Vermont Employment Screening Overview
Vermont has a moderately restrictive employment screening environment, with ban-the-box rules delaying criminal history inquiries until after initial application, salary history inquiry bans, strict limits on credit checks for most positions, and detailed drug testing requirements including probable cause standards.
Federal requirements and local ordinances may still apply.
What's Permitted
- Employers may inquire about criminal history after determining applicant is otherwise qualified (not on initial application)
- Credit checks permitted for positions involving access to confidential financial information or fiduciary duties
- Drug testing permitted with probable cause for current employees; pre-employment testing permitted with written policy
- E-Verify voluntary for private employers; federal contractors must comply with federal requirements
What's Prohibited
- Requesting criminal history on initial job applications (21 V.S.A. Section 495j)
- Inquiring about applicant salary history during hiring process (21 V.S.A. Section 495m)
- Conducting random or company-wide drug testing without federal mandate (21 V.S.A. Sections 511-520)
- Using blood samples for workplace drug testing
- Conducting credit checks unless position involves financial access or fiduciary duties (21 V.S.A. Section 495i)
Ban the Box Laws
StatewideStatus Summary
Vermont’s ban-the-box law (21 V.S.A. § 495j: https://legislature.vermont.gov/statutes/section/2... effective July 1, 2017, applies to employers statewide; bars criminal-history questions on initial applications (narrow legal exceptions); permits later inquiries with applicant explanation; penalties up to $100 per violation.
Key Requirements
Vermont — 21 V.S.A. § 495j (Ban the Box)
State ban-the-box statute, effective July 1, 2017:
- No criminal-history on initial applications
- Allowed during interview or after qualification
- Two narrow exceptions for legal disqualifications
- Applicants must be allowed to explain
- Violations: civil penalty up to $100
Statute: https://legislature.vermont.gov/statutes/section/2...
Attorney General complaint form: https://ago.vermont.gov/employment-discrimination-...
Ban the Box Best Practices for Vermont Employers
- Remove criminal-history questions from initial application forms.
- Ask only during interview or after qualification.
- Limit initial exceptions to legally mandated disqualifications only.
- Allow applicants to explain rehabilitation and circumstances.
- Document legal basis and train hiring staff consistently.
Salary History Ban
StatewideVermont — 21 V.S.A. § 495m (Salary history; employment applications)
Vermont law banning employer salary-history inquiries:
- Applies to all employers with Vermont workers
- Prohibits asking applicants about past compensation
- Prohibits obtaining pay from prior employers
- Prohibits basing hiring or interview decisions
- May ask expectations; confirm voluntary pay post-offer
Sources: 21 V.S.A. § 495m (statute) — https://legislature.vermont.gov/statutes/section/2... Act 126 (Act summary) — https://legislature.vermont.gov/Documents/2018/Doc... Definitions & enforcement (Sections 495d, 495b) — https://legislature.vermont.gov/statutes/section/2... https://legislature.vermont.gov/statutes/section/2...
Salary History Best Practices for Vermont Employers
- Prohibit asking applicants about current or past compensation
- Remove salary-history fields from applications and background checks
- Train recruiters, hiring managers, vendors on ban compliance
- Confirm voluntary pay disclosures only after making offer with compensation
- Provide salary ranges and ask applicants' salary expectations
Consumer Credit Checks
RestrictedVermont law (21 V.S.A. § 495i) prohibits employment credit inquiries and adverse actions based on credit history except narrow exemptions; written consent, disclosure, confidentiality, and non‑sole‑factor use required; private and Attorney General enforcement available. https://legislature.vermont.gov/statutes/section/2...
Key Requirements
21 V.S.A. § 495i — Employment credit checks
State law restricting employer credit checks:
- Near-categorical prohibition on credit checks
- Narrow statutory exemptions allowed
- Written consent required each inquiry
- Cannot be sole factor in decisions
- Confidentiality and secure destruction required
Statute: https://legislature.vermont.gov/statutes/section/2...
21 V.S.A. § 495 — Fair employment practices
Protections against discriminatory employment practices:
- Prohibits discrimination on protected characteristics
- Cross-reference restricts credit use
- Disparate impact claims available
- Retaliation prohibited for complaints
Statute: https://legislature.vermont.gov/statutes/section/2...
9 V.S.A. §§ 2458–2461 — Enforcement procedures
State enforcement mechanisms for unfair practices:
- AG and State's Attorneys enforce
- Civil penalties and injunctive relief
- Private suits may seek damages
- Assurances of discontinuance possible
Full chapter: https://legislature.vermont.gov/statutes/fullchapt...
Credit Check Best Practices for Vermont Employers
- Presume credit checks prohibited unless statutory exemption clearly applies
- Document exemption basis and retain supporting evidence
- Obtain written, case-specific consent for each credit inquiry
- Provide written reasons; allow contesting and disclose adverse actions
- Protect confidentiality, destroy reports securely, bear all associated costs
Marijuana Protection
Medicinal Marijuana
Medical cannabis use off duty is lawful; employers may forbid on‑duty use and working while impaired. Disabled employees have nondiscrimination protection for off‑duty medical use; employers may enforce impairment policies. https://legislature.vermont.gov
Recreational Marijuana
Recreational cannabis off duty is lawful; employers may bar on‑duty use and working while impaired. Employers may enforce workplace marijuana policies, including discipline or discharge. https://www.healthvermont.gov
Drug Testing Regulations
Vermont (21 V.S.A. §§511–520) restricts workplace drug testing: applies to all employers; prohibits random/pre-employment tests except narrow conditional-offer exception; current-employee tests require probable cause, MRO/designated labs, employee assistance program; violations permit civil/criminal penalties and private suits.
Permitted Testing Types
Pre-Employment
Allowed only after conditional offer with statutory written notice.
Random Testing
Prohibited except when federal law/regulation expressly requires it.
Reasonable Suspicion
Not permitted; statute requires probable cause instead.
Post Accident
Allowed only if probable cause exists; federal rules may preempt.
Workers' Compensation Discount
No statutory workers' compensation premium discount is tied to employer drug-testing compliance in Vermont.
No discounts identified; confirm with Vermont Department of Labor or insurers for plan-specific incentives.
Best Practices
- Follow 21 V.S.A. §§ 511–520 procedures and restrictions.
- Prohibit random testing unless federal law mandates it.
- Pre-employment tests only after conditional offer and written notice.
- Test current employees only with probable cause and EAP offered.
- Use designated labs, MRO review, and preserve samples ninety days.
Clean Slate Laws
StatewideAct 60 (S.12) effective July 1, 2025: expands sealing of eligible convictions (3‑yr misdemeanours; 7‑yr felonies; DUI 10 yrs); sealed records treated as nonexistent. Note: the criminal‑history application ban (21 V.S.A. §495j) has been in effect separately since July 1, 2017, and predates Act 60. Statute links: https://legislature.vermont.gov/statutes/section/2... https://legislature.vermont.gov/statutes/section/1...
E-Verify Requirements
VoluntaryWho Must Use E-Verify
Private Employers [Immigration Reform and Control Act (Form I‑9, 8 U.S.C. §1324a); Vermont statutes (Title 21)]
Not required to use E‑Verify under Vermont law; all private employers must complete federal Form I‑9 per IRCA.
Vermont statutes: https://legislature.vermont.gov/statutes/fullchapt...
USCIS (Form I‑9): https://www.uscis.gov/i-9
Federal Contractors [Federal Acquisition Regulation E‑Verify clause; Mandatory E‑Verify Act (S.4529) — proposed]
Required to use E‑Verify only when a federal contract includes the FAR E‑Verify clause; noncompliance can lead to debarment.
Mandatory E‑Verify (proposed): https://www.congress.gov/bill/118th-congress/senat...
Any other relevant groups [WIOA grants & DOL guidance; Vermont Reach Up program]
WIOA grantees and some federal grant recipients must verify work authorization; E‑Verify may be required by grant terms; SAVE or I‑9 documentation may satisfy.
DOL guidance (WIOA): https://www.dol.gov/sites/dolgov/files/ETA/advisor...
Vermont Reach Up work‑verification plan: https://outside.vermont.gov/dept/DCF/Shared%20Docu...
Background Check Regulations
Federal laws (FCRA, EEOC) govern employment background checks, and Vermont imposes additional state rules—such as limits on criminal-record use and sealing/expungement—so employers must follow both federal and Vermont requirements.
FCRA Compliance Process
Disclosure & Authorization
Provide clear, standalone written disclosure that a background check will be conducted. Obtain separate written authorization from the applicant before ordering the report.
Obtain Background Report
Order the background check from a Consumer Reporting Agency (CRA). Ensure the CRA is FCRA-compliant and provides accurate, up-to-date information.
Pre-Adverse Action Notice
If considering denying employment based on the report, provide the applicant with:
- Copy of the background report
- Copy of "A Summary of Your Rights Under the FCRA"
- Reasonable time to respond (typically 5 business days)
Adverse Action Notice
If final decision is made to deny employment, provide written notice including:
- Name, address, and phone number of the CRA
- Statement that the CRA did not make the decision
- Notice of right to dispute report accuracy
- Notice of right to request additional free copy within 60 days
Additional Resources & Compliance Updates
Official State Resources
- Vermont Statutes Title 21: Labor
- 21 V.S.A. § 495j - Criminal History Record Inquiri...
- 21 V.S.A. § 495 - Fair Employment Practices
- Vermont Attorney General - Employment Law
- Vermont Human Rights Commission - Employment Discr...
- Vermont Human Rights Commission - Laws
- Vermont Department of Labor - Worker Rights & Prot...