At-a-Glance Compliance Overview

State Mini-FCRA Laws

Vermont does not maintain a consumer reporting statute comparable to the “mini-FCRA” laws adopted in states such as California, Massachusetts, or Colorado.

Employment background checks obtained from consumer reporting agencies are governed primarily by the Fair Credit Reporting Act (15 U.S.C. §1681 et seq.).

Employers using third-party background screening providers must comply with federal requirements, including:

• providing a clear written disclosure before obtaining a consumer report
• obtaining written authorization from the applicant or employee
• providing pre-adverse action and adverse action notices when information in a consumer report influences an employment decision.

Criminal Record Reporting Rules

Vermont does not impose state-specific reporting limits on criminal convictions in employment background checks.

Convictions

Criminal convictions may generally be reported without time limitation under FCRA §605(a)(5).

Non-Convictions

Under the Fair Credit Reporting Act, consumer reporting agencies generally may not report arrests or other adverse non-conviction information that is more than seven years old, subject to federal salary threshold exceptions.

Record Sealing / Expungement

Vermont provides mechanisms for expungement and sealing of certain criminal records.

Relevant statutes include:

13 V.S.A. §7602 (expungement of non-convictions)
13 V.S.A. §7603 (expungement of certain convictions)

Eligible individuals may petition to expunge:

• non-convictions
• certain misdemeanor convictions
• limited low-level felony offenses under specific conditions.

Once expunged, the record is removed from public access and generally will not appear in routine employment background checks.

Fair Chance / Ban-the-Box Law

Vermont has enacted a statewide ban-the-box law applicable to private employers.

Relevant statute:

21 V.S.A. §495j

Key Requirements

• Employers may not inquire about criminal history on an initial job application.
• Criminal history inquiries may occur only during an interview or after the applicant is deemed otherwise qualified.
• Applicants must be given an opportunity to explain criminal history information before an adverse decision is made.

This timing framework requires employers to delay criminal history screening until later in the hiring process.

Credit Check Restrictions

Vermont restricts employer use of credit reports under:

21 V.S.A. §495i

Key Rule

Employers may not request or use credit information for employment purposes unless a statutory exception applies.

Common Exceptions

Employers may obtain credit reports for positions involving:

• access to confidential financial information
• fiduciary or financial responsibilities
• positions requiring bonding
• roles where credit checks are required by law.

Employers relying on an exception should ensure that use of credit information is job-related and consistent with business necessity.

Cannabis Use and Drug Testing Rules

Vermont permits both medical and recreational marijuana use.

However, Vermont law does not require employers to accommodate marijuana use in the workplace.

Employers may:

• maintain drug-free workplace policies
• prohibit marijuana use during work hours
• discipline employees for workplace impairment.

Employment decisions involving marijuana use should be evaluated carefully to ensure compliance with broader employment laws.

Pay Equity and Salary History Rules

Vermont has enacted both a salary history ban and a pay transparency law.

Salary History Restrictions

Relevant statute:

21 V.S.A. §495m

Employers may not:

• request salary history from applicants
• rely on salary history in determining compensation
• seek salary history from current or former employers.

Pay Transparency Requirements

Vermont requires employers to include compensation or a range of compensation in job postings under its 2023 pay transparency law.

Key requirements include:

• disclosure of salary or wage ranges
• inclusion of commissions, bonuses, or other compensation structures, where applicable
• applicability to positions performed, at least in part, in Vermont.

Local Fair Chance or Screening Ordinances

No local fair chance hiring ordinances, credit check restrictions, cannabis testing restrictions, or pay transparency laws affecting private employers have been identified in Vermont.

Key Statutes

• Vermont Fair Employment Practices Act (Ban-the-Box) – 21 V.S.A. §495j
• Credit Report Restriction – 21 V.S.A. §495i
• Salary History Ban – 21 V.S.A. §495m
• Expungement Statutes – 13 V.S.A. §§7602–7603

Employer Compliance Checklist

Employers conducting background checks in Vermont should implement several compliance practices.

• Remove criminal history questions from initial job applications.

• Delay criminal history inquiries until the interview stage or after the applicant is deemed qualified.

• Provide applicants an opportunity to explain criminal history before making an adverse decision.

• Avoid requesting or using credit reports unless a statutory exception applies.

• Follow federal Fair Credit Reporting Act disclosure, authorization, and adverse action requirements when ordering background checks.

• Avoid requesting or relying on salary history during hiring.

• Include compensation ranges, including commissions and other pay structures, in job postings.

• Ensure expunged records are not considered in employment decisions.

• Apply criminal history screening policies consistently to reduce discrimination risks.

• Maintain clear workplace drug testing policies addressing marijuana use and workplace impairment.