Employment law is a broad category of laws—statutes, case law (court opinions), rules, and regulations—that govern the relationship between an employer and an employee. Employment law includes state laws that only apply to employer-employee relationships in a given state, and federal laws that apply to employer-employee relationships in all states.

In Vermont, employment law encompasses a variety of statutes and regulations that dictate the relationship between employers and employees. This includes laws on minimum wage, which as of 2023 is $12.55 per hour, and overtime requirements, where employees are generally entitled to one and a half times their regular pay rate for hours worked beyond 40 in a workweek. Vermont also has laws regarding workplace discrimination, which prohibit discrimination based on race, color, religion, national origin, sex, sexual orientation, gender identity, age, disability, and other protected characteristics. The state upholds the Family and Medical Leave Act (FMLA), allowing eligible employees to take unpaid, job-protected leave for specified family and medical reasons. Additionally, Vermont has its own state-specific laws, such as the Vermont Parental and Family Leave Act, which provides broader leave rights than the federal FMLA in some cases. These state laws work in conjunction with federal employment laws that apply nationwide, such as the Fair Labor Standards Act (FLSA), the Occupational Safety and Health Act (OSHA), and the Americans with Disabilities Act (ADA). Employers in Vermont must comply with both state and federal regulations to ensure lawful treatment of employees.