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.

Buying a Home With Someone You’re Not Married To

July 16, 2026
Buying a home with a partner, friend, or family member can make homeownership more attainable and allow two people to invest in property together. But when co-owners are not married, many of the legal protections and rules that apply to married couples do not necessarily apply in the same way. Before purchasing a home together, it’s important to think beyond the down payment and mortgage. Considerations such as how expenses will be divided and what happens if one person's circumstances change are much easier to address before closing than after a disagreement arises. Decide How You Will Own the Property One of the first decisions co-buyers will need to make is how title to the property will be held. The form of ownership can affect each person's rights in the property and what happens to an owner's interest if that person dies. The deed should also accurately reflect the ownership arrangement the buyers intend. A 50/50 split may make sense when both people are contributing equally, but that may not always be the case. One buyer might provide most of the down payment while the other contributes more toward the monthly mortgage or improvements to the property. Those differences should be discussed before the purchase. Simply contributing more money does not necessarily mean that a person will automatically receive a greater ownership interest or be entitled to reimbursement later. Buyers should understand how their contributions relate to their legal ownership and document their intentions accordingly. Plan for the Costs of Owning the Home The purchase price is only the beginning of the financial relationship between co-owners. Mortgage payments, property taxes, insurance, utilities, routine maintenance, and major repairs all create ongoing obligations. A written agreement can establish how those expenses will be divided and how decisions about the property will be made. It can also address less predictable situations. If the roof needs to be replaced, for example, are both owners responsible for half? What if one owner pays for a significant renovation that increases the property's value? What happens if one person temporarily cannot contribute toward the mortgage? Working through these questions in advance can prevent uncertainty about whether a payment was intended as a shared expense, a loan, or an additional investment in the property. Co-owners should also understand that ownership of the home and responsibility for the mortgage are separate issues. The names appearing on the deed determine ownership, while the loan documents determine who is legally responsible for repaying the mortgage. The way those documents are structured can have significant consequences for both parties. Consider What Happens If One Person Wants Out It may feel uncomfortable to discuss the end of a living arrangement while preparing to buy a home together, but it is one of the most important conversations unmarried co-buyers can have. Circumstances change. One person may want to relocate, experience a financial setback, enter a new relationship, or simply decide that joint ownership no longer works. Without an agreement, the owners may disagree about whether the property should be sold, whether one person can buy out the other, or how the home's value should be determined. A co-ownership agreement can establish a process before those issues arise. It might address how a buyout will work, how the property will be valued, how sale proceeds will be divided, and what happens if the owners cannot agree about whether to sell. The agreement can also address what should happen if an owner dies and how that person's interest in the property will be handled. Contact Deppman Law PLC  Buying a home together is a significant financial commitment, regardless of the relationship between the buyers. Taking the time to establish a clear ownership arrangement and put expectations in writing can help protect both parties and reduce the potential for disputes later. If you are considering purchasing Vermont real estate with a partner, friend, or family member, contact Deppman Law PLC for guidance on structuring the purchase and creating a co-ownership agreement that addresses your needs.

Buying a Small Business in Vermont and What to Know Before You Sign

June 17, 2026
Buying an existing business can be an appealing alternative to starting one from scratch. The customer base, employees, equipment, vendor relationships, and operating history may already be in place. But a business that looks successful from the outside can come with obligations and risks that are not immediately apparent. Before signing a purchase agreement, buyers should understand exactly what obligations may come with the transaction and whether the business is in the financial and legal position the seller has represented. Look Beyond the Financial Statements Financial records are an important part of evaluating a potential acquisition, but due diligence should extend well beyond revenue and profitability. A buyer should review the business's tax records, debts, pending or threatened litigation, insurance coverage, licenses and permits, and any liens or other claims involving business assets. Existing contracts also deserve careful attention. Agreements with customers, vendors, suppliers, lenders, and other third parties can have a significant impact on the value of the business. Some contracts may be transferred to a new owner, while others require consent or contain provisions allowing the other party to terminate the agreement after a change in ownership. If the business operates from leased property, the commercial lease can be equally important. Buyers should understand how much time remains on the lease, renewal options, rent increases, maintenance obligations, and whether the landlord must approve an assignment or a new lease. Vermont buyers should also be aware of state-specific obligations that can arise in connection with a business transfer. For example, Vermont law includes notice requirements involving certain bulk transfers of business assets and provisions that may affect a buyer that continues the operations of an existing employer. Know the Value of What You Are Buying Employees can be one of a business's most valuable assets, particularly when customer relationships or specialized knowledge depend on particular people. Before closing, buyers should understand the existing workforce, compensation and benefits, employment agreements, accrued obligations, and any ongoing employment disputes. In Vermont, acquiring and continuing an existing business can also have implications for unemployment insurance. Under certain circumstances, an acquiring business may be treated as a successor employer, and the predecessor's experience-rating record may transfer to the successor. Buyers should also identify precisely which physical and intangible assets are included in the purchase. Depending on the business, that might include equipment, inventory, vehicles, intellectual property, websites and domain names, customer information, trade names, or other valuable rights. It is important to determine not only that the seller possesses these assets, but also whether they are subject to liens or security interests that need to be addressed before closing. Asset Purchase or Equity Purchase? One of the most important decisions in structuring an acquisition is whether to purchase the assets of the business or the ownership interests in the company itself. In an asset purchase, the buyer generally purchases specifically identified assets and assumes only the liabilities identified in the agreement, subject to applicable law. This structure can give the parties greater ability to define what is — and is not — part of the transaction. In an equity purchase, the buyer purchases ownership of the existing company. The business entity continues to own its assets and remain subject to its contractual obligations and liabilities. That makes a careful investigation of the company's history particularly important. Neither structure is automatically better. Tax consequences, contracts, licenses, liabilities, financing, and the buyer's plans for the business can all influence how a transaction should be structured. Contact Deppman Law PLC Purchasing a business is a significant investment, and issues discovered after closing can be far more difficult and expensive to address than those identified during negotiations. An attorney can help evaluate the proposed transaction, conduct legal due diligence, identify potential risks, and prepare or review the agreements necessary to protect the buyer's interests. If you are considering buying a business in Vermont, contact Deppman Law PLC to learn more about the acquisition process and the steps you can take before signing.