Skip to content
FREEMadyHR.ai Free Resources · Guide

Vermont at-will employment exceptions

Vermont is at will unless you change it, for example in a handbook. You cannot fire for reasons that break a clear public policy.

Last checked: · Official government sources only

Mady, the MadyHR.ai assistant, pointing to the guide

At-will rules in Vermont

  • Is employment at will?Yes. An at-will employee may be fired at any time, with or without cause, unless the at-will relationship was changed (Boynton v. ClearChoiceMD, Vermont Supreme Court, 2019). Source: vtcourts.gov↗ (opens in a new tab)
  • Public policy exceptionRecognized. Firing that breaks a clear and compelling public policy can be wrongful (Payne v. Rozendaal, 1986, applied in Boynton v. ClearChoiceMD, Vermont Supreme Court, 2019). Source: vtcourts.gov↗ (opens in a new tab)
  • Implied contract exceptionRecognized. At-will status can be changed by contract or written policy (Ross v. Times Mirror, 1995, cited in Boynton v. ClearChoiceMD, 2019). Source: vtcourts.gov↗ (opens in a new tab)
  • Good faith and fair dealing exceptionNot recognized. The duty of good faith cannot be used to challenge firing an ordinary at-will employee (Ross v. Times Mirror, 1995; Boynton v. ClearChoiceMD, Vermont Supreme Court, 2019). Source: vtcourts.gov↗ (opens in a new tab)

HR software for small US businesses in Vermont

$99/year · $8.25/mo

One simple plan. Keep employee records, schedules, attendance, documents and policies in one place, and each employee gets their own login.

Built by AI. Run by AI. Priced for humans.

See MadyHR.ai
MadyJobSearch.com — AI-powered Job Search that understands you.Free

Hiring a replacement?

Looking for your next employee? Or your next opportunity? Try MadyJobSearch.com, free AI-powered job search that understands you.

Explore MadyJobSearch.com

Notice before layoffs (state mini-WARN)

Covers employers with 50+ workers. A closing or mass layoff of 50+ in 90 days needs 45 days' notice to state commerce and labor officials, and 30 days' notice to employees, their union and the town. Source: legislature.vermont.gov↗ (opens in a new tab)

Penalties

No single state penalty; remedies depend on the claim. Source: vtcourts.gov↗ (opens in a new tab)

The law and where to check

The law: 21 V.S.A. §§ 411–419 (Notice of Potential Layoffs Act) (opens in a new tab)

The agency: Vermont Department of Labor (opens in a new tab)

What federal law says

Federal law does not set a general rule on at-will employment, but it bars firing for many reasons, including discrimination, retaliation for complaints, taking FMLA leave, military service and union activity. Source: U.S. Department of Labor↗ (opens in a new tab)

At-will employment exceptions checklist for Vermont employers

A simple order of work, based on the rules above. It is not a legal checklist.

  1. Say in your handbook and offer letters that employment is at will, and avoid promises of job security.
  2. Make sure handbook wording does not create a contract (add a clear disclaimer).
  3. Never fire someone for refusing to break the law, reporting wrongdoing, or using a legal right.
  4. Write down the real, lawful reason for each firing.
  5. Check federal and state anti-discrimination and leave laws before you act.
  6. Pay final wages on time; see our final paycheck guide for your state.

More Vermont employment law guides

At-will employment exceptions laws in other states

See every state on one page, or pick a state:

Sources

All official government sources, last checked October 19, 2026.

Disclaimer: This guide provides general information based on publicly available official sources and is for information only. It is not legal, tax, payroll or employment-law advice and does not guarantee compliance with federal, state or local requirements. Rules can depend on your location, industry, contracts and other circumstances, and laws change. Always check the official source, the relevant government agency or a qualified professional before making a decision. MadyHR.ai accepts no responsibility for any action taken based on this page.

Last checked: . Every rule and source link on this page was checked against the official government source on this date. Laws change, so always open the source link before you act.

We always use a few necessary cookies to sign you in and keep that sign-in safe — those cannot be turned off. We would also like to set marketing cookies (the Meta Pixel and the Reddit Pixel) to measure our advertising. Those are entirely your choice, and everything on this site works exactly the same either way. What each category does.