Vermont to require pay range disclosure in job advertisements 

August 5, 2024

On June 4, 2024, Vermont’s governor signed into law H 704, which will require employers with five or more employees to include compensation or compensation ranges in job advertisements beginning July 1, 2025. The attorney general’s office will publish implementation guidance on or before Jan. 1, 2025. 

Employer disclosures. Employers with five or more employees must include the compensation or compensation range in any advertisement of a Vermont job opening. The compensation range means the minimum and maximum annual salary or hourly wage for a job opening that the employer expects — in good faith — to pay for the advertised job when the advertisement is posted.

If a job is commission based, whether in whole or in part, the advertisement shall disclose that fact and is not required to disclose the compensation or compensation range.

Advertisements for tipped positions must disclose the base wage or the range of base wages. “Base wage” means the hourly wage an employer pays to a tipped employee and does not include any tips received by the employee. “Range of base wages” means the minimum and maximum base wages for a job opening that the employer expects — in good faith — to pay for the advertised job when the advertisement is posted.

Advertisement defined. “Advertisement” means a written notice, in any format, of a specific job opening available to potential applicants (both current employees of the employer and members of the general public). “Advertisement” does not include:

• General announcements that notify potential applicants that employment opportunities may exist with the employer but do not identify any specific job openings
• Verbal announcements of employment opportunities that are made in person or on radio, television, or other electronic mediums.

Application. Vermont job opening” and “job opening” mean any position of employment that is:

• Physically located in Vermont
• A remote position that will predominantly perform work for an office or work location physically located in Vermont and a position for which an employer is hiring, including positions that are open to internal candidates or external candidates, or both; and positions into which current employees can transfer or be promoted.

It does not include a position physically located outside of Vermont that performs work predominantly for one or more offices or work locations that are physically located outside of Vermont.

Exceptions. Employers can hire an employee for more or less than the compensation range or base wage ranges contained in the job advertisement if “based on circumstances outside of the employer’s control, such as an applicant’s qualifications and labor market factors.”

Nonretaliation. Employers cannot refuse to interview, hire, promote or employ a current or prospective employee for asserting or exercising any rights under this law.

Enforcement and penalties. The attorney general will enforce violations of the law and may bring civil actions against an employer or seek remedies on behalf of individuals or the public. There is no private right of action under this law.

Upcoming guidance. On or before Jan. 1, 2025, the attorney general’s office will publish guidance for employers and employees on its website.

Vermont’s requirements are not effective until July 1, 2025, but in recent years, several states have enacted legislation requiring the disclosure of salary ranges and pay data. For example, a New York employer, employment agency, employee or agent thereof must include compensation or the compensation range when advertising a job, promotion or transfer opportunity that will physically (at least in part) be performed in New York. California, Connecticut, Hawaii, Illinois, Maryland, Nevada and Rhode Island also require employers to disclose — voluntarily or upon request — information about salary ranges for open positions or promotions.

In addition to states requiring disclosure of pay ranges, states such as Colorado are focused on increasing the visibility of job opportunities to employees and candidates. In addition to including pay information on postings, they want to ensure potential candidates are aware of such postings.

For more information, please refer to the Roundup: US employer resources on states’ recent equal pay laws.

As legislation continues to expand domestically, current and upcoming international changes such as the European Union directive on pay equity and transparency are driving several organizations to revisit their programs to take a more global approach. Recent research from Mercer’s Global Pay Transparency Survey reveals that 68% of organizations are developing their approach or have already implemented one. A recent webinar on this topic provides an overview of the international research

Are jobs clearly defined?

• Is pay aligned to pay philosophy and market?
• Has the organization’s pay equity been analyzed?
• Are managers equipped to communicate pay ranges? 

• What will be shared (e.g., what elements of pay and total rewards)?
• Who will it be shared with — all employees, managers only, certain segments?
• How will it be shared?

• Job structures
• Gaps in pay equity and competitiveness
• Talent acquisition and employee communication technology
• Manager education and resources

• Job structures
• Gaps in pay equity and competitiveness
• Talent acquisition and employee communication technology
• Manager education and resources

• Applicants per opening, time to fill, offer acceptance rates
• Candidate surveys
• Employee engagement and perceptions
• Statistical modeling around turnover and other outcomes

• H 704 (Legislature) 

• Roundup: US employer resources on states’ recent equal pay laws (regularly updated)
• The path to pay transparency (webinar) (July 17, 2024)
• Minnesota to require salary range and benefit disclosures in job postings (May 24, 2024)
• Washington, DC, to enhance wage transparency (May 14, 2024)
• Colorado amends equal pay requirements (Dec. 13, 2023)
• Illinois to require pay scale and benefits disclosure in job postings (Aug. 28, 2023)
• Hawaii to require pay disclosure in job listings, expands equal pay law (July 18, 2023)
• EU pay transparency law approved (May 30, 2023)
• New York to require salary ranges in job postings (March 9, 2023) 
• California to impose more salary disclosure, pay data reporting (Oct. 3, 2022)
• Salary information will be required in New York City job postings (May 4, 2022)
• Washington regulator clarifies new pay disclosure requirements (Dec. 19, 2019)