This is a preview. To continue reading please Log in or Register to Read This Article

Legally Required Benefits: Vermont

Legally Required Benefits requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Robbie McKeon


  • Unemployment insurance is a joint federal/state program offered nationwide. Based on federal law and executed through state law, the program provides partial wage replacement to unemployed workers while they conduct an active search for work. See Vermont Unemployment Insurance Program.
  • Employers finance unemployment insurance with both federal and state tax contributions. Under the Federal Unemployment Tax Act (FUTA), federal taxes finance all administrative expenses of the federal/state unemployment insurance system as well as the federal costs involved in providing benefits. The Vermont unemployment tax is used only to pay regular benefits to qualified unemployed workers. See Vermont Unemployment Insurance Program.
  • Vermont unemployment insurance is provided under the Vermont Unemployment Compensation Law. Most employers in Vermont are subject to this law, which is administered by the Vermont Department of Labor. See Vermont Unemployment Insurance Program.
  • Unemployment benefits generally last for up to 26 weeks. See Benefits.
  • Claimants must meet certain requirements in order to be eligible for unemployment benefits. See Eligibility.
  • Employers must follow specified recordkeeping and posting requirements. See Recordkeeping; Posting.
  • The Vermont Short-Time Compensation (STC) Program helps employers retain employees who would otherwise have to be laid off or furloughed. Under the program, an employee's hours and wages are reduced and the employee receives an STC benefit to help make up the shortfall. See Vermont Short-Time Compensation (STC) Program.