Vermont Paid Family Leave Laws

As of January 3, 2025, Vermont is in the process of implementing a voluntary Paid Family and Medical Leave Insurance (FMLI) program, known as VT-FMLI, which is being rolled out in phases to provide paid family and medical leave benefits to employees across the state.

What is Paid Family Leave?

Paid Family Leave (PFL) allows employees to take compensated time off from work to address significant family needs, such as bonding with a new child, caring for a seriously ill family member, or managing their own serious health condition. PFL supports employees in balancing work responsibilities with essential family obligations without financial hardship.

Does Vermont Have Paid Family Leave Laws That Differ from Federal Family Leave Laws?

Yes, Vermont is implementing a voluntary Paid Family and Medical Leave Insurance program that differs from the federal Family and Medical Leave Act (FMLA). While the FMLA provides eligible employees with up to 12 weeks of unpaid, job-protected leave for qualifying family and medical reasons, Vermont’s VT-FMLI program offers paid leave benefits. The program is being rolled out in phases:

• Phase 1 (July 1, 2023): Benefits began for State of Vermont government employees, providing 60% wage replacement for six weeks for qualifying events.
• Phase 2 (July 1, 2024): The program expanded to include private and non-state public employers with two or more employees on a voluntary basis.
• Phase 3 (July 1, 2025): The program will expand to small employers with one employee and eligible individual employees, including self-employed Vermonters.

What Counts as a Qualifying Event for Paid Family Leave in Vermont?

Under the VT-FMLI program, qualifying events include:

• Bonding with a New Child: Leave to bond with a newborn, adopted, or foster child within one year of birth or placement.
• Caring for a Family Member with a Serious Health Condition: Leave to care for a spouse, child, stepchild, foster child, ward who lives with the employee, parent, or parent of the employee’s spouse who has a serious health condition.
• Employee’s Own Serious Health Condition: Leave when the employee is unable to perform the essential functions of their job due to a serious health condition.
• Military Exigency Leave: Leave for qualifying exigencies arising out of the fact that the employee’s spouse, child, or parent is a covered military member on active duty.
• Military Caregiver Leave: Leave to care for a covered service member with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin.

Are There Requirements to be Eligible for Paid Family Leave in Vermont?

Eligibility for the VT-FMLI program depends on the phase of implementation:

• Phase 1: All State of Vermont government employees are eligible.
• Phase 2: Employees working for Vermont employers with two or more employees that choose to participate in the program are eligible.
• Phase 3: Individuals who work for Vermont employers that do not offer VT-FMLI, self-employed Vermonters, and employers with one employee can purchase coverage through the VT-FMLI individual purchasing pool.

Is There a Minimum Amount of Paid Family Leave Time Required in Vermont?

The VT-FMLI program offers benefit duration options ranging from six to 26 weeks per 12-month period, depending on the plan design chosen by the employer. The standard offering provides at least six weeks of paid leave.

Is There a Minimum Amount of Maternity Leave Time Required in Vermont?

Under the VT-FMLI program, eligible employees can receive paid leave for bonding with a new child, which includes maternity leave. The duration of paid maternity leave depends on the plan design selected by the employer, with options ranging from six to 26 weeks. Additionally, under Vermont’s Parental and Family Leave Law, eligible employees are entitled to up to 12 weeks of unpaid leave for parental leave, which includes maternity leave.

Is Paternity Leave Required by Law in Vermont?

The VT-FMLI program provides paid leave benefits for bonding with a new child, applicable to all eligible parents, including fathers. The availability and duration of paid paternity leave depend on the employer’s participation in the program and the plan design chosen. Under Vermont’s Parental and Family Leave Law, eligible employees are entitled to up to 12 weeks of unpaid parental leave, which includes paternity leave.

Who Pays for Paid Family Leave in Vermont?

The funding for VT-FMLI varies based on employer participation:

• State Employees: The program is funded 100% by the State of Vermont.
• Other Employers: Employers may choose to cover the entire cost, share the cost with employees, or have employees pay the full cost. The program is voluntary for employers, and they can select the funding arrangement that best suits their organization.

Conclusion

Vermont’s voluntary Paid Family and Medical Leave Insurance program is being implemented in phases to provide paid leave benefits to employees across the state. While the program offers flexibility for employers and employees, participation is not mandatory. Employers and employees should familiarize themselves with the program’s provisions and consider participation to support work-life balance and family health needs. Additionally, federal FMLA provisions and Vermont’s Parental and Family Leave Law continue to provide unpaid, job-protected leave for qualifying events.