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Vermont mandates pay for transparency in job postings and advertisers

Vermont Governor Phil Scott signed H.704 on June 4, 2024, mandating pay transparency in job postings and advertising. Effective July 1, 2025, employers with at least five employees must include in each “Vermont Job Ad” the pay or range of pay for the advertised position.

Why it matters
The law applies not only to positions “physically located in Vermont,” but also to remote positions that will primarily perform work for an office or work location physically located in Vermont. In addition, the law applies to positions that are (1) open to internal or external candidates, or both, and (2) positions to which current employees may transfer or be promoted.

Definition of advertisement
“Advertisement” is any “written notice, in any format, of a specific vacancy made available to potential applicants.”

The law does not include:

  • General announcements that alert potential applicants that employment opportunities may exist with the employer, but do not identify specific vacancies; or
  • Verbal announcements of vacancies, made in person or via radio, television or other electronic media.

What should be made public
Advertisements must include the minimum and maximum annual salary or hourly wage for a position that the employer in good faith expects to pay for the advertised position at the time the employer creates the advertisement. The law does not prohibit an employer from hiring an employee for more or less than the compensation advertised based on circumstances beyond the employer’s control, such as an applicant’s qualifications or the forces in the labor market.

Exceptions
Job advertisements for commission-based positions must state that the position is commission-based, but the employer is not required to disclose the compensation or range of compensation.

Advertisements for positions paid on a tipped basis must state that the position is a tipped position and list the base pay or range of base pay for the vacancy.

To be determined
There is no provision for fines or other penalties for violations of the law. The Vermont Attorney General’s Office will publish guidance on the salary disclosure law on its website by January 1, 2025, six months before the law’s effective date.

Next one
With this latest development in pay equity and transparency laws, employers must:

  • Providing training for recruiters and hiring and compensation managers on pay equity and transparency laws
  • Check job descriptions, vacancies and advertisements to ensure compliance with state and local laws
  • Check career sites to remove or revise outdated or non-compliant job postings
  • Assess reward processes and systems
  • Conduct a privileged pay analysis
  • Please note that salary requirements for placements also apply to recruitments conducted for PERM green card applications for foreigners
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