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Press Release: Department of Labor Adopts New Employment Security Rules

October 2, 2019

October 2, 2019

Contact: Michael Harrington, Acting Commissioner
Office of the Commissioner
State of Vermont
Department of Labor




MONTPELIER, VT – The Vermont Department of Labor (VDOL) announced today the adoption and implementation of new Employment Security Board Rules (Rules) that establish the Unemployment Insurance Division’s appeals process pertaining to misclassification findings, debarment decisions, and penalties. The new rules go into effect October 1, 2019; however, the Department will not begin to issue penalties or debarment decisions until November 1, 2019.

Additionally, the Department of Labor is announcing the creation of a short-term, no-risk review that will allow employers to request a review of their wage reporting practices without penalty. This program will be in effect between October 1, 2019 and March 31, 2020.  Employers interested in taking advantage of this program may contact the Department at

“The newly adopted rules set a clear and transparent process for businesses to appeal determinations of misclassification penalties and debarments,” said Acting Commissioner Michael Harrington. “The newly created review program will offer employers the opportunity to engage with the Department’s UI staff on wage practices, without fear of penalty. The Department is hoping this program will help employers better understand misclassification laws in order to avoid unintended misclassification in the future.”

Currently, Vermont law (21 V.S.A. § 1314a) prohibits businesses who fail to properly classify an individual from contracting, directly or indirectly, with the State or any of its subdivisions, for up to three years following the date the employer was found to have failed to properly classify.

Beginning November 1, 2019, the Department of Labor will also begin posting the names of individuals and/or businesses who have violated the Unemployment Insurance statute and have been debarred from contracting with the State.

For the current list of entities debarred from State contracts, please visit:

For more information about the Department of Labor, please visit: www.Labor.Vermont.Gov.  



Click here to view the updated Employment Security Board Rules:…