Bill > H0295

This bill amends Vermont state law to require employers to pay out unused accrued vacation leave when an employee separates from employment, whether they leave voluntarily or are involuntarily discharged. The bill modifies existing wage payment regulations to add a new provision that mandates final wage payments include compensation for any unused vacation time that the employee has accumulated. The bill makes some minor technical updates to the language, such as replacing gendered terms like "his or her" with more inclusive phrasing like "the employee's". The changes will take effect on July 1, 2025, giving employers time to adjust their payroll and vacation leave policies to comply with the new requirement. This legislation aims to ensure that workers are fairly compensated for earned but unused vacation time, regardless of the circumstances of their employment separation.

Housing and Urban Affairs

https://legislature.vermont.gov/bill/status/2026/H.295