This Vermont bill increases the state's minimum wage to $25.00 per hour starting January 1, 2026, with annual adjustments tied to inflation, and eliminates the lower "tipped minimum wage" that previously allowed hospitality workers (like servers in restaurants) to be paid less than the standard rate if tips covered the difference. It also requires inmates in Vermont correctional facilities to be paid at least the minimum wage for all work performed, with wages held in a separate fund and subject to limited deductions for maintenance or victim payments. The bill directly affects most Vermont workers - particularly tipped employees in hotels, motels, and restaurants - and inmates in state correctional facilities. The new minimum wage takes effect January 1, 2026, and corrections policies must align by that date.
This bill establishes new requirements for Vermont state agencies when entering contracts to outsource services previously performed by state employees (called "privatization contracts"). It requires agencies to provide 35 days of notice to employee unions before bidding begins, during which alternatives to outsourcing can be discussed. Contracts must save the state at least 20% in costs compared to using state employees, guarantee private contractors pay at least the average wage for comparable state positions, and provide health insurance benefits equal to those offered to state workers. The bill also mandates quality standards, non-discrimination protections, and a review panel to ensure compliance before contracts are finalized.
S.89, "Jessica’s Law," expands Vermont's survivor benefits to cover families of law enforcement officers, Department of Corrections employees (in direct security/treatment roles), Family Services Division staff, and employees at state-operated therapeutic communities or inpatient psychiatric hospitals who die while on duty or from work-related illnesses. The bill adds these groups to the existing definition of "emergency personnel" under Vermont law, ensuring they qualify for the same survivor benefits previously available to firefighters and emergency medical staff. Benefits would be paid to surviving spouses, then children, then parents if no immediate family remains, following current distribution rules. The law takes effect on July 1, 2025.
H 436 establishes a new system for Vermont's Department of Corrections to create reentry facilities for low-risk individuals transitioning from incarceration. The bill requires the Department to assess and place eligible people (including those awaiting trial) in these facilities based on evidence-based risk evaluations, providing transitional services like housing assistance, mental health care, and job training. It mandates annual reports tracking facility use, security levels, and services provided. The policy directly affects low-risk inmates and pretrial detainees, aiming to improve community reintegration while prioritizing public safety through structured, less restrictive housing.
H.347 would raise Vermont's minimum wage to $20.00 per hour starting January 1, 2026, with annual adjustments based on inflation. It eliminates the current exemption for agricultural workers from overtime pay, phasing in overtime requirements over time (from 60 hours/week to 40 hours/week by 2036), and removes the separate "tipped minimum wage," requiring all tipped workers to earn at least the full minimum wage. The bill also sets a new salary threshold of $1,128,000 annually (adjusted yearly) for workers to qualify as exempt from overtime and minimum wage rules, and removes the option for subminimum wages for people with disabilities. It maintains the Attorney General's authority to enforce employee misclassification complaints.
This bill establishes a regulatory framework for "earned wage access services" in Vermont, requiring providers to obtain a state license before offering these services. It defines key terms like "earned but unpaid income" (wages owed but not yet paid) and "provider" (businesses delivering pre-pay advances), and distinguishes between direct-to-consumer providers and employer-integrated providers. The core mechanism mandates licensing for all providers (excluding certain federally insured financial institutions), with applications requiring details about service types, fees, and business history. This directly affects workers accessing early pay and businesses offering these services, aiming to create oversight for a growing financial product.
H 22 amends Vermont's Public Records Act to require public disclosure of severance pay and benefit extension agreements for employees of state and local public agencies. It removes an exemption that previously kept this information private, making such agreements available for public inspection and copying. Public agencies must annually publish detailed reports by July 1 each year, including employee names, payment amounts, benefit types, agreement duration, and termination reasons. This applies to all benefit extension agreements executed since 2018, with a historical report due by January 15, 2026. The bill takes effect July 1, 2025.
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Government Transparency
H 228 requires Vermont hospitals to report detailed compensation data for executives, clinical leaders, and frontline healthcare workers (including base salaries, bonuses, and benefits) to the Green Mountain Care Board annually. It mandates that hospitals maintain staffing ratios where administrative staff do not exceed national averages for similar hospitals, and caps executive/clinical leadership compensation at no more than 10 times the pay of the lowest-paid frontline healthcare workers. These requirements will be integrated into the Board’s annual hospital budget review process starting in 2027. The bill applies to all Vermont hospitals and takes effect January 1, 2026, for fiscal year 2027 budgets.
H 173 would amend Vermont law to grant employees at public colleges and universities (including the Vermont State Colleges and University of Vermont) the right to strike, removing their current exemption from the general prohibition on state employee strikes. The bill specifically changes Section 903 to eliminate the existing exception and updates Section 962 to clarify that encouraging strikes by these employees is not an unfair labor practice. This change applies only to public higher education employees, not all state workers, and would take effect on July 1, 2025. The bill directly affects faculty, staff, and other employees at Vermont's public higher education institutions.
This bill establishes minimum hourly reimbursement rates for auto repair labor in Vermont insurance claims. It requires the Commissioner of Financial Regulation to survey local repair rates, compare them to New England averages, and set a fair minimum rate that adjusts annually using the Consumer Price Index. The minimum rate applies to all auto insurance claims filed on or after January 1, 2026. Insurance companies may still negotiate higher rates based on specific factors like vehicle type, repair complexity, or location, but cannot refuse negotiation solely based on finding a cheaper repair shop nearby.
