Act 155, An Act Relating to Disclosure of Compensation in Job Advertisements goes into effect July 1, 2025. For covered employers, most job listings or advertising for open positions will have to include the position’s compensation or compensation range in an effort to increase pay transparency for workers.
Who is Covered?
Act 155 covers every employer that has at least five (5) employees, at least one (1) of whom works in the State of Vermont.
What Type of Job Advertisements are Covered?
- Written advertisements – even if it is an email that is sent internally within an employer advertising an opening;
- Advertisements that describe a specific job opening (e.g., “sales director wanted” or “customer service associate”); and
- Advertisements where the job is physically located in Vermont (even if the employee might not live in Vermont) or the employee’s work is predominantly performed either in a Vermont office or other Vermont work location.
What Types of Advertisement are NOT Covered?
- Oral advertisements, even if they are communicated over radio, television, or other electronic media;
- General notices of employment opportunities, rather than specific job openings (e.g., “Help Wanted,” “We are Hiring,” or “Join our Team”); or
- Job openings for work performed outside of Vermont.
What Must Be Included in the Advertisement?
The general rule is that after July 1, 2025, a covered advertisement must include the expected compensation or range of compensation for the position. Under the new law, the range of compensation means the minimum and maximum annual salary or hourly wage that the employer, acting in good faith, expects to pay for the advertised job at the time it creates the ad.
Special Rules for Tipped Employee Advertisements
If the job is paid on a tipped basis, the advertisement must:
- Disclose that fact; and
- Disclose the range of base wages (i.e., non-tip wages provided by the employer) that the employer, acting in good faith, expects to pay at the time it creates the ad.
Special Rules for Commission Employee Advertisements
- If a job is paid entirely or partly on a commission basis, the advertisement merely needs to state that fact.
- Commission employee advertisements do not need to disclose the compensation or a range of compensation.
Other Important Items of Note:
- Nothing in the new law limits employers and employees from negotiating compensation.
- The new law will be enforced for private employers by the Vermont Attorney General’s Office. Violations will be considered an unfair employment practice subject to civil penalties.
- Applicants and employees have no private right of action against an employer for non-compliance. They can only file a complaint with the Vermont Attorney General.
Please contact the lawyers at Sheehey Furlong & Behm if you have questions about this new state requirement by emailing attorneys@sheeheyvt.com.
