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VermontS.1172025-2026 SessionSenateWALLET

An act relating to wage and hour, unemployment compensation, and workers' compensation

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

11 provisions identified: 6 benefits, 4 costs, 1 mixed.

Faster workers’ comp care and language help

Beginning July 1, 2025, injured workers are entitled to medical case management when it is reasonably supported. Insurers must approve, deny (with reasons), or set an exam within 14 days of a preauthorization request; the Commissioner can grant one 10-day extension. If an insurer does not act, the Department issues an interim order within five days. Employers must pay for translation when an injured worker is not fluent in English so the worker can understand rights and the claims process.

Minimum wage rises every January

The law sets a minimum wage of at least $12.55 an hour as of January 1, 2022. Each January 1, it increases by the smaller of 5% or the change in the CPI-U for the prior 12 months. The wage cannot go down and is rounded to the nearest cent.

On-time workers’ comp checks with late fees

Starting July 1, 2025, employers must pick and share a weekday to mail or deposit weekly workers’ comp payments and must pay by that day. If you choose direct deposit, the payment must be deposited. When awarded or undisputed payments are late, the employer owes a late fee: first late is the greater of $10 or 5% of the weekly benefit; second is $10 or 10%; third and later is $10 or 15%. From October 1, 2025 through September 30, 2026, employers must file quarterly reports of late-fee payments with reasons and fixes or face up to a $500 penalty. The Commissioner reports findings by January 15, 2027.

Partial unemployment lets you keep more

Beginning July 1, 2025, for partial unemployment only earnings above half of your weekly wage count against benefits. The excess is rounded down to the nearest dollar. This helps you keep more benefits when you work part weeks.

UI benefit increases delayed to 2026

Increases to the maximum and weekly unemployment benefits take effect July 1, 2026, or earlier if the Commissioner says the Department can implement them. The Secretary of Digital Services and the Labor Commissioner must make the new system able to apply benefit changes by July 1, 2026.

Stricter unemployment reporting for employers

Beginning July 1, 2025, employers must send required unemployment reports and replies within 10 calendar days after a request is sent. If an employer does not comply, the Commissioner decides benefit rights using available information, and those charges are final for benefits paid before the week after the employer’s reply. Notices of assessments and related hearings, and notices on contribution-rate and coverage hearings, may be sent electronically or by mail.

New UI rate rules for business buyers

Starting July 1, 2025, if you buy an organization, trade, business, or most assets from an employer that operated within two weeks before the sale, you take on that employer’s unemployment experience. If you were not already an employer, you use the predecessor’s rate for the rest of the rate year. If the operations are split among corporate entities, you must name one filing successor and it pays the full successor benefit tax on all employees. A buyer already assigned a higher rate is not treated as a successor. Also beginning July 1, 2025, the state leaves out 2020 benefit payments when it sets the highest benefit‑cost rate used in employer contribution schedules, which can temper rates.

Extra payment when wages are withheld

If the Commissioner finds your employer willfully kept your pay, any extra money recovered above your unpaid wages is split 50/50. You get half, and the Department keeps half to cover collection costs. This rule applies beginning July 1, 2025.

Faster unemployment notices and appeal rights

Starting July 1, 2025, you and employers can opt to get unemployment notices electronically. Notices count if delivered by an agent, sent electronically, or mailed to the last known address. If you did not receive a notice, the Commissioner sends a new one and the appeal period starts from that new notice. Parties get prompt Board decisions by email or mail.

Lower trainee and disability pay allowed

The Commissioner can set lower pay scales for learners, apprentices, and people with disabilities. These rates may be below the regular minimum wage. This change starts July 1, 2025.

Short-Time Compensation stays paused for now

The Short‑Time Compensation program stopped on July 1, 2020. It will not resume unless the Legislature or the Joint Fiscal Committee orders it, or when the unemployment IT project finishes in 2026. Until then, employers cannot offer it and workers cannot get those partial benefits.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

Actions Timeline

  1. Senate Message: Signed by Governor 5/28/2025

    5/29/2025House

  2. Signed by Governor on May 28, 2025

    5/29/2025Senate

  3. Delivered to Governor on May 22, 2025

    5/22/2025Senate

  4. Senate Message: House proposal of amendment concurred in

    5/20/2025House

  5. Title amended

    5/16/2025Senate

  6. As passed by Senate and House

    5/16/2025Senate

  7. House proposal of amendment concurred in

    5/16/2025Senate

  8. House proposal of amendment; text

    5/16/2025Senate

  9. New Business/House Proposal of Amendment

    5/16/2025Senate

  10. House proposal of amendment

    5/15/2025Senate

  11. Entered on Notice Calendar

    5/15/2025Senate

  12. House message: House passed bill in concurrence with proposal(s) of amendment

    5/14/2025Senate

  13. Read third time and passed in concurrence with proposal of amendment

    5/13/2025House

  14. Action Calendar: Unfinished Business

    5/13/2025House

  15. Action Calendar: Third Reading

    5/12/2025House

  16. Third Reading ordered

    5/9/2025House

  17. Report of Committee on Commerce and Economic Development agreed to

    5/9/2025House

  18. Rep. Nigro of Bennington recommended for the Committee on Appropriations

    5/9/2025House

  19. Rep. Burkhardt of South Burlington recommended for the Committee on Ways and Means

    5/9/2025House

  20. Rep. Bosch of Clarendon reported for the Committee on Commerce and Economic Development

    5/9/2025House

  21. Read second time

    5/9/2025House

  22. Action Calendar: Favorable with Amendment

    5/9/2025House

  23. Notice Calendar: Favorable with Amendment

    5/8/2025House

  24. Referred to Committee on Appropriations per Rule 35(a)

    5/1/2025House

  25. Notice Calendar: Favorable with Amendment

    5/1/2025House

Bill Text

  • As Enacted (ACT 40)

    6/3/2025

    PDF

  • As Passed by Both Chambers

    5/21/2025

    PDF

  • As Passed by Both Chambers (Unofficial)

    5/21/2025

    PDF

  • House Proposal of Amendment

    5/14/2025

    PDF

  • House Proposal of Amendment (Unofficial)

    5/14/2025

    PDF

  • As Passed by the Senate

    3/26/2025

    PDF

  • As Passed by the Senate (Unofficial)

    3/26/2025

    PDF

  • As Introduced

    3/12/2025

    PDF

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