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.

How to Protect Your Business in Vendor and Service Agreements

March 16, 2026
Vendor and service agreements are a routine part of running a small business, but they are also one of the most common sources of legal disputes. Whether you are hiring a vendor, providing services to a client, or entering into a long-term business relationship, a well-drafted agreement is essential to protecting your interests. Taking the time to get these contracts right on the front end can prevent costly issues down the road. Scope of Work At its core, a vendor or service agreement should clearly define the scope of work. This includes what services or goods will be provided, the timeline for performance, and any specific deliverables. Vague or overly broad descriptions can lead to misunderstandings and disagreements about whether obligations have been fulfilled. The more specific the agreement, the easier it is to hold all parties accountable. Payment Terms Payment terms are another critical component. Your agreement should outline how much will be paid, when payments are due, and what happens if a payment is late or not made at all. For service providers, this may include requiring deposits or including interest or penalties for late payment. For businesses hiring vendors, it is equally important to ensure that payment is tied to satisfactory performance. Liability Limits Limiting liability is also key to protecting your business. Many agreements include provisions that cap the amount of damages one party can recover or exclude certain types of damages altogether. While these clauses must be carefully drafted to be enforceable, they can significantly reduce your financial exposure in the event of a dispute. Similarly, indemnification provisions can require one party to cover certain losses or claims, such as those arising from negligence or third-party actions. Disputes Another important consideration is how disputes will be handled. Your agreement should specify whether disputes will be resolved through litigation, mediation, or arbitration, as well as the location and governing law. For Vermont businesses, including a clause that applies Vermont law and designates a local venue can provide greater predictability and convenience if a dispute arises. Termination Termination provisions are often overlooked but can be just as important as the initial terms of the agreement. A strong contract will outline when and how either party can terminate the relationship, including for cause (such as a breach) or for convenience. It should also address what happens upon termination, such as final payments, return of property, or transition of work in progress. Confidentiality In addition, businesses should consider including provisions related to confidentiality and intellectual property. If sensitive business information is being shared, a confidentiality clause can help prevent misuse or disclosure. If the agreement involves the creation of content, designs, or other work product, it should clearly state who owns that work and how it can be used. Finally, it is important to ensure that all agreements are properly executed and reflect the actual understanding of the parties. Relying on informal arrangements or handshake deals can leave your business exposed if a disagreement arises. Even when using templates, contracts should be reviewed and tailored to fit the specific transaction and applicable law. Contact Deppman Law PLC For more information about drafting or reviewing vendor and service agreements, contact Deppman Law PLC. Our team can help you create contracts that protect your business and support your day-to-day operations with confidence.

What to Expect at a Vermont Real Estate Closing

February 11, 2026
Buying or selling real estate is one of the most significant financial transactions most people will make, and the closing is where everything comes together. While the process can feel intense, understanding what to expect at a Vermont real estate closing can help you feel more prepared and confident on the big day. In Vermont, real estate closings are typically handled by an attorney or title company, and the process is often more attorney-driven than in some other states. Whether you are buying or selling, your attorney plays a central role in ensuring that the transaction is legally sound and that your interests are protected throughout the process. Leading up to the closing, several important steps take place behind the scenes. One of the most critical is the title search. This involves reviewing public records to confirm that the seller has clear ownership of the property and that there are no outstanding liens or legal issues that could affect the transfer. If any issues are discovered, they must be resolved before closing can proceed. At the same time, the buyer will typically finalize financing, secure homeowners insurance, and review the closing disclosure, a document that outlines the final terms of the loan, as well as all costs associated with the transaction. It is important to review this document carefully in advance so there are no surprises at closing. On the day of closing, the parties will meet—either in person or, in some cases, remotely—to sign the necessary documents. Buyers can expect to sign a number of documents related to their mortgage, including the promissory note and mortgage deed. Sellers will sign documents transferring ownership of the property, most notably the deed. In Vermont, the deed is often a warranty deed, which provides assurances to the buyer that the seller has clear title to the property and the legal right to transfer it. Along with the deed, various affidavits and tax forms are also executed to complete the transaction. Funds are also exchanged at closing. Buyers will provide the balance of their down payment and closing costs, typically via wire transfer, while the lender provides the loan funds. The closing agent then distributes these funds to the appropriate parties, including paying off any existing mortgages, covering taxes and fees, and delivering the remaining proceeds to the seller. Once all documents are signed and funds are disbursed, the final step is recording the deed in the local land records. This officially transfers ownership of the property to the buyer. In many cases, the buyer will receive the keys to the property shortly after this step is complete. While most closings proceed smoothly, issues can arise. Delays in financing, title defects, or last-minute changes to terms can all impact the timeline. Having experienced legal guidance can help address these challenges quickly and keep the transaction on track. Ultimately, a Vermont real estate closing is a structured process designed to ensure that ownership is transferred properly and that both parties’ rights are protected. With the right preparation and support, it can be a straightforward and even rewarding experience. Contact Deppman Law PLC For more information about Vermont real estate transactions or to ensure your closing proceeds smoothly, contact Deppman Law PLC. Our team is available to guide you through each step of the process and protect your interests from contract to closing.