At-Will Employment in Vermont: What Small Business Owners Need to Know
April 22, 2025

When you're running a small business, hiring the right team is one of the most important decisions you'll make. But equally important is understanding the laws that govern those employment relationships—including the principle of at-will employment. Vermont, like most states, follows the at-will employment doctrine—but that doesn’t mean employers can fire employees for just any reason.


In this article, we break down what at-will employment means in Vermont, its legal limits, and how small business owners can protect themselves and their employees through clear policies and smart practices.


What Does “At-Will Employment” Mean?


At its core, at-will employment means that either the employer or the employee can terminate the employment relationship at any time, for any reason—or for no reason at all—as long as the reason is not illegal.

In Vermont, this principle applies by default unless there is a contract (written or implied) stating otherwise. So unless you’ve signed an agreement specifying terms for termination, the employment is presumed to be at-will.


Legal Limits on At-Will Employment


While at-will employment gives employers a fair amount of flexibility, it is not unlimited. There are important exceptions and protections that every Vermont business owner must understand:


Discrimination Laws



Employers may not fire employees on the basis of protected characteristics such as:

  • Race, color, or national origin
  • Sex, gender identity, or sexual orientation
  • Age (40 and over)
  • Disability
  • Religion
  • Pregnancy
  • Marital status

These protections come from both federal laws (like Title VII of the Civil Rights Act and the ADA) and state laws under the Vermont Fair Employment Practices Act (VFEPA). Vermont law also offers broader protections than federal law in some areas.


Retaliation and Whistleblowing


An employee cannot be fired for:

  • Reporting illegal activity or safety violations
  • Filing a workers’ compensation claim
  • Taking protected medical or family leave
  • Complaining about harassment or discrimination
  • Participating in a workplace investigation

These are considered forms of retaliation, and terminating someone for these reasons—even in an at-will setting—could expose your business to liability.


Breach of Contract


Even if you didn’t intend to create an employment contract, certain policies, offer letters, or handbooks may create implied contractual obligations. For example, promising “job security” or suggesting that employees can only be fired “for cause” might override the at-will presumption.


Best Practices for Vermont Employers


To make sure you’re staying on solid legal ground while managing your team, consider the following best practices:

  • Use Clear, Written Offer Letters: When hiring employees, include a statement in the offer letter that the position is “at-will” and that either party can end the relationship at any time, with or without cause or notice.
  • Draft a Thoughtful Employee Handbook: A good handbook should outline key policies while preserving your rights as an employer. Include an at-will disclaimer and reserve the right to revise policies at any time.
  • Train Your Managers: Many employment claims stem from inconsistent or poorly communicated decisions. Make sure supervisors understand what at-will employment does—and doesn’t—mean, and that they apply policies fairly.
  • Document Performance Issues: Even in an at-will state, it’s wise to maintain records of warnings, performance reviews, or disciplinary actions to show a legitimate, non-discriminatory basis for termination decisions.
  • Consult Legal Counsel Before Termination: Some situations are straightforward—but others are more complex. If you're planning to terminate an employee who recently complained, took medical leave, or belongs to a protected class, it’s best to speak with an attorney before proceeding.


Vermont-Specific Considerations


Vermont has a strong culture of employee rights and progressive labor laws. In addition to broader anti-discrimination protections, Vermont offers laws covering:

  • Earned sick leave
  • Parental and family leave
  • Recreational marijuana use (with limits on workplace impact)
  • Ban-the-box legislation, limiting when you can ask about criminal history

Keeping up with these evolving laws is critical for small businesses looking to minimize risk and maintain a positive workplace culture.


Need Guidance on Employment Practices?


At Deppman Law PLC, we understand the challenges Vermont small businesses face when it comes to hiring, managing, and—when necessary—terminating employees. Our attorneys can help you manage at-will employment laws, draft legally sound policies, and avoid costly missteps. Contact Deppman Law today to schedule a consultation and learn how we can support your business every step of the way.

The 5 Essential Estate Planning Documents Every Vermonter Should Have

June 20, 2025
Estate planning may sound like something only the wealthy or elderly need to worry about, but in truth, it’s an essential part of life planning for every adult—regardless of age, wealth, or family structure. Whether you're a small business owner in Montpelier, a retiree in Middlebury, or a young parent in Burlington, having a clear and legally sound estate plan can protect your loved ones, preserve your assets, and provide peace of mind. In Vermont, as in most states, there are five core documents that form the foundation of a comprehensive estate plan. Each plays a specific role in ensuring your wishes are respected and your affairs are handled according to your preferences—both during your lifetime and after your death. Here’s a closer look at the five essential estate planning documents every Vermonter should have: 1. Last Will and Testament A will is the cornerstone of any estate plan. It outlines how you want your assets to be distributed after your death and names an executor to manage your estate. If you have minor children, your will is also the document where you nominate a guardian for them. Without a will, your estate will be distributed according to Vermont’s intestacy laws—which may not reflect your wishes. This process can be time-consuming, emotionally draining for your family, and lead to unintended outcomes. Even if your estate is modest, a will ensures clarity and can help your loved ones avoid unnecessary legal complications during an already difficult time. 2. Durable Power of Attorney A durable power of attorney (POA) allows you to name someone to handle your financial and legal affairs if you become incapacitated. This could include paying your bills, managing investments, filing taxes, or making other important decisions on your behalf. In Vermont, a POA remains in effect even if you become mentally or physically unable to manage your own affairs—hence the term durable. Without a POA, your loved ones may have to go through a costly and time-consuming court process to gain the authority to act on your behalf. Choosing a trusted agent now can spare your family considerable stress later. 3. Advance Directive for Health Care Also known as a health care proxy or medical power of attorney, an advance directive allows you to appoint someone to make medical decisions for you if you are unable to do so yourself. This includes decisions about life-sustaining treatments, organ donation, and end-of-life care. Vermont has a specific form for advance directives, and completing one ensures your health care wishes are known and legally binding. Without this document, important medical decisions may fall to someone who doesn’t know your preferences—or disagreements among family members could create unnecessary tension. 4. HIPAA Authorization The Health Insurance Portability and Accountability Act (HIPAA) protects the privacy of your medical records, but it can also make it difficult for loved ones to access information in an emergency. A HIPAA authorization allows you to name individuals who can access your medical records and communicate with your doctors. This is especially important if you have multiple family members who may need to coordinate your care or advocate on your behalf. Without this document, your loved ones may be left in the dark at a time when fast, informed decisions are critical. 5. Revocable Living Trust (Optional, But Strongly Recommended) While not every Vermonter needs a revocable living trust, it can be a powerful tool—especially if you own real estate, have a blended family, or want to avoid probate. A revocable living trust allows you to transfer ownership of your assets into a trust during your lifetime, with instructions for how they should be managed and distributed. You retain control of the assets while you're alive, and after your death, they can be distributed without going through the Vermont probate process. A trust also provides greater privacy, flexibility, and control, and can be particularly helpful for managing out-of-state property or planning for incapacity. Take Control of Your Legacy Estate planning isn’t just about preparing for the unexpected—it’s about making intentional decisions that protect your family, safeguard your assets, and reflect your values. At Deppman Law PLC, we help individuals and families throughout Vermont create customized estate plans that meet their specific needs—no matter how simple or complex. Whether you’re starting from scratch or need to update existing documents, we’re here to guide you through every step with care and clarity. Contact Benj or Lesley today to schedule a consultation and begin building your estate plan with confidence.

Can My Child Choose Which Parent to Live With in Vermont?

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