Involuntary and Voluntary Pay Deductions: Vermont
Federal law and guidance on this subject should be reviewed together with this section.
Author: Wanda I. Otero, Langrock Sperry & Wool, LLP
- An employer must begin withholding for child support 10 days after receipt of a wage withholding order. Payments must be remitted within seven business days after payday. If an employee is terminated from employment, the employer must send a termination notice within 10 days. Penalties are imposed for violations of the law. See Child Support Withholding.
- Vermont limits the amount of disposable income that is subject to creditor garnishment withholding. The limits are based on the federal garnishment limits, with an exception for consumer credit transactions. See Creditor Garnishment Withholding.
- If an employee has unpaid state taxes, an employer may be required by a court order to withhold from the employee's wages to pay off the tax liability. See Tax Levies.
- An assignment of wages is valid in Vermont if certain conditions are met. Unlike a garnishment order, which is required to be honored by law, an employer has no obligation to honor a wage assignment. See Voluntary Wage Assignments.