Wrongful Termination in Vermont (2026): Laws, Deadlines, How to File

Vermont is an at-will state, so an employer can usually fire someone with or without cause. A firing is wrongful when it breaks a statute, a contract term that modified the at-will relationship, or a clear and compelling public policy. The main state statute is the Vermont Fair Employment Practices Act (VFEPA), 21 V.S.A. 495 to 495t, which covers employers with even one employee and makes it unlawful to discriminate against or harass any individual because of a protected characteristic (21 V.S.A. 495(a)(1)).

Two features shape most Vermont claims: no agency filing is required before suing, and the statute sets no dollar cap on damages. To compare other states, see our guide to wrongful termination laws by state.

Information last verified on October 10, 2026. This article has not been reviewed by a licensed lawyer.

Jurisdiction scope: This article covers Vermont law on firing employees: the at-will rule and its exceptions as Vermont courts apply them, the Fair Employment Practices Act (21 V.S.A. 495 to 495t), and narrower Vermont protections such as workers' compensation (21 V.S.A. 710), jury and witness service (499), military membership (491 to 493), wage complaints (348, 397) and leave laws, with short notes on the federal laws that also apply. The federal rules in full are on our wrongful termination laws by state guide. It does not cover severance agreements; see Vermont severance pay laws.

Is Vermont an at-will state?

Yes. In Payne v. Rozendaal, 147 Vt. 488, 520 A.2d 586 (1986), the Vermont Supreme Court said that under an at-will contract "an employee may be discharged at any time with or without cause, 'unless there is a clear and compelling public policy against the reason advanced for the discharge.'" The Fair Employment Practices Act keeps the employer's right to fire for cause: its protections "shall not be construed to limit the rights of employers to discharge employees for good cause shown" (21 V.S.A. 495(b)). For how the doctrine works day to day, see Vermont at-will employment laws.

Discrimination under the Fair Employment Practices Act

21 V.S.A. 495(a)(1) makes it unlawful "For any employer, employment agency, or labor organization to harass or discriminate against any individual because of race, color, religion, ancestry, national origin, sex, sexual orientation, gender identity, place of birth, crime victim status, or age or against a qualified individual with a disability."

Who is covered. An employer is any individual, organization or governmental body "that has one or more individuals performing services for it within this State" (21 V.S.A. 495d(1)). Age protection applies to people 18 or older (21 V.S.A. 495(c)).

Other protected conduct and status.

• HIV testing: the Act bars employment actions tied to HIV-related blood tests (21 V.S.A. 495(a)(5)-(6)).
• Equal pay: 495(a)(7) covers equal pay, including protection for employees who discuss pay.
• Hair and race: "race" includes hair type, texture and protective hairstyles (21 V.S.A. 495d(17)); 2025 Act 18 is the latest amendment to that definitions section.
• Sexual orientation and gender identity: the Act lists both. Federal Title VII also covers them at employers with 15 or more employees: in Bostock v. Clayton County, 590 U.S. 644 (2020), the U.S. Supreme Court held that "An employer who fires an individual merely for being gay or transgender violates Title VII."

Retaliation. 21 V.S.A. 495(a)(8) bars retaliation for opposing prohibited practices, filing a complaint or taking part in a proceeding, and discussing wages.

Harassment standard. Since 2023 Act 80 took effect on July 1, 2023, "harassment and discrimination need not be severe or pervasive to constitute a violation of this section" (21 V.S.A. 495(k)), and a worker does not need to point to a peer comparator (495(j)).

Filing a complaint with the Civil Rights Unit

Which agency. The Vermont Attorney General's Civil Rights Unit (CRU) handles discrimination complaints against private employers and local governments. The Vermont Human Rights Commission covers only state-government employment, along with housing and public accommodations.

How it works. You start with the CRU's online complaint form. The CRU drafts a notarized charge, notifies the EEOC, and offers free mediation. The CRU also says it is a "deferral agency" for the EEOC.

Deadlines. The CRU's page says: "Most claims of violation of federal law must be filed with this agency within 300 days of the last incident of discrimination." Neither 21 V.S.A. 495 to 495b nor the CRU pages our research reviewed state a separate deadline for a state-law complaint, so file as early as you can and ask the CRU about timing.

Suing under the Fair Employment Practices Act

No agency filing required. "Any person aggrieved by a violation of the provisions of this subchapter may bring an action in Superior Court" (21 V.S.A. 495b(b)). There is no right-to-sue letter step. Separately, the Attorney General or a State's Attorney may enforce the Act and seek civil penalties, restitution of wages or other benefits, and reinstatement (21 V.S.A. 495b(a)).

The deadline depends on the damages. 21 V.S.A. 495b states no limitations period, but in Egri v. U.S. Airways, Inc., 174 Vt. 443 (2002), the Vermont Supreme Court held that the three-year period of 12 V.S.A. 512(4) "governs plaintiffs claim for emotional distress resulting from defendant's alleged violation of the Fair Employment Practices Act," while the six-year period of 12 V.S.A. 511 "governs plaintiffs claim for lost income and benefits resulting from defendant's alleged violation of the Act." To keep every kind of damages available, file within three years.

What a court can award. The court may award "compensatory and punitive damages or equitable relief, including restraint of prohibited acts, restitution of wages or other benefits, reinstatement, costs, reasonable attorney's fees, and other appropriate relief" (21 V.S.A. 495b(b)). No dollar cap appears in the section. For equal-pay violations, the employee also recovers underpaid wages plus "an equal amount as liquidated damages" (495b(c)). The CRU says that in court it may seek reinstatement, back pay, front pay, damages, civil penalties, attorney's fees and costs.

Federal discrimination charges in Vermont

The EEOC's Boston Area Office and New York District Office both say an individual has "300 days from the date of alleged harm to file a charge" against an employer with 15 or more employees for race, color, national origin, sex, religion or disability discrimination in Vermont, and 300 days for age discrimination against an employer with 20 or more employees. For smaller employers, both pages direct charges to the state or local agency "within the time limits prescribed by the state or local laws," and both then say those time limits are 365 days in Vermont. That 365-day figure is the EEOC's statement; our research found no Vermont statute that sets it, so confirm the deadline with the Vermont Attorney General's Civil Rights Unit and file as early as you can.

The EEOC says a charge filed with the EEOC or a state agency it works with is automatically filed with the other. After an EEOC Notice of Right to Sue, a federal lawsuit must be filed within 90 days (42 U.S.C. 2000e-5(f)(1)). Federal Title VII and ADA damages are capped at $50,000 to $300,000 by employer size (42 U.S.C. 1981a(b)(3)), while the Vermont statute states no cap; the wrongful termination guide has the federal details.

The public-policy exception

In Payne, the Vermont Supreme Court held that a discharge solely because of age contravenes a clear and compelling public policy, even though the Fair Employment Practices Act did not yet bar age discrimination when the plaintiffs were fired; the court said it did "not find the absence of a statutory directive concerning age discrimination to be dispositive." Murray v. St. Michael's College, 164 Vt. 205 (1995), restates the exception. The Fair Employment Practices Act also preserves the claim by name: its provision on employer meetings about religious or political matters does not limit "an employee's right to bring a civil action for wrongful termination" (21 V.S.A. 495o(b)(1)).

Deadline. No statute sets a specific deadline for the public-policy tort, and our research found no Vermont case deciding whether the three-year period in 12 V.S.A. 512(4) or the six-year period in 12 V.S.A. 511 applies. Egri answered only the Fair Employment Practices Act question, applying the rule that "it is the nature of the harm done, rather than the plaintiffs characterization of the cause of action, that determines which statute of limitations governs." Get legal advice promptly.

Constructive discharge

A forced resignation can support a claim only alongside another wrong. In Boulton v. CLD Consulting Engineers, Inc., 2003 VT 72, 175 Vt. 413, 834 A.2d 37, the Vermont Supreme Court said: "Standing alone without an accompanying claim that the termination was wrongful because of employer's illegal conduct or breach of an implied contract of employment, an at-will employee's claim for constructive discharge is not an actionable tort." Our research did not find a Vermont Supreme Court statement of the test for a constructive discharge under the Fair Employment Practices Act.

Contracts, handbooks and good faith

An employer's own policies can change at-will status. In Ross v. Times Mirror, Inc., 164 Vt. 13, 665 A.2d 580 (1995), the court said an at-will employee may be discharged unless "the at-will relationship has been modified," recognizing that a handbook may modify it. In Dillon v. Champion Jogbra, Inc., 175 Vt. 1, 819 A.2d 703 (2002), where the employee argued the employer's manual and practices changed her at-will status, the court reversed and remanded her breach of contract claim for trial.

Vermont does not use good faith to second-guess an ordinary at-will firing. In Ross, the court said: "we decline to recognize the implied covenant of good faith and fair dealing as means of recovery where the employment relationship is unmodified and at-will and the employee is challenging the dismissal based on a right to tenure." The deadline for a contract claim is also among the candidates our research could not settle (12 V.S.A. 511 or 512(4)).

Other Vermont firing protections

• Workers' compensation: an employer may not discharge or discriminate against an employee because the employee "asserted or attempted to assert a claim for benefits" (21 V.S.A. 710). The Fair Employment Practices Act's retaliation rules and its penalty and enforcement provisions in 495b apply, including compensatory and punitive damages. For benefits, see Vermont workers' compensation laws.
• Wage complaints: an employer may not discharge or retaliate against an employee for lodging a complaint about wages or cooperating with the Commissioner (21 V.S.A. 348(a), 397(a)). The employee may sue in Superior Court for "compensatory and punitive damages or equitable relief," including reinstatement (348(b), 397(b)).
• Earned sick time: "The provisions against retaliation set forth in section 397 of this title shall apply to this subchapter" (21 V.S.A. 483(l)).
• Family, parental and other leave: "An employer shall not discharge or in any other manner retaliate against an employee who exercises or attempts to exercise his or her rights under this subchapter" (21 V.S.A. 473). Since 2025 Act 32 took effect on July 1, 2025, parental, bereavement, safe leave and qualifying-exigency leave apply to employers with 10 or more employees averaging 30 hours a week, and family leave to employers with 15 or more (21 V.S.A. 471(4)); leave is 12 weeks in 12 months, with up to 2 weeks of bereavement leave (472(a)). An employee qualifies after being "continuously employed by the same employer for a period of one year for an average of at least 30 hours per week" (or meeting the federal airline flight crew service rule in 29 C.F.R. 825.801) (471(5)), and "The penalty and enforcement provisions of section 495b of this title shall apply to this subchapter" (21 V.S.A. 474(a)), including a Superior Court action for compensatory and punitive damages and reinstatement.
• Jury and witness service: an employer "shall not discharge an employee because of the employee's service as a juror," or because of absence as a subpoenaed witness, and faces a fine of not more than $200 (21 V.S.A. 499). The section as our research read it has no private damages clause.
• National Guard and Reserve: membership may not be the basis for denying employment, retention or promotion (21 V.S.A. 491(b)). The employee may sue in Superior Court for compensatory and punitive damages, reinstatement, costs and fees, and the Attorney General may enforce (21 V.S.A. 493). Federal USERRA also applies (38 U.S.C. 4311(a)).
• Crime victims and safe leave: crime victim status is a protected class under 495(a)(1), and safe leave is covered by 21 V.S.A. 472c and 472(a)(1)(C).
• Drug testing: an employer may not require random or company-wide drug tests "except when such testing is required by federal law or regulation" (21 V.S.A. 513(b)), may test an individual employee only on probable cause with a rehabilitation program available, and "The employee may not be terminated if the test result is positive and the employee agrees to participate in and then successfully completes the employee assistance program" (513(c)). An employee may be fired after a later positive test that follows the program. An aggrieved employee may sue for "injunctive relief, damages, court costs, and attorney's fees" (21 V.S.A. 519(a)).
• Pregnancy accommodation: failing to provide "a reasonable accommodation for an employee's pregnancy-related condition, unless it would impose an undue hardship on the employer," is an unlawful employment practice under the Fair Employment Practices Act (21 V.S.A. 495k(a)(1)).
• Health coverage status: an employer may not "discriminate among applicants or employees on the basis of health coverage status" (21 V.S.A. 561(b)(1)); an aggrieved person may sue in Superior Court for compensatory and punitive damages or equitable relief (561(c)).
• Religious or political meetings: an employer may not discharge or penalize an employee for declining to attend or view employer communications whose primary purpose is the employer's opinion on religious or political matters (21 V.S.A. 495o(a)).
• Workplace safety: "No person shall discharge or in any manner discriminate against any employee because the employee has filed any complaint" or testified under Vermont's occupational safety and health law, or for exercising a right it gives (21 V.S.A. 231(a)). The employee may "within 30 days after the violation occurs, file a complaint with the Commissioner"; if the Commissioner finds a violation, the Commissioner sues, and the court may order relief "including rehiring or reinstatement of the employee to the employee's former position with back pay" (231(b)). A federal OSHA retaliation complaint also has a 30-day deadline (29 U.S.C. 660(c)(2)).
• Town meeting and voting: subject to "the essential operation of a business," an employee may take unpaid leave to attend the annual town meeting after notifying the employer "at least seven days prior" (21 V.S.A. 472b(a)), and 473 bars retaliation for using leave under that subchapter. Our research did not locate a general voting-leave statute.

Whistleblowing

Our research did not find a general private-sector whistleblower statute in Vermont. Employees of hospitals and nursing homes are protected from retaliatory action for disclosing a reasonably believed violation of law or improper patient care, testifying, or objecting to or refusing to take part in such conduct (21 V.S.A. 507(b)). For some of those protections, the employee must report internally first unless that would be futile (507(c)). Remedies include reinstatement, back pay, compensatory and punitive damages, injunctive relief and attorney's fees (21 V.S.A. 508(d)), and section 508 states no filing deadline. Other private workers rely on the public-policy tort and on 495(a)(8) for opposing discrimination. For more, see Vermont whistleblower laws.

A written reason or your personnel file

Our research did not locate a Vermont statute requiring a private employer to give a written reason for a firing or to let a private employee inspect a personnel file. For when the last paycheck is due, see Vermont final paycheck laws.

Wrongful termination deadlines in Vermont

Where to file in Vermont

• Private-employer and local-government discrimination: the Attorney General's Civil Rights Unit, or directly in Superior Court.
• State-government employment: the Vermont Human Rights Commission.
• Federal discrimination claims: the EEOC, through its Public Portal, or at 1-800-669-4000 when a deadline is near.
• Public-policy tort, contract, wage, leave and military claims: Superior Court.

Practical steps after a firing in Vermont

Write down the date you were fired, who told you, the reason given, and any complaint, claim, leave request or jury summons involved, and keep the termination notice, reviews and the handbook. Under Egri, a Fair Employment Practices Act suit for emotional-distress damages must be filed within three years, so plan around three years rather than six, and remember the federal 300-day EEOC clock runs separately.

If the employer offers money in exchange for a release, read it before signing, because a release can give up the claims described here. Our Vermont severance pay laws page covers those agreements.

Recent changes

Vermont's compiled statutes currently include the actions of the 2025 session; 2026 bills were checked through the legislature's bill pages.

• 2026: S.230, a fair employment practices bill that would have, among other things, listed supporting documentation for crime victim status under the Act and repealed the provision allowing higher-education institutions to require tenured faculty to retire at 70, was vetoed by the Governor on June 18, 2026; the legislature's bill page shows no override as of October 10, 2026. H.887, on crime victim status documentation, passed the House on March 19, 2026 and was referred to a Senate committee; no Senate passage is shown, so it is not law.
• 2025: Act 32 (H.461) expanded unpaid leave and set the 10- and 15-employee thresholds, effective July 1, 2025. Act 18, effective May 13, 2025, is the latest amendment to the definitions in 21 V.S.A. 495d.
• 2024: 21 V.S.A. 495b, the enforcement section, was last amended by 2023 Act 85 (Adj. Sess.), effective July 1, 2024.
• 2023: Act 80 (S.103) removed the "severe or pervasive" requirement and the peer-comparator requirement, effective July 1, 2023.

Related

• Wrongful termination laws by state
• Vermont at-will employment laws
• Vermont whistleblower laws
• Vermont workers' compensation laws
• Vermont severance pay laws

Disclaimer: This article provides general legal information about Vermont wrongful termination law (the at-will rule, the Vermont Fair Employment Practices Act, 21 V.S.A. 495 to 495t, and related statutes such as 21 V.S.A. 710, 499, 491 to 493 and 507 to 508) and the federal laws that apply in Vermont. It is not legal advice. The information was verified on October 10, 2026. For advice about your situation, contact the Vermont Attorney General's Civil Rights Unit, the EEOC, a legal aid office or a lawyer licensed in Vermont.

Last updated: October 10, 2026.

Frequently Asked Questions

Is Vermont an at-will employment state?

Yes. Under Payne v. Rozendaal (1986), an at-will employee may be discharged at any time with or without cause unless there is a clear and compelling public policy against the reason for the discharge. The Vermont Fair Employment Practices Act and other statutes add specific limits.

Do I have to file with an agency before suing for discrimination in Vermont?

No. 21 V.S.A. 495b(b) says any person aggrieved by a violation may bring an action in Superior Court. You may also file a complaint with the Attorney General's Civil Rights Unit, but it is not a precondition.

How small an employer does the Vermont Fair Employment Practices Act cover?

Any employer with one or more individuals performing services for it within Vermont (21 V.S.A. 495d(1)). There is no 15-employee floor like federal Title VII's.

What is the deadline to sue for wrongful termination in Vermont?

For a Fair Employment Practices Act claim, 21 V.S.A. 495b states no deadline, but the Vermont Supreme Court held in Egri v. U.S. Airways (2002) that the 3-year period of 12 V.S.A. 512(4) governs emotional-distress damages and the 6-year period of 12 V.S.A. 511 governs lost income and benefits. Egri did not decide the period for the public-policy tort or contract claims, so talk to a lawyer promptly.

Who handles discrimination complaints against private employers in Vermont?

The Vermont Attorney General's Civil Rights Unit. The Vermont Human Rights Commission covers only state-government employment, plus housing and public accommodations.

Are damages capped in Vermont discrimination cases?

No cap appears in 21 V.S.A. 495b, which lets a court award compensatory and punitive damages, back wages and benefits, reinstatement, costs and reasonable attorney's fees. This page cannot estimate what any claim is worth.

Does harassment have to be severe or pervasive in Vermont?

No. Since 2023 Act 80 took effect on July 1, 2023, 21 V.S.A. 495(k) says harassment and discrimination need not be severe or pervasive to violate the Act.

Can I be fired for filing a workers' compensation claim in Vermont?

No. 21 V.S.A. 710 bars discharging or discriminating against an employee because the employee asserted or attempted to assert a claim for benefits, and applies the Fair Employment Practices Act's retaliation and enforcement provisions.

What is the EEOC deadline in Vermont?

The EEOC's Boston and New York offices say a Vermont worker has 300 days from the date of alleged harm to file a charge against an employer with 15 or more employees, or 20 or more for age claims.