Vermont
Vermont Workers' Compensation Laws: Benefits, Deadlines, and Your Rights
Vermont law requires nearly every employer to carry workers' compensation insurance. An injured worker receives no-fault medical care and partial wage replacement without having to prove anyone was at fault, and in exchange gives up the right to sue the employer in civil court for the same injury.
Is workers' comp required in Vermont?
Vermont requires workers' compensation coverage for employers that have one or more employees. Coverage is broad, but it is not universal: 21 V.S.A. § 601(14) excludes several categories from the definition of "worker" and "employee." Those exclusions include casual employment that is not for the purpose of the employer's trade or business; agriculture or farm employment for an employer whose aggregate payroll is less than $10,000 in a calendar year, unless the employer elects coverage; any type of service in or about a private dwelling, unless the employer notifies the Commissioner that it wants the coverage; a member of the employer's family dwelling in the employer's house; qualifying sole proprietors and partners working under a written contract that states they are not employees; and licensed real estate brokers and salespersons paid entirely by commission under a written agreement excluding employee status. If your work falls into one of those categories, confirm your status with the Department of Labor rather than assuming you are covered.
The Vermont Department of Labor, Workers' Compensation Division, administers the system, handles claims, and enforces compliance. Employers that fail to carry required coverage face civil penalties and lose the exclusive-remedy protection, which means an uninsured employer can be sued in tort by an injured worker. If you are unsure whether your employer carries coverage, you can contact the Vermont Department of Labor directly to verify.
Vermont is not a monopolistic-fund state. Employers may purchase coverage from any licensed private insurer or, if financially qualified, self-insure with approval from the Department of Labor. Most covered workers in Vermont are protected from day one of employment.
Benefits you can receive
Vermont workers' compensation pays for all reasonable and necessary medical treatment related to your work injury, including doctor visits, surgery, physical therapy, prescription medications, and mileage to medical appointments. You pay no copay or deductible for authorized treatment.
If your injury prevents you from working, you may receive temporary total disability (TTD) benefits equal to 66 2/3% of your average weekly wage, up to an annual maximum set each year by the Vermont Department of Labor. There is a 3-day waiting period before wage benefits begin. Under 21 V.S.A. § 642(c)(2), if your total disability continues after the third day for seven consecutive calendar days or more, compensation is paid for the whole period of total disability, so the first three days are paid as well.
Beyond TTD, Vermont workers' comp covers several disability categories. Temporary partial disability (TPD) benefits are available if you return to lighter-duty work at reduced wages. Permanent partial disability (PPD) benefits compensate you for lasting impairment after you reach maximum medical improvement, often calculated by body part using a schedule. Permanent total disability (PTD) benefits apply if you can never return to any gainful employment. If a work injury results in death, surviving dependents may receive weekly survivor benefits and up to $10,000 in funeral expenses, with the weekly amount and duration set by statute.
Vocational rehabilitation services, including job retraining and job-search assistance, are also available through the Vermont Department of Labor when a worker cannot return to their prior occupation.
Our Vermont workers' comp settlement calculator can give you a rough sense of what a PPD award might look like based on your wage and impairment rating.
Deadlines: reporting your injury and filing a claim
Vermont workers' compensation involves two separate deadlines, and missing either one can jeopardize your claim entirely.
The first deadline is reporting your injury to your employer. You should notify your employer as soon as possible after a work injury. Under 21 V.S.A. § 656(a), a claim for compensation must be made within 6 months after the date of the injury. Waiting to report also creates practical problems: your employer may dispute the work-relatedness of the injury, and delayed treatment can complicate your medical record. Prompt written notice protects you.
The second deadline is the statute of limitations for pursuing the claim. Under 21 V.S.A. § 660(a), proceedings to initiate a claim for a work-related injury may not be commenced more than 3 years from the date of injury. For occupational diseases, § 660(b) sets the deadline at 2 years from the date the occupational disease is reasonably discoverable and apparent. A separate rule covers claims the insurer paid and then denied: under § 656(c), if the claim is denied after voluntary payments were made, you must commence proceedings within 6 months from the date of denial.
Vermont's 3-year limitations period is shorter than many injured workers assume, and the 6-month claim deadline is one of the shorter reporting windows in the country. Both deserve immediate attention after any work injury.
If you are unsure how Vermont's statute of limitations interacts with your specific injury, see our overview of Vermont statute of limitations laws for context.
Choosing your doctor
Vermont does not let an injured worker pick the treating physician from the first day. Under 21 V.S.A. § 640(b), an employer may designate the treating health care provider to initially treat an injured employee immediately following a compensable injury.
You are not locked into that provider. You may select a different health care provider, but you must give your employer written notice that states your reasons for dissatisfaction with the designated provider and the name and address of the newly selected provider. If you skip that notice, the Commissioner may allow the employer to refuse to reimburse the new provider, unless the failure to give notice was the result of excusable neglect or inadvertence.
Because the provider you settle on will direct your care, it is worth choosing a physician who is familiar with workers' compensation procedures and willing to communicate with the insurer. Your treating doctor is responsible for directing your care, making referrals, and determining your work restrictions. If a dispute arises about your treatment or degree of disability, the insurer may request an independent medical examination (IME), but the IME findings are advisory and can be challenged before the Department of Labor.
The practical lesson is to put the switch in writing. The most common way an injured Vermont worker ends up personally owing a medical bill is changing providers without first telling the employer, in writing, why and to whom.
Can you sue your employer? The exclusive-remedy rule
Workers' compensation is the exclusive remedy for work injuries in Vermont. That means you cannot bring a personal injury lawsuit against your employer in civil court simply because you were hurt on the job, even if your employer's negligence caused the injury. The trade-off is intentional: workers receive guaranteed benefits regardless of fault, and employers receive protection from open-ended tort liability.
There are three standard exceptions to the exclusive-remedy rule that apply in Vermont as in most states. First, if an employer commits an intentional act intended to injure you, a tort claim may be available. Second, you retain the right to sue a third party (someone other than your employer) whose negligence contributed to your injury. For example, if you were hurt by a defective piece of equipment, you may have a product-liability claim against the manufacturer even while collecting workers' comp from your employer. Third, if your employer was required to carry workers' comp but failed to do so, you may sue the uninsured employer directly in court.
Most disputes about denied benefits, disputed medical treatment, or permanent-disability ratings are resolved through the Vermont Department of Labor's administrative hearing process, not through civil litigation.
If you were hurt at work in Vermont
Taking prompt, organized action after a work injury in Vermont protects both your health and your legal rights.
Notify your employer in writing as soon as possible after the injury. Do not rely on a verbal conversation alone. Put the date, time, location, and description of how the injury occurred in writing and keep a copy. Your employer is then required to report the injury to its insurer.
Seek medical care right away. In an emergency, go to the emergency room. Otherwise, ask your employer whether it is designating a provider for your initial treatment, because Vermont law allows it to do so. You can move to a provider of your own choosing afterward with written notice.
Make your claim for compensation within 6 months of the injury. Even if your employer has already accepted the claim and is paying benefits, filing the formal notice protects you from any procedural bar. The Department's forms are available at labor.vermont.gov.
Keep records of everything: medical bills, wage statements, correspondence with your employer or insurer, and any records of missed workdays. These documents are critical if a dispute arises about the extent of your disability or the adequacy of your benefits.
If your claim is denied or your benefits are cut, have a Vermont workers' comp lawyer assess the dispute in a free case evaluation before a Department of Labor hearing (attorney advertising). Many work on contingency and can represent you through the Department of Labor's hearing process at no upfront cost.
This article is general legal information, not legal advice. Workers' compensation rules vary by state and change, and benefit amounts and deadlines depend on the specific facts. For advice about a specific claim, consult a licensed workers' compensation attorney in Vermont.
For a national overview of how workers' compensation rules differ by state, see our complete guide to Workers' Compensation Laws by State.
More Vermont Laws
- Vermont At-Will Employment Laws
- Vermont Car Accident Laws
- Vermont Final Paycheck Laws
- Vermont Slip and Fall Laws
- Vermont Statute of Limitations
Frequently Asked Questions
Is workers' comp required in Vermont?
Yes, for most employment. Vermont requires workers' compensation coverage for employers with one or more employees, and employers that fail to carry coverage face penalties and can be sued in court by injured workers. The statute does exclude some categories from the definition of employee, including casual work outside the employer's trade or business, farm work for an employer whose aggregate payroll is under $10,000 in a calendar year, service in or about a private dwelling, family members dwelling in the employer's house, qualifying sole proprietors and partners, and commission-only licensed real estate brokers and salespersons.
How long does workers' comp last in Vermont?
Temporary total disability benefits continue until you return to work, reach maximum medical improvement, or exhaust the statutory limit. Permanent partial disability benefits are paid as a lump sum or installments after you reach maximum medical improvement. Permanent total disability benefits can continue indefinitely. Separately, proceedings to initiate a claim may not be commenced more than 3 years from the date of injury.
How much does workers' comp pay in Vermont?
Vermont workers' comp pays 66 2/3% of your average weekly wage during periods of total disability, up to a maximum set annually by the Vermont Department of Labor. Benefits begin after a 3-day waiting period, and if total disability continues after the third day for seven consecutive calendar days or more, compensation is paid for the whole period of total disability, including those first three days.
Can I be fired while on workers' comp in Vermont?
Vermont law prohibits retaliation against employees for filing a workers' compensation claim. An employer cannot lawfully fire you specifically because you were injured or because you exercised your right to benefits. If you believe you were terminated in retaliation, you can file a complaint with the Vermont Department of Labor and may also have a civil retaliation claim.
Can I choose my own doctor for workers' comp in Vermont?
Not necessarily at the start. Vermont law allows your employer to designate the health care provider who initially treats you immediately following a compensable injury. You may then select a different provider, but you must give your employer written notice stating your reasons for dissatisfaction and the name and address of the newly selected provider. Without that notice, the Commissioner may allow the employer to refuse to reimburse the new provider.
How long do I have to file a workers' comp claim in Vermont?
You must make a claim for compensation within 6 months of your injury, and proceedings to initiate a claim may not be commenced more than 3 years from the date of injury. For occupational diseases, the deadline is 2 years from the date the disease is reasonably discoverable and apparent. If your employer made voluntary payments and then denied the claim, you have 6 months from the date of denial to commence proceedings.
Can I sue my employer for a work injury in Vermont?
Generally no. Workers' compensation is the exclusive remedy against your employer for work-related injuries. You cannot sue your employer in tort simply because their negligence caused your injury. Exceptions apply for intentional harm by the employer, third-party claims against non-employers, and employers that illegally failed to carry workers' comp coverage.
Updates
Corrected four errors against the Vermont statutes: the deadline to commence a claim is three years from the date of injury, not six; the employer may designate the provider who initially treats you, so Vermont is not a free-choice-of-doctor state from day one; Vermont's coverage law does exclude several categories of workers, including low-payroll farm work and domestic service; and the waiting-period payback rule now states the statutory test of seven consecutive days after the third day.
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
Vermont Statutes Annotated, Title 21: Labor, Chapter 9: Employer's Liability and Workers' Compensation
§ 618Compensation for personal injuryIn force
(a)(1)(A) If a worker receives a personal injury by accident arising out of and in the course of employment by an employer subject to this chapter, the employer or the insurance carrier shall pay compensation in the amounts and to the person specified pursuant to the provisions of this chapter. (B) The compensation of a person who is under guardianship shall be paid to the person’s guardian. (2) If the injury occurred while engaged off the premises of the employer in a recreational activity that is available to the employee as part of the employee’s compensation package or as an inducement to attract employees, it shall not be considered to have occurred in the course of employment unless the Commissioner finds at least one of the following: (A) The employer derived substantial benefit from the activity, beyond that of attracting labor or improving employee health and morale. (B) The activity was reasonably part of the employee’s regular duties or undertaken to meet the expectations of the employer. (C) The activity was undertaken at the request of the employer.
Official text (excerpt) · last checked 2026-09-07 · Read the full text in our law library · Verify at legislature.vermont.gov
§ 656Notice of injury and claim for compensationIn force
(a) A proceeding under the provisions of this chapter for compensation shall not be maintained unless a notice of the injury has been given to the employer as soon as practicable after the injury occurred, and unless a claim for compensation with respect to an injury has been made within six months after the date of the injury; or, in case of death, within six months after death, unless the claimant had made a claim for compensation prior to death. (b) The date of injury, or in the case of occupational disease, the date of injurious exposure shall be the point in time when the injury or disease, and its relationship to the employment is reasonably discoverable and apparent. If that date occurs after the employee has ceased all employment, the employee shall be entitled to reasonable and necessary medical treatment necessitated by the injury and permanent partial or permanent total disability compensation based on the employee’s average weekly wage at the time of the last work-related exposure. (c) The notice and claim may be given or made by any person claiming to be entitled to compensation or by someone in the employee’s behalf.
Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov
Cited in 8 court opinions in our collectionLatest citing opinion in our collection: 2012
Opinions citing this section in our collection:
- Longe v. Boise Cascade Corp. (Supreme Court of Vermont 2000, 171 Vt. 214)“…that govern workers’ compensation proceedings. First, under 21 V.S.A. § 656, a claimant (1) must file a notice of i…”
- Hartman v. Ouellette Plumbing & Heating Corp. (Supreme Court of Vermont 1985, 146 Vt. 443)“…pensation “within six months after the date of the injury.” 21 V.S.A. § 656. Second, any proceeding fo…”
- Leo v. Hillman (Supreme Court of Vermont 1995, 164 Vt. 94)“…ought within two years from solemnization of the marriage); 21 VS.A. § 656 (proceeding for workers’ compensation s…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
§ 640Medical benefits; assistive devices; home and automobile modificationsIn force
(a) An employer subject to the provisions of this chapter shall furnish to an injured employee reasonable surgical, medical, and nursing services and supplies, including prescription drugs and durable medical equipment. The employer shall provide assistive devices and modification to vehicles and residences reasonably necessary to permit an injured worker who is determined to have or expected to suffer a permanent disability, such as an ambulatory disability as defined in 20 V.S.A. § 2900 or blindness as defined in 20 V.S.A. § 2900, that substantially and permanently prevents or limits the worker’s ability to continue to live at home or perform basic life functions. In determining what devices and modifications are reasonably necessary, consideration shall be given to factors that include ownership of the residence to be modified, the length of time the worker is expected to utilize and benefit from the devices or modifications, and the extent to which the devices or modifications enhance or improve the worker’s independent functioning.
Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov
Cited in 11 court opinions in our collectionLatest citing opinion in our collection: 2023
Opinions citing this section in our collection:
- Debra Morisseau v. Hannaford Brothers (Supreme Court of Vermont 2016, 201 Vt. 313)“…n software could not be a compensable medical benefit under 21 V.S.A. § 640(a). Claimant appealed to this Court.…”
- Close v. Superior Excavating Co. (Supreme Court of Vermont 1997, 166 Vt. 318)“…ant’s spouse was not nursing services within the meaning of 21 V.S.A. § 640. Employer also argues that even if the…”
- Semir Mahmutovic v. Washington County Mental Health Services, Inc. (Supreme Court of Vermont 2023, 307 A.3d 868)“…s not obligated to reimburse claimant for lost wages under 21 V.S.A. § 640(c), and that the statute was not uncon…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
§ 642Temporary total disability benefitsIn force
(a)(1) Where the injury causes total disability for work, during the disability, but not including the first three days with the day of the accident to be counted as the first day unless the employee received full wages for that day, the employer shall pay the injured employee a weekly compensation equal to two-thirds of the employee’s average weekly wages. (2) The weekly compensation shall be in an amount that is not more than the maximum nor less than the minimum weekly compensation. (3) Compensation paid pursuant to this subsection shall be adjusted on the first July 1 following the receipt of 26 weeks of benefits and annually on each subsequent July 1, so that the compensation continues to bear the same percentage relationship to the average weekly wage in the State as it did at the time of injury.
Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov
Cited in 20 court opinions in our collectionLatest citing opinion in our collection: 2025
Opinions citing this section in our collection:
- Montgomery v. Brinver Corp. (Supreme Court of Vermont 1983, 142 Vt. 461)“…V.S.A. §§ 663, 664, claiming that the payments, pursuant to 21 V.S.A. § 642(a) and to the agreement, should continu…”
- Sharon Conant v. Entergy Corporation (Supreme Court of Vermont 2016, 202 Vt. 390)“…he maximum nor less than the minimum weekly compensation.” 21 V.S.A. § 642 (also providing that injured employee i…”
- Morin v. Essex Optical/The Hartford (Supreme Court of Vermont 2005, 178 Vt. 29)“…eater than the injured employee’s weekly net income.” 21 V.S.A. § 642, as amended by 1993, No. 225 (Adj. Sess…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
§ 601DefinitionsIn force
As used in this chapter: (1) “Brother” and “sister” includes a stepbrother and stepsister, half-brother and half-sister, and a brother and sister by adoption, but does not include a married brother or a married sister unless dependent. (2) “Child” includes a stepchild, adopted child, posthumous child, grandchild, and a child for whom parentage has been established pursuant to 15 V.S.A. chapter 5 but does not include a married child unless the child is a dependent. (3) “Employer” includes any body of persons, corporate or unincorporated, public or private, and the legal representative of a deceased employer, and includes the owner or lessee of premises or other person who is virtually the proprietor or operator of the business there carried on, but who, by reason of there being an independent contractor or for any other reason, is not the direct employer of the workers there employed. If the employer is insured, “employer” includes the employer’s insurer so far as applicable.
Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov
Cited in 73 court opinions in our collectionLatest citing opinion in our collection: 2026
Opinions citing this section in our collection:
- King v. Snide (Supreme Court of Vermont 1984, 144 Vt. 395)“…y employer” of the plaintiff, as that term is defined under 21 V.S.A. § 601 (3). The ruling ordered him to pay plai…”
- Lydy v. Trustaff, Inc./Wausau Insurance Company (Supreme Court of Vermont 2013, 194 Vt. 165)“…by employers fall within the broad definition of “wages” in 21 V.S.A. § 601(13) is squarely one for the Legislature…”
- Wolfe v. Yudichak (Supreme Court of Vermont 1990, 153 Vt. 235)“…maining claims. The superior court's decision is based on 21 V.S.A. § 601(12)(L), which defines "public employmen…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
§ 660Sufficiency of notice of injuryIn force
(a) A notice given under the provisions of this chapter shall not be held invalid or insufficient by reason of any inaccuracy in stating the time, place, nature, or cause of the injury, or otherwise, unless it is shown that the employer was in fact misled to the injury as a result of the inaccuracy. Want of or delay in giving notice, or in making a claim, shall not be a bar to proceedings under the provisions of this chapter, if it is shown that the employer, the employer’s agent, or representative had knowledge of the accident or that the employer has not been prejudiced by the delay or want of notice. Proceedings to initiate a claim for a work-related injury pursuant to this chapter may not be commenced after three years from the date of injury. This section shall not be construed to limit subsequent claims for benefits stemming from a timely filed work-related injury claim. (b) Notwithstanding subsection (a) of this section, a claim for occupational disease shall be made within two years of the date the occupational disease is reasonably discoverable and apparent. (Amended 1993, No. 225 (Adj. Sess.), § 10; 1999, No. 41, § 6; 2003, No. 132 (Adj. Sess.), § 6, eff. May 26, 2004.)
Official text (excerpt) · last checked 2026-08-01 · Read the full text in our law library · Verify at legislature.vermont.gov
Cited in 9 court opinions in our collectionLatest citing opinion in our collection: 2019
Opinions citing this section in our collection:
- Longe v. Boise Cascade Corp. (Supreme Court of Vermont 2000, 171 Vt. 214)“…(amended by 1993, No. 225 (Adj. Sess.), §§ 9, 32). However, 21 V.S.A. § 660 excuses the failure to timely give noti…”
- Carter v. Fred's Plumbing & Heating, Inc. (Supreme Court of Vermont 2002, 174 Vt. 572)“…tos. Second, he claims that if the ODA does not apply, then 21 V.S.A. § 660(b) applies, and his claim is not time-b…”
- Murray v. Luzenac Corp. (Supreme Court of Vermont 2003, 175 Vt. 529)“…No. 41, § 8(a)(1)); (2) applying the “discovery rule” from 21 V.S.A. § 660(b); and (3) relying upon the Commission…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
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Sources and References
- Vermont Department of Labor, Workers' Compensation Division(labor.vermont.gov).gov
- 21 V.S.A. Chapter 9 (Vermont Workers' Compensation Act, sections 601-711)(legislature.vermont.gov).gov
- 21 V.S.A. § 601(14) (definitions of "worker" and "employee," including exclusions)(legislature.vermont.gov)
- 21 V.S.A. § 640 (medical benefits; employer designation of the initial treating provider)(legislature.vermont.gov)
- 21 V.S.A. § 642 (temporary total disability; three-day waiting period)(legislature.vermont.gov)
- 21 V.S.A. § 656 (notice of injury and claim for compensation; six-month deadlines)(legislature.vermont.gov)
- 21 V.S.A. § 660 (limitation of time; three years for injury, two years for occupational disease)(legislature.vermont.gov)
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