Paid Sick Leave Requirements in Vermont

At a glance

Requirements one by one

Governing law

Vermont's Earned Sick Time Act, 21 V.S.A. §§ 481–486, has required paid earned sick time since January 1, 2017 (small employers came in on January 1, 2018). The law sets a floor: an employer may always be more generous, but a paid-time-off policy or collective bargaining agreement "may not diminish the rights provided by this subchapter" (§ 484(e)). The Legislature amended the Act in 2024 and again in 2025, but the core numbers below are unchanged.

Who is covered

The duty falls on "any" employer doing business in or operating within Vermont, regardless of size (§ 481(1)). A brand-new employer gets a one-year grace period after hiring its first worker. A covered "employee" is someone who works an average of at least 18 hours per week during a year. The Act then lists who is not an employee (§ 481(5)): federal workers, anyone under 18, short-term workers hired for 20 weeks or fewer, per-diem or intermittent workers, certain substitute educators, some exempt state employees, per-diem health-care-facility staff, and business owners or officers excluded from workers' compensation.

Accrual and the 40-hour cap

Employees earn one hour of sick time for every 52 hours worked (§ 482(a)). Accrual starts at hire (or when the employer becomes covered), but an employer may impose a waiting period of up to one year before a new hire may use the time — the hours still accrue during that period (§ 482(b)). An employer may cap accrual at 40 hours in a 12-month period (§ 482(c)).

Frontloading and carryover

Instead of tracking accrual, an employer may hand over the full annual amount at the start of each annual period; if it does, the time does not have to carry over (§ 484(a)(2)). Under the accrual method, unused earned sick time carries into the next year and keeps accruing (§ 483(d)(1)), although the employer may still limit use to 40 hours a year (§ 483(c)). If the employer chooses to cash out unused time at year-end, that paid-out amount does not carry over (§ 483(d)(2)).

Pay and separation

Sick time is paid at the greater of the employee's normal hourly wage or the Vermont minimum wage, and group health coverage continues during the leave (§ 482(d)). Vermont does not require unused sick time to be paid out when a job ends "unless agreed upon by the employer" (§ 483(e)).

Enforcement and retaliation

The Commissioner may use the wage-complaint process in 21 V.S.A. § 342a. A violation of the earned-sick-time accrual or use sections is punishable by the fine in 21 V.S.A. § 345, and 21 V.S.A. § 397 supplies the incorporated anti-retaliation action, including damages, equitable relief, reinstatement, costs, and reasonable attorney fees.

What trips people up

Carrying over hours does not mean using more of them. Unused time carries into the next year, but the employer's 40-hour annual use cap still applies (§ 483(c), (d)(1)). Carryover protects a balance across a slow year; it does not raise the yearly ceiling.

A single PTO bank can satisfy the Act — but only if it is at least as good. An employer with a combined paid-time-off policy or CBA complies only if the policy may be used for every reason in § 483(a) and accrues and is usable at a rate equal to or greater than the statute (§ 484(a)). A bank that limits reasons, accrues more slowly, or blocks carryover does not comply.

Rehire rules turn on how you left. An employee discharged and rehired by the same employer within 12 months skips a new waiting period, but the old balance returns only if the employer agrees; an employee who quit and returns within 12 months can be made to serve a waiting period again unless the employer agrees otherwise (§ 483(f)).

Common questions

Can my employer make me find someone to cover my shift?

No. Section 483(g) bars an employer from requiring you to find a replacement worker as a condition of using earned sick time.

In what size chunks can I take the time?

The smallest increment your employer's payroll system uses for other absences — but the employer never has to let you take less than one hour at a time (§ 483(b)).

Do I get paid for unused sick time when I leave?

Only if your employer agreed to it. The Act does not require a payout of unused earned sick time at separation (§ 483(e)).

Can I use sick time to care for a family member or after domestic violence?

Yes. You may use it to care for a covered family member, and to obtain services or care related to domestic violence, sexual assault, or stalking for yourself or a covered family member (§ 483(a)(3)–(4)).

Statutes and sources

• 21 V.S.A. 481. Defines covered employers (any size, doing business in Vermont) and employees (average 18+ hours/week), with the exclusion list. Section 481 (accessed July 23, 2026).
• 21 V.S.A. 482. Accrual of one hour per 52 hours worked, up to a one-year waiting period, a 40-hour accrual cap, and pay at the greater of the normal or minimum wage. Section 482 (accessed July 23, 2026).
• 21 V.S.A. 483. Qualifying uses and family, carryover, no separation payout unless agreed, no-replacement-worker rule, notice, increments, and posting. Section 483 (accessed July 23, 2026).
• 21 V.S.A. 484. How a paid-time-off policy or CBA satisfies the Act, and the rule that a policy may not diminish these rights. Section 484 (accessed July 23, 2026).
• 21 V.S.A. §§ 342a, 345, and 397. Department complaint process, earned- sick-time violation fine, and incorporated retaliation remedies. Section 342a (accessed August 16, 2026).