Payment of Wages: Vermont

Federal law and guidance on this subject should be reviewed together with this section.

Authors: Wanda I. Otero, Langrock Sperry & Wool, LLP

Summary

• The term wages is broadly defined in the Vermont wage payment law. See Definition of Wages.
• Vermont employers must pay employees in cash or by check. Payment by direct deposit or electronic paycard is also permitted, if employees consent in writing and certain requirements are met. See Wage Payment Methods.
• All employees must be paid on a weekly basis (more often if the employer provides notice) within six calendar days after the end of a payroll period. Unionized employees may be paid within 13 days after the end of the pay period if a collective bargaining agreement so provides. Penalties are imposed for violations. See Pay Frequency.
• With employees' written consent, employers are permitted to make certain deductions from employee wages. Other deductions are prohibited. All employers are required to pay the Child Care Contribution (CCC) on all covered wages paid to each employee earned in Vermont. Penalties apply if deductions reduce employees' wages below the minimum wage. See Permitted and Prohibited Wage Deductions.
• Employers must provide employees written, itemized pay statements every payday. Each pay statement must contain specific information. See Pay Statement Requirements.
• When final wages must be paid to a terminated employee depends on whether the termination is voluntary or involuntary. Penalties are imposed for failure to pay wages at the proper time. See Final Pay.
• Vermont's general estates law may apply to an employer who owes wages or other property to a deceased employee. See Deceased Employee Wages. 
• Wages unclaimed for one year are considered abandoned property. Vermont law requires employers to file a report with the state treasurer and send due diligence notices to affected employees. Penalties are imposed for failure to report and remit unclaimed wages. See Unclaimed Wages.