Vermont Joins Growing National Trend with New Pay Transparency Law

Vermont’s New Pay Transparency Law

On June 4, 2024, Vermont Governor Phil Scott signed into law House Bill 704 (H. 704). The Green Mountain State is the most recent jurisdiction to pass legislation related to pay transparency, or the required disclosure of salary ranges or hourly pay in job postings, a trend that has gained significant traction in the United States over the last several years.  

What Compensation Must be Disclosed in Job Postings?

Effective July 1, 2025, Vermont employers with four or more employees will be required to include compensation ranges (minimum and maximum annual salaries or hourly wages) for any job opening advertisement, including job openings where there is a base wage or range for those paid as tipped workers. The legislation provides one exception to disclosing a compensation range, and that is specifically for a job opening advertisement where the prospective employee is to be paid on a commission basis.  

An advertisement as defined by the law is a written notice in any format for a specific job opening for potential applicants, which includes both current and prospective employees. However, an advertisement does not include general announcements that there are employment opportunities at the company or verbal announcements, whether via radio, television, etc.  

Further, covered job openings include any open position that is (1) either physically located in Vermont or a remote position where the majority of the work is done in Vermont; and (2) a position for which an employer is hiring, including job postings for internal and/or external candidates, employee transfers, or promotions.   

An individual may bring a claim of retaliation against an employer for refusing to interview, hire, promote, or employ a current or prospective employee under the state’s pay transparency or fair employment practices law. H. 704 does not, however, prevent employers from hiring someone outside the ranges provided in the job posting if there are circumstances outside the employer’s control, such as qualifications or labor market conditions.  

The Rise of Pay Transparency Laws

Vermont is now the 9th state, including D.C., to pass a state-level pay transparency law. In addition to Vermont, just this spring both Maryland and Minnesota passed pay transparency laws that will also go into effect in the upcoming months. Employers should review their hiring procedures and ensure their job postings are in compliance with these new pay transparency laws. For a detailed look into statewide pay transparency laws, check out the GovDocs Pay Transparency Interactive Map.