What happened?

On June 4, 2024, Governor Phil Scott signed H. 704 into law, which requires employers to disclose compensation in job postings.

What are the details?

Key Bites for Employers:

• Employers shall include the compensation or range of compensation for the job opening, either for current employees or applicants that are expected to perform physically or will be remote, but work will be predominantly performed for a location in Vermont. There are 2 exceptions:
  • An advertisement for a job opening that is paid on a commission basis, whether wholly or in part, should disclose this fact but is not required to disclose the compensation or range for the position.
  • An advertisement for a job opening that is paid on a tipped basis should disclose this fact and provide the base wage or range of base wage for the position.

• Employers will also be prohibited from discriminating or retaliating against an employee or applicant who exercises their rights under this law.

• The law defines a series of concepts, including but not limited to: what is considered an advertisement, who is an employer and what is the base wage

• The new law does not prohibit an employer from hiring an employee for more or less than the range of compensation contained in a job advertisement based on circumstances outside of the employer’s control, such as an applicant’s qualifications or labor market factors.

• The Attorney General must create a guidance for employers to comply on or before January 1, 2025.

Business Considerations

• Employers should update their policies, practices, and procedures regarding their hiring process..
• Employers should consider that the requirements apply for remote and to be physically performed in Vermont. Employers should audit the current job postings and update them accordingly.
• Employers should ensure that all job advertisements, whether online or offline, remote, or on-site, include the compensation or a compensation range. This includes base salary, bonuses, and other forms of compensation if applicable.

Source References

• VT H.704

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