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Preparing for Vermont's Pay Transparency Law

By Debra Milstein Gardner - Jun 20, 2024 3:18:42 PM - 3 MINS READ

On July 1, 2025, a new regulation mandating pay transparency in job advertisements will come into effect in Vermont. Signed into law by Governor Phil Scott on June 4, 2024, H.704 requires employers with at least five employees to disclose the compensation or range of compensation for any advertised position.

Key Requirements and Implications

The law encompasses positions physically located in Vermont and remote roles tied to Vermont-based offices. It covers both external and internal job postings, including opportunities for transfers or promotions. Employers must ensure all job advertisements, in any written format, include the minimum and maximum salary or hourly wage expected for the role. It does not cover general announcements about future opportunities or verbal announcements of job openings made on the radio, television, or other electronic mediums.

Exceptions are made for commission-based and tipped positions, where only the nature of the compensation needs to be disclosed, along with the base wage for tipped roles.

The law does not preclude an employer from hiring or placing an employee at a wage higher or lower than the range of compensation advertised due to circumstances outside of the employer’s control, like the qualifications of the applicants.  

Guidance from the Vermont Attorney General’s Office will be published before January 1, 2025. As written, violators will not incur fines or penalties for failing to comply with the new law.

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Vermont's new pay transparency law is part of a broader trend seen in other states, reflecting a growing emphasis on pay equity and transparency. To ensure preparedness with the new law, employers should take the following proactive steps:

• Conduct sessions for recruiters, hiring managers, and compensation managers on the new requirements and general pay equity principles

• Update job descriptions, postings, and advertisements to ensure they meet state and local regulations

• Ensure compensation processes and career sites are current and compliant

• Perform a pay analysis to ensure your employee's salaries are in compliance with current laws

Be proactive about your pay practices and develop a solid pay philosophy. Contact us today for comprehensive support on your compensation plan

 

Debra Milstein Gardner

Debra Milstein Gardner has worked in the Equal Employment Opportunity (EEO) and Affirmative Action (AA) space for the past 43 years while working in the public and private sectors in various human resources compliance roles. She began her career working for the Equal Employment Opportunity Commission and then went to the Marriott Corporation for nine years working in EEO, Affirmative Action and field human resource roles. In 1990, Debra founded Workplace Dynamics LLC providing EEO, AA, and DEI consulting services to government contractors. In 2016, Debra sold the affirmative action portion of Workplace Dynamics to OutSolve LLC and works part-time as a Market Analyst. Debra is a sports fanatic, routing for the Baltimore Ravens and all Virginia Tech Hokie teams. She loves to hike and boat in her mountain and lake community of Lake Lure, NC.

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