total payments for the year are less than the amount determined shall be liable for payment of the unpaid balance to the Trust Fund in accordance with subdivision (C) of this subdivision (c)(3). If the total payments exceed the amount so determined for the taxable year, all or a part of the excess shall, at the election of the nonprofit organization, be refunded from the Trust Fund or retained in the Trust Fund as part of the payments that may be required for the next calendar year.
(C) Payment of any bill rendered under subdivision (2) of this subsection (c) or this subdivision (c)(3) shall be made not later than 30 days after the bill is mailed to the last known address of the nonprofit organization or is otherwise delivered to it unless there has been an application for redetermination by the Commissioner or a petition for hearing before a referee in accordance with subdivision (E) of this subdivision (c)(3).
(D) Payments made by any nonprofit organization under the provisions of this section shall not be deducted or deductible, in whole or in part, from the remuneration of individuals in the employ of the organization.
(E)(i) The amount due specified in any bill from the Commissioner shall be conclusive on the organization unless, not later than 30 days after the date of the bill, the organization files an application for reconsideration by the Commissioner, or a petition for a hearing before a referee, setting forth the grounds for the application or petition.
(ii) The Commissioner shall promptly review and reconsider the amount due specified in the bill and shall thereafter issue a redetermination in any case in which an application for redetermination has been filed. Any such redetermination shall be conclusive on the organization unless, not later than 30 days after the date of the redetermination, the organization files a petition for a hearing before a referee setting forth the grounds for the petition.
(iii) Proceedings on the petition for a hearing before a referee on the amount of a bill rendered under this section or a redetermination of the amount shall be in accordance with the provisions of section 1331 of this title, and the decision of the referee shall be subject to the provisions of that section. Review of the decision of the referee by the Employment Security Board shall be in accordance with, and its decision shall be subject to, the provisions of section 1332 of this title.
(F) Any employer, including the State of Vermont, that makes payments in lieu of contributions under this section shall be subject to the provisions of sections 1314, 1322, 1328, 1329, 1334, and 1336 of this title as follows:
(i) The employer shall be liable for any reports required by the Commissioner pursuant to sections 1314 and 1322 of this title.
(ii) The employer shall be liable for any penalty imposed pursuant to sections 1314 and 1328 of this title.
(iii) The employer shall be liable for the same interest on past due payments pursuant to subsection 1329(a) of this title.
(iv) The employer shall be subject to a civil action for the collection of past due payments as if those payments were contributions pursuant to subsections 1329(b) and 1334(a) of this title.
(v) The employer shall be subject to actions for the collection of past due payments as if those payments were contributions pursuant to subsections 1329(c) and (d) and 1334(b) and (c) and section 1336 of this title; however, those provisions shall not apply to the State of Vermont.
(4) Authority to terminate elections. If any nonprofit organization is delinquent in making payments in lieu of contributions as required under this subsection, the Commissioner may terminate the organization’s election to make payments in lieu of contributions as of the beginning of the next taxable year, and the termination shall be effective for that and the next taxable year.
(5) Allocation of benefit costs.
(A) Each employer that is liable for payments in lieu of contributions shall pay to the Commissioner for the Trust Fund the amount of regular benefits plus the amount of one-half of extended benefits paid that are attributable to service in the employ of the employer.
(B) If benefits paid to an individual are based on wages paid by more than one employer and one or more of the employers are liable for payments in lieu of contributions, the amount payable to the Trust Fund by each employer that is liable for payments in lieu of contributions shall be an amount that bears the same ratio to the total benefits paid to the individual as the total base-period wages paid to the individual by the employer bear to the total base-period wages paid to the individual by all of the individual’s base-period employers.
(6) Group accounts. Two or more employers that have become liable for payments in lieu of contributions, in accordance with the provisions of this section and section 1380 of this title, may file a joint application to the Commissioner for the establishment of a group account for the purpose of sharing the cost of benefits paid that are attributable to service in the employ of the employers. Each application shall identify and authorize a group representative to act as the group’s agent for the purpose of this section. Upon approval of the application, the Commissioner shall establish a group account for the employers effective as of the beginning of the calendar quarter in which the Commissioner receives the application and shall notify the group’s representative of the effective date of the account. The account shall remain in effect for not less than two years and thereafter until terminated at the discretion of the Commissioner or upon application by the group. Upon establishment of the account, each member of the group shall be liable for payments in lieu of contributions with respect to each calendar quarter in the amount that bears the same ratio to the total benefits paid in the quarter that are attributable to service performed in the employ of all members of the group as the total wages paid for service in employment by the member in the quarter bear to the total wages paid during the quarter for service performed in the employ of all members of the group. The Board shall adopt rules as it deems necessary with respect to applications for establishment, maintenance, and termination of group accounts that are authorized by this subdivision, for addition of new members to, and withdrawal of active members from, such accounts, and for the determination of the amounts that are payable under this subsection by members of the group and the time and manner of the payments.
(7) [Repealed.]
(d) Financing benefits paid to employees of State. In lieu of contributions required of employers subject to this chapter, the State of Vermont, including State hospitals but excluding any State institution of higher education, shall pay to the Commissioner, for the Unemployment Compensation Trust Fund, an amount equal to the amount of benefits paid, including the full amount of extended benefits paid, attributable to service by individuals in the employ of the State. At the end of each calendar quarter, or at the end of any other period as determined by the Commissioner, the Commissioner shall bill the State for the amount of benefits paid during the quarter or other prescribed period that is attributable to service in the employ of the State. Subdivisions (c)(3)(C) through (3)(F), inclusive, and subdivisions (c)(5) and (6) of this section as they apply to nonprofit organizations shall also apply to the State of Vermont, except that the State shall be liable for all benefits paid, including the full amount of extended benefits paid, attributable to service in the employ of the State.
(e) Contributions paid by political subdivisions. Any municipality, any State institution of higher education, and any political or governmental subdivisions or instrumentalities of the State shall pay contributions, unless it elects to pay to the Commissioner for the Unemployment Compensation Trust Fund, an amount equal to the amount of benefits paid, including the full amount of extended benefits paid, attributable to service by individuals in the employ of the entity. Subsections (a) and (b) and subdivisions (c)(3)(C) through (3)(F), inclusive, and subdivisions (c)(4) through (6), inclusive, of this section as they apply to nonprofit organizations shall also apply to the entities designated in this subsection, except that these entities shall be liable for all benefits paid, including the full amount of extended benefits paid, attributable to service in the employ of these entities.
(1) Any entity designated in this subsection may elect to become liable for payments in lieu of contributions for a period of not less than one calendar year if it files with the Commissioner a written notice of its election within the 30-day period immediately following that date.
(2) Any entity designated in this subsection may elect to become liable for payments in lieu of contributions for a period of not less than one calendar year following the date on which it becomes subject to the provisions of this chapter by filing a written notice of its election with the Commissioner not later than 30 days immediately following the date of the determination of that subjectivity.
(3) Any entity designated in this subsection that makes an election in accordance with subdivisions (1) and (2) of this subsection will continue to be liable for payments in lieu of contributions until it files with the Commissioner a written notice terminating its election not later than 30 days prior to the beginning of the calendar year for which the termination shall first be effective.
(4) Any entity designated in this subsection that has been paying contributions under this chapter may change to a reimbursable basis by filing with the Commissioner not later than 30 days prior to the beginning of any calendar year a written notice of election to become liable for payments in lieu of contributions. The election shall not be terminable by the organization for that year and the next year.
(5) The Commissioner may for good cause extend the period within which a notice of election or a notice of termination must be filed and may permit an election to be retroactive but not any earlier than with respect to benefits paid after the date that entity became subject to this chapter.
(6) The Commissioner shall notify each entity designated in this subsection of any determinations that the Commissioner makes regarding its status as an employer and of the effective date of any election that it makes and of any termination of that election. The determination shall be subject to reconsideration and to appeal and review in accordance with the provisions of section 1337a of this subchapter.
(f) Payments in lieu of contributions considered self-insuring. Any employer who makes payments in lieu of contributions under the provisions of this section is considered to be self-insuring and shall pay to the Commissioner for the Unemployment Compensation Trust Fund any amounts the Commissioner finds to be due under this chapter, including benefits paid but denied on appeal or benefits paid in error that cannot be properly charged either against another employer who makes payments in lieu of contributions or against the experience-rating record of another employer who pays contributions. Benefits improperly paid where repayment by the claimant is ordered pursuant to subsection 1347(a) or (b) of this title will be credited to the employer’s account when repayment from the claimant is actually received by the Commissioner.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1963, No. 106, § 1, eff. Jan. 1, 1964; 1971, No. 77, § 3, eff. Dec. 31, 1971; 1977, No. 64, §§ 8-11, 23; 1979, No. 120 (Adj. Sess.), § 7, eff. April 14, 1980; 1981, No. 86, § 9, eff. May 10, 1981; 1983, No. 16, §§ 3-5, eff. April 4, 1983; 1989, No. 132 (Adj. Sess.), § 4; 1991, No. 183 (Adj. Sess.), § 3; 2009, No. 2 (Sp. Sess.), § 1, eff. June 9, 2009; 2009, No. 124 (Adj. Sess.), § 2; 2023, No. 76, § 41, eff. July 1, 2023; 2023, No. 85 (Adj. Sess.), § 180, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 18, § 33, eff. May 13, 2025.)
§ 1321a [Repealed.]
§ 1322 Reports; liability
(a) Every employer shall file with the Commissioner periodic reports to disclose its liability for contributions under this chapter on forms and at times prescribed by the Commissioner.
(b)(1) Every employer subject to this chapter who sells in bulk 50 percent or more of its assets, including any stock of goods, wares, or merchandise of any kind, fixtures, machinery, equipment, buildings, or real estate, when the sale constitutes the sale of the employer’s business to another shall give the Commissioner 10 days’ notice of the sale before the completion of the transfer of the property.
(2) The employer shall file all contribution reports with the Commissioner to the date of the proposed transfer of property and pay all contributions, interest, and penalties due and payable. The employer shall also file the detailed quarterly wage report required by section 1314a of this subchapter covering employee wages to date of proposed transfer.
(3)(A) The Commissioner shall furnish to the employer within 10 days after the reports are filed a certificate showing that all reports have been filed and contributions, interest, and penalties have been paid to the date of the proposed transfer. If the certificate is not furnished by the Commissioner within 10 days, no liability may thereafter be imposed upon the purchaser.
(B) The employer shall present the certificate to the purchaser of the property.
(C) The failure of the purchaser to require the certificate makes the purchaser liable to the Commissioner for the unpaid contributions, interest, and penalties owed by the employer in an amount not to exceed the reasonable value of the assets purchased. The liability imposed upon the purchaser by this subsection shall be secondary to the liability of the employer.
(c) Subsection (b) of this section shall not apply to sales made under any court order or to any sales made by assignees for the benefit of creditors, executors, administrators, receivers, or any public officer in the officer’s official capacity or by any officer of the court.
(d) An employing unit that has been liable otherwise than by its election to pay contributions as an employer under this chapter for any calendar year shall file reports and pay contributions for the next succeeding calendar year as the Commissioner may prescribe.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1967, No. 226 (Adj. Sess.), § 1, eff. Jan. 17, 1968; 1985, No. 50, § 7; 2023, No. 85 (Adj. Sess.), § 181, eff. July 1, 2024.)
§ 1322a Out-of-state or nonresident subcontractors
(a) Any contractor who is or becomes an employer under the provisions of this chapter, who contracts with any out-of-state or nonresident subcontractor, who also is or becomes an employer under the provisions of this chapter, shall:
(1) withhold sufficient monies on the contract to guarantee that all contributions, penalties, and interest are paid upon completion of the contract; or
(2) require the subcontractor to secure a bond guaranteeing payment of all contributions, penalties, and interest due or to become due with respect to wages paid for employment on the contract.
(b) Failure to comply with the provisions of this section shall render the contractor directly liable for the contributions, penalties, and interest due from the subcontractor and the Commissioner shall have all of the remedies of collection against the contractor under the provisions of this chapter as though the services in question were performed directly for the contractor.
(c) Any contractor who becomes liable for and pays contributions with respect to individuals in the employ of a subcontractor may recover the amounts paid from the subcontractor.
(d) As used in this section, the words “contractor” and “subcontractor” mean and include individuals, partnerships, firms or corporations, or other associations of persons engaged in the business of construction, alteration, repairing, dismantling, or demolition of buildings, roads, bridges, viaducts, sewers, water and gas mains, streets, disposal plants, water filters, tanks and towers, airports, dams, water wells, pipelines, and every other type of structure, project, development, or improvement coming within the definition of real property.
(Added 1965, No. 115, eff. June 22, 1965; amended 2023, No. 85 (Adj. Sess.), § 182, eff. July 1, 2024.)
§ 1323 Termination of coverage; agreement by employee to make contribution
(a) An employing unit shall cease to be an employer subject to this chapter only as of the first day of January of any calendar year, if it files with the Commissioner, on or before March 31 next following, a written application for termination of coverage, and the Commissioner finds that the employing unit was not an employer during the preceding calendar year. The requirements of this subsection may be waived by the Commissioner for good cause.
(b) The Commissioner may terminate coverage of any employing unit on the Commissioner’s own motion when the Commissioner finds that the employing unit has not selected coverage in accordance with subdivision 1301(5)(E) of this subchapter and that:
(1) the employing unit has not been an employer for the period of one year immediately preceding;
(2) the person who is the employing unit is deceased; or
(3) the employing unit has ceased to employ at least one person within the State.
(c) Any agreement by an individual employed by an employer to pay the whole or any portion of the employer’s contributions required by this chapter shall be void and no employer shall make any deduction for that purpose from the wages or salary of any individual employed by the employer.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1969, No. 43; 2023, No. 85 (Adj. Sess.), § 183, eff. July 1, 2024.)
§ 1324 Rate of contribution
(a) The standard rate of contributions shall be five and four-tenths percent.
(b) Each employer that has not been subject to this chapter for a sufficient period of time to have the rate computed under section 1326 of this subchapter shall pay contributions at the rate of one percent, except that foreign corporations classified in the three-digit North American Industry Classification System Code as 236, 237, or 238 shall pay contributions at a rate equal to the average rate as of the most recent computation date paid by all employers so classified.
(Amended 1971, No. 77, § 4, eff. Dec. 31, 1971; 1977, No. 64, § 12, eff. Jan. 1, 1977; 1983, No. 124 (Adj. Sess.), § 1; 1987, No. 81; 2001, No. 56, § 3; 2003, No. 131 (Adj. Sess.), § 1; 2023, No. 85 (Adj. Sess.), § 184, eff. July 1, 2024.)
§ 1325 Employers’ experience-rating records; disclosure to successor entity
(a)(1) The Commissioner shall maintain an experience-rating record for each employer. Benefits paid shall be charged against the experience-rating record of each subject employer who provided base-period wages to the eligible individual. Each subject employer’s experience-rating charge shall bear the same ratio to total benefits paid as the total base-period wages paid by that employer bear to the total base-period wages paid to the individual by all base-period employers. The experience-rating record of an individual subject base-period employer shall not be charged for benefits paid to an individual under any of the following conditions:
(A) The individual’s employment with that employer was terminated under disqualifying circumstances.
(B) The individual’s employment or right to reemployment with that employer was terminated by retirement of the individual pursuant to a retirement or lump-sum retirement pay plan under which the age of mandatory retirement was agreed upon by the employer and its employees or by the bargaining agent representing those employees.
(C) As of the date on which the individual filed an initial claim for benefits, the individual’s employment with that employer had not been terminated or reduced in hours.
(D) The individual was employed by that employer as a result of another employee taking leave under chapter 5, subchapter 4 of this title, and the individual’s employment was terminated as a result of the reinstatement of the other employee under chapter 5, subchapter 4 of this title.
(E) [Repealed.]
(F) The individual voluntarily separated from that employer to accompany a spouse who is on active duty with the U.S. Armed Forces or who holds a commission in the U.S. Foreign Service and is assigned overseas as provided by subdivision 1344(a)(2)(A) of this chapter.
(G) [Repealed.]
(H) [Repealed.]
(2) If an individual’s unemployment is directly caused by a major disaster declared by the President of the United States pursuant to 42 U.S.C. § 5122 and the individual would have been eligible for federal disaster unemployment assistance benefits but for the receipt of regular benefits, an employer shall be relieved of charges for benefits paid to the individual with respect to any week of unemployment occurring due to the natural disaster up to a maximum amount of 10 weeks.
(3) [Repealed.]
(b)(1) Any individual or employing unit who in any manner succeeds to or acquires the organization, trade, or business or substantially all of the assets of any employer who has been operating the business within two weeks prior to the acquisition, except any assets retained by the employer incident to the liquidation of the employer’s obligations, and who thereafter continues the acquired business shall be considered to be a successor to the predecessor from whom the business was acquired and, if not already an employer before the acquisition, shall become an employer on the date of the acquisition. The Commissioner shall transfer the experience-rating record of the predecessor employer to the successor employer. If the successor was not an employer before the date of acquisition, the successor’s rate of contribution for the remainder of the rate year shall be the rate applicable to the predecessor employers with respect to the period immediately preceding the date of acquisition if there was only one predecessor or there were only predecessors with identical rates. If the predecessors’ rates were not identical, the Commissioner shall determine a rate based on the combined experience of all the predecessor employers. If the successor was an employer before the date of acquisition, the contribution rate that was assigned to the successor for the rate year in which the acquisition occurred will remain assigned to the successor for the remainder of the rate year, after which the experience-rating record of the predecessor shall be combined with the experience rating of the successor to form the single employer experience-rating record of the successor. At any time prior to the issuance of the certificate required by subsection 1322(b) of this chapter, an employing unit shall, upon request of a potential successor, disclose to the potential successor its current experience-rating record.
(2) Notwithstanding the provisions of subdivision (1) of this subsection, an individual or employing unit who in any manner succeeds to or acquires the organization, trade, or business or substantially all of the assets of any employing unit who was an employer before the date of acquisition and whose currently assigned contribution rate is higher than that currently assigned to the acquiring individual or employing unit shall not be treated as a successor.
(3) If a successor, upon acquisition of an employer under subdivision (1) of this subsection, divides operation of the successor business between two or more corporate entities, the successor shall designate one of the corporate entities involved in the successor’s business operations as the filing successor for purposes of quarterly wage reporting and benefit rate assignment. The designated filing successor shall include all employees involved in carrying on the successor business in the designated filing successor’s quarterly wage reporting and shall pay the full successor benefit tax on all business employees.
(c) Nothing in this section shall be construed to grant to any employer or to individuals performing services for the employer prior claims or rights to the amounts paid by the employer into the Fund.
(d) Notwithstanding any other provision of law, the following shall apply to assignment of rates and transfers of experience:
(1) If an employer transfers its trade or business, or a portion thereof, to another employer and, at the time of the transfer, there is substantially common ownership, management, or control of the two employers, the employment experience attributable to the transferred trade or business shall be transferred to the employer to whom such business is so transferred. The rates of both employers shall be recalculated and made effective immediately upon the date of the transfer of trade or business.
(2) Whenever a person who is not an employer under this chapter at the time it acquires the trade or business of an employer, the unemployment experience of the acquired business shall not be transferred to such person if the Commissioner finds that such person acquired the business solely or primarily for the purpose of obtaining a lower rate of contributions. Instead, that person shall be assigned the highest rate assignable under this chapter until being subject to this chapter for a sufficient period of time to have his or her rate computed under section 1326 of this title. In determining whether the business was acquired solely or primarily for the purpose of obtaining a lower rate of contribution, the Commissioner shall use objective factors that may include:
(A) the cost of acquiring the business;
(B) whether the person continued the business enterprise of the acquired business;
(C) how long that business enterprise was continued; and
(D) whether a substantial number of new employees were hired to perform duties unrelated to the business activity conducted prior to acquisition of the new business.
(3) If a person knowingly violates or attempts to violate subdivision (1) or (2) of this subsection or any other provision of this chapter related to determining the assignment of a contribution rate, or if a person knowingly advises another person in a way that results in a violation of those provisions, the person shall be subject to the following penalties:
(A) If the person is an employer, the person shall be assigned the highest rate assignable under this chapter for the rate year during which the violation or attempted violation occurred and the three rate years immediately following this rate year. If the person’s business is already at the highest rate for any year, or if the amount of increase in the person’s rate would be less than two percent for that year, a penalty rate of contributions of two percent of taxable wages shall be imposed for that year.
(B) If the person is not an employer, that person shall be subject to a civil penalty of not more than $5,000.00. A fine under this subdivision (B) shall be deposited in the Contingent Fund established under section 1365 of this title.
(C) In addition to other penalties under this subdivision (3), a person who violates this section may be imprisoned not more than three years or fined not more than $5,000.00, or both.
(4) As used in this section:
(A) “Attempt to violate” means the intent to evade, misrepresentation, or intentional nondisclosure.
(B) “Knowingly” means having actual knowledge of or acting with deliberate ignorance or reckless disregard of the prohibition.
(C) “Person” has the same meaning as in Section 7701(a)(1) of the Internal Revenue Code of 1986.
(D) “Trade or business” includes the employer’s workforce.
(5) The Commissioner shall establish procedures, by rule, to identify the transfer or acquisition of a business for the purposes of this section.
(e)-(g) [Repealed.]
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 132, eff. May 19, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 98; 1967, No. 262 (Adj. Sess.), § 1, eff. Feb. 28, 1968; 1969, No. 42, § 1; 1977, No. 64, § 13; 1981, No. 86, § 10, eff. May 10, 1981; 1985, No. 50, § 8; 1985, No. 146 (Adj. Sess.), § 1; 1987, No. 100, § 1; 1989, No. 17, eff. April 13, 1989; 1989, No. 47, §§ 1, 2, eff. May 18, 1989; 1989, No. 83, § 2; 1997, No. 101 (Adj. Sess.), §§ 7, 9; 2005, No. 41, § 1; 2009, No. 118 (Adj. Sess.), § 1; 2011, No. 50, § 9c, eff. July 1, 2011; 2013, No. 82, § 1, eff. June 10, 2013; 2013, No. 173 (Adj. Sess.), § 9; 2017, No. 74, § 49; 2019, No. 91 (Adj. Sess.), § 30, eff. March 30, 2020; 2019, No. 91 (Adj. Sess.), § 32, eff. Oct. 1, 2021; 2021, No. 51, § 6, eff. June 1, 2021; 2023, No. 184 (Adj. Sess.), § 1, eff. July 1, 2024; 2025, No. 18, § 33, eff. May 13, 2025; 2025, No. 40, § 17, eff. July 1, 2025.)
§ 1326 Rate based on benefit experience
(a)(1) The Commissioner shall for each rate year compute a benefit ratio for each employer who meets the requirements of section 1327 of this subchapter. For an employer whose record has been chargeable with benefits throughout the three consecutive calendar years immediately preceding the rate year for which the ratio is computed, the benefit ratio shall be the quotient obtained by dividing the total benefits charged to the employer’s record in those three years by the total of the employer’s taxable payrolls for the same three-year period.
(2) For an employer whose record has been chargeable with benefits for at least one but less than three consecutive calendar years immediately preceding the rate year for which the ratio is computed, the benefit ratio shall be the quotient obtained by dividing the total benefits charged to the employer’s record for the calendar year or years by the total of the employer’s taxable payrolls for the same period.
(3) The contribution rate of each employer, not otherwise ineligible, who meets the requirements of section 1327 of this subchapter, shall be determined under subsections (b) through (g) of this section.
(b) The Commissioner shall prepare a schedule that lists all employers for whom a benefit ratio has been computed pursuant to this section, in the order of their benefit ratios, beginning with the lowest such ratio, and on which shall be shown with respect to each such employer:
(1) the amount of the employer’s benefit ratio;
(2) the amount of the employer’s annual taxable payroll; and
(3) a cumulative total consisting of the amount of the employer’s annual taxable payroll plus the amount of the annual taxable payrolls of all other employers preceding the employer on the list.
(c) The Commissioner shall segregate employers so listed into classes in accordance with the cumulative payrolls. The classes shall be determined by the cumulative payroll percentage limits set forth in column B of the table set forth in subsection (e) of this section. Each such class shall be identified by the rate class number in column A that is opposite the figures in column B that represents the percentage limits of each class. In the event an employer’s taxable payroll falls in more than one rate class, the employer shall be assigned to the lower numbered rate class except that no employer shall be assigned to a higher rate class than is assigned any other employer with the same benefit ratio.
(d) The Commissioner shall compute a current fund ratio, and a highest benefit cost rate, as follows:
(1) The current fund ratio shall be determined by dividing the available balance of the Unemployment Compensation Fund on December 31 of the preceding calendar year by the total wages paid for employment during that calendar year as reported by employers by the following March 31.
(2)(A) The highest benefit cost rate is the highest annual ratio within the 10-year period ending on the preceding December 31 of benefits paid, including the State’s share of extended benefits, for taxpaying employers divided by total wages paid in covered employment for taxpaying employers for the same period.
(B) Notwithstanding any provision of subdivision (A) of this subdivision (d)(2) to the contrary, when computing the tax rate schedule to become effective on July 1, 2021 and on each subsequent July 1, the Commissioner shall calculate the highest benefit cost rate without consideration of benefit payments made in calendar year 2020.
(e) The rate schedule shall be determined by dividing the current fund ratio by the highest benefit cost rate. The applicable rate schedule shall be that schedule below the resultant quotient that appears in column C of the following table:
| A. | B. | C. | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | | | | | IF THE RESULTING QUOTIENT IS: | | | | | | Rate Class | % of Taxable Payrolls | 2.50 and over | 2.00 to 2.49 | 1.50 to 1.99 | 1.00 to 1.49 | under 1.00 | | | | From | To | I. | II. | III. | IV. | V. | | _________________________________________ | | | | | | | | | 0 | 00.00 | 00.00 | 0.4% | 0.6% | 0.8% | 1.1% | 1.3% | | 1 | 00.01 | 05.00 | 0.5 | 0.7 | 0.9 | 1.2 | 1.5 | | 2 | 05.01 | 10.00 | 0.6 | 0.8 | 1.1 | 1.4 | 1.8 | | 3 | 10.01 | 15.00 | 0.7 | 1.0 | 1.4 | 1.7 | 2.1 | | 4 | 15.01 | 20.00 | 0.8 | 1.2 | 1.7 | 2.0 | 2.4 | | 5 | 20.01 | 25.00 | 0.9 | 1.4 | 2.0 | 2.3 | 2.7 | | 6 | 25.01 | 30.00 | 1.1 | 1.7 | 2.3 | 2.6 | 3.0 | | 7 | 30.01 | 35.00 | 1.4 | 2.0 | 2.6 | 2.9 | 3.3 | | 8 | 35.01 | 40.00 | 1.7 | 2.3 | 2.9 | 3.2 | 3.6 | | 9 | 40.01 | 45.00 | 2.0 | 2.6 | 3.2 | 3.5 | 4.0 | | 10 | 45.01 | 50.00 | 2.3 | 2.9 | 3.5 | 3.8 | 4.4 | | 11 | 50.01 | 55.00 | 2.6 | 3.2 | 3.8 | 4.1 | 4.8 | | 12 | 55.01 | 60.00 | 2.9 | 3.5 | 4.1 | 4.5 | 5.2 | | 13 | 60.01 | 65.00 | 3.2 | 3.8 | 4.4 | 4.9 | 5.6 | | 14 | 65.01 | 70.00 | 3.5 | 4.1 | 4.7 | 5.3 | 6.0 | | 15 | 70.01 | 75.00 | 3.8 | 4.4 | 5.0 | 5.7 | 6.4 | | 16 | 75.01 | 80.00 | 4.1 | 4.7 | 5.3 | 6.1 | 6.8 | | 17 | 80.01 | 85.00 | 4.4 | 5.0 | 5.6 | 6.5 | 7.2 | | 18 | 85.01 | 90.00 | 4.7 | 5.3 | 5.9 | 6.9 | 7.6 | | 19 | 90.01 | 95.00 | 5.0 | 5.6 | 6.2 | 7.3 | 8.0 | | 20 | 95.01 | 100.00 | 5.4 | 5.9 | 6.5 | 7.7 | 8.4 | | _________________________________________ | | | | | | | |
(f) The contribution rate to become effective on July 1 of each year shall be the rate determined for that class into which the given employer is placed by application of this section.
(g) If, subsequent to the assignment of rates of contribution for any rate year, the benefit ratio of any employer is recomputed and changed, the employer shall be placed in that position on the list that the employer would have occupied had the employer’s corrected benefit ratio been shown on the list, but the altered position on the list shall not affect the position of any other employer.
(h) In the determination of a rate schedule, only the wages paid by employers liable for payment of contributions into the fund and benefit payments not reimbursable by employers liable for payments in lieu of contributions shall be considered in the computation of a current fund ratio and highest benefit cost rate.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 65, eff. Jan. 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 106, § 2; 1965, No. 77, § 1; 1967, No. 159, § 1; 1969, No. 161 (Adj. Sess.); 1973, No. 31, § 1, eff. March 27, 1973; 1977, No. 64, § 14, eff. Jan. 1, 1977; 1983, No. 124 (Adj. Sess.), § 2; 2021, No. 51, § 9a, eff. June 1, 2021; 2023, No. 85 (Adj. Sess.), § 185, eff. July 1, 2024; 2025, No. 40, § 18, eff. July 1, 2025.)
§ 1327 Rate; reduction; conditions
No employer’s contribution rate shall be reduced from five and four-tenths percent for any rate year, except as provided in section 1324 of this subchapter, unless and until the employer’s experience-rating record has been chargeable with benefits throughout the three consecutive calendar years immediately preceding the rate year with respect to which the rate shall be reduced and contributions were payable by the employer with respect to the three calendar years. An employer who has not been subject to the law for a period of time sufficient to meet this requirement may qualify for a reduced rate if the employer’s record has been chargeable with benefits throughout a lesser number of consecutive calendar years but in no event less than one calendar year immediately preceding the rate year with respect to which the rate shall be reduced and contributions were payable by the employer with respect to the period.
(Amended 1963, No. 106, § 3; 1971, No. 77, § 5, eff. Dec. 31, 1971; 1983, No. 124 (Adj. Sess.), § 3; 2023, No. 85 (Adj. Sess.), § 186, eff. July 1, 2024.)
§ 1328 Filing employer quarterly tax contribution reports; failure
The Commissioner shall impose a penalty of $100.00 for each failure by an employer to file any contribution report required under section 1322 of this title on or before the date on which the report is due, which shall be collected in the manner provided for the collection of contributions in section 1329 of this title and shall be paid into the Contingent Fund provided in section 1365 of this title. If the employer demonstrates that its failure was due to a reasonable cause, the Commissioner may waive or reduce the penalty.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 106, § 5; 1967, No. 178; 1985, No. 50, § 9; 1989, No. 132 (Adj. Sess.), § 5; 2009, No. 142 (Adj. Sess.), § 10.)
§ 1329 Collection of unpaid contributions; suit
(a)(1) If any employer fails to make, when due, any contributions or payments required of the employer under this chapter, the obligation shall carry interest at the rate of one and one-half percent per month from the due date.
(2)(A) It shall be the duty of the Commissioner to collect the overdue obligations and interest. Interest collected shall be paid into the Contingent Fund established pursuant to section 1365 of this title.
(B) If an employer has paid the contributions or payments timely to another state through error, the Commissioner may waive the interest.
(C) The Commissioner may waive all or a portion of the interest if the Commissioner determines that the untimeliness of the payment was not caused by fault, neglect, or bad faith on the part of the employer.
(b) In addition to other remedies and proceedings authorized by this chapter, a civil action in the name of the Commissioner may be maintained and the remedies available in a civil action, including attachment and trustee process, shall be available to the Commissioner for the collection of contributions, interest, and penalties under this chapter.
(c) An employer failing, for any two calendar quarters during the preceding 20 calendar quarters, to make return or to pay contributions required under this chapter, and who has not ceased to be an employer as provided in section 1323 of this subchapter, may be required by the Commissioner to furnish a good and sufficient bond conditioned upon the payment of the delinquent contributions, together with interest and penalty from the due date of the delinquent contributions, and containing any terms required by the Commissioner. An employer who fails to furnish a bond when required by the Commissioner may be enjoined from employing individuals in employment, as defined by this chapter, upon complaint of the Commissioner in the Superior Court of any county in which the employer is doing business, until the contributions due, together with interest and penalty, are paid to the Commissioner.
(d) In the event of an employer’s dissolution, adjudicated insolvency, adjudicated bankruptcy, receivership, assignment for benefit of creditors, or judicially confirmed extension proposals or composition, claims for contributions due under this chapter and for interest on the unpaid contributions shall be a lien upon the employer’s assets and shall have priority over all other claims except expenses of administration, taxes, wage claims, and prior liens valid under the laws of this State.
(e) No action shall be commenced for the collection of contributions, interest, and penalties under this chapter more than three years after the date on which the contributions became due and payable, unless prior to the expiration of the three-year period:
(1) an assessment proceeding has been instituted under the provisions of section 1330 of this title;
(2) a civil action has been instituted under subsection (b) of this section; or
(3) a lien has been created under section 1336 of this title.
(f) The provisions of subsection (e) of this section shall not apply where an employer intentionally fails or refuses to file a report with the Commissioner or to include in any report all wages that the employer has paid, or otherwise attempts to avoid or reduce liability for the payment of contributions.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1965, No. 27, eff. April 14, 1965; 1967, No. 61; 1969, No. 41; 1983, No. 16, § 6; 1985, No. 121 (Adj. Sess.), § 1, eff. April 16, 1986; 1987, No. 100, § 2; 2017, No. 74, § 50; 2021, No. 105 (Adj. Sess.), § 408, eff. July 1, 2022; 2023, No. 85 (Adj. Sess.), § 187, eff. July 1, 2024.)
§ 1330 Assessment provided
When any employer fails to pay any contributions or payments required under this chapter, the Commissioner shall make an assessment of contributions against the employer together with applicable interest and penalty. After making the assessment, the Commissioner shall give notice to the employer electronically or by ordinary or certified mail, and the assessment shall be final unless the employer petitions for a hearing on the assessment pursuant to section 1331 of this subchapter.
(Amended 1961, No. 210, § 7, eff. July 11, 1961; 1989, No. 8, § 1; 1989, No. 8, § 1; 1991, No. 82, § 2; 2023, No. 85 (Adj. Sess.), § 188, eff. July 1, 2024; 2025, No. 40, § 12, eff. July 1, 2025.)
§ 1331 Notice; hearing
(a) Any employer against whom an assessment is made may, within 30 days after the date of the assessment, file with the Commissioner a petition for a hearing before a referee appointed for that purpose. The petition shall set forth specifically and in detail the grounds upon which it is claimed the assessment is erroneous.
(b) Hearing or hearings on the assessment shall be held by the referee at times and places provided by the rules of the Board and due notice of the time and place of the hearing or hearings shall be given electronically or by ordinary or certified mail to the petitioner.
(c) After the hearing, the petitioner shall be promptly notified electronically or by ordinary or certified mail of the findings of fact, conclusions, and decision of the referee.
(d) The decision of the referee shall be final unless the employer or Commissioner makes application for review of the decision by the Board within 30 days after the date of the decision or unless the Board, on its own motion within the same period, initiates a review of the decision.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 8, eff. July 11, 1961; 1989, No. 8, § 2; 1991, No. 82, § 3; 2023, No. 85 (Adj. Sess.), § 189, eff. July 1, 2024; 2025, No. 40, § 13, eff. July 1, 2025.)
§ 1332 Review by Board; Supreme Court appeal
(a) The Board, upon an application filed or on its own motion, within the time specified in section 1331 of this subchapter, shall, on notice to interested parties, review the decision of the referee.
(b) Before rendering its decision, the Board may order the taking of additional evidence by the referee or, in its discretion, the Board may hear additional evidence to be made a part of the record in the case.
(c) Upon the basis of evidence previously submitted in the case and any additional evidence the Board may take or direct to be taken, the Board may affirm, modify, or reverse the findings and conclusions of the referee and shall render its decision.
(d) The parties shall be promptly notified electronically or by ordinary or certified mail of the findings of fact, conclusions, and decision of the Board. The decision of the Board shall be final unless it is appealed to the Supreme Court.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 9, eff. July 11, 1961; 1971, No. 185 (Adj. Sess.), § 195, eff. March 29, 1972; 1989, No. 8, § 3; 1991, No. 82, § 4; 2023, No. 85 (Adj. Sess.), § 190, eff. July 1, 2024; 2025, No. 40, § 14, eff. July 1, 2025.)
§ 1333 Repealed
[Repealed]
1961, No. 210, § 17, eff. July 11, 1961.
§ 1334 Judgment; exception
(a) Any liability for contributions, payments, penalties, interest, and costs imposed under this chapter becomes, from the time the liability is due and payable, a debt of the liable employer or employing unit to the State for the benefit of the Unemployment Compensation Fund and the Contingent Fund to be recovered in a civil action.
(b) The Commissioner may file in the Superior Court for the county in which the employer resides, or the Washington Superior Court if the employer is a nonresident, a certified copy of an assessment for contributions from which an appeal has not been taken within the time allowed. The court, after due notice to all interested parties shall summarily render a final judgment in accordance with the assessment. The judgment shall have the same effect, and all proceedings in relation to the judgment shall be the same, as though the judgment had been rendered in an action duly heard and determined by the court, provided, however, there shall not be an appeal from the judgment except on matters of law heard and determined in the court.
(c) When an assessment has been made under section 1330 of this subchapter from which a timely appeal has not been taken or when any appeal taken has been finally determined under sections 1331 and 1332 of this subchapter, the Commissioner may, as an additional or alternate remedy to other remedies and proceedings authorized by this chapter, issue a warrant directed to the sheriff of any county of this State. The warrant shall command the sheriff to levy upon and sell the real and personal property of any person liable for unpaid contributions, payments, interest, penalties, and costs due under this chapter, for payment of the amount due and the cost of executing the warrant, and to return the warrant to the Commissioner and to pay the Commissioner the money collected by virtue of the warrant within 60 days after receipt of the warrant. The sheriff shall within five days after receipt of the warrant file with the county clerk a copy of the warrant, and the clerk shall then enter in the judgment docket the name of the person liable, the amount of the contributions, payments, interest, penalties, and costs for which the warrant is issued and the date when the copy is filed. The levy and sale shall be effected in the manner prescribed for levy of execution. If a warrant is returned not fully satisfied, the Commissioner may issue new warrants for the balance due in accordance with the procedure set forth in this subsection.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 1977, No. 64, § 15; 2023, No. 85 (Adj. Sess.), § 191, eff. July 1, 2024.)
§ 1335 Repealed
[Repealed]
1961, No. 210, § 17, eff. July 11, 1961.
§ 1336 Lien; fee; foreclosure
(a)(1) All contributions, interest, penalties, and costs thereon due and payable by an employer under the provisions of this chapter shall be a lien upon the real estate of the employer from the date a lien for the contributions, interest, penalties, and costs is entered in the land records of the town in which is located real estate of the employer.
(2) A lien for contributions, penalties, interest, and costs shall be created upon the personal property or franchises of the employer if the lien is recorded in the town clerk’s office of the town in which the employer resides. If the employer is a corporation or a co-partnership, then the lien on the franchises or personal property of the employer shall be recorded in the town clerk’s office in the town in which the employer has its principal place of business in the State.
(3) Liens created under this section shall show the name of the employer, and the amount of contributions and other indebtedness due to the Commissioner of Labor.
(4) A lien created under this section shall be a lien prior to all other liens except liens created for taxes due the State of Vermont, the federal government, or a town or municipality in this State and wage claims. A lien created under this section shall not be a prior lien to liens on record prior to the recording of the lien provided for by this section.
(b) There shall be paid to the town clerk by the Commissioner for recording each lien, and the discharge of a recorded lien, the fees prescribed in 32 V.S.A. § 1671. The fees shall be added to the amount due from the employer under the lien.
(c) An employer upon whose property a lien is created as provided in this section shall be given notice of the lien by ordinary or certified mail within five days after the creation of the lien.
(d) When the contributions, interest, penalties, and costs, secured by a lien in accordance with this section, remains unpaid for 90 days after the creation of the lien, the lien on personal property may be foreclosed in the same manner as provided by law for the foreclosure of mortgages on personal property; and a lien on real property may be foreclosed in the same manner as provided by law for the foreclosure of mortgages on real property. The remedy provided by this section shall be in addition, or as an alternative, to the remedy provided by section 1329 of this subchapter for the collection of unpaid contributions.
(e) In the event the employer files a written protest to the creation of the lien within 30 days after the date the lien is created, assessment proceedings as provided in sections 1329–1334 of this subchapter shall be had.
(f) If final judgment is in favor of the employer, the property of the employer shall be discharged from the lien. If final judgment is against the employer, the property under the lien shall be held to respond to the judgment rendered and may be taken in execution thereon unless the employer otherwise satisfies the execution and charges.
(g) The Commissioner shall issue and record a certificate of release of the lien if:
(1) The Commissioner finds that the liability for contributions due, together with interest, penalty, and costs, has been satisfied or has become unenforceable.
(2) There is furnished to the Commissioner a bond with surety approved by the Commissioner in a penal sum sufficient to equal the amount of contributions due, together with interest, penalty, and costs. The bond shall be conditioned upon the payment of any judgment rendered in proceedings regularly instituted by the Commissioner to enforce collection of the amount due.
(3) The Commissioner determines at any time that the interest of the State of Vermont in the property has no value.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 58; 1969, No. 40, § 1, eff. April 4, 1969; 1981, No. 66, § 5(b), eff. May 1, 1981; 1989, No. 8, §§ 4, 5; 1991, No. 82, § 5; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 192, eff. July 1, 2024.)
§ 1337 Adjustments and refunds
(a) If not later than three years after the date on which any contributions or interest thereon became due, an employer who has paid the contributions or interest thereon applies for an adjustment of the contributions or interest in connection with subsequent contribution payments, or for a refund of the amounts paid because an adjustment cannot be made, and the Commissioner determines that the payments or any portion of the payments were erroneously collected, the Commissioner shall allow the employer to make an adjustment for the amounts erroneously collected, without interest, in connection with subsequent payments by the employer, or if the adjustment cannot be made, shall refund the amount without interest from the Fund.
(b) The Commissioner may make an adjustment or refund on the Commissioner’s own initiative for the same reasons and within the time period set forth in subsection (a) of this section.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1997, No. 101 (Adj. Sess.), § 3; 2023, No. 85 (Adj. Sess.), § 193, eff. July 1, 2024.)
§ 1337a Administrative determination; hearing on
(a) Any employing unit aggrieved by an administrative determination affecting its rate of contributions, its rights to adjustment or refund on contributions paid, its coverage as an employer, or its termination of coverage may, within 30 days after the date of the determination, file with the Commissioner a petition for a hearing on the determination. The petition shall set forth specifically and in detail the grounds upon which it is claimed the administrative determination is erroneous. Hearing or hearings on the petition shall be held by a referee appointed for that purpose, at times and places as provided by rules of the Board. Notice of the time and place of the hearing or hearings shall be given electronically or by ordinary or certified mail to the petitioner.
(b) After a hearing pursuant to subsection (a) of this section, the petitioner shall be promptly notified electronically or by ordinary or certified mail of the findings of fact, conclusions, and decision of the referee. The decision of the referee shall be final unless the employing unit or Commissioner makes application for review of the decision by the Board within 30 days after the date of the decision or unless the Board, on its own motion within the same period, initiates a review of the decision.
(Added 1961, No. 210, § 10, eff. July 11, 1961; amended 1965, No. 76, § 1, eff. May 26, 1965; 1989, No. 8, § 6; 1991, No. 82, § 6; 2023, No. 85 (Adj. Sess.), § 194, eff. July 1, 2024; 2025, No. 40, § 15, eff. July 1, 2025.)
§ 1338 Weekly benefits
(a) Each eligible individual who is totally unemployed in any week shall be paid with respect to a the week a weekly benefit amount determined as provided in this section.
(b), (c) [Repealed.]
(d)(1) To qualify for benefits an individual must:
(A) have been paid in one quarter of the individual’s base period wages in employment with an employer or employers subject to this chapter that equal at least $1,000.00;
(B) have been paid in the individual’s base period additional wages in employment with an employer or employers subject to this chapter that equal or exceed 40 percent of the total wages paid in the highest quarter of the individual’s base period; and
(C) have earned subsequent to the beginning of the individual’s most recent benefit year wages in employment with an employer or employers subject to this chapter that equal or exceed four times the individual’s weekly benefit amount as determined under subsection (e) of this section for that prior benefit year.
(2) The base period wages shall not include any wages paid by an employing unit based on a separation for gross misconduct under subdivision 1344(a)(2)(B) of this title.
[Subsection (e) effective until occurrence of contingency; see also contingent amendments to subsection (e) by 2021, No. 183 §§ 52d–52e and 52g set out below.]
(e) An individual’s weekly benefit amount shall be determined by dividing the individual’s two high quarter total subject wages required under subdivision (d)(1) of this section by 45, provided that the weekly benefit amount so determined shall not exceed the maximum weekly benefit amount computed pursuant to subsection (f) of this section.
[Contingent amendment to subsection (e) by 2021, No. 183 (Adj. Sess.), §§ 52d and 52e; see also subsection (e) effective until occurrence of contingencies set out above and contingent amendment to subsection (e) by 2021, No. 183 (Adj. Sess.), § 52g set out below.]
(e) An individual’s weekly benefit amount shall be determined by dividing the individual’s two high quarter total subject wages required under subdivision (d)(1) of this section by 45 and adding $25.00 to the resulting quotient, provided that the weekly benefit amount so determined shall not exceed the maximum weekly benefit amount computed pursuant to subsection (f) of this section.
[Contingent amendment to subsection (e) by 2021, No. 183 (Adj. Sess.), § 52g; see also subsection (e) effective until occurrence of contingencies and contingent amendments to subsection (e) by 2021, No. 183 (Adj. Sess.), §§ 52d and 52e set out above.]
(e) An individual’s weekly benefit amount shall be determined by dividing the individual’s two high quarter total subject wages required under subdivision (d)(1) of this section by 45, provided that the weekly benefit amount so determined shall not exceed the maximum weekly benefit amount computed pursuant to subsection (f) of this section.
(f) [Subdivision (f)(1) effective until occurrence of contingency; see also contingent amendments to subdivision (f)(1) by 2021, No. 183, §§52c–52e and 52g set out below.]
(1) The maximum weekly benefit amount shall be annually adjusted on the first day of the first calendar week in July to an amount equal to the sum of $60.00 plus 57 percent of the State annual average weekly wage as determined by subsection (g) of this section.
[Contingent amendment to subdivision (f)(1) by 2021, No. 183 (Adj. Sess.), §§ 52c and 52g; see also subdivision (f)(1) effective until occurrence of contingencies set out above and contingent amendment to subdivision (f)(1) by 2021, No. 183 (Adj. Sess.), §§ 52d and 52e set out below.]
(1) The maximum weekly benefit amount shall be annually adjusted on the first day of the first calendar week in July to an amount equal to 57 percent of the State annual average weekly wage as determined by subsection (g) of this section.
[Contingent amendment to subdivision (f)(1) by 2021, No. 183 (Adj. Sess.), §§ 52d and 52e; see also subdivision (f)(1) effective until occurrence of contingencies and contingent amendment to subdivision (f)(1) by 2021, No. 183 (Adj. Sess.), §§ 52c and 52g set out above.]
(1) The maximum weekly benefit amount shall be annually adjusted on the first day of the first calendar week in July to an amount equal to the sum of $25.00 plus 57 percent of the State annual average weekly wage as determined by subsection (g) of this section.
(2) Notwithstanding any provision of subdivision (1) of this subsection to the contrary:
(A) The maximum weekly benefit amount shall not increase in any year that advances made to the State Unemployment Compensation Fund pursuant to Title XII of the Social Security Act, as amended, remain unpaid.
(B) The maximum weekly benefit amount shall not decrease.
(g) On or before the first day of June of each year, the total wages reported on contribution reports for the preceding calendar year shall be divided by the average monthly number of covered workers (determined by dividing the total covered employment reported on contribution reports pursuant to this chapter for the preceding year by 12). The State average annual wage thus obtained shall be divided by 52 and the State average weekly wage thus determined shall be rounded down to the nearest dollar.
(h) Effective with the first full calendar week of each July, the minimum quarterly wage requirement of subdivision (d)(1) of this section shall be adjusted by a percentage increase equal to the percentage increase, if any, in the State minimum wage effective during the prior calendar year. This adjusted minimum quarterly wage requirement shall be applicable to new claims for benefits with effective dates during or after the first full calendar week of each July.
(i)(1) An individual filing a new claim for unemployment compensation shall, at the time of filing of the claim, be advised that:
(A) unemployment compensation is subject to federal and State income tax;
(B) requirements exist pertaining to estimated tax payments;
(C) the individual may elect to have federal income tax deducted and withheld from the individual’s payment of unemployment compensation in the amount specified in the federal Internal Revenue Code;
(D) the individual who elects to have federal income tax deducted and withheld shall have State income tax withheld at 24 percent of the federal rate; and
(E) the individual shall be permitted to change a previously elected withholding once during each benefit year.
(2) Amounts deducted and withheld from unemployment compensation shall remain in the Unemployment Compensation Trust Fund until transferred to the federal and State taxing authority as a payment of income tax.
(3) The Commissioner shall follow all procedures specified by the U.S. Department of Labor and the federal Internal Revenue Service pertaining to the deducting and withholding of income tax.
(4) Amounts shall be deducted and withheld under this section only after amounts are deducted and withheld for any overpayments of unemployment compensation, child support obligations, or other amounts required to be deducted and withheld under this chapter.
(Amended 1959, No. 51, § 1; 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 84, § 3; 1969, No. 42, § 2; 1971, No. 71, § 1, eff. April 15, 1971; 1973, No. 231 (Adj. Sess.), §§ 2, 3; 1977, No. 64, § 16; 1981, No. 194 (Adj. Sess.), § 2, eff. June 20, 1982; 1983, No. 16, § 7, eff. May 1, 1983; 1985, No. 146 (Adj. Sess.), § 2; 1991, No. 183 (Adj. Sess.), § 4; 1993, No. 177 (Adj. Sess.), § 2; 1995, No. 85 (Adj. Sess.), § 1, eff. Jan. 1, 1997; 1997, No. 101 (Adj. Sess.), § 10; 2001, No. 143 (Adj. Sess.), § 65, eff. June 21, 2002; 2003, No. 70 (Adj. Sess.), § 64, eff. March 1, 2004; 2009, No. 2 (Sp. Sess.), § 2, eff. June 9, 2009; 2009, No. 124 (Adj. Sess.), § 3, eff. July 1, 2011; 2013, No. 173 (Adj. Sess.), § 3; 2021, No. 51, § 10, eff. June 1, 2021; 2021, No. 51, §§ 11, 12; 2021, No. 105 (Adj. Sess.), § 409, eff. July 1, 2022; 2021, No. 183 (Adj. Sess.), § 52b, eff. July 1, 2022; 2021, No. 183 (Adj. Sess.), §§ 52c–52e, 52g; 2023, No. 85 (Adj. Sess.), § 195, eff. July 1, 2024.)
§ 1338a Disregarded earnings
(a) An individual shall be deemed “partially unemployed” in any week of less than full-time work if the wages earned by the individual with respect to such week are less than the weekly benefit amount the individual would be entitled to receive if totally unemployed and eligible. As used in this section, “wages” in any one week includes only that amount of remuneration rounded down to the nearest dollar that is in excess of 50 percent of the individual’s weekly wage.
(b) Notwithstanding subsection (a) of this section, an individual shall not be deemed to be “partially unemployed” if the individual performed less than full-time work only because there was a holiday in that week for which the individual was entitled to holiday pay.
(Added 1959, No. 64, eff. March 31, 1959; amended 1967, No. 246 (Adj. Sess.), § 1, eff. Feb. 20, 1968; 1971, No. 70, eff. April 15, 1971; 1979, No. 120 (Adj. Sess.). § 8, eff. April 14, 1980; 1991, No. 62; 2001, No. 56, § 2; 2009, No. 124 (Adj. Sess.), § 4, eff. July 1, 2012; 2013, No. 173 (Adj. Sess.), § 8; 2025, No. 40, § 19, eff. July 1, 2025.)
§ 1339 Weekly benefit for partial unemployment
Each eligible individual who is partially unemployed in any week shall be paid with respect to such week a partial benefit. Such partial benefit shall be an amount equal to the difference between his or her weekly benefit amount and his or her wages, as used in section 1338a of this title, for such week.
(Amended 1981, No. 86, § 11, eff. May 10, 1981.)
§ 1340 Computation of benefits
(a) Except as provided in subchapter 2 of this chapter, the maximum total amount of benefits payable to any eligible individual during any benefit year shall not exceed the lesser of 26 times his or her weekly benefit amount or 46 percent of the total wages paid to the individual during his or her base period.
(b) An individual who is discharged by his or her last employing unit for misconduct connected with his or her work under subdivision 1344(a)(1)(A) of this title is limited to a maximum amount during the benefit year which is the lesser of the maximum amount determined under subsection (a) of this section or 23 times his or her weekly benefit amount, provided that the individual has not already received more than 23 weeks in his or her benefit year.
(Amended 1959, No. 51, § 2; 1959, No. 107, § 2, eff. April 10, 1959; 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 84, § 5; 1971, No. 1, § 1, eff. Oct. 11, 1970; 2009, No. 156 (Adj. Sess.), § E.401.3, eff. June 3, 2010; 2009, No. 124 (Adj. Sess.), § 5, eff. July 1, 2011.)
§ 1340a Self-Employment Assistance Program
(a) As used in this section:
(1) “Full-time basis” means that the individual is devoting the necessary time as determined by the Commissioner to establish a business that will serve as a full-time occupation for that individual.
(2) “Regular benefits” shall have the same meaning as in subdivision 1421(5) of this title.
(3) “Self-employment assistance activities” means activities approved by the Commissioner in which an individual participates for the purpose of establishing a business and becoming self-employed, including entrepreneurial training, business counseling, and technical assistance.
(4) “Self-employment assistance allowance” means an allowance payable in lieu of regular benefits from the Unemployment Compensation Trust Fund to an individual who meets the requirements of this section.
(5) “Self-Employment Assistance Program” means the program under which an individual who meets the requirements of subsection (d) of this section is eligible to receive an allowance in lieu of regular benefits for the purpose of assisting that individual in establishing a business and becoming self-employed.
(b) The weekly amount of the self-employment assistance allowance payable to an individual shall be equal to the weekly benefit amount for regular benefits otherwise payable pursuant to this title.
(c) The maximum amount of the self-employment assistance allowance paid pursuant to this section shall not exceed the maximum amount of benefits established pursuant to section 1340 of this title with respect to any benefit year.
(d)(1) An individual may receive a self-employment assistance allowance if that individual:
(A) is eligible to receive regular benefits or would be eligible to receive regular benefits except for the requirements described in subdivisions (2)(A) and (B) of this subsection (d);
(B) is identified by a worker profiling system as an individual likely to exhaust regular benefits;
(C) has received the approval of the Commissioner to participate in a program providing self-employment assistance activities;
(D) is engaged actively on a full-time basis in activities that may include training related to establishing a business and becoming self-employed; and
(E) has filed a weekly claim for the self-employment assistance allowance and provided the information the Commissioner requires.
(2) A self-employment allowance shall be payable to an individual at the same interval, on the same terms, and subject to the same conditions as regular benefits pursuant to this chapter, except:
(A) the requirements of section 1343 of this title, relating to availability for work, efforts to secure work, and refusal to accept work, are not applicable to the individual; and
(B)(i) the individual is not considered to be self-employed pursuant to subdivision 1301(24) of this title;
(ii) an individual who meets the requirements of this section shall be considered to be unemployed pursuant to section 1338 of this title; and
(iii) an individual who fails to participate in self-employment assistance activities or who fails to engage actively on a full-time basis in activities, including training, relating to the establishment of a business and becoming self-employed shall be disqualified from receiving an allowance for the week in which the failure occurs.
(e) The self-employment assistance allowance may be paid to up to 35 qualified individuals at any time, provided that the number of qualified individuals receiving a self-employment assistance allowance at any time shall not exceed five percent of the total number of individuals receiving regular benefits at that time.
(f)(1) The self-employment assistance allowance shall be charged to the Unemployment Compensation Trust Fund.
(2) In the event that the self-employment assistance allowance cannot be charged to the Unemployment Compensation Trust Fund pursuant to subdivision (1) of this subsection, the allowance shall be charged in accordance with section 1325 of this title.
(g) The Commissioner may approve a program upon determining that it will provide self-employment assistance activities to qualified individuals.
(h)(1) The Commissioner shall adopt rules to implement this section.
(2) The rules adopted pursuant to this subsection shall include a detailed explanation of how an individual may apply for and establish eligibility for the Self-Employment Assistance Program and any criteria that the Commissioner will consider in determining whether to approve a program.
(i) The Commissioner may suspend the Self-Employment Assistance Program with approval of the Secretary of Administration and notice to the House Committee on Commerce and Economic Development and the Senate Committee on Finance in the event that the Program presents unintended adverse consequences to the Unemployment Compensation Trust Fund.
(j) The Self-Employment Assistance Program may not result in any cost to the Unemployment Trust Fund in excess of the cost that would be incurred by the State and charged to the Fund if the Program were not in operation.
(Added 2019, No. 85 (Adj. Sess.), § 21, eff. Feb. 20, 2020.)
§ 1341 Repealed
[Repealed]
1965, No. 76, § 2, eff. May 26, 1965.
§ 1342 Repealed
[Repealed]
1959, No. 83, § 1, eff. April 2, 1959.
§ 1343 Conditions
(a) An unemployed individual shall be eligible to receive benefits with respect to any week only if the Commissioner finds that the individual has met all of the following requirements:
(1) Has registered for work at and thereafter has continued to report at an employment office in accordance with rules adopted by the Board.
(2) Has made a claim for benefits in accordance with the provisions of section 1346 of this title.
(3)(A) Is able to work and is available for work. In determining the availability of any individual for work during any week, the Commissioner may require, in addition to registration at any employment office, that the individual participate in reemployment services or make other efforts to secure suitable work as the Commissioner reasonably requires under the circumstances and to supply proper evidence of the efforts to secure work.
(B) If, without good cause, the individual fails to comply with the requirements of subdivision (A) of this subdivision (a)(3), the individual shall be ineligible for each week the failure continues. A claimant shall not be ineligible in any week of unemployment for failure to comply with the provisions of this subdivision (a)(3) if the failure is due to an illness or disability that occurs during a week for which the individual was entitled to waiting period credit or benefit payments and after the claimant has registered for work and filed a claim for benefits and no work that would have been considered suitable but for the illness or disability has been offered after the beginning of the illness or disability.
(4) [Repealed.]
(5) Qualifies for a weekly benefit computed in accordance with section 1338 of this title.
(6) Participates in reemployment services, such as job search assistance services, if the individual has been determined to be likely to exhaust regular benefits and needs reemployment services pursuant to a profiling system established by the Commissioner.
(7) Is not self-employed or engaged in self-employment to the extent that it makes the individual unavailable for work.
(8) Has given written notice of resignation to the individual’s employer and the employer subsequently made the termination of employment effective prior to the separation date given in the notice. Provided that the claimant could not establish good cause for leaving work pursuant to subdivision 1344(a)(2)(A) of this subchapter and was not discharged for misconduct as provided in subdivision 1344(a)(1)(A) of this subchapter or for gross misconduct as provided in subdivision 1344(a)(2)(B) of this subchapter, in no case shall unemployment benefits awarded under this subdivision exceed four weeks or extend beyond the date of separation as provided in the employee’s notice to the employer.
(b) Notwithstanding any other provisions of this chapter, any otherwise eligible claimant regularly attending a training course or program approved for the claimant by the Commissioner shall be deemed to be available for work and while attending the course and making satisfactory progress in the training shall not be denied benefits solely because of attendance at the course or because of the claimant’s refusal of an offer of suitable work. Benefits paid to an eligible claimant regularly attending a training course or program approved pursuant to this subsection for any unemployment following the claimant’s refusal of an offer of suitable work, shall not be charged against the experience rating record of any employer, but shall be charged to the Fund.
(c) Benefits are payable on the basis of service in employment as defined in subdivisions 1301(6)(A)(ix) and (x) of this subchapter, in the same amount, on the same terms, and subject to the same conditions as benefits payable on the basis of other service subject to this chapter, except that:
(1) With respect to services performed in an instructional, research, or principal administrative capacity for an educational institution, benefits shall not be payable on the basis of such services for any week of unemployment commencing during the period between two successive academic years or terms (or, when an agreement provides instead for a similar period between two regular but not successive terms, during such period) or during a period of paid sabbatical leave provided for in the individual’s contract, to any individual if the individual performs such services in the first of the academic years or terms and if there is a contract or reasonable assurance that the individual will perform services in any such capacity for any educational institution in the second of the academic years or terms.
(2) With respect to services performed in any other capacity for an educational institution, benefits shall not be payable on the basis of such services to any individual for any week of unemployment that commences during a period between two successive academic years or terms if the individual performs such services in the first of the academic years or terms and there is a reasonable assurance that the individual will perform such services for any educational institution in the second of the academic years or terms, except that if benefits are denied to any individual under this subdivision and the individual was not offered an opportunity to perform such services for the educational institution for the second of the academic years or terms, the individual shall be entitled to a retroactive payment of the benefits for each week for which the individual filed a timely claim for benefits and for which benefits were denied solely by reason of this subdivision.
(3) With respect to any services described in subdivision (1) or (2) of this subsection, benefits shall not be payable on the basis of services in any such capacities to any individual for any week that commences during an established and customary vacation period or holiday recess if the individual performs such services in the period immediately before the vacation period or holiday recess, and there is a reasonable assurance that the individual will perform such services in the period immediately following the vacation period or holiday recess.
(4) With respect to any services described in subdivision (1) or (2) of this subsection, benefits shall not be payable on the basis of services in any such capacities as specified in subdivisions (1), (2), and (3) of this subsection to any individual who performed such services in an educational institution while in the employ of an educational service agency. As used in this subdivision, the term “educational service agency” means a governmental agency or governmental entity that is established and operated exclusively for the purpose of providing such services to one or more educational institutions.
(d) Notwithstanding any other provision of this chapter, any otherwise eligible claimant who was separated from employment due to an accident or injury resulting in a temporary total disability for which the claimant received workers’ compensation benefits under chapter 9 of this title shall be entitled to receive, after the termination of the period of temporary total disability, benefits that would have been available at the time of separation from employment. Payment of benefits for any week under this section shall be made only if, at the time the claimant files the initial claim, the claimant was not monetarily eligible for benefits under subsection 1338(d) of this subchapter and the claim is filed within six months after the termination of the period of temporary total disability.
(e) Benefits shall not be paid to any individual on the basis of any services, substantially all of which consist of participating in sports or athletic events or training or preparing to so participate, for any week that commences during the period between two successive sport seasons, or similar periods, if the individual performed such services in the first of the seasons, or similar periods, and there is a reasonable assurance that the individual will perform such services in the later of the seasons, or similar periods.
(f)(1) Benefits shall not be payable on the basis of services performed by an alien unless the alien is an individual who was lawfully admitted for permanent residence at the time the services were performed, was lawfully present for purposes of performing the services, or was permanently residing in the United States under color of law at the time the services were performed, including an alien who was lawfully present in the United States as a result of the application of the provisions of 8 U.S.C. § 1182(d)(5). Provided, that any modifications to the provisions of 26 U.S.C. § 3304(a)(14) as provided by Pub. L. No. 94-566 that specify other conditions or other effective date than stated in this section for the denial of benefits based on services performed by aliens and which modifications are required to be implemented under state law as a condition for full tax credit against the tax imposed by the Federal Unemployment Tax Act, shall be deemed applicable under the provisions of this section.
(2) Any data or information required of individuals applying for benefits to determine whether benefits are not payable to them because of their alien status shall be uniformly required from all applicants for benefits.
(3) In the case of an individual whose application for benefits would otherwise be approved, no determination that benefits to such individual are not payable because of his or her alien status shall be made except upon a preponderance of the evidence.
(Amended 1959, No. 51, § 3; 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1963, No. 84, § 4; 1965, No. 94, eff. June 14, 1965; 1971, No. 77, § 6, eff. Dec. 31, 1971; 1977, No. 64, §§ 17, 24, eff. Jan. 1, 1978; 1981, No. 86, § 1, eff. May 3, 1981, § 12, eff. May 10, 1981; 1981, No. 182 (Adj. Sess.); 1983, No. 16, § 9, eff. April 4, 1983; 1983, No. 124 (Adj. Sess.), §§ 4, 5, eff. April 1, 1984; 1989, No. 132 (Adj. Sess.), § 6; 1991, No. 183 (Adj. Sess.), § 5; 1993, No. 177 (Adj. Sess.), § 3; 1997, No. 101 (Adj. Sess.), § 8; 1999, No. 126 (Adj. Sess.), § 2; 2001, No. 56, § 4; 2009, No. 124 (Adj. Sess.), § 6, eff. July 1, 2012; 2009, No. 124 (Adj. Sess.), § 16, eff. July 1, 2017; 2013, No. 173 (Adj. Sess.), § 5; 2017, No. 74, § 51; 2023, No. 85 (Adj. Sess.), § 196, eff. July 1, 2024.)
§ 1344 Disqualifications
(a) An individual shall be disqualified for benefits:
(1) For not more than 15 weeks nor less than six weeks immediately following the filing of a claim for benefits, in addition to any applicable waiting period, as may be determined by the Commissioner according to the circumstances in each case, if the Commissioner finds that:
(A) The individual has been discharged by the individual’s last employing unit for misconduct connected with the individual’s work.
(B) The individual was separated from the individual’s last employing unit because the individual became unable to perform all or an essential part of the individual’s normal duties in the employment without good cause attributable to the employing unit because of the consequences that flow from the individual’s conviction for a felony or misdemeanor or from an action or order of a judge or court in any criminal or civil matter. In the event a conviction or the action or order of any judge or court in any criminal or civil matter is rescinded or expunged, the individual may be eligible for benefits from the time the individual would have otherwise been eligible for benefits.
(2) For any week benefits are claimed, except as provided in subdivision (3) of this subsection, until the individual has presented evidence to the satisfaction of the Commissioner that the individual has performed services in employment for a bona fide employer and has had earnings in excess of six times the individual’s weekly benefit amount if the Commissioner finds that the individual is unemployed because:
(A) The individual left the employ of the individual’s last employing unit voluntarily without good cause attributable to the employing unit. An individual shall not suffer more than one disqualification by reason of such separation. However, an individual shall not be disqualified for benefits if the individual left such employment to accompany a spouse who:
(i) is on active duty with the U.S. Armed Forces and is required to relocate due to permanent change of station orders, activation orders, or unit deployment orders, and when such relocation would make it impractical or impossible, as determined by the Commissioner, for the individual to continue working for such employing unit; or
(ii) holds a commission in the U.S. Foreign Service and is assigned overseas, and when such relocation would make it impractical or impossible, as determined by the Commissioner, for the individual to continue working for such employing unit.
(B) The individual has been discharged by the individual’s last employing unit for gross misconduct connected with the individual’s work. As used in this section, “gross misconduct” means conduct directly related to the employee’s work performance that demonstrates a flagrant, wanton, and intentional disregard of the employer’s business interest and that has direct and significant impact upon the employer’s business interest, including theft, fraud, intoxication, intentional serious damage to property, intentional infliction of personal injury, any conduct that constitutes a felony, or repeated incidents after written warning of either unprovoked insubordination or public use of profanity. An individual shall not suffer more than one disqualification by reason of such separation.
(C) The individual has failed, without good cause, either to apply for available, suitable work when directed by the employment office or the Commissioner, or to accept suitable work when offered, or has during the course of a job interview for available employment made verbal statements that are either untrue, show an unreasonable lack of interest, or are calculated to preclude an offer of work or a directive being made, or to return to the individual’s customary self-employment, if any, when directed by the Commissioner. An individual shall not suffer more than one disqualification for these causes.
(D) In determining whether or not any work or employment is suitable for an individual for purposes of this subdivision, the Commissioner shall consider the degree of risk involved to the individual’s health, safety, and morals; the individual’s physical fitness and prior training; the individual’s experience and prior earnings; the individual’s length of unemployment and prospects for securing local work in the individual’s customary occupation; and the distance of the available work from the individual’s residence.
(E) Notwithstanding any other provisions of this chapter, no work shall be deemed suitable and benefits shall not be denied under this chapter to any otherwise eligible individual for refusing to accept new work under any of the following conditions:
(i) if the position offered is vacant due directly to a strike, lockout, or other dispute;
(ii) if the wages, hours, or other conditions of the work offered are substantially less favorable to the individual than those prevailing for similar work in the locality;
(iii) if, as a condition of being employed, the individual would be required to join a union or to resign from or refrain from joining any bona fide labor organization.
(F)(i) Notwithstanding any other provisions of this chapter:
(I) An otherwise eligible individual shall not be denied benefits for any week if the individual is in training approved under section 236(a)(1) of the Trade Act of 1974, 19 U.S.C. § 2296(a), or the individual is in approved training by reason of leaving work to enter training, provided the work left is not suitable employment as defined in section 236(e) of the Trade Act of 1974, 19 U.S.C. § 2296(e).
(II) An otherwise eligible individual shall not be denied benefits for any week because of the application to any week in approved training of provisions in this law, or any federal unemployment insurance law administered by the Department, relating to availability for work, active search for work, or refusal to accept work.
(ii) Benefits paid to an eligible claimant regularly attending a training course approved under the Trade Act of 1974, 19 U.S.C. § 2296(e), following a refusal of work or leaving of unsuitable work shall not be charged against the experience-rating record of any employer but shall be charged to the Fund.
(G) [Repealed.]
(H) [Repealed.]
(3) For not more than six weeks nor less than one week immediately following the filing of a claim for benefits (in addition to any applicable waiting period), as may be determined by the Commissioner according to the circumstances in each case, if the Commissioner finds that the individual has left the employ of the individual’s last employing unit without good cause attributable to the employing unit because of a health condition, as certified by a health care provider, as defined in 18 V.S.A. § 9432(9), that precludes the discharge of duties inherent in such employment.
(4) For any week with respect to which the Commissioner finds that the individual’s total or partial unemployment is due to a stoppage of work that exists because of a labor dispute at the factory, establishment, or other premises at which the individual is or was last employed, provided that this subdivision shall not apply if:
(A) the individual is not participating in or financing or directly interested in the labor dispute that caused the stoppage of work; or
(B) the stoppage of work was due solely to a lockout, effected by the employer in order to gain some concession from employees. A lockout does not include a temporary suspension of work in response to:
(i) actual or imminent damage to property of the employer; or
(ii) a purposeful effort by employees to reduce productivity.
(5) For any week with respect to which the individual is receiving or has received remuneration in the form of any of the following:
(A) Wages in lieu of notice.
(B) Vacation pay or holiday pay, provided that:
(i) Vacation pay due at time of separation in accordance with a work agreement (whether a formal contract or established custom) shall be allocated to the period immediately following separation, or if due subsequent to separation, it shall be allocated to the week in which due or the next following week, and that number of weeks immediately following as required to equal the total of the weeks of pay due. Any mutual agreement between the employer and employee(s) (whether or not payment is made), allocating such remuneration to any period during which work is performed, within four weeks prior to the date of separation, shall not be valid for the purpose of determining unemployment compensation entitlement or waiting period credit purposes and such payment shall be allocated to the period immediately following separation.
(ii) There shall be no disqualification amount for any holiday.
(C) Severance pay, back pay awards, and back pay settlements. These payments, awards, and settlements shall be allocated to the week(s) and in the manner as specified in the order or agreement, or, in the absence of such specificity, to the week(s) and in the manner that, in the judgment of the Commissioner, would be reasonable.
(D) Compensation for temporary partial disability or temporary total disability under the workers’ compensation law of any state or under a similar law of the United States.
(E)(i) A pension under a plan maintained or contributed to by a base period or chargeable employer, which shall include a governmental or other pension, retirement or retired pay, annuity, or any other similar periodic payment. The weekly benefit amount payable to an individual for the week in which the individual receives remuneration from a pension, retirement or retired pay, annuity, or similar payment shall be reduced, but not below zero:
(I) by the entire prorated weekly amount of the pension if no contributions to the plan were made by the individual;
(II) by no part of the pension if the entire contributions to the plan were provided by the individual, or by the individual and an employer, or any other person or organization; or
(III) by no part of the pension if the services performed by the individual during the base period, or remuneration received for the services, for the employer did not affect the individual’s eligibility for, or increase the amount of, the pension, retirement or retired pay, annuity, or similar payment.
(ii) If the remuneration specified in this subdivision, after applying the provisions of this subdivision, is less than the benefits that would otherwise be due under this chapter, the individual shall be entitled to receive for the week, if otherwise eligible, benefits reduced by the amount of the remuneration, after applying the provisions of this subdivision, and after rounding the remuneration to the next higher dollar, and the provisions of subdivision 1301(9) and sections 1338a and 1339 of this title do not apply.
(F) [Repealed.]
(6) For any week with respect to which or a part of which the individual has received or is seeking to receive unemployment benefits under an unemployment compensation law of another state or of the United States, provided that if the appropriate agency of the other state or of the United States finally determines that the individual is not entitled to unemployment benefits, this disqualification shall not apply.
(b) In periods of “high level unemployment” an individual shall be disqualified for benefits for not more than 12 nor less than six consecutive weeks immediately following the filing of a claim for benefits, as may be determined by the Commissioner according to the circumstances, when it is found that the individual would otherwise be disqualified under the provisions of subdivision (a)(2)(A) of this section, and except that the disqualification provided by this subdivision shall terminate if an individual has performed service in any employment as provided by subdivision (a)(2) of this section.
(c) Notwithstanding any other provision of this chapter, any individual who has been disqualified for regular or extended benefits pursuant to the provisions of subdivision (a)(1) or (a)(3) of this section shall not be eligible to receive extended benefits with respect to any week of unemployment in the individual’s eligibility period unless the individual has been employed after the beginning date of such disqualification and has earned in excess of four times the individual’s weekly benefit amount.
(Amended 1959, No. 236; 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1971, No. 77, § 8, eff. Dec. 31, 1971; 1973, No. 155 (Adj. Sess.), § 3, eff. March 15, 1974; 1973, No. 231 (Adj. Sess.), § 1; 1977, No. 64, §§ 18, 19, 25(b); 1979, No. 120 (Adj. Sess.), § 9, eff. March 31, 1980; 1981, No. 86, §§ 3, 6, 13; 1981, No. 165 (Adj. Sess.), § 1; 1981, No. 194 (Adj. Sess.), § 3, eff. Oct. 1, 1982; 1983, No. 16, § 11, eff. April 4, 1983; 1987, No. 179 (Adj. Sess.); 1989, No. 62; 1993, No. 177 (Adj. Sess.), §§ 4-6; 1999, No. 126 (Adj. Sess.), § 1; 2009, No. 124 (Adj. Sess.), § 7, eff. July 1, 2011; 2013, No. 173 (Adj. Sess.), § 10; 2017, No. 74, § 52; 2019, No. 91 (Adj. Sess.), § 31, eff. March 30, 2020; 2019, No. 91 (Adj. Sess.), § 33, eff. Oct. 1, 2021; 2021, No. 20, § 222; 2021, No. 105 (Adj. Sess.), § 410, eff. July 1, 2022; 2023, No. 6, § 252, eff. July 1, 2023.)
§ 1345 Repealed
[Repealed]
1971, No. 77, § 8, eff. Dec. 31, 1971.
§ 1346 Claims for benefits; rules; notice
(a) Claims for benefits shall be made in accordance with rules adopted by the Board.
(b) Every person making a claim shall certify that he or she has not, during the week with respect to which waiting period credit or benefits are claimed, earned or received wages or other remuneration for any employment, whether subject to this chapter or not, otherwise than as specified in his or her claim. All benefits shall be paid in accordance with the rules adopted by the Board.
(c)(1) An employer shall post notice of how an unemployed individual can seek unemployment benefits in a form provided by the Commissioner in a place conspicuous to individuals performing services for the employer. The notice shall also advise individuals of their rights under the Domestic and Sexual Violence Survivor’s Transitional Employment Program, established pursuant to chapter 16A of this title. The Commissioner shall provide a copy of the notice to an employer upon request without cost to the employer.
(2) An employer shall provide an individual with notification of the availability of unemployment compensation at the time of the individual’s separation from employment. The notification may be based on model notification language provided by the U.S. Secretary of Labor.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1973, No. 155 (Adj. Sess.), § 1, eff. March 15, 1974; 2019, No. 85 (Adj. Sess.), § 19, eff. Feb. 20, 2020; 2019, No. 91 (Adj. Sess.), § 34, eff. March 30, 2020.)
§ 1347 Nondisclosure or misrepresentation; overpayments; waiver
(a) Any person who fails, without good cause, to make reasonable efforts to secure suitable work when directed to do so by the employment office or the Commissioner and has received any amount as benefits under this chapter with respect to weeks for which the person is determined to be ineligible because of the failure, and any person who by nondisclosure or misrepresentation by the person, or by another, of a material fact (irrespective of whether the nondisclosure or misrepresentation was known or fraudulent) has received any amount as benefits under this chapter while any conditions for the receipt of benefits imposed by this chapter were not fulfilled in the person’s case or while the person was disqualified from receiving benefits, shall be liable for the amount. Notice of determination in such cases shall specify that the person is liable to repay to the Fund the amount of overpaid benefits, the basis of the overpayment, and the week or weeks for which the benefits were paid. The determination shall be made within three years after the date of the overpayment.
(b) Any person who receives remuneration described in subdivision 1344(a)(5) of this subchapter that is allocable in whole or in part to prior weeks during which the person received any amounts as benefits under this chapter shall be liable for all such amounts of benefits or those portions of the amounts equal to the portions of the remuneration properly allocable to the weeks in question. Notice of determination in such cases shall specify that the person is liable to repay to the Fund the amount of overpaid benefits, the basis of the overpayment, and the week or weeks for which the benefits were paid. The determination shall be made within three years after the date of the overpayment or within one year after the date of receipt of the remuneration, whichever period is longer.
(c) The person liable under this section shall repay the amount to the Commissioner for the Fund. In addition to the repayment, if the Commissioner finds that a person intentionally misrepresented or failed to disclose a material fact with respect to the person’s claim for benefits, the person shall pay an additional penalty of 15 percent of the amount of the overpaid benefits. Any additional penalty amount collected shall be deposited in the Fund. The amount may be collectible by civil action in the Superior Court, in the name of the Commissioner.
[Subsection (d) effective until the earlier of July 1, 2026 or occurrence of contingency; see also subsection (d) effective on the earlier of July 1, 2026 or occurrence of contingency, set out below.]
(d) In any case in which under this section a person is liable to repay any amount to the Commissioner for the Fund, the Commissioner may withhold, in whole or in part, any future benefits payable to the person, and credit the withheld benefits against the amount due from the person until it is repaid in full, less any penalties assessed under subsection (c) of this section.
[Subsection (d) effective on the earlier of July 1, 2026 or occurrence of contingency; see also subsection (d) effective until the earlier of July 1, 2026 or occurrence of contingency, set out above.]
(d) In any case in which under this section a person is liable to repay any amount to the Commissioner for the Fund, the Commissioner may withhold future benefits payable to the person, in amounts equal to not more than 50 percent of the person’s weekly benefit amount, and credit the withheld benefits against the amount due from the person until it is repaid in full, less any penalties assessed under subsection (c) of this section.
(e) In addition to any repayment required pursuant to subsections (a)–(d) of this section, when it is found by the Commissioner that a person intentionally misrepresented or failed to disclose a material fact with respect to the person’s claim for benefits and in the event the person is not prosecuted under section 1368 of this subchapter and the penalty provided in section 1373 of this subchapter is not imposed, the person shall be disqualified and shall not be entitled to receive benefits to which the person would otherwise be entitled after the determination for such number of weeks not exceeding 26 as the Commissioner shall deem just. The notice of determination shall also specify the period of disqualification imposed pursuant to this subsection.
(f)(1) Notwithstanding any provision of subsection (a), (b), or (d) of this section to the contrary, the Commissioner may waive up to the full amount of any overpayment that is not a result of the person’s intentional misrepresentation of or failure to disclose a material fact if:
(A) the overpayment occurs through no fault of the person; and
(B) recovery of the overpayment would be against equity and good conscience.
(2) A person may request a waiver of an overpayment at any time after receiving notice of a determination pursuant to subsection (a) or (b) of this section.
(3) Upon making a determination that an overpayment occurred pursuant to subsection (a) or (b) of this section, the Commissioner shall, to the extent possible and in consideration of the information available to the Department, determine whether waiver of the amount of overpaid benefits is appropriate.
(4) The Commissioner shall provide notice of the right to request a waiver of an overpayment with each determination that an overpayment has occurred. The notice shall include clear instructions regarding the circumstances under which a waiver may be granted and how a person may apply for a waiver.
(5) If the Commissioner denies an application for a waiver, the Commissioner shall provide written notice of:
(A) the denial with enough information to ensure that the person can understand the reason for the denial; and
(B) the person’s right to appeal the determination pursuant to subsection (h) of this section.
(6)(A) A person whose request to waive an overpayment pursuant to this subsection (f) has been denied pursuant to subdivision (5) of this subsection (f) and whose rights to appeal the denial pursuant to subsection (h) have been exhausted shall be permitted to submit an additional request to waive the overpayment if the person can demonstrate a material change in the person’s circumstances such that recovery of the overpayment would be against equity and good conscience.
(B) The Commissioner may dismiss a request to waive an overpayment that is submitted pursuant to this subdivision (6) if the Commissioner finds that there is no material change in the person’s circumstances such that recovery of the overpayment would be against equity and good conscience. The Commissioner’s determination pursuant to this subdivision (6) shall be final and shall not be subject to appeal.
(7) In the event that an overpayment is waived on appeal, the Commissioner shall, as soon as practicable, refund any amounts collected or withheld in relation to the overpayment pursuant to the provisions of this section.
(g) The provisions of subsection (f) of this section shall, to the extent permitted by federal law, apply to overpayments made in relation to any federal unemployment insurance benefits or similar federal benefits.
(h) Interested parties shall have the right to appeal from any determination under this section and the same procedure shall be followed as provided for in subsection 1348(a) and section 1349 of this title.
(i) The Commissioner shall not attempt to recover an overpayment or withhold any amounts of unemployment insurance benefits from a person:
(1) until after the Commissioner has made a final determination regarding whether an overpayment of benefits to the person occurred and the person’s right to appeal the determination has been exhausted; or
(2) if the person filed an application for a waiver, until after the Commissioner has made an initial determination regarding the application.
(j)(1) The Commissioner shall provide any person who received an overpayment of benefits and is not currently receiving benefits pursuant to this chapter with the option of entering into a plan to repay the amount of the overpayment. The plan shall provide for reasonable weekly, biweekly, or monthly payments in an amount that permits the person to continue to afford the person’s ordinary living expenses.
(2) The Commissioner shall permit a person to request a modification to a repayment plan created pursuant to this subsection if the person’s ability to afford ordinary living expenses changes.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1965, No. 74, eff. May 26, 1965; 1969, No. 205 (Adj. Sess.); 1973, No. 155 (Adj. Sess.), § 2, eff. March 15, 1974; 1981, No. 86, § 14, eff. May 10, 1981; 1987, No. 100, § 3; 1993, No. 177 (Adj. Sess.), § 7; 1995, No. 96 (Adj. Sess.), §§ 1, 2; 1997, No. 101 (Adj. Sess.), § 4; 2011, No. 162 (Adj. Sess.), § E.401.2; 2013, No. 179 (Adj. Sess.), § E.400.1; 2017, No. 74, § 53; 2023, No. 85 (Adj. Sess.), § 197, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 2, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 3, eff. July 1, 2026 or occurrence of contingency.)
§ 1348 Procedure
(a)(1) An authorized representative of the Commissioner shall review each claim for benefits as provided in this chapter and shall, after review of the claim, promptly award any benefits that are determined to be payable under the provisions of this chapter. Prompt notice in writing of the determination of the representative and reasons for it shall be given to the claimant, the claimant’s last employer, all other interested parties, and the Commissioner.
(2) Any interested party may, within 30 days after notice of the determination, file an appeal from the determination with an appeals referee employed by the Commissioner. The appeal shall, be heard within 30 days after it is filed at a place as convenient to the parties as, in the judgment of the referee, is practical. Notice of the hearing shall be provided to the claimant, the claimant’s last employer, and all other interested parties. After the hearing, the determination shall be sustained, modified, or set aside by the referee as may be warranted. Prompt notice in writing of the decision of the referee and the reasons for it shall be given to the claimant, the claimant’s last employer, and all other interested parties.
(b) The authorized representative of the Commissioner may, for good cause, at any time within one year after date of the original determination, reconsider an award of benefits or the denial of a claim for benefits, and may issue a redetermination that may award, terminate, continue, increase, or decrease the benefits. The redetermination shall not affect any benefits paid before the date of the determination under authority of the prior determination in the absence of nondisclosure or misrepresentation of a material fact. Prompt notice in writing of the redetermination and the reasons for it shall be given to the claimant, the claimant’s last employer, and all other interested parties. All parties shall have the same right to appeal and the same procedure shall be followed as provided for in case of appeal from the original determination.
(Amended 1959, No. 117; 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1965, No. 66, eff. May 19, 1965; 1989, No. 8, § 7; 2023, No. 85 (Adj. Sess.), § 198, eff. July 1, 2024.)
§ 1349 Appeals to Board; Supreme Court appeal
(a) Within 30 days after the date of the referee’s decision pursuant to section 1348 of this chapter, an interested party may appeal from the decision of the referee to the Board, by filing an appeal in the manner prescribed by the rules of the Board.
(b) The appeal shall be heard by the Board within a reasonable time after the appeal is filed and after notice to the claimant and the claimant’s last employer.
(c) The Board may affirm, modify, or reverse the decision of the referee solely on the basis of evidence in the record transferred to it by the referee, or upon the basis of evidence in the record and any additional evidence the Board directs to be taken.
(d) Upon motion made by the Commissioner, the Board may review a decision of the referee or a benefit determination.
(e) The Board shall make its findings of fact and conclusions. Prompt notice of the findings of fact, ruling of law, conclusions, and decision of the Board shall be given to the interested parties.
(f) The decision shall be final unless an appeal to the Supreme Court is taken. Testimony given at any hearing upon a disputed claim shall be recorded, but the record need not be transcribed unless ordered.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 11, eff. July 11, 1961; 1971, No. 185 (Adj. Sess.), § 196, eff. March 29, 1972; 1989, No. 8, § 8; 2023, No. 85 (Adj. Sess.), § 199, eff. July 1, 2024.)
§ 1350 Interested party disqualified on behalf of Commissioner
A person shall not participate on behalf of the Commissioner in any case in which he or she is an interested party.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961.)
§ 1351 Procedure
The manner in which disputed claims shall be presented and the conduct of hearings before the Commissioner, a referee, and the Board shall be governed by rules adopted by the Board. The Commissioner, the referee, and the Board shall not be bound by common law or statutory rules of evidence or by technical or formal rules of procedure except as provided in this chapter but may conduct a hearing or trial in such manner as to ascertain the substantial rights of the parties.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 12, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 200, eff. July 1, 2024.)
§ 1352 Witnesses; fees
In the discharge of his or her duties prescribed by this chapter, any member of the Board, a referee, and any authorized agent of the Commissioner shall have power to administer oaths, take depositions, certify to official acts, and by subpoena compel the attendance of witnesses and the production of books, papers, documents, and records, necessary and material to be used in connection with any disputed claim. Witnesses summoned by a member of the Board, a referee, or an agent of the Commissioner in proceedings within this section shall be paid the same fees as witnesses summoned to appear before a Criminal Division of the Superior Court in civil causes. Such fees shall be paid out of the Vermont Employment Security Board Administration Fund.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 13, eff. July 11, 1961; 1973, No. 249 (Adj. Sess.), § 75, eff. April 9, 1974; 2009, No. 154 (Adj. Sess.), § 238.)
§ 1353 Collateral use prohibited
Any determination, redetermination, finding of fact, conclusion of law, decision, final order, or final judgment entered or made by a claims adjudicator or other authorized representative of the Commissioner, an appeals referee, the Employment Security Board, or a court of competent jurisdiction in any type of proceeding under this chapter is binding only between the Department and all parties in that proceeding and is not binding, conclusive, or admissible in any separate or subsequent action between an individual and his or her present or former employer brought before an arbitrator, court, or judge of this State or of the United States, regardless of whether the prior proceeding was between the same or related parties or involved the same facts.
(Added 1989, No. 132 (Adj. Sess.), § 7.)
§§ 1354, 1355 Repealed
[Repealed]
1961, No. 210, § 17, eff. July 11, 1961.
§ 1356 Limitation of fees
An individual shall not be charged fees of any kind by the Commissioner or his or her representatives, a referee, or the Board in any proceeding under this chapter. An individual claiming benefits in any such proceeding may be represented by counsel or other authorized agent; but no such counsel or agents shall together charge or receive for such services from any individual more than 10 percent of the maximum benefits at issue in such proceedings or court action, except as the Board or the court may allow in exceptional circumstances.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 14, eff. July 11, 1961; 1965, No. 75, § 1, eff. May 26, 1965.)
§ 1357 Notices; form and service
Notices required under the provisions of this chapter, unless otherwise provided by the provisions of this chapter or by rules adopted by the Supreme Court, shall be deemed sufficient if given in writing and delivered to the person entitled to it by an agent of the Commissioner, or sent electronically or by ordinary or certified mail to the last known address of the person appearing in the records of the Commissioner. The manner of service shall be certified by the agent of the Commissioner making the service. Regardless of the manner of service and unless otherwise provided, appeal periods shall commence to run from the date of the determination or decision rendered. If a person to whom a notice has been sent files with the Commissioner within 60 days after the date of the notice a sworn statement to the effect that the notice was not received, or if the Commissioner is satisfied that the addressee did not receive the notice, a new notice shall be sent to that person and the appeal period shall commence to run from the date on which the new notice is sent.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1971, No. 185 (Adj. Sess.), § 197, eff. March 29, 1972; 1987, No. 100, § 4; 1989, No. 8, § 9; 1991, No. 82, § 7; 2023, No. 85 (Adj. Sess.), § 201, eff. July 1, 2024; 2025, No. 40, § 16, eff. July 1, 2025.)
§ 1358 Unemployment Compensation Trust Fund; establishment and control
(a) The Unemployment Compensation Trust Fund is established. The Fund shall be kept separate and apart from all other public monies or funds of this State and shall be administered by the Commissioner exclusively for the purposes of this chapter.
(b) The Fund shall consist of:
(1) all contributions collected under this chapter;
(2) interest earned upon any monies in the Fund;
(3) any property or securities acquired through the use of monies belonging to the Fund;
(4) all earnings of the property or securities;
(5) all money credited to this State’s account in the Unemployment Trust Fund pursuant to 42 U.S.C. § 1103; and
(6) all other monies received for the Fund from any other source.
(c) All monies in the Fund shall be mingled and undivided.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1967, No. 190, § 1, eff. April 17, 1967; 2023, No. 85 (Adj. Sess.), § 202, eff. July 1, 2024.)
§ 1359 Administration of Unemployment Compensation Trust Fund
(a) The Fund shall be administered in trust and used solely to pay benefits and refunds upon vouchers drawn on the Fund by the Commissioner pursuant to this chapter and to such rules as the Board is authorized to adopt, except that money credited to this State’s account under 42 U.S.C. § 1103 shall be used exclusively as provided in subsection (d) of this section.
(b) There shall be maintained within the Fund three separate fund accounts:
(1) a clearing account;
(2) an Unemployment Trust Fund account; and
(3) a benefit account.
(c) All monies payable to the Fund shall be immediately deposited in the clearing account upon receipt, and, after clearance shall, except that the monies may be expended for the payment of refunds under this chapter, be deposited immediately with the U.S. Secretary of the Treasury to the credit of the Unemployment Trust Fund account of the State of Vermont in the Unemployment Trust Fund established and maintained pursuant to the Social Security Act, as amended. The Commissioner shall requisition from the Vermont Unemployment Trust Fund account amounts that are necessary for and to be used solely in the payment of benefits and refunds under this chapter. The requisitioned sums shall be deposited in the benefit account. Any monies so withdrawn shall not be used for expenses of administration or any purpose other than the payment of benefits and refunds under this chapter. Requirements with respect to specific appropriation or other formal release by State officers of monies belonging to the State shall not be applicable to withdrawals from the Fund.
(d) Money credited to the account of this State in the Unemployment Trust Fund by the U.S. Secretary of the Treasury:
(1) May not be requisitioned from this State’s account or used except for the payment of benefits and for the payment of expenses incurred for the administration of this chapter. The money may be requisitioned under subsection (a) of this section for the payment of benefits. That money may also be requisitioned and used for the payment of expenses incurred for the administration of this chapter but only under a specific appropriation by the General Assembly and only if the expenses are incurred and the money is requisitioned after the enactment of an appropriation law that:
(A) specifies the purpose for which the money is appropriated and the amount appropriated for that purpose;
(B) limits the period within which the money may be obligated to a period ending not more than two years after the date of the enactment of the appropriation law; and
(C) limits the amount that may be obligated during any 12-month period beginning on July 1 and ending on the next June 30 to an amount that does not exceed the amount by which:
(i) the aggregate of the amounts credited to the account of this State under 42 U.S.C. § 1103 during the same 12-month period and the 14 preceding 12-month periods, exceeds;
(ii) the aggregate of the amount obligated for administration and paid out for benefits and charged against the amounts credited to the account of this State during those 15 12-month periods.
(2) That is obligated for administration or paid out for benefits shall be charged against equivalent amounts that were first credited and that are not already so charged; except that no amount obligated for administration during a 12-month period specified in this section may be charged against any amount credited during such a 12-month period earlier than the 14th preceding such period. Amounts credited to this State’s account in the Unemployment Trust Fund under 42 U.S.C. § 1103 that have been appropriated for expenses of administration shall be excluded from the Unemployment Compensation Trust Fund balance for the purposes of section 1326 of this title.
(e) Money appropriated as provided in this section for the payment of expenses of administration shall be requisitioned as needed for the payment of obligations incurred under the appropriation and, upon requisition, shall be deposited in the Unemployment Compensation Administration Fund from which those payments shall be made. Money so deposited shall, until expended, remain a part of the Unemployment Compensation Trust Fund and, if it will not be expended, shall be returned promptly to the account of this State in the Unemployment Trust Fund.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1967, No. 190, § 2, eff. April 17, 1967; 1969, No. 77, eff. April 18, 1969; 2015, No. 23, § 120; 2023, No. 85 (Adj. Sess.), § 203, eff. July 1, 2024.)
§ 1360 Treasurer
The Commissioner shall designate a treasurer of the Fund, who shall pay all vouchers duly drawn upon the Fund, in such manner as the Commissioner may prescribe. He or she shall have custody of all monies belonging to the Fund and not otherwise held or deposited or invested pursuant to this chapter. The treasurer shall give bond conditioned on the faithful performance of his or her duties as treasurer of the Fund in an amount specified by the Commissioner and approved by the Governor. All premiums upon bonds required pursuant to this section when furnished by an authorized surety company shall be paid from the Unemployment Compensation Administration Fund. The treasurer shall deposit the monies constituting the Fund, under the supervision and control of the Commissioner, according to the provisions of this chapter.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961.)
§ 1361 Management of funds upon discontinuance of Unemployment Trust Fund
The provisions of sections 1358–1360 of this subchapter to the extent that they relate to the federal Unemployment Trust Fund, shall be operative only if the federal Unemployment Trust Fund continues to exist and so long as the U.S. Secretary of the Treasury continues to maintain for this State a separate book account of all Funds deposited in the federal Unemployment Trust Fund by this State for benefit purposes, together with this State’s proportionate share of the earnings of the Unemployment Trust Fund, from which only the Commissioner of Labor is permitted to make withdrawals. If and when federal law no longer requires the federal Unemployment Trust Fund to be maintained as a condition of approval of this chapter as provided in Title III of the Social Security Act, then all monies, properties, or securities in the federal Unemployment Trust Fund, belonging to the Unemployment Compensation Trust Fund of this State, shall be transferred to the treasurer of the Unemployment Compensation Trust Fund, who shall hold, invest, transfer, sell, deposit, and release the monies, properties, or securities in a manner approved by the Commissioner and appropriate for trust funds, subject to all claims for benefits under this chapter.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1981, No. 66, § 5(b), eff. May 1, 1981; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2023, No. 85 (Adj. Sess.), § 204, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 7, eff. July 1, 2024.)
§ 1362 Unemployment Compensation Administration Fund
The Unemployment Compensation Administration Fund is created to consist of all monies received by the State or by the Commissioner for the administration of this chapter. The Unemployment Compensation Administration Fund shall be a special fund managed pursuant to 32 V.S.A. chapter 7, subchapter 5. The Unemployment Compensation Administration Fund shall be handled through the State Treasurer as other State monies are handled, but it shall be expended solely for the purposes and in the amounts found necessary by the Secretary of Labor for the proper and efficient administration of this chapter and its balance shall not lapse at any time but shall remain continuously available to the Commissioner for expenditures consistent with the provisions of this section. All federal monies allotted or apportioned to the State by the Secretary of Labor, or other agency, for the administration of this chapter shall be paid into the Unemployment Compensation Administration Fund and are hereby appropriated to the Unemployment Compensation Administration Fund.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 205, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 8, eff. July 1, 2024.)
§ 1362a [Repealed.]
§ 1363 Expenditures
All monies made available by or received by the State for the State employment service, as provided in chapter 15 of this title, shall be paid to and expended from the Unemployment Compensation Administration Fund, and a special employment service account shall be maintained for that purpose as a part of the Fund. For the purpose of establishing and maintaining free public employment offices, the Commissioner is authorized to enter into agreements with the Railroad Retirement Board or any other agency of the United States charged with the administration of an unemployment compensation law, with any political subdivision of this State or with any private, nonprofit organization, and as a part of any such agreement, the Commissioner may accept monies, services, or quarters as a contribution to the employment service account.
(Amended 1959, No. 329 (Adj. Sess.). § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 206, eff. July 1, 2024.)
§ 1364 Replacement
This State shall replace any monies received from the Secretary of Labor under Title III of the Social Security Act, any monies granted to this State pursuant to the provisions of the Wagner-Peyser Act, and any monies made available by the State or its political subdivisions and matched by monies granted to this State pursuant to the provisions of the Wagner-Peyser Act, that the Secretary of Labor finds after reasonable notice and opportunity for hearing to the Commissioner have, because of any action or contingency, been lost or expended for purposes other than, or in amounts in excess of, those found necessary by the Secretary of Labor for the proper administration of this chapter. In the event that there are insufficient funds in the Contingent Fund as provided in section 1365 of this subchapter, the monies shall be promptly replaced by monies appropriated for the purpose from the general funds of this State to the Unemployment Compensation Administration Fund for expenditure as provided in sections 1362 and 1363 of this subchapter. The Commissioner shall promptly report to the Governor, and the Governor to the General Assembly, the amount required for the replacement.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 207, eff. July 1, 2024.)
§ 1365 Contingent Fund
(a) There is created a special fund to be known as the Contingent Fund. All interest, fines, and penalties collected under the provisions of this chapter, together with any voluntary contributions tendered as a contribution to the Contingent Fund, shall be paid into the Contingent Fund. The monies shall not be expended or available for expenditures in any manner that would permit their substitution for, or a corresponding reduction in, federal funds that would in the absence of the monies be available to finance expenditures for the administration of the unemployment compensation law.
(b) Nothing in this chapter shall prevent the monies from being used as a revolving fund to cover expenditures, necessary and proper under the law for which federal funds have been duly requested but not yet received, subject to the charging of the expenditures against the funds when received.
(c) The monies in the Contingent Fund shall be used by the Commissioner for the payment of costs of administration that are found not to have been properly and validly chargeable against federal grants, or other funds, received for or in the Unemployment Compensation Administration Fund. No expenditure of the Contingent Fund shall be made unless and until the Commissioner finds that no other funds are available or can properly be used to finance the expenditures.
(d) The State Treasurer shall co-sign all expenditures from the Contingent Fund authorized by the Commissioner.
(e) The monies in the Contingent Fund are available to replace, within a reasonable time, any monies received by this State pursuant to 42 U.S.C. § 502 that because of any action or contingency, have been lost or have been expended for purposes other than, or in amounts in excess of, those necessary for the proper administration of the unemployment compensation law.
(f) The monies in the Contingent Fund shall be continuously available to the Commissioner for expenditure in accordance with the provisions of this section and shall not lapse at any time or be transferred to any other fund except as provided pursuant to this section.
(g) On December 31 of each year, all monies in excess of $10,000.00 in the Contingent Fund shall be transferred to the Unemployment Compensation Trust Fund. On or before March 31 of each year, an audit of the Contingent Fund shall be completed and a report of that audit shall be made public.
(h) In the event that a refund of interest, a fine, or a penalty is found necessary, and the interest, fine, or penalty has been deposited in the Contingent Fund, the refund shall be made from the Contingent Fund.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 1983, No. 16, § 8, eff. April 4, 1983; 1985, No. 121 (Adj. Sess.), § 2, eff. April 16, 1986; 2023, No. 85 (Adj. Sess.), § 208, eff. July 1, 2024; 2023, No. 184 (Adj. Sess.), § 9, eff. July 1, 2024.)
§ 1366 Protection of rights and benefits; waiver of rights void
No agreement by an employee to waive his or her right to benefit or any other right under this chapter shall be valid.
§ 1367 Benefits not subject to assignment or trustee process
Benefits that are due or may become due under this chapter shall not be assignable before payment, but this provision shall not affect the survival thereof; and when awarded, adjudged, or paid, shall be exempt from all claims of creditors, and from levy, execution, attachment, and trustee process or other remedy now or hereafter provided for recovery or collection of debt. This exemption may not be waived.
§ 1367a Child support intercept of unemployment benefits
(a) An individual filing a new claim for unemployment compensation shall, at the time of filing the claim, disclose whether or not the individual owes child support obligations as defined under subsection (f) of this section. If the individual discloses that the individual owes child support obligations and is determined to be eligible for unemployment compensation, the Commissioner shall notify the state or local child support enforcement agency enforcing the obligation that the individual has been determined to be eligible for unemployment compensation.
(b) Notwithstanding the provisions of sections 1366 and 1367 of this subchapter, the Commissioner shall deduct and withhold from any unemployment compensation payable to an individual who owes child support obligations as defined under subsection (f) of this section:
(1) the amount specified by the individual to the Commissioner to be deducted and withheld under this subsection if neither subdivision (2) nor (3) of this subsection is applicable; or
(2) the amount, if any, determined pursuant to an agreement submitted to the Commissioner under 42 U.S.C. § 654(19)(B)(i) by the state or local child support enforcement agency, unless subdivision (3) of this subsection is applicable; or
(3) any amount otherwise required to be so deducted and withheld from such unemployment compensation pursuant to legal process, as that term is defined in 42 U.S.C. § 659(i)(5), properly served upon the Commissioner.
(c) Any amount deducted and withheld under subsection (b) of this section shall be paid by the Commissioner to the appropriate state or local child support enforcement agency.
(d) Any amount deducted and withheld under subsection (b) of this section shall for all purposes be treated as if it were paid to the individual as unemployment compensation and paid by the individual to the state or local child support enforcement agency in satisfaction of the individual’s child support obligations.
(e) For purposes of this section, the term “unemployment compensation” means any compensation payable under the state law including amounts payable by the Commissioner pursuant to an agreement under any federal law providing for compensation, assistance, or allowances with respect to unemployment.
(f) As used in this section, “child support obligations” means obligations that are being enforced pursuant to a plan described in 42 U.S.C. § 654 that has been approved by the Secretary of Health and Human Services under part D of Title IV of the Social Security Act.
(g) As used in this section, “state or local child support enforcement agency” means any agency of a state or political subdivision of a state operating pursuant to a plan described in subsection (f) of this section.
(h) The Commissioner shall implement the provisions of this section only if appropriate arrangements have been made for full reimbursement by the state or local child support enforcement agency for all administrative costs incurred by the Commissioner under this section that are attributable to child support obligations being enforced by the state or local child support enforcement agency.
(Added 1981, No. 194 (Adj. Sess.), § 4, eff. Sept. 26, 1982; amended 2023, No. 85 (Adj. Sess.), § 209, eff. July 1, 2024.)
§ 1367b Supplemental Nutrition Assistance Program intercept of unemployment benefits
(a) An individual filing a new claim for unemployment compensation shall, at the time of filing such claim, disclose whether he or she owes an uncollected overissuance of Supplemental Nutrition Assistance Program benefits as defined in 7 U.S.C. § 2022(c)(1). The Commissioner shall notify the State agency administering the Supplemental Nutrition Assistance Program enforcing such obligation of any individual who discloses that he or she owes an uncollected overissuance of Supplemental Nutrition Assistance Program benefits and who is determined to be eligible for unemployment compensation.
(b) Notwithstanding the provisions of sections 1366 and 1367 of this title, the Commissioner shall deduct and withhold from any unemployment compensation payable to an individual who owes an uncollected overissuance of Supplemental Nutrition Assistance Program Benefits:
(1) the amount specified by the individual to the Commissioner to be deducted and withheld under this section;
(2) the amount, if any, determined pursuant to an agreement submitted to the State agency administering the Supplemental Nutrition Assistance Program under 7 U.S.C. § 2022(c)(3)(A); or
(3) any amount otherwise required to be deducted and withheld from unemployment compensation pursuant to 7 U.S.C. § 2022(c)(3)(B).
(c) Any amount deducted and withheld under subsection (b) of this section shall be paid by the Commissioner to the appropriate State agency administering the Supplemental Nutrition Assistance Program.
(d) Any amount deducted and withheld under subsection (b) of this section shall for all purposes be treated as if it were paid to the individual as unemployment compensation and paid by such individual to the State agency administering the Supplemental Nutrition Assistance Program as repayment of the individual’s uncollected overissuance of Supplemental Nutrition Assistance Program benefits.
(e) As used in this section, the term “unemployment compensation” means any compensation payable under this chapter and any federal benefit payments made pursuant to agreements with the U.S. Department of Labor.
(f) This section applies only if arrangements have been made for reimbursement by the State agency administering the Supplemental Nutrition Assistance Program for the administrative costs incurred by the Commissioner under this section that are attributable to the repayment of uncollected overissuances of Supplemental Nutrition Assistance Program benefits to the State agency administering the Supplemental Nutrition Assistance Program.
(g) Any deduction and withholding authorized by this section shall not exceed 25 percent of the individual’s weekly benefit amount.
(Added 1997, No. 101 (Adj. Sess.), § 5; amended 2013, No. 131 (Adj. Sess.), § 126, eff. May 20, 2014.)
§ 1368 False statements to increase payments
A person shall not intentionally make a false statement or representation to obtain or increase any benefit or other payment under this chapter, either for the employee or any other person.
(Amended 2023, No. 85 (Adj. Sess.), § 210, eff. July 1, 2024.)
§ 1369 False statements to avoid unemployment program obligations
A person who intentionally makes a material false statement or representation to avoid becoming or remaining subject to this chapter, or to avoid or reduce a contribution or other payment required of an employer under this chapter for either themselves or for any other person, after notice and opportunity for hearing, may be assessed an administrative penalty of not more than $5,000.00.
(Amended 2009, No. 142 (Adj. Sess.), § 11; 2023, No. 85 (Adj. Sess.), § 211, eff. July 1, 2024.)
§ 1370 Furnishing reports
A person shall not intentionally fail or refuse to furnish any reports required under this chapter or to submit the person’s records to inspection when required under this chapter, or to make or require any deduction from wages to pay all or any portion of the contributions required from employers.
(Amended 2023, No. 85 (Adj. Sess.), § 212, eff. July 1, 2024.)
§ 1371 Each statement separate offense
Each such false statement or representation, and each day of such failure or refusal and each such deduction from wages as provided in this section and sections 1369 and 1370 of this title shall constitute a separate and distinct offense.
§ 1372 Violation by corporate agent
If the employer in question is a corporation, any official or agent of the corporation responsible for a falsehood, failure, or refusal mentioned in sections 1369–1371 of this subchapter shall be subject to the penalties provided in section 1373 of this subchapter.
(Amended 2023, No. 85 (Adj. Sess.), § 213, eff. July 1, 2024.)
§ 1373 General penalty; administrative
A person who violates a provision of this chapter or any lawful rule of the Board, for which no other penalty is provided, shall be assessed an administrative penalty of not more than $5,000.00.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 2009, No. 142 (Adj. Sess.), § 12; 2023, No. 85 (Adj. Sess.), § 214, eff. July 1, 2024.)
§ 1374 Representation in court
The Attorney General shall represent the Commissioner and State in any court action relating to this chapter or to its administration and enforcement, except as other counsel may be designated by the Commissioner with the approval of the Attorney General; provided, however, in prosecutions under this chapter the State’s Attorney of the county in which the offense occurs shall represent the State as in other causes.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 215, eff. July 1, 2024.)
§ 1375 Jurisdiction
Concurrent jurisdiction of offenses under this chapter is vested in the Superior Court.
(Amended 1965, No. 194, § 10; 1973, No. 193 (Adj. Sess.), § 3.)
§ 1376 Limitation of liability of State
Benefits shall be deemed to be due and payable under this chapter only to the extent provided in this chapter and to the extent that monies are available for the payment of benefits to the credit of the Unemployment Compensation Trust Fund. Neither the State nor the Commissioner shall be liable for any amount in excess of such sums.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 216, eff. July 1, 2024.)
§ 1377 Rights subject to legislative control
All the rights, privileges, or immunities conferred by this chapter or by acts done pursuant to this chapter shall exist subject to the power of the General Assembly to amend or repeal this chapter at any time; and there shall be no vested rights of any kind against the amendment or repeal or the termination of this chapter or the subdivisions of any of its provisions by its own terms.
(Amended 2023, No. 85 (Adj. Sess.), § 217, eff. July 1, 2024.)
§ 1378 Requirements for obtaining license or governmental contract
(a) As used in this section, “agency” means any unit of State government, including agencies, departments, boards, commissions, authorities, and public corporations.
(b) [Repealed.]
(c) Every agency shall, upon request, furnish to the Commissioner a list of licenses and contracts issued or renewed by the agency during the reporting period; provided, however, that the Secretary of State shall, with respect to certificates of authority to transact business issued to foreign corporations, furnish to the Commissioner only those certificates originally issued by the Secretary of State during the reporting period and not renewals of the certificates. The lists should include the name, address, Social Security or federal identification number of the licensee or provider, and any other information required by the Commissioner.
(d) If the Commissioner determines that any employing unit that has agreed to furnish goods, services, or real estate space to any agency has neglected or refused to pay contributions or payments in lieu of contributions and that the employing unit’s liability for the contributions or payments in lieu of contributions is not under appeal, the Commissioner shall notify the agency and the employing unit in writing of the amount owed by the employing unit. Upon receipt of the notice, the agency shall transfer to the Commissioner any amounts that would otherwise be payable by the agency to the employing unit, up to the amount certified by the Commissioner. The Commissioner may treat any such payment as if it were a payment received from the employing unit.
(e) No agency of the State shall make final payment of any amount owed under a contract that contemplates the employment of any employing unit within the State or the use of any property within the State, or otherwise release any employing unit from the obligations of any such contract, unless the employing unit shall first obtain a certificate issued by the Commissioner that the employing unit is in good standing with respect to or in full compliance with a plan to pay any and all contributions or payments in lieu of contributions due as of the date of issuance of the certificate.
(f) Upon written request by the Commissioner and after notice and hearing to the employing unit as required under any applicable provision of law, an agency shall revoke or suspend any license or other authority to conduct a trade or business, including a license to practice a profession, issued to any employing unit if the agency finds that contributions or payments in lieu of contributions have not been paid and the employing unit’s liability for contributions or payments in lieu of contributions is not under appeal. For purposes of such findings, the written representation to that effect by the Commissioner to the agency shall constitute prima facie evidence that contributions have not been paid and the employing unit’s liability is not under appeal. The Commissioner shall have the right to intervene in any hearing conducted with respect to a license revocation or suspension. Any findings made by the agency with respect to a license revocation or suspension shall be made only for the purposes of the proceeding and shall not be relevant to or introduced in any other proceeding at law, except for any appeal from a license revocation or suspension. Any license or certificate of authority suspended or revoked under this section shall not be reissued or renewed until the agency receives a certificate issued by the Commissioner that the applicable employing unit is in good standing with respect to any and all contributions or payments in lieu of contributions payable to the Commissioner as of the date of issuance of the certificate. Any person aggrieved by the decision of the agency may appeal from the decision in accordance with the provisions of 3 V.S.A. chapter 25.
(g)(1) For the purposes of this section, a person is in good standing with respect to any and all contributions or payments in lieu of contributions payable if:
(A) no contributions or payments in lieu of contributions are due and payable;
(B) the liability for any contributions or payments in lieu of contributions due and payable is on appeal;
(C) the employing unit is in compliance with a payment plan approved by the Commissioner; or
(D) in the case of a licensee, the agency finds that requiring immediate payment of contributions or payments in lieu of contributions due and payable would impose an unreasonable hardship.
(2) If the agency finds an unreasonable hardship, it may condition renewal on terms that will place the person in good standing with respect to any and all contributions or payments in lieu of contributions as soon as reasonably possible.
(Added 1993, No. 177 (Adj. Sess.), § 8; amended 2009, No. 42, §§ 33b, 33c; 2017, No. 74, § 54; 2023, No. 85 (Adj. Sess.), § 218, eff. July 1, 2024.)
§ 1379 Complaint of misclassification; enforcement by Attorney General [Repealed effective July 1, 2026]
(a) Following the referral of a complaint by the Commissioner of Labor pursuant to the provisions of section 3 of this title, the Attorney General may investigate a complaint that an employing unit or employer has committed a willful, substantial, or systemic violation of section 1314a of this chapter by failing to properly classify one or more employees and may enforce the provisions of this chapter by restraining prohibited acts, seeking civil penalties, obtaining assurances of discontinuance, and conducting civil investigations in accordance with the procedures established in 9 V.S.A. §§ 2458-2461 as though the misclassification of an employee is an unfair act in commerce. Any employing unit or employer complained against shall have the same rights and remedies as specified in 9 V.S.A. §§ 2458-2461. The Superior Court may impose the same civil penalties and investigation costs and order other relief to the State of Vermont or an aggrieved employee for the misclassification of an employee and any related violations of the provisions of this chapter as they are authorized to impose or order under the provisions of 9 V.S.A. §§ 2458 and 2461 in an unfair act in commerce. In addition, the Superior Court may order restitution of wages or other benefits on behalf of an employee and may order reinstatement and other appropriate relief on behalf of an employee.
(b)(1) The Attorney General shall share information and coordinate investigatory and enforcement resources with the Departments of Financial Regulation, of Labor, and of Taxes pursuant to the provisions of section 3 of this title.
(2) Upon receiving notice that the Attorney General has determined that an employing unit or employer has committed a violation of section 1314a of this chapter by failing to properly classify one or more employees, the Commissioners of Financial Regulation and of Taxes shall review whether the employing unit or employer is in compliance with the insurance or tax laws that are under their jurisdiction.
(Added 2019, No. 85 (Adj. Sess.), § 2, eff. Feb. 20, 2020; repealed on July 1, 2026 by 2019, No. 85 (Adj. Sess.), § 11(b).)
§ 1380 Repealed
[Repealed]
1977, No. 64, § 25(a), eff. Jan. 1, 1978.
§ 1381 Repealed
[Repealed]
1987, No. 100, § 5.
§ 1382 Repealed
[Repealed]
1977, No. 64, § 25(a), eff. Jan. 1, 1978.
§ 1383 Severability of provisions
It is the purpose and intention of the General Assembly that the provisions of this chapter are severable and that the invalidity or ineffectiveness of any provision or provisions of this chapter shall not affect the validity or operative force of the remainder of the chapter, except only that it is the legislative intent that the whole chapter shall fail if any one or more of the following and only of the following provisions, are finally determined to be invalid and ineffective:
(1) the exaction of contributions from employers as provided in sections 1321-1327 of this title;
(2) the requirement contained in section 1359 of this subchapter providing for the deposit with the U.S. Secretary of the Treasury of all monies received in the Unemployment Compensation Trust Fund and the use of monies requisitioned from the U.S. Secretary of the Treasury;
(3) the provisions of subdivisions 1344(a)(2)(C)-(E) of this title relating to the denial of compensation upon refusal to accept new work under certain circumstances;
(4) the provisions of section 1377 of this title barring vested rights under this chapter;
(5) the provisions of sections 1386–1388 of this subchapter with respect to suspension or termination of the operation of this chapter or parts of this chapter in the event of modification or invalidity of 42 U.S.C. chapter 7, the Social Security Act.
(Amended 2023, No. 85 (Adj. Sess.), § 219, eff. July 1, 2024.)
§ 1384 Construction
(a) This chapter is enacted in correlation with Titles III and IX of the Social Security Act, 42 U.S.C. chapter 7, and with the Federal Unemployment Tax Act, 26 U.S.C. chapter 23, and the expediency of certain provisions of this chapter depend upon the scope and operation within this State of the provisions of Titles III and IX of the Social Security Act and the Federal Unemployment Tax Act as set forth in this section.
(b) If the Federal Unemployment Tax Act is interpreted or extended to impose within this State a tax with respect to employing units having in their employ less than four persons, or with respect to employing units having in their employ individuals who are not now in “employment” as defined in subdivision 1301(6)(C) of this subchapter, the Governor by proclamation within 10 days of the effective date of the interpretation or extension shall issue a declaration that:
(1) the word “employer” and the words “individual in employment,” as used in this chapter include all employing units having in their employ the applicable smaller number of persons and the individuals in their employ; and
(2) all employing units having in their employ individuals who are newly defined as being in “employment” and the individuals in their employ.
(c) The affected persons shall be treated as individuals in the employ of the employer with respect to contributions and eligibility for benefits under this chapter.
(Amended 2023, No. 85 (Adj. Sess.), § 220, eff. July 1, 2024.)
§ 1385 Contingent provisions
If the Federal Unemployment Tax Act is amended, interpreted, or extended so that employing units not previously included under the definition of “employer,” as that term is used in this chapter, are included under the definition after the Act is amended, interpreted, or extended, then, subject to other provisions of this chapter, benefits shall become payable to any individual on the basis of wages earned in the employ of the newly defined employer, and the wages shall be available to any individual for determining the individual’s eligibility for benefits after the effective date of the extension, or after the date when the newly defined employer’s approved election to be so defined has made the employer subject to this chapter, and the benefit year of the individual shall begin after the date the newly defined employer became subject to this chapter.
(Amended 2023, No. 85 (Adj. Sess.), § 221, eff. July 1, 2024.)
§ 1386 Operation dependent upon federal act
(a) The General Assembly finds that the expediency and beneficial operation of this chapter are dependent upon the effective operation within this State of certain sections of the Federal Unemployment Tax Act:
(1) 26 U.S.C. § 3301 imposing an excise tax upon employers as defined in the Act;
(2) 26 U.S.C. § 3302 allowing credits against the federal tax for contributions paid by employers into an unemployment fund under the unemployment compensation law of a state;
(3) 26 U.S.C. § 3303 prescribing the conditions upon which certain credits under 26 U.S.C. § 3302 may be allowed;
(4) 26 U.S.C. §§ 3303 and 3304 requiring the certification of state law for certain credits under 26 U.S.C. § 3302 and prescribing the conditions for certification.
(b) If any sections identified in subsection (a) of this section is repealed, amended, suspended, or finally declared invalid in a manner that deprives a contributor under this chapter of credits against the tax imposed pursuant to 26 U.S.C. § 3301, then any contribution required by this chapter, to the extent that the repeal, amendment, suspension, or declared invalidity of the federal law deprived the contributor of the benefit of the credit, shall be suspended as provided in section 1387 of this title.
(Amended 2023, No. 85 (Adj. Sess.), § 222, eff. July 1, 2024.)
§ 1387 Suspension of contributions
If the Governor determines that the conditions for the suspension of the contributions required by this chapter pursuant to section 1386 of this subchapter exist because of any repeal, amendment, suspension, or declared invalidity of the Social Security Act, 42 U.S.C. chapter 7, or the Federal Unemployment Tax Act, 26 U.S.C. chapter 23, the Governor shall issue a proclamation regarding the suspension of contributions pursuant to section 1386 of this subchapter and the suspension shall become effective and continue for a period of two years after the date of the proclamation, subject to legislation amending, modifying, or repealing the proclamation during that period.
(Amended 2023, No. 85 (Adj. Sess.), § 223, eff. July 1, 2024.)
§ 1388 Invalidity of acts
If the Social Security Act, 42 U.S.C. chapter 7, or the Federal Unemployment Tax Act, 26 U.S.C. chapter 23, shall be finally held and determined to be wholly invalid or shall be repealed, then this chapter shall become wholly inoperative and ineffective except that the Commissioner shall:
(1) recover any monies on deposit with the U.S. Secretary of the Treasury and redistribute all monies on hand to contributors in proportion to contributions received under the direction of a presiding judge of a Superior Court upon an action brought by the Commissioner against five or more employers; and
(2) take any other actions necessary or proper to liquidate assets and discharge the Commissioner’s obligations pursuant to this chapter.
(Amended 1959, No. 329 (Adj. Sess.), § 22, eff. March 1, 1961; 1961, No. 210, § 15, eff. July 11, 1961; 2023, No. 85 (Adj. Sess.), § 224, eff. July 1, 2024.)
§ 1389 Repealed
[Repealed]
1977, No. 25(a), eff. Jan. 1, 1978.
Subchapter 2 Extended Benefits Program
§ 1421 Definitions
As used in this subchapter,
(1) “Extended benefit period” means a period that:
(A) begins with the third week after a week for which there is a State “on” indicator; and
(B) ends with either of the following weeks, whichever occurs later:
(i) the third week after the first week for which there is a State “off” indicator; or
(ii) the 13th consecutive week of the period;
(I) No extended benefit period may begin by reason of a State “on” indicator before the 14th week following the end of a prior extended benefit period that was in effect with respect to this State.
(2) State “on” indicator.
(A) There is a State “on” indicator for a week if the Commissioner determines, in accordance with the regulations of the U.S. Secretary of Labor that, for the period consisting of that week and the immediately preceding 12 weeks, the rate of insured unemployment, not seasonally adjusted, under this chapter:
(i) equaled or exceeded six percent; or
(ii) equaled or exceeded five percent and equaled or exceeded 120 percent of the average of those rates for the corresponding 13-week period ending in each of the two preceding calendar years.
(B) There is a State “on” indicator for a week if the seasonally adjusted average rate of total unemployment in this State for the period consisting of the most recent three months for which data for all states are published before the close of the week:
(i) equaled or exceeded 6.5 percent; and
(ii) equaled or exceeded 110 percent of the average rate for either, or both, of the corresponding three-month periods ending in the two preceding calendar years.
(3) State “off” indicator. There is a State “off” indicator for a week if the requirements of both subdivisions (A) and (B) of this subdivision are satisfied.
(A) The Commissioner determines, in accordance with the regulations of the U.S. Secretary of Labor that, for the period consisting of that week and the immediately preceding 12 weeks, the rate of insured unemployment, not seasonally adjusted, under this chapter was:
(i) less than five percent; or
(ii) less than six percent and less than 120 percent of the average of those rates for the corresponding 13-week period ending in each of the preceding two calendar years.
(B) The requirements of either subdivision (2)(B)(i) or (ii) of this section are not satisfied.
(4) “Rate of insured unemployment” and “rate of total unemployment.”
(A) “Rate of insured unemployment,” as used in subdivisions (2)(A) and (3)(A) of this section, means the percentage derived by dividing the average weekly number of individuals filing claims for regular benefits in this State for weeks of unemployment with respect to the most recent 13-consecutive-week period, as determined by the Commissioner on the basis of the Commissioner’s reports to the U.S. Secretary of Labor by the average monthly employment covered under this chapter for the first four of the most recent six completed calendar quarters ending before the end of the 13-week period.
(B) As used in subdivisions (2)(B) and (3)(B) of this section, determinations of the “rate of total unemployment” in this State for any period, and of any seasonal adjustment, shall be made by the U.S. Secretary of Labor.
(5) “Regular benefits” mean benefits payable to an individual under this chapter or under any other state’s law, including benefits payable for federal service pursuant to 5 U.S.C. chapter 85, other than extended benefits.
(6) “Extended benefits” mean benefits, including benefits payable for federal service pursuant to 5 U.S.C. chapter 85, payable to an individual under the provisions of this section for weeks of unemployment in the individual’s eligibility period.
(7) “Eligibility period” of an individual means the period consisting of weeks in the individual’s benefit year that begin in an extended benefit period and, if the individual’s benefit year ends within the extended benefit period, any weeks after the individual’s benefit year that begin in that period.
(8) “Exhaustee” means an individual who, with respect to any week of unemployment in the individual’s eligibility period:
(A) has received, prior to that week, all of the regular benefits that were available to the individual under this chapter or any other state law, including dependent’s allowances and benefits payable for federal service under 5 U.S.C. chapter 85, in the individual’s current benefit year that includes the week; provided that, for the purposes of this subdivision, an individual shall be deemed to have received all of the regular benefits that were available to the individual although as a result of a pending appeal with respect to wages or employment that were not considered in the original monetary determination in the individual’s benefit year, the individual may subsequently be determined to be entitled to added regular benefits; or
(B) the individual’s benefit year having expired prior to the week, has no, or insufficient, wages or employment on the basis of which the individual could establish a new benefit year that would include that week; and
(C) the individual has no right to unemployment benefits or allowances, under the Railroad Unemployment Insurance Act, and other federal laws specified in regulations issued by the U.S. Secretary of Labor and has not received and is not seeking unemployment benefits under the unemployment compensation law of Canada; but if the individual is seeking such benefits and the appropriate agency finally determines that the individual is not entitled to benefits under the law the individual is considered an exhaustee.
(9) “State law” means the unemployment insurance law of any state, approved by the U.S. Secretary of Labor under 26 U.S.C. § 3304.
(10) “Suitable work” means, with respect to any individual, any work that is within the individual’s capabilities; except that, if the individual furnished evidence satisfactory to the Commissioner that the individual’s prospects for obtaining work in the individual’s customary occupation within a reasonably short period are good, the determination of whether any work is suitable work with respect to the individual shall be made in accordance with the provisions of subdivision 1344(a)(2) of this chapter.
(Added 1971, No. 1, § 2, eff. Oct. 11, 1970; amended 1973, No. 231 (Adj. Sess.), § 4, eff. April 3, 1974; 1977, No. 64, § 20, eff. May 1, 1977; 1979, No. 120 (Adj. Sess.), § 10, eff. March 31, 1980; 1981, No. 86, § 5, eff. April 5, 1981; 1981, No. 194 (Adj. Sess.), § 5, eff. Sept. 25, 1982; 1993, No. 58, § 1, eff. June 3, 1993; 2023, No. 85 (Adj. Sess.), § 225, eff. July 1, 2024.)
§ 1422 Regular and extended benefits
Except when the result would be inconsistent with the other provisions of this subchapter the provisions of this chapter that apply to claims for, or the payment of, regular benefits shall apply to claims for, and the payment of, extended benefits.
(Added 1971, No. 1, § 2, eff. Oct. 11, 1970.)
§ 1423 Eligibility requirements for extended benefits
(a) An individual shall be eligible to receive extended benefits with respect to any week of unemployment in the individual’s eligibility period only if the Commissioner finds that with respect to the week:
(1) the individual is an exhaustee;
(2) the individual has satisfied the requirements of this chapter for the receipt of regular benefits that are applicable to individuals claiming extended benefits, including not being subject to a disqualification for the receipt of benefits;
(3) the total wages paid that established the benefit year equal or exceed one and one-half times the wages paid in the highest quarter of that base period; and
(4) the total wages paid that established the benefit year exceed 40 times the individual’s most recent weekly benefit amount.
(b) Except as provided in subsection (c) of this section, an individual shall not be eligible for extended benefits for any week if:
(1) extended benefits are payable for the week pursuant to an interstate claim filed in any state under the interstate benefit payment plan; and
(2) no extended benefit period is in effect for the week in that state.
(c) Subsection (b) of this section shall not apply with respect to the first two weeks for which extended benefits are payable pursuant to an interstate claim filed under this interstate benefit payment plan to the individual from the extended compensation account established for the individual with respect to the benefit year.
(Added 1971, No. 1, § 2, eff. Oct. 11, 1970; amended 1981, No. 86, § 2, eff. May 31, 1981; 1981, No. 194 (Adj. Sess.), § 6, eff. April 22, 1982; 1985, No. 146 (Adj. Sess.), § 5; 1993, No. 58, §§ 2, 3, eff. June 3, 1993; 2023, No. 85 (Adj. Sess.), § 226, eff. July 1, 2024.)
§ 1423a Disqualifications
(a) Notwithstanding any other provision of this subchapter, if so found by the Commissioner, payment of extended compensation shall not be made to any individual for any week of unemployment in the individual’s eligibility period during which the individual:
(1) fails to accept any offer of suitable work;
(2) fails to apply for any suitable work to which the individual was referred by the Commissioner; or
(3) fails to actively engage in seeking work.
(b) If any individual is ineligible for extended compensation for any week by reason of a failure described in subsection (a) of this section, the individual shall be ineligible to receive extended compensation for any week that begins during a period that:
(1) begins with the week following the week in which the failure occurs; and
(2) does not end until the individual has been employed during at least four weeks that begin after the failure and the total of the remuneration earned by the individual for being so employed is not less than the product of six multiplied by the individual’s average weekly benefit amount as determined for the individual’s benefit year.
(c) Extended compensation shall not be denied under subsection (a) of this section to any individual for any week by reason of a failure to accept an offer of, or apply for, suitable work if:
(1) the gross average weekly remuneration payable to that individual for the position does not exceed the sum of:
(A) the individual’s average weekly benefit amount as determined for the individual’s benefit year; plus
(B) the amount, if any, of supplemental unemployment compensation benefits, as defined in 26 U.S.C. § 501(c)(17)(D), payable to that individual for that week;
(2) the position was not offered to the individual in writing and was not listed with the State employment service;
(3) the failure would not result in a denial of compensation under the provisions of subdivision 1344(a)(2) of this chapter to the extent that those provisions are not inconsistent with the provisions of subdivision 1421(10) of this subchapter and subsection (d) of this section; or
(4) the position pays wages less than the higher of:
(A) the minimum wage provided by 29 U.S.C. § 206(a)(1), without regard to any exemption; or
(B) any applicable state or local minimum wage.
(d) For purposes of this subsection, an individual shall be treated as actively engaged in seeking work during any week if:
(1) the individual has engaged in a systematic and sustained effort to obtain work during that week, and
(2) the individual provides tangible evidence to the Commissioner that the individual has engaged in such an effort during that week.
(e) No provision of section 1344 of this chapter that terminates a disqualification for voluntarily leaving employment, being discharged for misconduct, or refusing suitable employment shall apply for purposes of determining eligibility for extended compensation unless that termination is based upon employment subsequent to the date of the disqualification.
(Added 1981, No. 86, § 4, eff. April 5, 1981; amended 1981, No. 194 (Adj. Sess.), § 7, eff. Sept. 25, 1982; 2023, No. 85 (Adj. Sess.), § 227, eff. July 1, 2024.)
§ 1423b Repealed
[Repealed]
2009, No. 156 (Adj. Sess.), § E.401.4, eff. June 3, 2010.
§ 1424 Weekly extended benefit amount
The weekly extended benefit amount payable to an individual for a week of total unemployment in his or her eligibility period shall be an amount equal to the weekly benefit amount payable to him or her during his or her applicable benefit year.
(Added 1971, No. 1, § 2, eff. Oct. 11, 1970; amended 1981, No. 194 (Adj. Sess.), § 8, eff. Sept. 26, 1982; 1985, No. 50, § 10.)
§ 1425 Total extended benefit amount
(a) The total extended benefit amount payable to any eligible individual with respect to his or her applicable benefit year shall be the least of the following amounts:
(1) 50 percent of the total amount of regular benefits that were payable to him or her under this chapter in his or her applicable benefit year;
(2) 13 times his or her weekly benefit amount that was payable to him or her under this chapter for a week of total unemployment in the applicable benefit year.
(b) Notwithstanding any other provisions of this chapter, if the benefit year of any individual ends within an extended benefit period, the remaining balance of extended benefits that such individual would, but for this section, be entitled to receive in that extended benefit period, with respect to weeks of unemployment beginning after the end of the benefit year, shall be reduced (but not below zero) by the product of the number of weeks for which the individual received trade readjustment allowances within that benefit year, multiplied by the individual’s weekly benefit amount for extended benefits.
(c) Effective with respect to weeks beginning in a high unemployment period, subsection (a) of this section shall be applied by substituting:
(1) “80 percent” for “50 percent” in subsection (a)(1) of this section; and
(2) “20” for “13” in subdivision (a)(2).
(d) For purposes of subsection (c) of this section, the term “high unemployment period” means any period during which an extended benefit period would be in effect if subdivision 1421(2)(B)(ii)(I) of this title were applied by substituting “8 percent” for “6.5 percent.”
(Added 1971, No. 1, § 2, eff. Oct. 11, 1970; amended 1981, No. 194 (Adj. Sess.), § 9, eff. Oct. 31, 1982; 1993, No. 58, § 4, eff. June 3, 1993.)
§ 1426 Beginning and termination of extended benefit period
(a) Whenever an extended benefit period is to become effective in this State, as a result of a State “on” indicator, or an extended benefit period is to be terminated in this State as a result of a State “off” indicator, the Commissioner shall make an appropriate public announcement.
(b) Computations required by the provisions of section 1421 of this subchapter shall be made by the Commissioner, in accordance with regulations prescribed by the U.S. Secretary of Labor.
(Added 1971, No. 1, § 2, eff. Oct. 11, 1970; amended 1981, No. 194 (Adj. Sess.), § 10, eff. April 22, 1982; 2023, No. 85 (Adj. Sess.), § 228, eff. July 1, 2024.)
§ 1427 Amendments to the Federal-State Extended Unemployment Compensation Act of 1970
To the extent that the Federal-State Extended Unemployment Compensation Act of 1970, Pub. L. No. 91-373, is amended to authorize this State to pay benefits for an extended benefit period in a manner other than provided by this title, then, and in such cases, all the terms and conditions contained in the amended provisions of the federal law shall become a part of this title to the extent necessary to authorize the payment of benefits to eligible individuals as permitted under those provisions, provided that the federal share continues to be at least 50 percent of the extended benefits paid to individuals under the extended benefits program.
(Added 1993, No. 58, § 5, eff. June 3, 1993; amended 2023, No. 85 (Adj. Sess.), § 229, eff. July 1, 2024.)
Subchapter 3 Short-Time Compensation Program
§ 1451 Definitions
As used in this subchapter:
(1) “Affected unit” means a specific plan, department, shift, or other definable unit consisting of not less than five employees to which an approved short-time compensation plan applies.
(2) “Defined benefit plan” means a plan described in 26 U.S.C. § 414(j).
(3) “Defined contribution plan” means a plan described in 26 U.S.C. § 414(i).
(4) “Short-time compensation” or “STC” means the unemployment benefits payable to employees in an affected unit under an approved short-time compensation plan as distinguished from the unemployment benefits otherwise payable under the conventional unemployment compensation provisions of this chapter.
(5) “Short-time compensation plan” means a plan of an employer under which there is a reduction in the number of hours worked by employees of an affected unit rather than layoffs. The term “layoffs” for this purpose means the total separation of one or more workers in the affected unit.
(6) “Short-time compensation employer” means an employer who has one or more employees covered by an approved “short-time compensation plan.” “Short-time compensation employer” means an employer with an experience rating record or an employer who makes payments in lieu of contributions to the Unemployment Compensation Trust Fund and that meets all of the following criteria:
(A) Has five or more employees covered by an approved short-time compensation plan.
(B) Is not delinquent in the payment of contributions or reimbursement, or in the reporting of wages.
(C) Is not a negative balance employer. For the purposes of this section, a negative balance employer is an employer who has for three or more consecutive calendar years immediately prior to applying for the STC plan paid more in unemployment benefits to its employees than it has contributed to its unemployment insurance account. In the event that an employer has been a negative balance employer for three consecutive years, the employer shall be ineligible for participation unless the Commissioner grants a waiver based upon extenuating economic conditions or other good cause.
(7) “Usual weekly hours of work” means the normal hours of work for full-time or part-time employees in the affected unit when that unit is operating on its regular basis not to exceed 40 hours and not including hours of overtime work.
(8) “Unemployment compensation” means the unemployment benefits payable under this chapter other than short-time compensation and includes any amounts payable pursuant to an agreement under any federal law providing for compensation, assistance, or allowances with respect to unemployment.
(9) “Fringe benefits” means benefits, including health insurance, retirement benefits, paid vacations and holidays, sick leave, and similar benefits that are incidents of employment.
(10) “Intermittent employment” means employment that is not continuous but may consist of intervals of weekly work and intervals of no weekly work.
(11) “Seasonal employment” means employment with an employer who experiences at least a 20-percent difference between its highest level of employment during a particular season and its lowest level of employment during the off-season in each of the previous three years as reported to the Department, or employment with an employer on a temporary basis during a particular season.
(Added 1985, No. 140 (Adj. Sess.), § 1; amended 2011, No. 162 (Adj. Sess.), § E.401.3; 2013, No. 72, § 35a.)
§ 1452 Criteria for approval
(a) An employer wishing to participate in an STC program shall submit a Department of Labor electronic application or a signed written short-time compensation plan to the Commissioner for approval. The Commissioner may approve an STC plan only if the following criteria are met:
(1) The plan identifies the specified affected units to which it applies.
(2) The employees in the affected unit or units are identified by name, Social Security number, and by any other information required by the Commissioner.
(3) The plan provides that if the employer provides fringe benefits, including health benefits and retirement benefits under a defined benefit plan or contributions under a defined contribution plan, to any employee whose workweek is reduced under the program, that the benefits will continue to be provided to employees participating in the short-time compensation program under the same terms and conditions as though the workweek had not been reduced. However, reductions in the benefits of short-time compensation plan participants are permitted to the extent that the reductions also apply to nonparticipant employees.
(4) The usual total weekly hours of work for employees in the affected unit or units are reduced by not less than 20 percent and not more than 50 percent.
(5) The plan certifies that the aggregate reduction in work hours is in lieu of layoffs of one or more workers that would have resulted in an equivalent reduction in work hours and that the Commissioner finds would have caused an equivalent dollar amount to be payable in unemployment compensation.
(6) The plan certifies that the STC employer will notify the Department within 24 hours after any layoff of an employee, at which time the Commissioner shall have the right to terminate the STC plan.
(7) The identified workweek reduction is applied consistently throughout the duration of the plan unless otherwise approved by the Department.
(8) The plan applies to at least 10 percent of the employees in the affected unit, and when determined to be applicable by the Commissioner applies to all affected employees of the unit equally.
(9) The plan shall not subsidize seasonal employers during the off- season, nor subsidize employers who have traditionally used part-time employees or intermittent employment.
(10) The employer agrees to maintain records relative to the plan for a period of three years and furnish reports relating to the proper conduct of the plan and agrees to allow the Commissioner or the Commissioner’s authorized representatives access to all records necessary to verify the plan prior to approval and, after approval, to monitor and evaluate application of the plan.
(11) The plan certifies that the collective bargaining agent or agents for the employees, if any, have agreed to participate in the program. If there is no bargaining unit, the employer specifies how it will notify the employees in the affected group and work with them to implement the program once the plan is approved.
(12) The plan describes the manner in which the requirements of this section will be implemented and where feasible how notice will be given to an employee whose workweek is to be reduced and an estimate of the number of layoffs that would have occurred absent the ability to participate in the short-time compensation program and any other information that the U.S. Secretary of Labor determines is appropriate.
(13) The employer certifies that the plan is consistent with employer obligations under applicable State and federal laws.
(b) In the event of any conflict between any provision of sections 1451– 1460 of this subchapter, or the rules adopted pursuant to these sections, and applicable federal law, the federal law shall prevail and the provision shall be deemed invalid.
(Added 1985, No. 140 (Adj. Sess.), § 1; amended 2007, No. 104 (Adj. Sess.), § 2; 2011, No. 162 (Adj. Sess.), § E.401.4; 2013, No. 72, § 35b, eff. June 30, 2013; 2023, No. 85 (Adj. Sess.), § 230, eff. July 1, 2024.)
§ 1453 Approval or rejection; resubmission
The Commissioner shall approve or reject a plan in writing within 30 days after receiving it, and in the case of rejection shall state the reasons for the rejection. The reasons for rejection shall be final and nonappealable, but the employer shall be allowed to submit another plan for approval that addresses the reasons that led to the rejection of the original plan.
(Added 1985, No. 140 (Adj. Sess.), § 1; amended 2011, No. 50, § 8; 2011, No. 162 (Adj. Sess.), § E.401.5; 2023, No. 85 (Adj. Sess.), § 231, eff. July 1, 2024.)
§ 1454 Effective date; duration
A plan shall be effective on the date specified in the plan or on a date mutually agreed upon by the employer and the Commissioner. It shall expire at the end of the sixth full calendar month after its effective date or on the date specified in the plan if such date is earlier; provided, that the plan is not previously revoked by the Commissioner; or on the effective date of any transfer of ownership of the legal business entity. If a plan is revoked or terminated by the Commissioner, it shall terminate on the date specified in the Commissioner’s written order of revocation. No employer shall be eligible for a short-time compensation plan that results in an employee receiving benefits in excess of 26 times the amount of regular unemployment benefits payable to such individual for a week of total unemployment.
(Added 1985, No. 140 (Adj. Sess.), § 1; amended 2011, No. 162 (Adj. Sess.), § E.401.6.)
§ 1455 Revocation
(a) The Commissioner may revoke approval of a plan for good cause. The revocation order shall be in writing and shall specify the date the revocation is effective and the reasons for revocation.
(b) Good cause shall include violation of any criteria on which approval of the plan was based.
(c) The action may be taken at any time by the Commissioner on the Commissioner’s own motion. The Commissioner shall review the operation of each qualified employer plan at least once during the first three months that the plan is in effect to ensure its compliance with the requirements of this subchapter. In addition, the Commissioner shall investigate any written complaint about the operation of the approved plan and determine in writing whether or not good cause exists for revocation. The determination to investigate is not appealable.
(d) An employer may appeal a revocation decision by the Commissioner and the appeal shall be treated as a contested case under the Administrative Procedure Act.
(Added 1985, No. 140 (Adj. Sess.), § 1; amended 2023, No. 85 (Adj. Sess.), § 232, eff. July 1, 2024.)
§ 1456 Modification
An approved STC plan may be modified by the employer with the approval of the Commissioner. If the hours of work are increased or decreased substantially beyond the level in the original plan, or any other conditions are changed substantially, the Commissioner shall approve or disapprove such modifications. The expiration of the original plan shall not change. If the substantial modifications do not meet the requirements for approval, the Commissioner shall disallow that portion of the plan in writing as specified in subsection 1455(a) of this title.
(Added 1985, No. 140 (Adj. Sess.), § 1.)
§ 1457 Eligibility
(a) An individual is eligible to receive STC benefits with respect to any week only if, in addition to eligibility for monetary entitlement, the Commissioner finds that:
(1) the individual is employed during that week as a member of an affected unit under an approved short-time compensation plan that was in effect for that week;
(2) the individual is able to work and is available for the normal work week with the short-time employer;
(3) notwithstanding any other provisions of this chapter to the contrary, an individual is deemed unemployed in any week for which remuneration is payable to him or her as an employee in an affected unit for less than his or her normal weekly hours of work as specified under the approved short-time compensation plan in effect for the week;
(4) notwithstanding any other provisions of this chapter to the contrary, an individual shall not be denied STC benefits for any week by reason of the application of provisions relating to availability for work and active search for work with an employer other than the short-time employer.
(b) Eligible employees may participate, as appropriate, in training, including employer-sponsored training or worker training funded under the federal Workforce Innovation and Opportunity Act, to enhance job skills if the program has been approved by the Department.
(Added 1985, No. 140 (Adj. Sess.), § 1; amended 2013, No. 72, § 35c, eff. June 30, 2013; 2019, No. 131 (Adj. Sess.), § 126.)
§ 1458 Short-time compensation benefits
(a) The short-time weekly benefit amount shall be the product of the regular weekly unemployment compensation amount multiplied by the percentage of reduction in the individual’s usual weekly hours of work.
(b) No individual, including a claimant for STC, is eligible in any benefit year for more than the maximum unemployment compensation entitlement payable in accordance with section 1340 of this title.
(c) The STC benefits paid an individual shall be deducted from the maximum unemployment compensation entitlement amount established in accordance with section 1340 for that individual’s benefit year.
(d) Claims for STC benefits shall be filed in the same manner as claims for unemployment compensation or as prescribed by the Commissioner.
(e) Provisions of this subchapter and Vermont Employment Security Board rules applicable to unemployment compensation claimants shall apply to STC claimants to the extent that they are not inconsistent with this subchapter. An individual who files a new initial claim for STC benefits shall be provided, if eligible for STC benefits, a monetary determination of entitlement to STC benefits and shall serve a waiting week as required under subdivision 1343(a)(4) of this chapter.
(f)(1) If an individual works in the same week for both the short-time employer and another employer and the individual’s combined hours of work for both employers are equal to or greater than 81 percent of the usual hours of work with the short-time employer, the individual shall not be entitled to benefits under these short-time provisions or the unemployment compensation provisions.
(2) If an individual works in the same week for both the short-time employer and another employer and the individual’s combined hours of work for both employers are equal to or less than 80 percent of the usual hours of work for the short-time employer, the benefit amount payable for that week shall be the weekly unemployment compensation amount reduced by the same percentage that the combined hours are of the usual hours of work. A week for which benefits are paid under this provision shall count as a week of short-time compensation.
(3) An individual who does not work during a week for the short-time employer, and is otherwise eligible, shall be paid the individual’s full weekly unemployment compensation benefit amount under the provisions of the regular unemployment compensation program. Such a week shall not be counted as a week for which short-time compensation benefits were received.
(4) An individual who does not work the short-time employer’s identified workweek reduction hours as certified by the application due to the use of paid vacation or personal time shall be paid benefits for the week under the partial unemployment compensation provisions of the regular unemployment compensation program.
(5) An individual who does not work for the short-time employer during a week but works for another employer and is otherwise eligible shall be paid benefits for that week under the partial unemployment compensation provisions of the regular UI program. Such a week shall not be counted as a week with respect to which STC benefits were received.
(Added 1985, No. 140 (Adj. Sess.), § 1; amended 2007, No. 104 (Adj. Sess.), § 3; 2009, No. 124 (Adj. Sess.), § 9, eff. July 1, 2012; 2011, No. 162 (Adj. Sess.), § E401.7; 2023, No. 85 (Adj. Sess.), § 233, eff. July 1, 2024.)
§ 1459 Charging benefits
STC benefits paid to an employee shall be charged to the employers in the base period. Reimbursable employers participating in the STC Program shall be assessed for the STC benefits paid their employees.
(Added 1985, No. 140 (Adj. Sess.), § 1; amended 2013, No. 173 (Adj. Sess.), § 6.)
§ 1460 Extended benefits program eligibility
An individual who has received all of the unemployment compensation or combined unemployment compensation and STC benefits available in a benefit year shall be considered an “exhaustee” as defined under the provisions of subdivision 1421(8) of this title.
(Added 1985, No. 140 (Adj. Sess.), § 1.)
§ 1461 Misrepresentation; penalties
If an approved plan or any representation for implementation of the plan is intentionally and substantially misleading or false, the employer shall be liable for any amount of benefits deemed by the Commissioner to have been improperly paid from the fund as a result thereof.
(Added 1985, No. 140 (Adj. Sess.), § 1.)
§ 1462 Period of dormancy
On July 1, 2020, the Short-Time Compensation Program established pursuant to sections 1451–1461 of this subchapter ceased operation. Effective upon completion of the project to implement a modernized information technology system for the unemployment insurance program in 2026, the Short-Time Compensation Program shall resume operation pursuant to the provisions of sections 1451–1461 of this subchapter.
(Added 2019, No. 85 (Adj. Sess.), § 20, eff. Feb. 20, 2020; amended 2025, No. 40, § 20, eff. July 1, 2025.)
Subchapter 4 Benefits for Approved Job Training Program
§ 1471 Training benefit program
(a) An individual who is otherwise eligible for benefits under this chapter, but who has exhausted his or her maximum benefit amount under section 1340 of this chapter and any other available federally funded extension, is entitled to a maximum of an additional 26 weeks of benefits in the same amount as the weekly benefit amount established in the individual’s most recent benefit year if the individual is enrolled in and making satisfactory progress in either a State-approved training program or a job training program authorized under the federal Workforce Innovation and Opportunity Act.
(b) To be eligible for training benefits under this section, an individual shall be in compliance with both the following:
(1) The individual has been separated from a declining occupation or has been involuntarily and indefinitely separated from employment as a result of a permanent reduction of operations at the individual’s place of employment.
(2) The individual is enrolled in a program designed to train the individual for entry into a high demand occupation.
(Added 2009, No. 156 (Adj. Sess.), § E.401.1, eff. June 3, 2010; amended 2019, No. 131 (Adj. Sess.), § 127.)
Chapter 19 Vermont State Labor Relations Act
Subchapter 1 General Provisions
§ 1501 Title and declaration of policy
(a) This chapter shall be known as the State Labor Relations Act.
(b) It is the purpose and policy of this chapter to prescribe the legitimate rights of both employees and employers in their relations with each other, to provide orderly and peaceful procedures for preventing the interference by either with the legitimate rights of the other, to protect the rights of individual employees in their relations with labor organizations, to define and proscribe practices on the part of labor and management that are harmful to the general welfare, and to protect the rights of the public in connection with labor disputes.
(1967, No. 198, § 1; amended 1969, No. 51, § 1, eff. April 8, 1969.)
§ 1502 Definitions
As used in this chapter:
(1) “Board” means the State Labor Relations Board established under 3 V.S.A. § 921.
(2) “Chair” means the Chair of the Board.
(3) “Commissioner” means the Commissioner of Labor.
(4) “Collective bargaining” or “bargaining collectively” means the process of negotiating terms, tenure, or conditions of employment between one or more employers and representatives of employees with the intent to arrive at an agreement that, when reached, shall be reduced to writing.
(5) “Collective bargaining unit” means the employees of an employer being either all of the employees, the members of a craft, or the employees of a plant or subdivision thereof.
(6) “Employee” includes any employee, and is not limited to the employees of a particular employer unless this chapter explicitly states otherwise, and includes any individual whose work has ceased as a consequence of, or in connection with, any current labor dispute or because of any unfair labor practice and who has not obtained any other regular and substantially equivalent employment, but does not include an individual:
(A) employed as an agricultural laborer;
(B) employed by the individual’s parent or spouse;
(C) [Repealed.]
(D) having the status of an independent contractor;
(E) employed as a supervisor;
(F) employed by an employer subject to the Railway Labor Act, 45 U.S.C. §§ 151–165; or
(G) employed by any other person who is not an employer as defined in subdivision (7) of this section.
(7) “Employer” means any person employing five or more employees and any person acting as an agent of an employer, employing five or more employees, directly or indirectly, but does not include:
(A) the United States or any wholly owned government corporation or any federal reserve bank;
(B) this State or any political subdivision of this State or any incorporated or interstate school district;
(C) any person subject to the Railway Labor Act, 45 U.S.C. §§ 151–165;
(D) any labor organization, other than when acting as an employer, or anyone acting in the capacity of officer or agent of a labor organization; or
(E) a person operating a hospital or a nursing home, if no part of the net earnings inures to the benefit of a private individual or shareholder.
(8) “Labor dispute” includes any controversy concerning terms, tenure, or conditions of employment, or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment, regardless of whether the disputants stand in the proximate relation of employer and employee.
(9) “Labor organization” means an organization of any kind or any agency or any employee representation committee or plan in which employees participate and that exists for the purpose, in whole or in part, of dealing with employees concerning grievances, labor disputes, wages, rates of pay, hours of employment, or conditions of work.
(10) “Person” includes one or more individuals, labor organizations, partnerships, associations, corporations, legal representatives, trustees, trustees in bankruptcy, or receivers.
(11) “Professional employee” means:
(A) any employee engaged in work:
(i) predominantly intellectual and varied in character as opposed to routine mental, manual, mechanical, or physical work;
(ii) involving the consistent exercise of discretion and judgment in its performance;
(iii) of such character that the output produced or the result accomplished cannot be standardized in relation to a given period of time; and
(iv) requiring knowledge of an advanced type in a field of science or learning customarily acquired by a prolonged course of specialized intellectual instruction and study in an institution of higher learning or a hospital, as distinguished from a general academic education or from an apprenticeship or from training in the performance of routine mental, manual, or physical processes; or
(B) any employee who:
(i) has completed the courses of specialized intellectual instruction and study described in subdivision (A)(iv) of this subdivision (11); and
(ii) is performing related work under the supervision of a professional person to qualify to become a professional employee as defined in subdivision (A) of this subdivision (11).
(12) “Representatives” includes any individual or labor organization.
(13) “Supervisor” means an individual having authority, in the interest of the employer, to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees or responsibly to direct them, or to adjust their grievances, or effectively to recommend such action, if the exercise of the authority is not of a merely routine or clerical nature but requires the use of independent judgment.
(14) “Agency fee” means a fee deducted by an employer from the salary or wages of an employee who is not a member of an employee organization, which is paid to the employee organization that is the exclusive bargaining agent for the bargaining unit of the employee. An agency fee shall not exceed 85 percent of the amount payable as dues by members of the employee organization and shall be deducted in the same manner as dues are deducted from the salary or wages of members of the employee organization and shall be used to defray the costs of chargeable activities.
(Added 1967, No. 198, § 2; amended 1967, No. 71, § 1; 1975, No. 152 (Adj. Sess.), § 5; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2013, No. 37, § 13, eff. June 30, 2013; 2017, No. 74, § 55; 2017, No. 113 (Adj. Sess.), § 149; 2023, No. 85 (Adj. Sess.), § 234, eff. July 1, 2024; 2023, No. 117 (Adj. Sess.), § 2, eff. July 1, 2024.)
§ 1503 Rights of employees; mutual duty to bargain
(a) Employees shall have the right to self-organization; to form, join, or assist labor organizations; to bargain collectively through representatives of their own choice; and to engage in concerted activities for the purpose of collective bargaining or other mutual aid or protection, and shall also have the right to refrain from any or all such activities, except to the extent that such right may be affected by an agreement requiring membership in a labor organization as a condition of employment as authorized in subsection 1621(a) of this title. An employee who exercises the right not to join the labor organization representing the employee’s certified unit pursuant to section 1581 of this title shall, subject to subsection (b) of this section, pay the agency fee to the representative of the bargaining unit in the same manner as employees who pay membership fees to the representative. The labor organization agrees to indemnify and hold the employer harmless from any and all claims stemming from the implementation or administration of the agency fee.
(b) A labor organization shall not charge the agency fee unless it has established and maintained a procedure to provide nonmembers with:
(1) An audited financial statement that identifies the major categories of expenses and divides them into chargeable and nonchargeable expenses.
(2) An opportunity to object to the amount of the agency fee sought and to place in escrow any amount reasonably in dispute.
(3) Prompt arbitration by an arbitrator selected jointly by the objecting fee payer and the labor organization or pursuant to the rules of the American Arbitration Association to resolve any objection over the amount of the agency fee. The costs of arbitration shall be paid by the labor organization.
(Added 1967, No. 198, § 3; amended 2013, No. 37, § 14, eff. June 30, 2013; 2017, No. 74, § 56.)
§ 1504 General duties
(a) All employers and their officers, agents, and employees or representatives shall exert every reasonable effort to make and maintain agreements concerning rates of pay, rules, wages, hours of employment, and conditions of work, and to settle all disputes, whether arising out of the application of those agreements or growing out of any dispute between the employer and the employer’s employees.
(b) All labor disputes between employers and their employees shall, upon the request of either party, be considered within 15 days after the request, or at a time that is mutually agreed to, and, if possible, settled, with all expedition, in conference between representatives designated and authorized to confer, by the employer or by the employer’s employees who are interested in the dispute. However, this obligation does not compel either party to agree to a proposal or make a concession.
(1967, No. 198, § 4; amended 2023, No. 85 (Adj. Sess.), § 235, eff. July 1, 2024.)
§ 1505 Application
This chapter shall not apply to any employer or any labor dispute that affects commerce within the meaning of the National Labor Relations Act, 29 U.S.C. § 151–169, unless the National Labor Relations Board shall have ceded jurisdiction to the Board pursuant to 29 U.S.C. § 160 or shall have declined to assert jurisdiction pursuant to 29 U.S.C. § 164(c).
(Added 1967, No. 198, § 17; amended 2023, No. 85 (Adj. Sess.), § 236, eff. July 1, 2024.)
Subchapter 2 Labor Relations Board
§ 1541 Repealed
[Repealed]
1975 (Adj. Sess.), No. 152, § 7.
§ 1542 Repealed
[Repealed]
1975 (Adj. Sess.), No. 152, § 7.
§ 1543 Appropriate unit; basis for determination
(a) The Board shall decide in each case whether, in order to ensure the employees have the fullest freedom in exercising the rights guaranteed by this chapter, the unit appropriate for the purpose of collective bargaining is the employer unit, craft unit, plant unit, or a subdivision thereof. However, the Board shall not decide that:
(1) A unit is appropriate for those purposes if the unit includes both professional employees and employees who are not professional employees, unless a majority of the professional employees vote for inclusion in the unit.
(2) A craft unit is inappropriate for those purposes on the ground that a different unit has been established by an earlier determination of the Board unless a majority of the employees in the proposed craft unit vote against separate representation.
(3) A unit is appropriate for those purposes if it includes, together with other employees, an individual employed as a guard to enforce against employees and other persons rules to protect property of the employer or to protect the safety of persons on the employer’s premises. However, no labor organization may be certified as the representative of employees in a bargaining unit of guards if it admits to membership, or is affiliated directly or indirectly with an organization which admits to membership employees other than guards.
(b) In determining whether a unit is appropriate for the purposes specified in subsection (a) of this section, the extent to which the employees have organized shall not be controlling.
(Added 1967, No. 198, § 7; amended 2023, No. 85 (Adj. Sess.), § 237, eff. July 1, 2024; 2025, No. 18, § 34, eff. May 13, 2025.)
§ 1544 Rules
(a) The Board shall have authority to adopt, amend, and rescind rules as necessary to carry out the provisions of this chapter.
(b) In carrying out this chapter the Board may, under any applicable federal law, rule, or regulation, petition the National Labor Relations Board for an advisory opinion as to whether that agency will assert jurisdiction over a labor dispute that is the subject of a proceeding then pending before the Board.
(c) All findings, conclusions, and determinations of the Board under this chapter shall be public records.
(Added 1967, No. 198, § 12; amended 2023, No. 85 (Adj. Sess.), § 238, eff. July 1, 2024.)
Subchapter 3 Elections
§ 1581 Petitions for election; filing, investigations, hearings, determinations
(a) A petition may be filed with the Board, in accordance with rules adopted by the Board:
(1) By an employee or group of employees, or any individual or labor organization acting in their behalf, alleging that not less than 30 percent of the employees:
(A) wish to be represented for collective bargaining and that their employer declines to recognize their representative as the representative defined in section 1583 of this title; or
(B) assert that the individual or labor organization that has been certified, or is being currently recognized by their employer as the bargaining representative, is no longer a representative as defined in section 1583 of this title.
(2) By an employer, alleging that one or more individuals or labor organizations have presented to him or her a claim to be recognized as the representative defined in section 1583 of this title.
(b)(1) The Board shall investigate the petition and if it has reasonable cause to believe that a question of representation exists shall provide for an appropriate hearing before the Board itself, a Board member, or its agents appointed for that purpose upon due notice. Written notice of the hearing shall be mailed by certified mail to the parties named in the petition not less than seven days before the hearing.
(2) If the Board finds upon the record of the hearing that a question of representation exists, it shall conduct an election by secret ballot marked at the place of election and certify to the parties, in writing, the results of the election.
(3)(A) If the Board finds upon the record of the hearing that a petition to be represented for collective bargaining filed pursuant to subdivision (a)(1)(A) of this section, which identifies a proposed bargaining representative, bears the signatures of at least 50 percent plus one of the employees in the bargaining unit, the Board shall certify the individual or labor organization identified as the bargaining representative.
(B) Certification of a representative shall only be available pursuant to this subdivision (3) when no other individual or labor organization is currently certified or recognized as the bargaining representative.
(c) In determining whether or not a question of representation exists, the Board shall apply the same rules regardless of the identity of the persons filing the petition or the kind of relief sought.
(d) Nothing in this chapter prohibits the waiving of hearings by stipulation for a consent election in conformity with rules of the Board.
(e) For the purposes of this chapter, representatives of employees of a collective bargaining unit voluntarily recognized by an employer through the voluntary negotiation of an employment contract with such unit shall constitute recognized representatives of the employees until such time as any other representative is recognized under the provisions of this section or until such representatives’ authority is rescinded under section 1584 of this title.
(Added 1967, No. 198, § 8; amended 1973, No. 213 (Adj. Sess.), § 2, eff. April 3, 1974; 2023, No. 85 (Adj. Sess.), § 239, eff. July 1, 2024; 2023, No. 117 (Adj. Sess.), § 6, eff. July 1, 2024; 2025, No. 18, § 34, eff. May 13, 2025.)
§ 1582 Election; eligibility to vote; runoff elections
An election shall not be directed in any bargaining unit or any subdivision within which, in the preceding 12 months, a valid election has been held. Employees engaged in an economic strike who are not entitled to reinstatement are eligible to vote, under rules of the Board consistent with the provisions of this chapter, in any election conducted within 12 months after the beginning of the strike. In any election where none of the choices on the ballot receive a majority, a runoff shall be conducted by the Board. The ballot shall provide for a selection between the two choices receiving the largest and second largest number of valid votes cast in the election.
(Added 1967, No. 198, § 9; amended 2023, No. 85 (Adj. Sess.), § 240, eff. July 1, 2024.)
§ 1583 Powers of representatives
Representatives designated or selected for the purposes of collective bargaining by the majority of the employees in a unit appropriate for such purposes shall be the exclusive representatives of all the employees in such unit for the purposes of collective bargaining in respect to rates of pay, wages, hours of employment, or other conditions of employment. However, any individual employee or group of employees shall have the right at any time to present grievances to their employer and to have such grievances adjusted, without the intervention of the bargaining representative, as long as the adjustment is not inconsistent with the terms of a collective bargaining contract or agreement then in effect, provided that the bargaining representative has been given an opportunity to be present at such adjustment.
(Added 1967, No. 198, § 10.)
§ 1584 Petitions and election to rescind representative’s authority
(a) When 30 percent or more of the employees in a bargaining unit covered by an agreement between their employer and a labor organization requiring membership in a labor organization as a condition of employment file a petition alleging that they desire that the authority of the labor organization to make such an agreement be rescinded, the Board shall take a secret ballot of the employees in such unit and certify the results thereof, in writing, to the labor organization and to the employer.
(b) No election shall be conducted under this section in a bargaining unit or a subdivision within which in the preceding 12 months a valid election or certification of a representative pursuant to this subchapter has occurred.
(Added 1967, No. 198, § 11; amended 2023, No. 117 (Adj. Sess.), § 7, eff. July 1, 2024.)
§ 1585 Election conduct
Any interested person may file with the Board a charge that employees eligible to vote in an election under this chapter have been coerced or restrained in the exercise of this right. The Board shall investigate the charge. If, upon the basis of its findings, the Board concludes that employees eligible to vote in the election were so coerced or restrained, the Board may set aside such election and order another election and may begin proceedings under section 1622 of this title. No election shall be set aside unless the Board finds such coercion or restraint.
(Added 1967, No. 198, § 13.)
Subchapter 4 Unfair Labor Practices
§ 1621 Unfair labor practices
(a) It shall be an unfair labor practice for an employer:
(1) To interfere with, restrain, or coerce employees in the exercise of their rights guaranteed in section 1503 of this title.
(2) To dominate or interfere with the formation or administration of any labor organization or contribute financial or other support to it, provided that an employer shall not be prohibited from permitting employees to confer with the employer during working hours without loss of time or pay.
(3) By discrimination in regard to hire and tenure of employment or any term or condition of employment, to encourage or discourage membership in any labor organization.
(4) To discharge or otherwise discriminate against an employee because the employee has filed charges or given testimony under this chapter.
(5) To refuse to bargain collectively with the representatives of the employees subject to the provisions of section 1583 of this chapter.
(6) Nothing in this chapter or any other statute of this State shall preclude an employer from making an agreement with a labor organization (not established, maintained, or assisted by any action defined in this subsection (a) as an unfair labor practice) to require as a condition of employment membership in such labor organization on or after the 30th day following the beginning of such employment or the effective date of such agreement, whichever is the later, (i) if such labor organization is the representative of the employees as provided in section 1583 of this chapter, in the appropriate collective bargaining unit covered by such agreement when made; and (ii) unless following an election held as provided in section 1584 of this chapter within one year preceding the effective date of such agreement, the Board shall have certified that at least a majority of the employees eligible to vote in such election have voted to rescind the authority of such labor organization to make such an agreement. Nothing in this section shall require an employer to discharge an employee in the absence of such an agreement. An employer shall not justify any discrimination against an employee for nonmembership in a labor organization:
(A) if the employer has reasonable grounds for believing that membership was not available to the employee on the same terms and conditions generally applicable to other members; or
(B) if the employer has reasonable grounds for believing that membership was denied or terminated for reasons other than the failure of the employee to tender the periodic dues and the initiation fees uniformly required as a condition of acquiring or retaining membership.
(7) To discriminate against an employee on account of race, color, creed, religion, sex, sexual orientation, gender identity, national origin, age, or disability.
(8) To solicit persons to replace employees, or fill positions made vacant as the result of a strike, lockout, or other labor dispute, by means of newspaper advertisement, posters, oral or written communications, or otherwise, unless the solicitations state plainly and specifically that a strike, lockout, or other labor dispute exists.
(b) It shall be an unfair labor practice for a labor organization or its agents:
(1)(A) To restrain or coerce employees in the exercise of the rights guaranteed in section 1503 of this chapter. However, this subdivision shall not impair the right of a labor organization to prescribe its own rules with respect to the acquisition or retention of membership in the labor organization.
(B) To restrain or coerce an employer in the selection of representatives for the purposes of collective bargaining or adjustment of grievances.
(2) To cause or attempt to cause an employer to discriminate against an employee in violation of subdivision (a)(3) of this section or to discriminate against an employee with respect to whom membership in such organization has been denied or terminated on some ground other than the employee’s failure to tender the periodic dues and the initiation fees uniformly required as a condition for acquiring or retaining membership.
(3) To refuse to bargain collectively with an employer, provided it is the representative of the employees subject to the provisions of section 1583 of this title.
(4) To engage in, or to induce or encourage any individual employed by any person to engage in, a strike or a refusal in the course of employment to use, manufacture, process, transport, or otherwise handle or work on any goods, articles, materials, or commodities or to perform any services; or to threaten, coerce, or restrain any person where in either case an object thereof is:
(A) Forcing or requiring any employer or self-employed person to join any labor or employer organization or to enter into any agreement that is prohibited by subsection (c) of this section.
(B) Forcing or requiring any person to cease using, selling, handling, transporting, or otherwise dealing in the products of any other producer, processor, or manufacturer, or to cease doing business with any other person, or forcing or requiring any other employer to recognize or bargain with a labor organization as the representative of employees unless such labor organization has been certified as the representative of such employees under the provisions of section 1581 of this title, but this subdivision shall not be construed to make unlawful, where not otherwise unlawful, any primary strike or primary picketing.
(C) Forcing or requiring any employer to recognize or bargain with a particular labor organization as the employee’s representative if another labor organization has been certified as the representative of those employees under section 1581 of this title.
(D) Forcing or requiring any employer to assign particular work to employees in a particular labor organization or in a particular trade, craft, or class rather than to employees in another labor organization or in another trade, craft, or class, unless such employer is failing to conform to an order or certification of the Board determining the bargaining representative for employees performing such work. This subsection (b) shall not be construed to make unlawful a refusal by any person to enter upon the premises of any employer, other than the person’s own employer, if the employees of such employer are engaged in a strike ratified or approved by a representative of such employees whom the employer is required to recognize under this chapter. Nothing in this subdivision shall be construed to prohibit publicity, other than picketing, for the purpose of truthfully advising the public, including consumers and members of a labor organization, that a product or products are produced by an employer with whom the labor organization has a primary dispute and are distributed by another employer, as long as such publicity does not have an effect of inducing any individual employed by any person other than the primary employer in the course of employment to refuse to pick up, deliver, or transport any goods, or not to perform any services, at the establishment of the employer engaged in such distribution.
(5) To require employees covered by the agency fee requirement or other union security agreement authorized under subsection (a) of this section to pay, as a condition precedent to becoming a member of such organization, a fee in an amount that the Board finds excessive or discriminatory under all the circumstances. In making such a finding, the Board shall consider, among other relevant factors, the practices and customs of labor organizations in the particular industry and the wages currently paid to the employees affected.
(6) To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver any money or other thing of value, in the nature of an exaction, for services that are not performed or not to be performed or that are not needed or required by the employer.
(7) To picket or cause to be picketed, or threaten to picket or cause to be picketed, any employer where an object of the picketing is forcing or requiring an employer to recognize or bargain with a labor organization as the employee’s representative, or forcing or requiring the employees of an employer to accept or select the labor organization as their collective bargaining representative, unless the labor organization is currently certified as the representative of the employees:
(A) Where the employer has lawfully recognized in accordance with this subchapter any other labor organization and a question concerning representation may not appropriately be raised under section 1581 of this title.
(B) Where within the preceding 12 months a valid election under section 1581 of this title has been conducted.
(C) Where the picketing has been conducted without a petition under section 1581 of this title being filed within 30 days after the picketing began. When such a petition has been filed, the Board shall promptly, without regard to section 1581 of this chapter or the absence of a showing of a substantial interest on the part of the labor organization, direct an election in the unit as the Board finds to be appropriate and shall certify the results of the election. This subdivision (C) shall not be construed to prohibit any picketing or other publicity for the purpose of truthfully advising the public, including consumers, that an employer does not employ members of, or have a contract with, a labor organization, unless an effect of the picketing is to induce any individual employed by any other person in the course of the individual’s employment, not to pick up, deliver, or transport any goods or not to perform any services. This subdivision (b)(7) shall not be construed to permit any act that would otherwise be an unfair labor practice under this subsection.
(8) Compulsory membership; employees’ rights. A labor organization entering into an agreement requiring a person’s membership in the labor organization as a condition of employment by the employer shall not:
(A) discriminate against a person seeking or holding membership in the labor organization on account of race, color, disability, religion, creed, sex, sexual orientation, gender identity, age, or national origin;
(B) penalize a member for exercising a right guaranteed by the Constitution or laws of the United States or the State of Vermont; or
(C) cause the discharge from employment of employees who refuse membership in the labor organization because of religious beliefs.
(c) It shall be an unfair labor practice for any labor organization and any employer to enter into any contract or agreement, express or implied, under which the employer ceases or refrains or agrees to cease or refrain from handling, using, selling, transporting, or otherwise dealing in any of the products of any other employer, or to cease doing business with any other person, and any contract or agreement entered into before or after enactment of this chapter containing such an agreement shall be to that extent unenforceable and void.
(d) The expressing of any views, argument, or opinion, or the dissemination thereof, whether in written, printed, graphic, oral, or visual form, shall not constitute or be evidence of an unfair labor practice under any of the provisions of this chapter, if such expression contains no threat of reprisal or force or promise of benefit.
(e)(1) For the purposes of this section, to bargain collectively is the performance of the mutual obligation of the employer and the representative of the employees to meet at reasonable times and confer in good faith with respect to wages, hours, and other terms and conditions of employment, or the negotiation of an agreement, or any question arising under the agreement, and the execution of a written contract incorporating any agreement reached is requested by either party; but the failure or refusal of either party to agree to a proposal, or to change or withdraw a lawful proposal, or to make a concession shall not constitute, or be evidence direct or indirect of, a breach of this obligation.
(2) Where there is in effect a collective bargaining contract covering employees, the duty to bargain collectively shall also mean that no party to such contract shall terminate or modify such contract unless the party desiring such termination or modification:
(A) serves a written notice upon the other party to the contract of the proposed termination or modification 60 days prior to the expiration date thereof, or in the event such contract contains no expiration date, 60 days prior to the time it is proposed to make such termination or modification;
(B) offers to meet and confer with the other party for the purpose of negotiating a new contract or a contract containing the proposed modifications;
(C) notifies the Chair of the Board within 30 days after such notice of the existence of a dispute, provided no agreement has been reached by the time; and
(D) continues in full force and effect, without resorting to strike or lockout, all the terms and conditions of the existing contract for a period of 60 days after such notice is given or until the expiration date of such contract, whichever occurs later.
(3) The duties imposed upon employers, employees, and labor organizations by subdivisions (e)(2)(B), (C), and (D) shall become inapplicable upon an intervening certification of the Board, under which the labor organization or individual, which is a party to the contract, has been superseded as or ceased to be the representative of the employees subject to the provisions of section 1583 of this title, and the duties so imposed shall not be construed as requiring either party to discuss or agree to any modifications of the terms and conditions contained in a contract for a fixed period, if such modification is to become effective before such terms and conditions can be reopened under the provisions of the contract. Any employee who engages in a strike within the 60-day period specified in this subsection shall lose his or her status as an employee for the employer engaged in the particular labor dispute, for the purposes of this chapter, as amended, but such loss of status for such employee shall terminate if and when he or she is re-employed by such employer.
(f) [Repealed.]
(Added 1967, No. 198, § 14; amended 1969, No. 51, § 2; 1971, No. 205 (Adj. Sess.), § 3; 1973, No. 184 (Adj. Sess.); 1973, No. 214 (Adj. Sess.), § 24; 1999, No. 19, § 6; 2007, No. 41, § 19; 2013, No. 37, § 15, eff. June 30, 2013; 2023, No. 85 (Adj. Sess.), § 241, eff. July 1, 2024; 2025, No. 18, § 34, eff. May 13, 2025.)
§ 1622 Prevention of unfair labor practices
(a) The Board may prevent any person from engaging in any unfair labor practice listed in section 1621 of this title. Whenever a charge is made that any person has engaged in or is engaging in any unfair labor practice, the Board may issue and cause to be served upon such person a complaint stating the charges in that respect and containing a notice of hearing before the Board at a place and time therein fixed at least seven days after the complaint is served. The Board may amend the complaint at any time before it issues an order based thereon. No complaint shall issue based on any unfair labor practice occurring more than six months prior to the filing of the charge with the Board and the service of a copy thereof upon the person against whom such charge is made, unless the person aggrieved thereby was prevented from filing such charge by reason of service in the U.S. Armed Forces, in which event the six-month period shall be computed from the day of his or her discharge.
(b) The person complained of shall have the right to file an answer to the original or amended complaint and appear in person or otherwise and present evidence in connection therewith at the time and place fixed in the complaint. In the discretion of the Board, any other person may be permitted to intervene and present evidence in the matter. Any proceeding under this section shall, so far as practicable, be conducted in accordance with rules of evidence used in the courts of law or equity. The Board shall provide for the making of a transcript of the testimony presented at the hearing.
(c) The Board shall have power to administer oaths and take testimony under oath relative to the matter of inquiry. At any hearing ordered by the Board, the Board shall have the power to subpoena witnesses and to demand the production of books, papers, records, and documents for its examination. Officers who serve subpoenas issued by the Board and witnesses attending hearings conducted by the Board shall receive fees and compensation at the same rates as officers and witnesses in causes before the Criminal Division of the Superior Court, to be paid on vouchers of the Board.
(d) If upon the preponderance of the evidence, the Board finds that any person named in the complaint has engaged in or is engaging in any such unfair labor practice, it shall state its findings of fact in writing and shall issue and cause to be served on such person an order requiring him or her to cease and desist from such unfair labor practice, and to take such affirmative action as will carry out the policies of this chapter. If upon the preponderance of the evidence the Board does not find that the person named in the complaint has engaged in or is engaging in any such unfair labor practice, it shall state its findings of fact in writing and dismiss the complaint.
(e) In determining whether a complaint shall issue alleging a violation of subdivision 1621(a)(1) or (2) of this title, and in deciding such cases, the same rules of decision shall apply irrespective of whether or not labor organization affected is affiliated with a labor organization national or international in scope.
(f) No order of the Board shall require the reinstatement of any individual as an employee who has been suspended or discharged, or the payment to him or her of any back pay, if such individual was suspended or discharged for cause.
(g) Until the record in a case shall have been filed in a court, as provided pursuant to section 1623 of this chapter, the Board may at any time, upon reasonable notice and in such manner as it shall deem proper, modify or set aside, in whole or in part, any finding or order made or issued by it.
(Added 1967, No. 198, § 15; amended 2009, No. 154 (Adj. Sess.), § 238; 2025, No. 18, § 34, eff. May 13, 2025.)
§ 1623 Judicial review
(a) The Board may petition the Supreme Court for the enforcement of such Board order relative thereto and for appropriate temporary relief or restraining order. The Board shall certify and file in the court the entire record in the proceeding, including the pleadings and evidence upon which the order was entered, and its findings and order; provided, however, the court may, by separate rule, set forth the portions of the record to be certified and filed. Thereupon, the court shall cause notice thereof to be served upon such person, and shall then have jurisdiction of the proceeding and of the question determined therein. It shall have the power to grant such temporary relief or restraining order as it considers just and proper, and to make and enter a decree enforcing, modifying and enforcing as so modified, or wholly or partly setting aside the Board’s order.
(b) The parties before the court shall be the Board and such person found by the Board to have committed the unfair labor practice.
(c) Any aggrieved party to a proceeding under section 1622 of this title may appeal to the Supreme Court under 12 V.S.A. chapter 102 and the Vermont Rules of Appellate Procedure.
(d) No objection that has not been urged before the Board may be considered by the court, unless the failure or neglect to urge such objection shall be excused because of extraordinary circumstances. The findings of the Board with respect to questions of fact, if supported by substantial evidence on the record considered as a whole, shall be conclusive. However, if either party applies to the court for leave to adduce additional evidence, and shows to the satisfaction of the court that such additional evidence is material and that there were reasonable grounds for the failure to adduce such additional evidence at the hearing before the Board, the court may order such additional evidence to be taken before the Board and to be made a part of the record. The Board may modify its findings as to facts or make new findings because of additional evidence so taken. The Board shall file such modified or new findings which findings with respect to questions of fact, if supported by substantial evidence on the record considered as a whole, shall be conclusive, and shall file its recommendations, if any, for the modification or setting aside of its original order.
(e) The commencement of proceedings under this section shall not, unless specifically ordered by the court, operate as a stay of the Board’s order.
(f) Petitions filed under the chapter shall be heard expeditiously.
(g) The Board shall have the power upon issuance of a complaint as provided for under this chapter to petition the Superior Court within any county wherein the unfair labor practice is alleged to have occurred, for appropriate temporary relief or restraining order. Upon the filing of such petition, the court shall cause notice thereof to be served upon such person, and thereupon, shall have jurisdiction to grant to the Board such temporary relief as it deems just and proper.
(Added 1967, No. 198, § 16; amended 1973, No. 193 (Adj. Sess.), § 3, eff. April 9, 1974; 2017, No. 74, § 57; 2025, No. 18, § 34, eff. May 13, 2025.)
§ 1624 Contract ratification; annual vote
Annually, the employees of the bargaining unit shall meet and discuss whether employees who have chosen not to join the employee organization shall be allowed to vote on the ratification of any collective bargaining agreement entered into pursuant to this chapter. After discussion, employees that are members of the employee organization shall vote on whether to allow employees who have chosen not to join the employee organization to vote on the ratification of any collective bargaining agreement.
(Added 2013, No. 37, § 15a, eff. June 30, 2013.)
Chapter 20 Independent Direct Support Providers
§ 1631 Definitions
As used in this chapter:
(1) “Board” means the State Labor Relations Board established by 3 V.S.A. § 921.
(2) “Collective bargaining” or “bargaining collectively” means the process by which the State and the exclusive representative of the independent direct support providers negotiate mandatory subjects of bargaining identified in subsection 1634(b) of this chapter, or any other mutually agreed subjects of bargaining not in conflict with State or federal law, with the intent to arrive at an agreement that, when reached, shall be legally binding on all parties.
(3) “Collective bargaining service fee” means a fee deducted by the State from the compensation of an independent direct support provider who is not a member of the exclusive representative of independent direct support providers, which is paid to the exclusive representative. The collective bargaining service fee shall not exceed 85 percent of the amount payable as dues by members of the exclusive representative, and shall be deducted in the same manner as dues are deducted from the compensation of members of the exclusive representative, and shall be used to defray the costs incurred by the labor organization in fulfilling its duty to represent independent direct support providers in their relations with the State.
(4) “Exclusive representative” means the labor organization that has been certified under this chapter and has the right to represent independent direct support providers for the purpose of collective bargaining.
(5) “Grievance” means the exclusive representative’s formal written complaint regarding the improper application of one or more terms of the collective bargaining agreement, the failure to abide by any agreement reached, or the discriminatory application of a rule or regulation, which has not been resolved to a satisfactory result through informal discussion with the State.
(6) “Independent direct support provider” means any individual who provides home- and community-based services to a service recipient and is employed by the service recipient, shared living provider, or surrogate.
(7) “Labor organization” means an organization of any kind in which independent direct support providers participate and that exists, in whole or in part, for the purpose of representing independent direct support providers.
(8) “Service recipient” means a person who receives home- and community-based services under the Choices for Care Medicaid waiver, the Attendant Services Program (ASP), the Children’s Personal Care Service Program, the Developmental Disabilities Services Program, or any successor program or similar program subsequently established.
(9) “Shared living provider” means a person who operates under a contract with an authorized agency and provides individualized home support for one or two people who live in his or her home. An authorized agency includes a designated agency for developmental services.
(10) “Surrogate” means a service recipient’s authorized family member, legal guardian, or a person identified in a written agreement as having responsibility for the care of a service recipient.
(Added 2013, No. 48, § 1, eff. May 24, 2013.)
§ 1632 Rights of independent direct support providers
Independent direct support providers shall have the right to:
(1) organize, form, join, or assist a labor organization for the purposes of collective bargaining without interference, restraint, or coercion;
(2) bargain collectively through their chosen representatives;
(3) engage in concerted activities for the purpose of supporting or engaging in collective bargaining or other mutual aid or protection;
(4) pursue grievances through the exclusive representative as provided in this chapter; and
(5) refrain from any or all such activities, subject to the requirements of subdivision 1634(b)(3) of this chapter.
(Added 2013, No. 48, § 1, eff. May 24, 2013.)
§ 1633 Rights of the State
Subject to the rights guaranteed by this chapter and subject to all other applicable laws and rules, nothing in this chapter shall be construed to interfere with the right of the State to:
(1) carry out the statutory mandate and goals of the Agency of Human Services and to utilize personnel, methods, and means in the most appropriate manner possible;
(2) with the approval of the Governor, take whatever action may be necessary to carry out the mission of the Agency of Human Services in an emergency situation;
(3) comply with federal and State laws and rules;
(4) enforce rules and regulatory processes;
(5) develop rules and regulatory processes that do not impair existing contracts, subject to the duty to bargain over mandatory subjects of bargaining and to the rulemaking authority of the General Assembly and the Human Services Board; and
(6) solicit and accept for use any grant of money, services, or property from the federal government, the State, or any political subdivision or agency of the State, including federal matching funds, and to cooperate with the federal government or any political subdivision or agency of the State in making an application for any grant.
(Added 2013, No. 48, § 1, eff. May 24, 2013; amended 2025, No. 18, § 35, eff. May 13, 2025.)
§ 1634 Establishment of limited collective bargaining; scope of bargaining
(a) Independent direct support providers, through their exclusive representative, shall have the right to bargain collectively with the State, through the Governor’s designee, under this chapter.
(b) Mandatory subjects of bargaining under this section shall be limited to:
(1) compensation rates, workforce benefits, and payment methods and procedures, except that independent direct support providers shall not be eligible to participate in the State’s retirement system or the Vermont State Employee Health Plan solely by virtue of bargaining under this chapter;
(2) professional development and training, except that the issue of whether the State may choose directly to create and administer a professional development or training program shall be a permissive subject of bargaining;
(3) the collection and disbursement of dues or fees to the exclusive representative, provided that a collective bargaining service fee may not be required of nonmembers unless the exclusive representative has established and maintained a procedure to provide nonmembers with:
(A) an audited financial statement that identifies the major categories of expenses, and divides them into chargeable and nonchargeable expenses; and
(B) an opportunity to object to the amount of the agency fee sought, any amount reasonably in dispute to be placed in escrow, subject to prompt review and determination by the Board to resolve any objection over the amount of the collective bargaining fee, as provided for in subsection (d) of this section;
(4) procedures for resolving grievances against the State, provided that the final step of any negotiated grievance procedure, if required, shall be a hearing and final determination by the Board in accordance with Board rules and regulations; and
(5) access to job referral opportunities within covered programs, except that the issue of whether the State may choose directly to create and administer a referral registry shall be a permissive subject of bargaining.
(c) For the purpose of this chapter, the obligation to bargain collectively is the performance of the mutual obligation of the State and the exclusive representative of the independent direct support providers to meet at reasonable times and confer in good faith with respect to all matters bargainable under the provisions of this chapter; but the failure or refusal of either party to agree to a proposal, or to change or withdraw a lawful proposal, or to make a concession shall not constitute, or be evidence of direct or indirect, a breach of this obligation. Nothing in this chapter shall be construed to require either party during collective bargaining to accede to any proposal or proposals of the other party.
(d) Any dispute raised by a nonmember concerning the amount of a collective bargaining service fee, as provided for under subdivision (b)(3) of this section, may be grieved to the State Labor Relations Board which shall review and determine such matter promptly, in accordance with the Board’s rules.
(Added 2013, No. 48, § 1, eff. May 24, 2013.)
§ 1635 Election; bargaining unit
(a) Petitions and elections shall be conducted pursuant to the procedures provided in 3 V.S.A. §§ 941 and 942, except that only one bargaining unit shall exist for independent direct support providers, and the exclusive representative shall be the exclusive representative for the purpose of grievances.
(b) A representation election for independent direct support providers conducted by the Board shall be by mail ballot.
(c) The bargaining unit for purposes of collective bargaining pursuant to this chapter shall be one statewide unit of independent direct support providers. Eligible independent direct support providers shall have the right to participate in a representation election but shall not have the right to vote on or otherwise determine the collective bargaining unit. Eligible independent direct support providers shall all be independent direct support providers who have been paid for providing home- and community-based services within the previous 180 days.
(d) At least quarterly the State shall compile and maintain a list of names and addresses of all independent direct support providers who have been paid for providing home- and community-based services to service recipients within the previous 180 days. The list shall not include the names of any recipient, or indicate that an independent direct support provider is a relative of a recipient or has the same address as a recipient. The State shall, upon request, provide within seven days the most recent list of independent direct support providers in its possession to any organization which has as one of its primary purposes the collective bargaining representation of independent direct support providers in their relations with State or other public entities. This obligation shall include providing the most recent list, upon request, to any labor organization certified as the exclusive representative under this chapter.
(Added 2013, No. 48, § 1, eff. May 24, 2013.)
§ 1636 Mediation; fact-finding; last best offer
(a) If, after a reasonable period of negotiation, the representative of the collective bargaining unit and the State reach an impasse, the Board, upon petition of either party, may authorize the parties to submit their differences to mediation. Within five days after receipt of the petition, the Board shall appoint a mediator who shall communicate with the parties and attempt to mediate an amicable settlement. A mediator shall be of high standing and not actively connected with labor or management.
(b) If, after a reasonable period of time, no fewer than 15 days after the appointment of a mediator, the impasse is not resolved, the mediator shall certify to the Board that the impasse continues.
(c) The Board shall appoint a fact finder who has been mutually agreed upon by the parties. If the parties fail to agree on a fact finder within five days, the Board shall appoint a neutral third party to act as a fact finder pursuant to rules adopted by the Board. A member of the Board or any individual who has actively participated in mediation proceedings for which fact-finding has been called shall not be eligible to serve as a fact finder under this section, unless agreed upon by the parties.
(d) The fact finder shall conduct hearings pursuant to rules of the Board. Upon request of either party or of the fact finder, the Board may issue subpoenas of persons and documents for the hearings and the fact finder may require that testimony be given under oath and may administer oaths.
(e) Nothing in this section shall prohibit the fact finder from endeavoring to mediate the dispute at any time prior to issuing recommendations.
(f) The fact finder shall consider the following factors in making a recommendation:
(1) the needs and welfare of consumers, including their interest in greater access to quality services;
(2) the nature and needs of the personal care assistance program;
(3) the interest and welfare of independent direct support providers;
(4) the history of negotiation between the parties, including those leading to the proceedings;
(5) changes in the cost of living; and
(6) generally accepted labor-management relations practices in Vermont.
(g) Upon completion of the hearings provided in subsection (d) of this section, the fact finder shall file written findings and recommendations with both parties.
(h) The costs of witnesses and other expenses incurred by either party in fact-finding proceedings shall be paid directly by the parties incurring them, and the costs and expenses of the fact finder shall be divided equally by the parties. The fact finder shall be paid a rate mutually agreed upon by the parties for each day or any part of a day while performing fact-finding duties and shall be reimbursed for all reasonable and necessary expenses incurred in the performance of his or her duties. A statement of fact-finding per diem and expenses shall be certified by the fact finder and submitted to the Board for approval. The Board shall provide a copy of approved fact-finding costs to each party with its order apportioning half of the total to each party for payment. Each party shall pay its half of the total within 15 days after receipt of the order. Approval by the Board of fact-finding and the fact finder’s costs and expenses and its order for payment shall be final as to the parties.
(i) If the dispute remains unresolved 20 days after transmittal of findings and recommendations, each party shall submit to the Board its last best offer on all disputed issues as a single package. Each party’s last best offer shall be certified to the Board by the fact finder. The Board may hold hearings and consider the recommendations of the fact finder. Within 30 days of the certifications, the Board shall select between the last best offers of the parties, considered in their entirety without amendment, and shall determine its cost. The Board shall not issue an order under this subsection that: (1) is in conflict with any statute; (2) is in conflict with any rule unless the rule relates to a mandatory subject of bargaining; or (3) determines an issue that is not a mandatory subject of bargaining. The Board shall determine the cost of the agreement selected and recommend to the General Assembly its choice with a request for appropriation. If the General Assembly appropriates sufficient funds, the agreement shall become effective and legally binding at the beginning of the next fiscal year. If the General Assembly appropriates a different amount of funds, the terms of the agreement affected by that appropriation shall be renegotiated based on the amount of funds actually appropriated by the General Assembly, and the agreement with the negotiated changes shall become effective and binding at the beginning of the next fiscal year. No portion of any agreement shall become effective separately without the mutual consent of the parties.
(Added 2013, No. 48, § 1, eff. May 24, 2013.)
§ 1637 General duties and prohibited conduct
(a) The State and the independent direct support providers and their representatives shall make every reasonable effort to make and maintain agreements concerning matters allowed under this chapter and to settle all disputes, whether arising out of the application of those agreements or disputes concerning the agreements. All disputes shall, upon request of either party, be considered within 15 days of the request or at such times as may be mutually agreed to and if possible settled with all expedition in conference between representatives designated and authorized to confer by the State or the independent direct support providers. This obligation does not compel either party to make any agreements or concessions.
(b) It shall be an unfair labor practice for the State to:
(1) interfere with, restrain, or coerce independent direct support providers in the exercise of their rights under this chapter or by any law, rule, or regulation;
(2) dominate or interfere with the formation or administration of any labor organization or contribute financial or other support to it;
(3) discriminate in regard to referral practices or eligibility for work opportunities within covered programs for an independent direct support provider, or to encourage or discourage membership in any labor organization;
(4) take negative action against an independent direct support provider because the provider has taken actions demonstrating his or her support for a labor organization, including signing a petition, grievance, or affidavit or giving testimony under this chapter;
(5) refuse to bargain collectively in good faith with the exclusive representative;
(6) discriminate against an independent direct support provider based on race, color, creed, religion, age, gender, sexual orientation, gender identity, or national origin, or because the provider is a qualified individual with a disability.
(c) It shall be an unfair labor practice for a labor organization to:
(1) Restrain or coerce independent direct support providers in the exercise of the rights guaranteed them by law, rule, or regulation. However, a labor organization may prescribe its own rules with respect to the acquisition or retention of membership, provided such rules are not discriminatory.
(2) Refuse to bargain collectively in good faith with the State.
(3) Cause, or attempt to cause, the State to discriminate against an independent direct support provider in violation of subsection (b) of this section.
(4) Threaten to or cause a provider to strike or curtail the provider’s services in recognition of a picket line of any employee or labor organization.
(d) An independent direct support provider shall not strike or curtail his or her services in recognition of a picket line of any employee or labor organization.
(Added 2013, No. 48, § 1, eff. May 24, 2013.)
§ 1638 Prevention of unfair practices
(a) The Board may prevent the State or a labor organization from engaging in any unfair labor practice listed in section 1637 of this title. Whenever a charge is made that the State or a labor organization has engaged in or is engaging in any unfair labor practice, the Board may issue and cause to be served upon that party a complaint stating the charges in that respect and containing a notice of hearing before the Board at a place and time therein fixed at least seven days after the complaint is served. The Board may amend the complaint at any time before it issues an order based thereon. No complaint shall issue based on any unfair labor practice occurring more than six months prior to the filing of the charge with the Board and the service of a copy thereof upon the party against whom such charge is made, unless the person aggrieved thereby was prevented from filing the charge by reason of service in the U.S. Armed Forces, in which event the six-month period shall be computed from the day of his or her discharge.
(b) The party complained of shall have the right to file an answer to the original or amended complaint and appear in person or otherwise and present evidence in connection therewith at the time and place fixed in the complaint. In the discretion of the Board, any other person may be permitted to intervene and present evidence in the matter. Any proceeding under this section shall, so far as practicable, be conducted in accordance with rules of evidence used in the courts. The Board shall provide for the making of a transcript of the testimony presented at the hearing.
(c) The Board shall have power to administer oaths and take testimony under oath relative to the matter of inquiry. At any hearing ordered by the Board, the Board shall have the power to subpoena witnesses and to demand the production of books, papers, records, and documents for its examination. Officers who serve subpoenas issued by the Board and witnesses attending hearings conducted by the Board shall receive fees and compensation at the same rates as officers and witnesses in causes before a Criminal Division of the Superior Court, to be paid on vouchers of the Board.
(d) If upon the preponderance of the evidence, the Board finds that any party named in the complaint has engaged in or is engaging in any such unfair labor practice, it shall state its finding of fact in writing and shall issue and cause to be served on that party an order requiring him or her to cease and desist from the unfair labor practice, and to take such affirmative action as will carry out the policies of this chapter. If upon the preponderance of the evidence, the Board does not find that the party named in the complaint has engaged in or is engaging in any unfair labor practice, it shall state its findings of fact in writing and dismiss the complaint.
(e) In determining whether a complaint shall issue alleging a violation of subsection 1637(b) or (c) of this title, and in deciding those cases, the same rules of decision shall apply irrespective of whether or not a labor organization affected is affiliated with a labor organization national or international in scope.
(Added 2013, No. 48, § 1, eff. May 24, 2013; amended 2025, No. 18, § 35, eff. May 13, 2025.)
§ 1639 Negotiated agreement; funding
(a) If the State and the exclusive representative reach an agreement, the Governor shall request from the General Assembly an appropriation sufficient to fund the agreement in the next operating budget. If the General Assembly appropriates sufficient funds, the negotiated agreement shall become effective and binding at the beginning of the next fiscal year. If the General Assembly appropriates a different amount of funds, the terms of the agreement affected by that appropriation shall be renegotiated based on the amount of funds actually appropriated by the General Assembly and shall become effective and legally binding in the next fiscal year.
(b) Collective bargaining agreements shall be for a maximum term of two years and shall not be subject to cancellation or renegotiation during the term except with the mutual consent in writing of both parties, which consent shall be filed with the Board. Upon the filing of such consent, an agreement may be supplemented, cancelled, or renegotiated.
(c) The agreement shall terminate at the expiration of its specified term. Negotiations for a new agreement to take effect upon the expiration of the preceding agreement shall be commenced at any time within one year next preceding the expiration date upon the request of either party and may be commenced at any time previous thereto with the consent of both parties.
(d) In the event the State of Vermont and the collective bargaining unit are unable to arrive at an agreement and there is not an existing agreement in effect, the existing contract shall remain in force until a new contract is ratified by the parties. However, nothing in this subsection shall prohibit the parties from agreeing to a modification of certain provisions of the existing contract which, as amended, shall remain in effect until a new contract is finalized and funded by the General Assembly.
(e) The Board is authorized to enforce compliance with all provisions of a collective bargaining agreement upon complaint of either party. In the event a complaint is made by either party to an agreement, the Board shall proceed in the manner prescribed in section 1638 of this title relating to the prevention of unfair labor practices.
(Added 2013, No. 48, § 1, eff. May 24, 2013.)
§ 1640 Rights unaltered
(a) A collective bargaining agreement shall not infringe upon any rights of service recipients or their surrogates to hire, direct, supervise, or discontinue the employment of any particular independent direct support provider.
(b) Nothing in this section shall alter the rights and obligations of private sector employers and employees under the National Labor Relations Act, 29 U.S.C. § 151 et seq.
(c) Independent direct support providers shall not be considered State employees for purposes other than collective bargaining, including for purposes of joint or vicarious liability in tort or the limitation on liability in subsection (e) of this section. Independent direct support providers shall not be eligible for participation in the State Employee Retirement System or health care plan solely by virtue of bargaining under this chapter. Nothing in this chapter shall require the State to alter its current practice with respect to independent direct support providers of making payments regarding Social Security and Medicare taxes, federal or State unemployment contributions, or workers’ compensation insurance.
(d) Nothing in this chapter shall infringe upon the right of the Judiciary and the General Assembly to make programmatic modifications to the delivery of State services through subsidy or other programs.
(e) The State and its employees shall not be vicariously liable for any act or omission by an independent direct support provider or any claim arising out of the employment relationship between a service recipient and an independent direct service provider, nor shall the State be liable as a joint employer.
(Added 2013, No. 48, § 1, eff. May 24, 2013.)
§ 1641 Rules
The Board shall adopt rules and may amend or rescind rules consistent with this chapter as may be necessary to carry out the provisions of this chapter.
(Added 2013, No. 48, § 1, eff. May 24, 2013; amended 2025, No. 18, § 35, eff. May 13, 2025.)
§ 1642 Appeal
(a) Any person aggrieved by an order or decision of the Board issued under the authority of this chapter may appeal on questions of law to the Supreme Court.
(b) An order of the Board shall not automatically be stayed pending appeal. A stay must first be requested from the Board. The Board may stay the order or any part of it. If the Board denies a stay, then a stay may be requested from the Supreme Court. The Supreme Court or a single Justice may stay the order or any part of it and may order additional interim relief.
(Added 2013, No. 48, § 1, eff. May 24, 2013.)
§ 1643 Enforcement
(a) Orders of the Board issued under this chapter may be enforced by any party or by the Board by filing a petition with the Civil Division of the Superior Court of Washington County or in the Civil Division of the Superior Court in the county in which the action before the Board originated. The petition shall be served on the adverse party as provided for service of process under the Vermont Rules of Civil Procedure. If, after hearing, the court determines that the Board had jurisdiction over the matter and that a timely appeal was not filed or that an appeal was timely filed and a stay of the Board order or any part of it was not granted or that a Board order was affirmed on appeal in pertinent part by the Supreme Court, the court shall incorporate the order of the Board as a judgment of the court. There is no appeal from that judgment except that a judgment reversing a Board decision on jurisdiction may be appealed to the Supreme Court.
(b) Upon filing of a petition by a party or the Board, the court may grant such temporary relief, including a restraining order, as it deems proper pending formal hearing.
(c) Orders and decisions of the Board shall apply only to the particular case under appeal, but any number of appeals presenting similar issues may be consolidated for hearing with the consent of the Board. The Board shall not modify, add to, or detract from a collective bargaining agreement by any order or decision.
(Added 2013, No. 48, § 1, eff. May 24, 2013.)
§ 1644 Antitrust exemption
The activities of independent direct support providers and their exclusive representative that are necessary for the exercise of their rights under this chapter shall be afforded State action immunity under applicable federal and State antitrust laws. The State intends that the “State action” exemption to federal antitrust laws be available only to the State, to independent direct support providers, and to their exclusive representative in connection with these necessary activities. Exempt activities shall be actively supervised by the State.
(Added 2013, No. 48, § 1, eff. May 24, 2013.)
§ 1645 Automatic membership dues deduction
Independent direct support providers who are members of the labor organization shall have the right to automatic membership dues deductions. Upon receipt of a signed authorization to commence automatic membership dues deductions from an independent direct support provider, the State shall, as soon as practicable and in any event, not later than 30 calendar days after receiving the authorization, commence withholding from the independent direct support provider’s wages the amount of membership dues certified by the labor organization. The State shall transmit the amount withheld to the labor organization on the same day as the independent direct support provider is paid. Nothing in this section shall be construed to require a member of a labor organization to participate in automatic dues deduction.
(Added 2019, No. 180 (Adj. Sess.), § 7, eff. Jan. 1, 2021.)
§ 1646 Annual list of independent direct support providers in bargaining unit
(a) Annually, or on a more frequent basis if mutually agreed to by the State and the exclusive representative, the State shall provide the exclusive representative of the independent direct support providers with a list of all independent direct support providers in the bargaining unit.
(b)(1) The list shall include, as appropriate, each independent direct support provider’s name, work location, job classification, and contact information. As used in this section, “contact information” includes an independent direct support provider’s home address, personal e-mail address, and home and personal cellular telephone numbers to the extent that the State is in possession of such information.
(2) The list shall not include the name of any recipient or indicate that an independent direct support provider is a relative of a recipient or has the same address as a recipient.
(c) To the extent possible, the list shall be in alphabetical order by last name and provided in electronic format.
(d) The list shall be kept confidential by the State and the exclusive representative and shall be exempt from copying and inspection under the Public Records Act.
(Added 2019, No. 180 (Adj. Sess.), § 18, eff. Jan. 1, 2021.)
Chapter 21 Collective Bargaining in Certain Public Employment [Repealed]
§§ 1701-1710 Repealed
[Repealed]
1973, No. 111, § 2.
Chapter 22 Vermont Municipal Labor Relations Act
§ 1721 Purpose
This chapter shall be known as the Vermont Municipal Employee Relations Act. It is the purpose and policy of this chapter to prescribe the legitimate rights of both municipal employees and municipal employers in their relations with each other; to provide orderly and peaceful procedures for preventing the interference by either with the legitimate rights of the other; to protect the rights of individual employees to self-organization; to allow individuals to form, join, or assist employee organizations and to bargain collectively; to define and proscribe practices on the part of employee organizations and municipal employers which are harmful to the general welfare; and to protect the rights of the public in connection with labor disputes.
(Added 1973, No. 111, § 1.)
§ 1722 Definitions
As used in this chapter:
(1) “Agency service fee” means a fee deducted by an employer from the salary or wages of an employee who is not a member of an employee organization, which is paid to the employee organization that is the exclusive bargaining agent for the bargaining unit of the employee. An agency service fee shall not exceed 85 percent of the amount payable as dues by members of the employee organization and shall be deducted in the same manner as dues are deducted from the salary or wages of members of the employee organization and shall be used to defray the costs of chargeable activities.
(2) “Board” means the State Labor Relations Board established under 3 V.S.A. § 921.
(3) “Bargaining unit” means a group of employees recognized by the municipal employer or certified by the Board as appropriate for exclusive representation by an employee organization for purposes of collective bargaining.
(4) “Collective bargaining” or “bargaining collectively” means the process of negotiating in good faith the wages, hours, or conditions of employment between a municipal employer and the exclusive bargaining agent of employees with the intent to arrive at an agreement that, when reached, shall be reduced to writing.
(5) “Commissioner” means the Commissioner of Labor.
(6) “Confidential employee” means an employee whose responsibility or knowledge or access to information relating to collective bargaining, personnel administration, or budgetary matters would make membership in or representation by an employee organization incompatible with his or her official duties.
(7) “Employee” means a municipal employee as defined in this section.
(8) “Exclusive bargaining agent” means the employee organization certified by the Board or recognized by the employer as the only organization to bargain collectively for all employees in the bargaining unit, including persons who are not members of the employee organization.
(9) “Impasse” means a controversy concerning wages, hours, and conditions of employment arising from the inability of a municipal employer and an exclusive bargaining agent to reach agreement after both parties have bargained collectively in good faith for not less than 60 days.
(10) “Legislative body” means the mayor (or other chief executive officer) and board of aldermen of a city, the selectboard of a town, the trustees of a village, the trustees or prudential committee of a district, the school board of a school district, or the designated governing body of any other political subdivision of the State.
(11) “Managerial prerogative” means any nonbargainable matters of inherent managerial policy.
(12) “Municipal employee” means any employee of a municipal employer, including a municipal school employee or a professional employee as defined in subdivision 1502(11) of this title, except:
(A) elected officials, board and commission members, and executive officers;
(B) individuals employed as supervisors as defined by section 1502 of this title;
(C) individuals who have been employed on a probationary status;
(D) confidential employees as defined in this section;
(E) certified employees of school districts, except as otherwise provided in section 1735 of this title.
(13) “Municipal employer” means a city, town, village, fire district, lighting district, consolidated water district, housing authority, union municipal district, or any of the political subdivisions of the State of Vermont that employs five or more employees as defined in this section.
(14) “Person” means one or more individuals, a city, town, village, or any other political subdivision of the State of Vermont, employee organizations, partnerships, corporations, legal representatives, trustees, or any other natural or legal entity whatsoever.
(15) “Voluntary recognition” means formal acknowledgment by a municipal employer designating a particular employee organization as the exclusive bargaining agent for municipal employees in an appropriate bargaining unit.
(16) “Strike” means conduct by an employee or employee organization or its agents that produces, induces, or encourages a work stoppage, slowdown, or withholding of services; such conduct includes recognizing a picket line or other conduct that interferes with or impedes the orderly functions and services of a municipal employer.
(17) “Wages, hours, and other conditions of employment” means any condition of employment directly affecting the economic circumstances, health, safety, or convenience of employees but excluding matters of managerial prerogative as defined in this section. For collective bargaining related to municipal school employees, “wages, hours, and other conditions of employment” shall not include health care benefits or coverage other than stand-alone vision and dental benefits.
(18) “School board negotiations council” means, for a supervisory district, its school board, and, for school districts within a supervisory union or board of cooperative education services, the body comprising representatives designated by each school board within the supervisory union or board of cooperative education services and by the supervisory union board or board of cooperative education services to engage in collective bargaining with their school employees’ negotiations council.
(19) “School employees’ negotiations council” means the body comprising representatives designated by each exclusive bargaining agent within a supervisory district, supervisory union, or board of cooperative education services to engage in collective bargaining with its school board negotiations council.
(20) “Supervisory district” and “supervisory union” have the same meanings as in 16 V.S.A. § 11.
(21) “Municipal school employee” means an employee of a supervisory union, school district, or board of cooperative education services who is not otherwise subject to 16 V.S.A. chapter 57 (labor relations for teachers and administrators) and who is not otherwise excluded pursuant to subdivision (12) of this section.
(22) “Municipal public safety employee” means a municipal employee who is:
(A) a firefighter as defined in 20 V.S.A. § 3151(3);
(B) an ambulance service, emergency medical personnel, or first responder service as defined in 24 V.S.A. § 2651; or
(C) a law enforcement officer who has been certified by the Vermont Criminal Justice Council pursuant to 20 V.S.A. § 2358.
(Added 1973, No. 111, § 1; amended 1975, No. 113, § 1; 1975, No. 152 (Adj. Sess.), § 6; 1989, No. 215 (Adj. Sess.); 2003, No. 122 (Adj. Sess.), § 85b; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2007, No. 82, § 39; 2009, No. 153 (Adj. Sess.), § 14; 2013, No. 37, § 16, eff. June 30, 2013; 2013, No. 56, § 25, eff. May 30, 2013; 2013, No. 92 (Adj. Sess.), § 305, eff. Feb. 14, 2014; 2013, No. 161 (Adj. Sess.), § 72; 2018, No. 11 (Sp. Sess.), § H.21, eff. Jan. 1, 2020; 2019, No. 61, § 23; 2023, No. 168 (Adj. Sess.), § 10, eff. July 1, 2024.)
§ 1723 Determination of the bargaining unit
Nothing in this chapter shall prevent a municipal employer from voluntarily recognizing an employee organization as the exclusive bargaining agent. Voluntary recognition may be granted at the request of an employee organization if:
(1) The employee organization demonstrates the support of a majority of the employees and the bargaining unit it seeks to represent.
(2) No rival employee organization seeks to represent the same individual employee or the same jobs or positions for which recognition is being sought.
(3) The bargaining unit is appropriate under the standards set forth in subsection 1724(c) of this title. This section shall not require voluntary recognition of an employee organization by a municipal employer.
(Added 1973, No. 111, § 1; amended 2025, No. 18, § 36, eff. May 13, 2025.)
§ 1724 Certification procedure
(a)(1) A petition may be filed with the Board, in accordance with rules adopted by the Board:
(A) By an employee or group of employees, or any individual or employee organization purporting to act on their behalf, alleging that not less than 30 percent of the employees wish to form a bargaining unit and be represented for collective bargaining, or assert that the individual or employee organization currently certified as bargaining agent is no longer supported by at least 51 percent of the employees in the bargaining unit, or that not less than 51 percent of the employees now included in an approved bargaining unit wish to form a separate bargaining unit under Board criteria for purposes of collective bargaining. The employee, group of employees, individual, or employee organization that files the petition shall, at the same time that the petition is filed with the Board, provide a copy of the petition to the employer and, if appropriate, the current bargaining agent.
(B) By the employer alleging that the presently certified bargaining unit is no longer appropriate under Board criteria. The employer shall provide a copy of the petition to the current bargaining agent at the same time that the petition is filed with the Board.
(2)(A)(i) An employer shall, not more than seven business days after receiving a copy of the petition, file any objections to the appropriateness of the proposed bargaining unit and raise any other unit determination issues with the Board and provide a copy of the filing to the employee, group of employees, individual, or employee organization that filed the petition.
(ii) A hearing shall be held before the Board pursuant to subdivision (d)(1)(B) of this section in the event the employer challenges the appropriateness of the proposed bargaining unit, provided that a hearing shall not be held if the parties stipulate to the composition of the appropriate bargaining unit and resolve any other unit determination issues before the hearing.
(iii) The Board may endeavor to informally mediate any dispute regarding the appropriateness of the proposed bargaining unit prior to the hearing.
(B)(i) Within five business days after receiving a copy of the petition, the employer shall file with the Board and the employee or group of employees, or the individual or employee organization purporting to act on their behalf, a list of the names and job titles of the employees in the proposed bargaining unit. To the extent possible, the list of employees shall be in alphabetical order by last name and provided in electronic format.
(ii) An employee or group of employees, or any person purporting to act on their behalf, that is seeking to demonstrate that the current bargaining agent is no longer supported by at least 51 percent of the employees in the bargaining unit shall not be entitled to obtain a list of the employees in the bargaining unit from the employer pursuant to this subdivision (a)(2)(B), but may obtain a list pursuant to subdivision (e)(3) of this section after the Board has investigated its petition and determined that a secret ballot election shall be conducted.
(iii) The list shall be kept confidential and shall be exempt from copying and inspection under the Public Records Act.
(b) The Board, a Board member, or a person or persons designated by the Board shall investigate the petition and do one of the following:
(1) Determine that the petition has made a sufficient showing of interest pursuant to subdivision (a)(1)(A) of this section.
(2)(A) If it finds reasonable cause to believe that a question of unit determination or representation exists, the Board shall schedule a hearing to be held before the Board not more than ten business days after the petition was filed with the Board.
(B) Once scheduled, the date of the hearing shall not be subject to change except as provided pursuant to subdivision (e)(4) of this section.
(C) Hearing procedure and notification of the results of the hearing shall be in accordance with rules adopted by the Board, except that the parties shall only be permitted to submit posthearing briefs within not more than five business days after the hearing if the parties mutually agree to do so or if the Board requests that the parties submit posthearing briefs.
(D) The Board shall issue its decision as soon as practicable and, in any event, not more than five business days after the hearing or the submission of any posthearing briefs.
(3) If the Board finds an absence of substantive evidence, it shall dismiss the petition.
(c) In determining whether a question of representation exists, the Board shall take into consideration the following criteria:
(1) The similarity or divergence of the interests, needs, and general conditions of employment of all employees within the proposed bargaining unit. The Board may, in its discretion, require that a separate vote be taken among any particular class or type of employee within a proposed unit to determine specifically if the class or type wishes to be included. No bargaining unit shall include both professional employees and other municipal employees unless a majority of such professional employees vote for inclusion in such unit.
(2) Whether overfragmentation of units will result from certification to a degree that is likely to produce an adverse effect on the effective representation of other employees of the municipal employer or upon the effective operation of the municipal employer.
(3) In determining whether a unit is appropriate the extent to which the employees have organized is not controlling.
(d) Nothing in this chapter prohibits the waiving of hearings by stipulation for a consent election in conformity with rules of decision of the Board.
(e)(1) Except as otherwise provided pursuant to subsection (h) of this section, in determining the representation of municipal employees in a collective bargaining unit, the Board shall conduct an election by secret ballot of the employees and certify the results to the interested parties and to the employer. The election shall be held not more than 23 business days after the petition is filed with the Board except as otherwise provided pursuant to subdivision (4) of this subsection.
(2) The original ballot shall permit a vote against representation by anyone named on the ballot. No representative will be certified with less than a 51 percent affirmative vote of all votes cast. If it is asserted that the certified bargaining agent is no longer supported by at least 51 percent of the employees in the bargaining unit and there is no attempt to seek the election of another employee organization or individual as bargaining representative, there shall be at least 51 percent negative vote of all votes cast to decertify the existing bargaining agent.
(3)(A) The employer shall file with the Board and the other parties a list of the employees in the bargaining unit within two business days after the Board determines that a secret ballot election shall be conducted.
(B) The list shall include, as appropriate, each employee’s name, work location, shift, job classification, and contact information. As used in this subdivision (3), “contact information” includes an employee’s home address, personal email address, and home and personal cellular telephone numbers to the extent that the employer is in possession of such information.
(C) To the extent possible, the list of employees shall be in alphabetical order by last name and provided in electronic format.
(D) The list shall be:
(i) kept confidential by the Board and all of the parties; and
(ii) shall be exempt from copying and inspection under the Public Records Act.
(E) Failure to file the list within the time required pursuant to subdivision (A) of this subdivision (3) may be grounds for the Board to set aside the results of the election if an objection is filed within the time required pursuant to the Board’s rules.
(4) The Board may, upon the request of any party or on its own motion, extend any time period set forth in this subsection or in subsections (a) and (b) of this section for good cause, provided that the election shall be conducted, or, in the event of a mail ballot election, that ballots are mailed to the employees, within not more than 60 calendar days after the date the petition is filed pursuant to subsection (a) of this section. The Board may further extend the date to conduct the election by not more than 30 additional calendar days upon the mutual agreement of the parties or if it determines that extraordinary circumstances have made such an extension necessary.
(f) If in such election none of the choices receive at least a 51 percent affirmative vote of all votes cast, a runoff election shall be conducted, the ballot providing for a selection between the two choices receiving the largest and second largest number of valid votes cast in the original election.
(g) The Board’s certification of the results of any election shall be conclusive as to findings unless reviewed under proceedings instituted for the prevention of unfair labor practices.
(h)(1) Notwithstanding subsections (e)–(g) of this section, if following its investigation pursuant to subsection (b) of this section the Board determines that a petition to be represented for collective bargaining filed pursuant to subsection (a) of this section, which identifies a proposed bargaining agent, bears the signatures of at least 50 percent plus one of the employees in the bargaining unit, the Board shall certify the individual or labor organization identified as the bargaining agent.
(2) Certification of a bargaining agent shall only be available pursuant to this subsection when no other individual or labor organization is currently certified or recognized as the agent of the employees in the bargaining unit.
(i) No election shall be conducted under this section in a bargaining unit or a subdivision within which in the preceding 12 months a valid election has been held.
(Added 1973, No. 111, § 1; amended 1989, No. 135 (Adj. Sess.); 2019, No. 180 (Adj. Sess.), § 3, eff. Jan. 1, 2021; 2023, No. 117 (Adj. Sess.), § 8, eff. July 1, 2024; 2025, No. 18, § 36, eff. May 13, 2025.)
§ 1725 Collective bargaining procedure
(a)(1) For the purpose of collective bargaining, the representatives of the municipal employer and the bargaining unit shall meet at any reasonable time and shall bargain in good faith with respect to wages, hours, and conditions of employment and shall execute a written contract incorporating any agreement reached; provided, however, that neither party shall be compelled to agree to a proposal nor to make a concession, nor to bargain over any issue of managerial prerogative.
(2)(A) For the purpose of collective bargaining related to municipal school employees, “wages, hours, and conditions of employment” shall not include health care benefits or coverage other than stand-alone vision and dental benefits. Health care benefits and coverage, excluding stand-alone vision and dental benefits but including health reimbursement arrangements and health savings accounts, shall not be subject to collective bargaining by municipal school employees pursuant to this chapter, but shall be determined pursuant to 16 V.S.A. chapter 61.
(B) All written contracts executed in relation to municipal school employees shall incorporate by reference the terms of the agreement entered into pursuant to 16 V.S.A. chapter 61.
(b) The municipal employer shall be represented in the bargaining by its legislative body or its designated representative or representatives. If the municipal employer is a supervisory district or supervisory union, it shall be represented by the school board negotiations council, and the bargaining unit shall be represented by the school employees’ negotiations council.
(c) In the event that any part or provision of a collective bargaining agreement is in conflict with any State law, charter, or special act, such law shall prevail so long as the conflict remains except as provided to the contrary in subsection 1734(b) of this title. In the event any part or provision of a collective bargaining agreement is in conflict with any ordinance, bylaw, rule, or regulation adopted by the municipal employer or its agents, the lawful vote of the legislative body approving the written agreement shall validate the collective bargaining agreement and shall supersede such ordinance, bylaw, rule, or regulation.
(Added 1973, No. 111, § 1; amended 2007, No. 82, § 40; 2018, No. 11 (Sp. Sess.), § H.22, eff. Jan. 1, 2020.)
§ 1726 Unfair labor practices
(a) It shall be an unfair labor practice for an employer:
(1) To interfere with, restrain or coerce employees in the exercise of their rights guaranteed by this chapter or by any other law, rule, or regulation.
(2) To dominate or interfere with the formation or administration of any employee organization or contribute financial or other support to it; provided that an employer shall not be prohibited from permitting employees to confer with the employer during working hours without loss of time or pay.
(3) By discrimination in regard to hiring or tenure of employment or by any term or condition of employment to encourage or discourage membership in any employee organization.
(4) To discharge or otherwise discriminate against an employee because the employee has filed charges or complaints or given testimony under this chapter.
(5) To refuse to bargain collectively in good faith with the exclusive bargaining agent.
(6) To refuse to appropriate sufficient funds to implement a written collective bargaining agreement.
(7) To discriminate against an employee on account of race, color, religion, creed, sex, sexual orientation, gender identity, national origin, disability, age, or political affiliation.
(8) A municipal employer and the exclusive bargaining agent may agree to require the agency service fee to be paid as a condition of employment, or require as a condition of employment membership in such employee organization on or after the 30th day following the beginning of such employment or the effective date of such agreement, whichever is the later. Nothing in this section shall require an employer to discharge an employee in the absence of such an agreement. A municipal employer shall not discharge or discriminate against any employee for nonpayment of the agency service fee or for nonmembership in an employee organization:
(A) if the employer has reasonable grounds for believing that membership was not available to the employee on the same terms and conditions generally applicable to other members; or
(B) if the employer has reasonable grounds for believing that membership was denied or terminated for reasons other than the failure of the employee to tender the periodic dues and the initiation fees uniformly required as a condition of acquiring or retaining membership.
(b) It shall be an unfair labor practice for an employee organization or its agents:
(1) To restrain or coerce employees in the exercise of the right guaranteed to them by law, rule, or regulation. However, this subdivision shall not impair the right of an employee organization to prescribe its own rules with respect to the acquisition or retention of membership therein, provided such rules are not discriminatory.
(2) To restrain or coerce an employer in the selection of representatives for the purposes of collective bargaining or adjustments of grievances.
(3) To cause or attempt to cause an employer to discriminate against an employee in violation of this title or to fail or refuse to represent all employees in the bargaining unit without regard to membership in such organization.
(4) To refuse to bargain collectively in good faith with a municipal employer.
(5) To engage in, or to induce or encourage any person to engage in a strike or a refusal in the course of employment to use, transport, or otherwise handle or work on any goods, articles, materials, or commodities or to perform any services; or to threaten, coerce, or restrain any person with the aim of forcing or requiring any employee to join any employee organization or forcing or requiring any person to cease doing business with any other person, in the course of regular municipal business.
(6) To require employees covered by the agency service fee requirement or other union security agreement authorized under subsection (a) of this section to pay an initiation fee that the Board finds excessive or discriminatory under all the circumstances, including the practices and customs of employee organizations representing municipal employees and the wages paid to the employees affected.
(7) To cause or attempt to cause a municipal employer to pay or deliver or agree to pay or deliver any money or other thing of value in the nature of an exaction, for services that are not performed or not to be performed or that are not needed or required by the municipal employer.
(8) To picket or cause to be picketed, or threaten to picket or cause to be picketed, the municipal employer where an object thereof is forcing or requiring the municipal employer to recognize or bargain with an employee organization as the employees’ representative, or forcing or requiring the employees of an employer to accept or select the employee organization as their collective bargaining representative.
(9) To discriminate against a person seeking or holding membership therein on account of race, color, religion, creed, sex, sexual orientation, national origin, disability, age, or political affiliation.
(10) To penalize a person for exercising a right guaranteed by the constitution or laws of the United States or the State of Vermont.
(11) To cause or attempt to cause the discharge from employment of employees who, because of religious beliefs, refuse membership therein.
(12) To charge the agency service fee unless the employee organization has established and maintained a procedure to provide nonmembers with all the following:
(A) An audited financial statement that identifies the major categories of expenses and divides them into chargeable and nonchargeable expenses.
(B) An opportunity to object to the amount of the fee requested and to place in escrow any amount reasonably in dispute.
(C) Prompt arbitration by an arbitrator selected jointly by the objecting fee payer and the employee organization or pursuant to the rules of the American Arbitration Association to resolve any objection over the amount of the agency service fee. The costs of arbitration shall be paid by the employee organization.
(Added 1973, No. 111, § 1; amended 1991, No. 135 (Adj. Sess.), §§ 16, 17; 1999, No. 19, § 7; 2007, No. 41, § 20; 2013, No. 37, § 17, eff. June 30, 2013.)
§ 1727 Prevention of unfair labor practices
(a) The Board may prevent any person from engaging in any unfair labor practice. Whenever a charge is made that any person has engaged in or is engaging in any unfair labor practice, the Board may issue and cause to be served upon that person a complaint stating the charges and containing a notice of hearing before the Board at a place and time noted therein, which shall be at least 14 days after the complaint is served. The Board may amend the complaint at any time before it issues an order based thereon. No complaint shall issue based on any unfair labor practice occurring more than six months prior to the filing of the charge with the Board unless the person aggrieved thereby was prevented from filing the charge by reason of service in the U.S. Armed Forces, in which event the six-month period shall be computed from the day of his or her discharge. The Board may waive the six-month period if it finds that:
(1) the aggrieved person did not understand that an unfair labor practice had been perpetrated against him or her; or
(2) the offending person had actively concealed his, her, or its perpetration of that unfair labor practice.
(b) The person complained of shall have the right to file an answer to the original or amended complaint and appear in person or through his or her representative and present evidence in connection therewith at the time and place fixed in the complaint. In the discretion of the Board, any other person may be permitted to intervene and present evidence in the matter. Any proceeding under this section shall so far as practicable be conducted in accordance with rules of evidence used in the courts of law or equity. The Board shall provide for the making of a transcript of the testimony presented at the hearing.
(c) The Board shall have power to administer oaths and take testimony under oath relative to the matter of inquiry. At any hearing ordered by the Board, the Board shall have the power to subpoena witnesses and to demand the production of books, papers, records, and documents for its examination. Officers who serve subpoenas issued by the Board and witnesses attending hearings conducted by the Board shall receive fees and compensation at the same rates as officers and witnesses in cases before the Criminal Division of the Superior Court, to be paid on vouchers of the Board.
(d) If upon the preponderance of the evidence, the Board finds that any person named in the complaint has engaged in or is engaging in any unfair labor practice, it shall state its finding of fact in writing and shall issue and cause to be served on that person an order requiring him or her to cease and desist from the unfair labor practice, and to take such affirmative action as the Board shall order. If upon the preponderance of the evidence the Board does not find that the person named in the complaint has engaged in or is engaging in any unfair labor practice, it shall state its findings of fact in writing and dismiss the complaint.
(e) In determining whether a complaint shall issue alleging that an unfair labor practice has been committed, and in deciding those cases, the same rules of decision shall apply irrespective of whether the employee organization affected is affiliated with an employee organization national or international in scope.
(f) No order of the Board shall require the reinstatement of any individual as an employee who has been suspended or discharged or the payment to him or her of any back pay, if such individual has recourse to binding arbitration under a labor contract grievance procedure for such suspension or discharge.
(Added 1973, No. 111, § 1; amended 2009, No. 154 (Adj. Sess.), § 238; 2025, No. 18, § 36, eff. May 13, 2025.)
§ 1728 Freedom of expression
The expression of any views, argument, or opinion, or the dissemination thereof, whether in written, printed, graphic, oral, or visual form, shall not constitute or be evidence of an unfair labor practice under this chapter, if such expression contains no threat of reprisal or promise of benefit.
(Added 1973, No. 111, § 1.)
§ 1729 Enforcement and review
(a) Orders of the Board issued under this chapter may be enforced by any party or by the Board by filing a petition with the Washington Superior Court or the Superior Court in the county in which the action before the Board originated. The petition shall be served on the adverse party as provided for service of process under the Vermont Rules of Civil Procedure. If, after hearing, the court determines that the Board had jurisdiction over the matter and that a timely appeal was not filed, or that an appeal was timely filed and a stay of the Board order or any part of it was not granted, or that a Board order was affirmed on appeal in pertinent part by the Supreme Court, the court shall incorporate the order of the Board as a judgment of the court. There is no appeal from that judgment except that a judgment reversing a Board decision on jurisdiction may be appealed to the Supreme Court.
(b) Upon filing of a petition by a party or the Board, the court may grant such temporary relief, including a restraining order, as it deems proper pending formal hearing.
(c) Any person aggrieved by an order or decision of the Labor Relations Board issued under the authority of this chapter may appeal on questions of law to the Supreme Court under 12 V.S.A. chapter 102 and the Vermont Rules of Appellate Procedure.
(d) An order of the Board shall not automatically be stayed pending appeal. A stay must first be requested from the Board. The Board may stay the order or any part of it. If the Board denies a stay, then a stay may be requested from the Supreme Court. The Supreme Court or a single justice may stay the order or any part of it and may order additional interim relief.
(Added 1973, No. 111, § 1; amended 1987, No. 196 (Adj. Sess.), § 3, eff. May 13, 1988; 1989, No. 25, § 2; 2017, No. 74, § 58.)
§ 1730 Restrictions on strikes
(a) A strike shall not be prohibited unless:
(1) it occurs sooner than 30 days after the delivery of a factfinder’s report to the parties pursuant to subsection 1732(e) of this title;
(2) it occurs after both parties have voluntarily submitted a dispute to final and binding arbitration, or after a decision or award has been issued by the arbitrator; or
(3) it will endanger the health, safety, or welfare of the public.
(b) A municipal employer may petition for an injunction or other appropriate relief from the Superior Court within the county wherein such strike in violation of this section is occurring or is about to occur.
(c) A municipality in which a strike is permitted under this section shall not permanently replace employees who participate in a strike.
(Added 1973, No. 111, § 1; amended 1999, No. 44, § 1; 2025, No. 18, § 36, eff. May 13, 2025.)
§ 1731 Mediation
(a) If the parties are at an impasse in negotiations, either party may petition the Commissioner of Labor to appoint a mediator. The Commissioner shall within 30 days serve as a mediator, or shall appoint a mediator, who shall communicate with the employer and the employees or their representatives and endeavor by mediation to obtain an amicable settlement. Any mediator so appointed shall be a person of high standing in no way actively connected with labor or management.
(b) Nothing in this section shall prevent the Commissioner from serving as a mediator or from appointing a mediator in the absence of a petition if the Commissioner determines that an impasse exists and that the public interest so requires.
(Added 1973, No. 111, § 1; amended 1983, No. 125 (Adj. Sess.), § 1; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006.)
§ 1732 Fact-finding
(a) If after a reasonable period of time not less than 15 days after the appointment of a mediator the impasse is not resolved, the mediator shall certify to the Commissioner of Labor that the impasse continues. The Commissioner shall appoint a qualified fact finder within 30 days of a request by either party. The Commissioner may maintain a list of qualified fact finders drawn up after consultation with representatives of State and local government, employee organizations, boards of conciliation and arbitration in other New England states, and the American Arbitration Association.
(b) The fact finder shall convene the parties as soon as practicable after his or her appointment, hold informal hearings, and provide adequate opportunity to all parties to testify and present evidence regarding their respective positions. Upon the request of the fact finder, all parties to the dispute shall furnish him or her with any records, paper, and information in their possession relevant to resolution of the dispute.
(c) Nothing shall prevent a fact finder from attempting to mediate the dispute. The provisions of 3 V.S.A. § 810 shall not apply to a hearing conducted by a fact finder. At the request of any party, such hearing shall be opened to the public.
(d) In reaching his or her conclusions and recommendations, the fact finder shall give weight to the following factors:
(1) the lawful authority of the municipal employer;
(2) stipulations of the parties;
(3) the interest and welfare of the public and the financial ability of the municipal employer to pay for increased costs of public services, including the cost of labor;
(4) comparisons of the wages, hours, and conditions of employment of the employees involved in the dispute with the wages, hours, and conditions of employment of other employees performing similar services in public employment in comparable communities or in private employment in comparable communities;
(5) the average consumer prices for goods and services commonly known as the cost of living; and
(6) the overall compensation presently received by the employees, including direct wages, fringe benefits, and continuity conditions and stability of employment, and all other benefits received.
(e) The fact finder shall make a written report with recommendations to both parties within 30 days after the close of hearings. The report shall be made public by the fact finder if the dispute has not been resolved within 10 days after delivery of the report to the parties. The report and recommendations of the fact finder shall be advisory only and shall not be binding on either party.
(f) All expenses of mediation and fact-finding shall be shared equally by the parties.
(Added 1973, No. 111, § 1; amended 1983, No. 125 (Adj. Sess.), § 2; 2005, No. 103 (Adj. Sess.), § 3, eff. April 5, 2006; 2025, No. 18, § 36, eff. May 13, 2025.)
§ 1733 Arbitration
(a)(1) Nothing in this chapter shall prevent the legislative body of a municipal employer and the exclusive bargaining agent from voluntarily submitting a contract impasse to final and binding arbitration or for the municipality by a referendum vote from adopting binding arbitration procedures, in the following form:
The arbitrator shall have the power to determine all issues in dispute involving wages, hours, and conditions of employment as defined by this chapter.
(2)(A) Notwithstanding any provision of subdivision (1) of this subsection (a), if an impasse continues between the legislative body of a municipal employer and the exclusive bargaining agent for municipal public safety employees for 20 days after a fact finder has made its report public under subsection 1732(e) of this title, the legislative body of the municipal employer and the exclusive bargaining agent for the municipal public safety employees shall submit the contract impasse to final and binding arbitration pursuant to the provisions of this section.
(B) Notwithstanding any provision of section 1732 of this chapter to the contrary, after the mediator has certified to the Commissioner of Labor that the impasse continues, the legislative body of a municipal employer and the exclusive bargaining agent for municipal public safety employees may agree to proceed directly to final and binding arbitration pursuant to the provisions of this section without first submitting the dispute to fact finding pursuant to section 1732 of this chapter.
(C) The provisions of this subdivision (2) shall not apply to negotiations between the legislative body of a municipal employer and the exclusive bargaining agent for a bargaining unit that includes both municipal public safety employees and other municipal employees.
(b) Where an impasse continues for 20 days after a fact finder has made a report public under subsection 1732(e) of this title, a three-member arbitration panel shall be formed as follows:
(1) Each party to the impasse shall select one member of the panel and state its final offer on all disputed issues on the 20th day following publication of the fact finder’s report.
(2) The two members so selected shall within five business days select the third member of the panel to serve as Chair. If the two members fail to select a third member of the panel within five business days, the third member shall be appointed by the Superior Court for the county in which the municipality is situated, upon petition of either party, and notice to the other party.
(3) Within 30 days of the appointment of the Chair, the panel shall decide by majority vote all disputed issues involving wages, hours, and conditions of employment as defined by this chapter, and this award shall become an agreement of the parties.
(c) In reaching a decision the arbitrator shall give weight to the factors listed in subsection 1732(d) of this title.
(d) Upon application of a party, a Superior Court shall vacate an award if:
(1) the award was procured by corruption, fraud, or other undue means;
(2) there was evident partiality or prejudicial misconduct by the arbitrator;
(3) the arbitrator exceeded his or her power or rendered an award requiring a person to commit an act or engage in conduct prohibited by law;
(4) the award was made on the basis of subsection (a) of this section, and there was no arbitration agreement; or
(5) there is an absence of substantial evidence on the record as a whole to support the award.
(e) An application under this section shall be made within 30 days after delivery of a copy of the award to the applicant, except that in case of a claim of corruption, fraud, or other undue means, it shall be made within 30 days after such grounds are known or should have been known.
(f) If a municipality has voted to adopt binding arbitration procedures, the legislative body of the municipal employer and the exclusive bargaining agent may agree to proceed directly from mediation to binding arbitration without submitting the dispute to fact-finding. The decision to proceed directly to binding arbitration may be made at any reasonable time during the mediation process but no less than 30 days after appointment of the mediator under section 1731 of this title. The arbitration panel shall be selected as provided in subsection (b) of this section, with each party to the impasse selecting one member of the panel and stating its final offer on the 20th day after the agreement to proceed directly to arbitration is reached, and the two members so selected selecting the third member within five days.
(g) Nothing shall prevent a municipal employee from participating in a debate or campaign conducted with regard to a referendum held pursuant to subsection (a) of this section.
(Added 1973, No. 111, § 1; amended 1977, No. 201 (Adj. Sess.); 1983, No. 126 (Adj. Sess.); 2017, No. 11, § 52; 2017, No. 74, § 59; 2017, No. 113 (Adj. Sess.), § 150; 2019, No. 61, § 22; 2019, No. 131 (Adj. Sess.), § 128.)
§ 1734 Miscellaneous
(a) Municipal employees and exclusive bargaining agents are authorized to negotiate provisions in a collective bargaining agreement calling for:
(1) Payroll deduction of employee organization dues and initiation fees.
(2) Binding arbitration of grievances involving the interpretation or application of a written collective bargaining agreement. The cost of arbitration shall be shared equally by the parties.
(b) In the event of a voluntary submission to binding arbitration by a municipal employer and an employee organization of a grievance or controversy concerning the tenure of employment of any employee, whether or not pursuant to the provisions of a collective bargaining agreement, binding arbitration shall be the exclusive procedure for determining such grievance or controversy, notwithstanding any contrary provision of any general statute, charter, special act, court decision, or ordinance.
(c) Any individual employee or group of employees shall have the right at any time to present grievances to their employer and to have such grievances adjusted, without the intervention of the exclusive bargaining agent, as long as the adjustment is not inconsistent with the terms of a collective bargaining agreement and provided that the exclusive bargaining agent has been given an opportunity to be present at such adjustment.
(d) In the absence of an agreement requiring an employee to be a member of the employee organization, an employee choosing not to be a member of the employee organization shall pay the agency service fee in the same manner as employees who choose to join the employee organization pay dues. The employee organization shall indemnify and hold the employer harmless from any and all claims stemming from the implementation or administration of the agency service fee.
(Added 1973, No. 111, § 1; amended 2013, No. 37, § 18, eff. June 30, 2013.)
§ 1735 School districts; certified employees; teachers
For the purposes of representation in, and prevention of, unfair labor practices under sections 1726-1729 of this title, a teacher who is a certified employee of a school district shall be considered a municipal employee; and any school district, which includes any public school district or any quasi-public or private elementary or secondary school within the State that directly or indirectly receives support from public funds shall be considered a municipal employer. Nothing in this section shall be taken to alter or repeal the provisions of 16 V.S.A. chapter 57, relating to labor relations for teachers, except that enforcement and review under section 1729 of this title shall not be subject to the provisions of 16 V.S.A. § 2010.
(Added 1975, No. 113, § 2.)
§ 1736 Contract ratification; annual vote
Annually, the employees of the bargaining unit shall meet and discuss whether employees who have chosen not to join the employee organization shall be allowed to vote on the ratification of any collective bargaining agreement entered into pursuant to this chapter. After discussion, employees that are members of the employee organization shall vote on whether to allow employees who have chosen not to join the employee organization to vote on the ratification of any collective bargaining agreement.
(Added 2013, No. 37, § 18a, eff. June 30, 2013.)
§ 1737 Automatic membership dues deduction
Employees who are members of the employee organization shall have the right to automatic membership dues deductions. Upon receipt of a signed authorization to commence automatic membership dues deductions from an employee, the employer shall, as soon as practicable and in any event, not later than 30 calendar days after receiving the authorization, commence withholding from the employee’s wages the amount of membership dues certified by the employee organization. The employer shall transmit the amount withheld to the employee organization on the same day as the employee is paid. Nothing in this section shall be construed to require a member of an employee organization to participate in automatic dues deduction.
(Added 2019, No. 180 (Adj. Sess.), § 8, eff. Jan. 1, 2021.)
§ 1738 Access to new employees in bargaining unit
(a) An employer shall provide the employee organization that is the exclusive representative of the employees in a bargaining unit with an opportunity to meet with each newly hired employee in the bargaining unit to present information about the employee organization.
(b)(1) The meeting shall occur during the new employee’s orientation or, if the employer does not conduct an orientation for newly hired employees, within 30 calendar days from the date on which the employee was hired.
(2) If the meeting is not held during the new employee’s orientation, it shall be held during the new employee’s regular work hours and at his or her regular worksite or a location mutually agreed to by the employer and the employee organization.
(3) The employee organization shall be permitted to meet with the employee for not less than 60 minutes.
(4) The employee shall be paid for attending the meeting at his or her regular rate of pay.
(c)(1) Within 10 calendar days after hiring a new employee in a bargaining unit, the employer shall provide the employee organization with his or her name, job title, worksite location, work telephone number and e-mail address, home address, personal e-mail address, home and personal cellular telephone numbers, and date of hire to the extent that the employer is in possession of such information.
(2) The employee’s home address, personal e-mail address, and home and personal cellular telephone numbers shall be kept confidential by the employer and the employee organization and shall be exempt from copying and inspection under the Public Records Act.
(d) The employer shall provide the employee organization with not less than 10 calendar days’ notice of an orientation for newly hired employees in a bargaining unit.
(Added 2019, No. 180 (Adj. Sess.), § 13, eff. Jan. 1, 2021.)
§ 1739 Annual list of employees in bargaining unit
(a) Annually, or on a more frequent basis if mutually agreed to by the employer and the employee organization, the employer shall provide the employee organization that is the exclusive representative of a bargaining unit with a list of all employees in that bargaining unit.
(b) The list shall include, as appropriate, each employee’s name, work location, job classification, and contact information. As used in this section, “contact information” includes an employee’s home address, personal e-mail address, and home and personal cellular telephone numbers to the extent that the employer is in possession of such information.
(c) To the extent possible, the list shall be in alphabetical order by last name and provided in electronic format.
(d) The list shall be kept confidential by the employer and the employee organization and shall be exempt from copying and inspection under the Public Records Act.
(Added 2019, No. 180 (Adj. Sess.), § 17, eff. Jan. 1, 2021.)
Chapter 24 Death Benefits [Repealed]
§§ 1901, 1902 Repealed
[Repealed]
1977, No. 109, § 33(d), eff. July 3, 1977.
Chapter 25 Employers' Health Care Fund Contribution [Repealed]
§§ 2001-2004 Repealed
[Repealed]
2017, No. 73, § 31(5), eff. January 1, 2018.
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