Federal Law (FCRA)
The Fair Credit Reporting Act (FCRA) establishes the federal minimum requirements for employment background checks, including disclosure and authorization requirements, consumer rights, and the adverse action process. Many states impose additional requirements that employers must also follow.
Read FCRA Overview →Vermont: Key Requirements
Scroll to view all requirements below.
Ban the Box / Fair Chance Hiring
Vermont prohibits an employer from requesting criminal history record information on its initial employee application form. An employer may ask about criminal history during an interview or once the applicant has been deemed otherwise qualified, and must give the applicant a chance to explain the circumstances. The law applies to any employer with at least 1 employee in Vermont. Limited exceptions apply where a conviction would legally disqualify the applicant from the position or where state or federal law otherwise requires the inquiry, and in those cases questions must be limited to the disqualifying convictions.
Criminal Record Lookback Period
Vermont has no state law limiting how far back a criminal background check can go. Employers must follow the federal FCRA baseline.
Reporting Restrictions
Vermont has not adopted a mini FCRA or other comprehensive state consumer reporting law. Employers must follow the federal FCRA baseline.
Expunged / Sealed Records
Vermont allows individuals to petition to expunge or seal eligible criminal records, and provides automatic expungement for certain offenses, including marijuana offenses that are no longer crimes. Once a record is expunged, the offense is treated as though it never occurred, and the person may answer questions accordingly. The order directs that the record be stricken from public access, so it should not appear on a background check or be considered by an employer.
Salary History Ban
Vermont prohibits employers from asking about or seeking an applicant's current or past compensation, from a former employer or from the applicant, and from requiring that prior pay meet any threshold as a condition of consideration. An employer may not use salary history to screen applicants or set pay. If an applicant voluntarily discloses salary history, the employer may confirm it and consider it only after extending an offer that includes compensation.
Credit Report Restrictions
Vermont prohibits most employers from requesting or using an applicant's or employee's credit history in employment decisions.
*Exceptions apply where a credit check is required by law, for first responders, for positions with financial fiduciary authority or access to payroll, or where the employer shows credit history validly predicts performance for that position. Even then, the employer must get written consent for each request, disclose the reason in writing, keep it confidential, cover the cost, and may not use credit as the sole factor.
Bankruptcies
Vermont has no state law limiting the reporting of bankruptcies. Employers must follow the federal FCRA baseline.
Civil Judgments & Lawsuits
Vermont has no state law limiting the reporting of civil judgments or lawsuits. Employers must follow the federal FCRA baseline.
Tax Liens & Collections
Vermont has no state law limiting the reporting of paid tax liens or collection accounts. Employers must follow the federal FCRA baseline.
Marijuana / Drug Testing Protections
Recreational and medical marijuana are both legal in Vermont. Off-duty use is lawful, and Vermont's drug testing law sharply limits an employer's ability to test for it. Employers may still prohibit use, possession, and impairment during work hours and on the premises, and may discipline an employee who is impaired at work. Employers may not require applicants or employees to submit to random or company-wide drug testing, and pre-employment testing is allowed only under narrow conditions. Positions subject to federal drug testing requirements are excepted.
Pre-Adverse Action Notice & Waiting Period
Vermont has no state law setting a specific waiting period before taking adverse action. Employers must follow the federal FCRA baseline.
Adverse Action Notice Requirements
Vermont has no state law adding to the federal adverse action notice process. Employers must follow the federal FCRA baseline.
Authorization Requirements
Vermont has no general state law governing background check authorization beyond the credit and drug testing rules described above. Employers must follow the federal FCRA baseline.
Individualized Assessment
No statute. EEOC guidance under Title VII applies. Vermont's ban the box law does require that an applicant be given the opportunity to explain the circumstances of a criminal record, but it does not impose a formal individualized assessment standard.
Drug Testing Procedures
Vermont sets detailed procedural requirements for any employer that lawfully conducts drug testing. An employer may test an applicant only after a conditional offer of employment and only with advance written notice, and may test a current employee only where there is probable cause to believe the employee is using or is impaired by drugs on the job. The employer must use a designated laboratory, provide the employee an opportunity for a confirmatory retest, and may not terminate an employee who tests positive for a first offense if the employee agrees to complete an employee assistance program. Violations can carry civil and criminal penalties and allow a private lawsuit.
Unless otherwise noted, the information on this page applies to private sector employment. Government employers and certain regulated industries may be subject to additional or different requirements.
Local Ordinances That May Apply
Click a jurisdiction below to view full details.
No Local Ordinances
Vermont has no local ordinances regulating criminal history inquiries by private employers.
This list reflects known local ordinances at the time of publication and may not be exhaustive. Employers should confirm requirements for every city or county where they hire.
What This Means for Employers
Vermont regulates several parts of the hiring process, especially criminal history, pay, credit, and drug testing. To stay compliant:
Remove criminal history and salary history questions from your job application. Do not request a credit report unless the position fits a statutory exception, and if it does, get written consent and disclose the reason in writing. Wait until an interview, or until the applicant is deemed otherwise qualified, before asking about criminal history, and give them a chance to explain. Do not conduct random or company-wide drug testing, and test applicants only after a conditional offer with written notice. Exclude any expunged record, evaluate each conviction against the specific job rather than applying a blanket exclusion, and don't take action on off-duty marijuana use absent workplace impairment. Follow the FCRA adverse action process: pre-adverse notice with a copy of the report and a summary of rights, a reasonable chance to respond, then a final notice.Non-compliance can result in civil penalties, damages, and legal liability under both state and local law.
Download the Vermont Quick Reference Guide
Get a printable, one-page comparison of FCRA vs. Vermont law.