Vermont Governor Phil Scott signed H.704 on June 4, 2024, which requires salary transparency in job offers and advertisements. Beginning July 1, 2025, employers with at least five employees must include in any “job opening in Vermont” advertisement the compensation or compensation range for the advertised position.
Because it is important
The law applies not only to positions “physically located in Vermont,” but also to any remote position that predominantly performs work for an office or workplace physically located in Vermont. Additionally, the law applies to positions that are (1) open to internal or external candidates, or both, and (2) positions to which current employees can transfer or be promoted.
Definition of advertisement
“Local Keynote USA News” is any “written notice, in any format, of a specific job opening that is made available to prospective applicants.”
The law does not include:
- General advertisements that notify potential applicants that employment opportunities may exist with the employer, but do not identify any specific job openings; either
- Verbal advertisements of employment opportunities made in person or by radio, television or other electronic media.
What should be disclosed
Local Keynote USA Newss must include the minimum and maximum annual salary or hourly wage for a vacant position that the employer in good faith expects to pay for the job advertised at the time the advertisement is created. The law does not prevent an employer from hiring an employee for more or less than the advertised compensation range based on circumstances beyond the employer’s control, such as the applicant’s qualifications or labor market forces.
Exceptions
Job advertisements for commission-paid positions must disclose that the position is commission-based, but the employer is not required to disclose compensation or compensation range.
Local Keynote USA Newss for tipped positions must disclose that the position is tipped and provide the base salary or base salary range for the vacant position.
To be determined
There are no fines or other sanctions for violations of the law. The Vermont Attorney General’s Office will post guidance on the salary disclosure law on its website by January 1, 2025, six months before the law’s effective date.
Next
With this latest development in state pay transparency and equity laws, employers should:
- Conduct training for recruiters and hiring and compensation managers on transparency and pay equity laws.
- Review job descriptions, postings and advertisements to ensure compliance with state and local laws.
- Review job sites to remove or review outdated or non-compliant job postings.
- Review compensation processes and systems.
- Conduct a privileged salary analysis
- Please remember that the salary range requirement for postings would also apply to hires made for PERM green card applications for foreign nationals.
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