Vermont follows the legal doctrine of at-will employment, which is the standard across much of the United States. While the term is commonly used, many employees misunderstand what it really means—and, more importantly, what it doesn't mean. Although employers in Vermont have broad discretion in making employment decisions, there are key exceptions that protect workers from arbitrary or unlawful treatment.

Understanding the boundaries of at-will employment is essential for Vermont workers who want to protect their rights and make informed career decisions.

What At-Will Employment Really Means

At-will employment allows either the employer or the employee to terminate the working relationship at any time, for any reason—or no reason at all—without advance notice. No contract or long-term commitment is required.

This system gives employers flexibility in managing their workforce, but it also means job security is limited unless otherwise agreed to in writing. However, "at-will" does not mean an employer can fire someone for any reason without consequence. There are important limitations built into both state and federal law.

Key Exceptions to At-Will Employment in Vermont

While at-will is the default employment arrangement in Vermont, several categories of termination are legally prohibited:

1. Discrimination

Vermont employees are protected by both the Vermont Fair Employment Practices Act (FEPA) and federal laws like Title VII of the Civil Rights Act. Employers cannot fire or refuse to hire someone based on:

• Race or color
• Religion
• National origin
• Sex (including pregnancy and sexual orientation)
• Disability
• Age
• Gender identity

Even in an at-will environment, firing someone due to a protected characteristic is illegal and can open the employer to civil liability.

2. Retaliation

Employers are barred from punishing employees for engaging in protected activities. This includes:

• Filing a discrimination complaint
• Reporting wage violations
• Participating in a workplace investigation
• Whistleblowing on illegal or unsafe practices

Retaliation is one of the most common sources of wrongful termination claims in Vermont. Employers may try to disguise a retaliatory firing as a performance issue, but courts often scrutinize the timing and circumstances.

3. Public Policy Violations

Employees cannot be terminated for reasons that violate established public policy. For example:

• Refusing to engage in illegal conduct
• Taking time off for jury duty
• Filing a workers' compensation claim
• Reporting unsafe working conditions to OSHA

This "public policy exception" protects employees who do the right thing, even when it conflicts with their employer's interests.

4. Implied Contracts and Employer Promises

While Vermont courts generally uphold the at-will doctrine, they also recognize that certain statements or actions can form an implied contract. For instance:

• An employee handbook promising progressive discipline
• Verbal assurances of job security
• Long-standing customs in the company regarding termination

If an employer deviates from established procedures without justification, a terminated employee might argue that an implied contract was breached.

How Wrongful Termination Is Handled in Vermont

If you believe your termination violated an exception to at-will employment, you may have grounds to file a wrongful termination claim. These cases often hinge on documentation, so employees are encouraged to:

• Keep detailed records of any discriminatory or retaliatory behavior
• Save emails or messages that contradict an employer's stated reason for termination
• Note any inconsistencies between company policy and how your case was handled

According to the Vermont Department of Labor, employees have specific time windows to report violations, particularly when filing with the Equal Employment Opportunity Commission (EEOC) or the Vermont Human Rights Commission. Missing these deadlines can limit your legal options.

How Employers Use the At-Will Doctrine—and Where It Can Backfire

Employers often rely on at-will language in offer letters and employee handbooks to protect themselves from legal entanglements. However, misuse of at-will employment—such as masking retaliation or discrimination—can backfire.

Common employer mistakes include:

• Terminating without proper documentation of performance issues
• Ignoring internal complaint protocols
• Inconsistently applying company policies across different employees

When a terminated employee can demonstrate that the reason given was a pretext, courts may infer wrongful intent—even if the at-will language was in place.

Can You Negotiate Around At-Will Employment?

Yes. While at-will is the default, it's not set in stone. Employment contracts can override it. Some Vermont workers—especially executives, professionals, and skilled tradespeople—negotiate agreements that:

• Require "just cause" for termination
• Include severance terms
• Specify a notice period

It's also possible to negotiate around probation periods or disciplinary processes. While not everyone has leverage during hiring, employees with specialized skills or strong performance records may have room to push for contractual protections.

Recent Trends: A Shift Toward Employee Protections

Although Vermont maintains an at-will structure, recent policy trends lean toward expanding worker protections. The state has enacted laws aimed at:

• Preventing wage theft
• Promoting pay transparency
• Protecting employees from harassment and retaliation

According to a 2023 Vermont Department of Labor report, the number of wrongful termination complaints has risen in tandem with greater public awareness of employee rights. As more people understand the limits of at-will employment, they're more likely to speak up when something feels off.

Steps to Take If You're Concerned About Your Employment Rights

If you're unsure whether your termination—or a situation at work—violates Vermont law, here are some steps to consider:

• Review your employee handbook: Many disputes involve whether policies were clearly communicated or fairly applied.
• Consult an employment attorney: A lawyer can assess whether your termination falls under an exception to at-will employment.
• File a complaint, if appropriate: The Vermont Human Rights Commission or the EEOC may investigate claims of discrimination or retaliation.
• Maintain documentation: Always keep a personal record of performance reviews, disciplinary actions, and communication with management.

Conclusion

At-will employment in Vermont grants employers broad authority, but it's not a free pass to terminate employees unfairly. Workers still have strong legal protections—particularly when it comes to discrimination, retaliation, and policy violations. Knowing where the boundaries lie can help you recognize when your rights may have been crossed and empower you to take action if needed. Whether you're facing termination or simply want to understand your position, being informed is your first line of defense.

Need Legal Help? Brandon J. Broderick, Attorney at Law is One Phone Call Away

Navigating Vermont Employment Law can be challenging. Fortunately, you don't need to do it alone. The experienced lawyers at Brandon J. Broderick, Attorney at Law, are available 24/7 to help you understand your legal options, gather necessary evidence, and build a strong case to secure the settlement you deserve.

Contact us now for a free legal review.