In June 2024, the Vermont Legislature passed Act 155, titled An Act Relating to Disclosure of Compensation in Job Advertisements. Act 155 was signed into law by Governor Scott on June 4, 2024. The new law requires that employers disclose compensation ranges when advertising a job in Vermont and is intended to promote equitable pay practices and reduce wage gaps.
What employers are covered by Act 155?
Act 155 applies to any employer with five or more employees, at least one of whom is physically present in Vermont. The law also covers job postings for remote employees who perform work for an employer whose principal place of business is physically in Vermont and who perform remote work within the state. Further, employers are required to disclose compensation ranges not only externally, but also when posting jobs internally.
What are employers required to do?
Employers must include a range of compensation within any written notice advertising a specific job opening. The range of compensation is determined by the minimum and maximum annual salary or hourly wage for a job opening that an employer expects in good faith to pay for the advertised job at the time of posting.
However, employers are not required to disclose compensation information when publishing general announcements informing potential candidates that employment opportunities may exist, without identifying a particular job.
How does the law affect the hiring of commissioned or tip-based workers?
Employers must disclose whether a job is paid on a commission basis, either entirely or partially, but are not required to disclose the compensation or range of compensation. Employers must disclose whether a job is paid on a tipped basis and must disclose the base wage or range of base wages for the position.
What restrictions are placed on employers by the law?
Employers are prohibited from refusing to interview, hire, promote, or employ a current or prospective employee on the grounds that the candidate asserts their right to compensation disclosure.
What exceptions exist under Act 155?
Employers and employees are not prohibited from negotiating pay during the application or hiring process. Employers are also not prohibited from hiring an employee for more or less than the range of base wages/compensation. However, these deviations from Act 155’s requirements must be based on circumstances outside of the employer’s control, such as the applicant’s qualification or market conditions.
How will Act 155 be enforced?
The law does not provide individuals with the right to initiate a civil lawsuit against an employer for alleged violations of Act 155. However, in instances where an employee asserts that their rights under Act 155 have been violated, the Vermont Attorney General’s Office Civil Rights Unit may enforce the law by launching a civil investigation and potentially file a lawsuit on behalf of the state against an employer. The Attorney General or a State’s Attorney may request a court to issue such penalties including but not limited to orders prohibiting unlawful conduct, dissolution of a corporation, and/or imposition of significant civil fines.
Please contact Heather Hammond (hhammond@gravelshea.com) at
Gravel & Shea PC if you have questions or would like assistance.
