Bill > H0344

This bill establishes a legal standard for "good cause" in employment termination in Vermont, requiring employers to have a reasonable, good-faith reason related to a legitimate business purpose when discharging an employee. Specifically, the bill defines "good cause" as either a legitimate business reason (such as unsatisfactory job performance) or employment of less than 90 days. The bill explicitly states that termination reasons cannot be trivial, arbitrary, or capricious, and it prohibits employers from discharging employees without such justification. Additionally, the bill mandates that employers post a notice about these provisions in a conspicuous location at their workplace. The legislation does not limit employers' existing rights to discharge employees or interfere with other employee rights established by law, contract, or collective bargaining agreement. The bill is set to take effect on July 1, 2025, which will provide employers time to understand and implement the new standard for employment termination.

Housing and Urban Affairs

https://legislature.vermont.gov/bill/status/2026/H.344