Vermont HR laws for employers (2026)
The Vermont rules employers ask about most: minimum wage, overtime, final pay, unused vacation, paid sick leave and breaks.
Vermont employment law at a glance
| Minimum wage | $14.42 per hour |
|---|---|
| Tipped cash wage | $7.21 per hour |
| Overtime | Time-and-a-half over 40 hours per week; no daily overtime. Several employer types are exempt from state overtime, including retail/service establishments, hotels, motels and restaurants (federal FLSA rules may still apply). |
| Final pay when fired | Within 72 hours of discharge. |
| Final pay when an employee quits | By the next regular payday, or the following Friday if there is no regular payday. |
| Unused vacation / PTO at separation | No Vermont statute requires payout of unused vacation; it depends on the employer's policy or agreement. Unused earned sick time does not have to be paid out. Verify |
| Paid sick leave | Yes. Employees accrue at least 1 hour of earned sick time per 52 hours worked; employers may cap accrual at 40 hours per 12-month period and may impose a waiting period of up to one year for new hires. Excludes employees averaging under 18 hours/week, minors, and seasonal workers of 20 weeks or less. |
| Meal breaks | No set length; employers must give reasonable opportunities during work periods to eat. |
| Rest breaks | No set paid rest period; employers must give reasonable opportunities during work periods to use toilet facilities. |
Minimum wage note: Applies to employers of two or more. Adjusted every January 1 by the smaller of 5% or the CPI increase; the 2027 rate had not been announced as of early October 2026. No local minimum wages.
Verify means we could not confirm that item from an official Vermont or US Department of Labor source, so check it with the state before relying on it.
Other Vermont rules to know
- Since July 1, 2025, employers with 5 or more employees must include the pay or good-faith pay range in job ads for Vermont-based positions (tipped and commission roles have special rules).
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Frequently asked questions
What is the minimum wage in Vermont in 2026?
$14.42 per hour, effective January 1, 2026. Applies to employers of two or more. Adjusted every January 1 by the smaller of 5% or the CPI increase; the 2027 rate had not been announced as of early October 2026. No local minimum wages.
When is a final paycheck due in Vermont?
If the employer ends employment: Within 72 hours of discharge. If the employee quits: By the next regular payday, or the following Friday if there is no regular payday.
Does Vermont require paying out unused vacation?
No Vermont statute requires payout of unused vacation; it depends on the employer's policy or agreement. Unused earned sick time does not have to be paid out.
Is paid sick leave required in Vermont?
Yes. Employees accrue at least 1 hour of earned sick time per 52 hours worked; employers may cap accrual at 40 hours per 12-month period and may impose a waiting period of up to one year for new hires. Excludes employees averaging under 18 hours/week, minors, and seasonal workers of 20 weeks or less.
Sources
- 21 V.S.A. § 342 – Wage payment and final pay
- 21 V.S.A. § 384 – Minimum wage and overtime
- 21 V.S.A. § 482 – Earned sick time
- 21 V.S.A. § 304 – Meal and toilet opportunities
- 21 V.S.A. § 495p – Pay transparency in job advertisements
- Vermont DOL – Earned Sick Time FAQ (PDF)
- US DOL – State Minimum Wage Laws (updated July 1, 2026)
- ABC22/FOX44 – Vermont minimum wage rising to $14.42 in 2026 (citing Vermont DOL)
HR laws in other states
This page is general information for employers, not legal advice. Employment laws change and can vary by city and county. Confirm details with the state labor department or an employment attorney. Read our disclaimer.