Vermont Employment Background Screening Laws in 2025: A Comprehensive Guide

Navigating Vermont’s employment background screening laws in 2025 is crucial for employers. Compliance ensures fair hiring practices.

This guide covers criminal history lookback periods, ban-the-box laws, credit report restrictions, AI usage, and relevant case law.

Let’s dive in with clear, actionable insights.

Criminal Offenses: How Far Back Can Employers Consider?

In Vermont, employers can review criminal convictions from the past seven years. This aligns with federal Fair Credit Reporting Act (FCRA) guidelines. Arrests without convictions and expunged records are off-limits. For roles with salaries of $75,000 or more, FCRA restrictions may not apply.

The 2025 modifications to the process shortened the waiting period for misdemeanors from 5 to 3 years and modified the “interest of justice” standard for granting relief. As originally enacted, the waiting period was 10 years, reduced to 5 in 2017. See H-171, § 4 (2017). The 2025 law also omitted a provision requiring no convictions during the waiting period (in which case waiting periods had been extended to 10 years after completion of sentence, with no felony conviction in the 7 years before applying, and no misdemeanor conviction in the 5 years before applying).

Exceptions:

Security-sensitive positions may have different rules. Similarly, jobs requiring federal security clearance follow federal guidelines. Nevertheless, exceptions must be justified.

Ban-the-Box Laws in Vermont

Vermont’s ban-the-box law, effective since July 1, 2017, prohibits criminal history questions on initial job applications as per 21 V.S.A. § 495j(a). Employers must wait until an interview or after deeming a candidate qualified. Exceptions apply for roles with federal or state disqualifications.

Statewide Ban-the-Box

• Applies to all private and public employers.
• No criminal history inquiries until interview or qualification.
• Candidates must explain convictions, including rehabilitation efforts.

Municipal Ban-the-Box Laws

Burlington enforces stricter rules. Employers must delay criminal history inquiries until a conditional offer. This ensures equal consideration for all applicants. Check local ordinances for compliance. Burlington HR

Restrictions on Employment Credit Reports

Vermont heavily restricts credit report usage in hiring. Employers cannot request credit information unless specific exemptions apply. These include roles in financial institutions, law enforcement, or positions with fiduciary duties. 

Employers may request credit reports only when:

• The position involves financial responsibility
• Access to confidential information is required
• State or federal law mandates credit checks
• The position is managerial level

Furthermore, employers must obtain written consent first. Additionally, they must provide copies of reports to applicants.

AI in Employment Background Checks

AI-driven background checks are gaining traction in Vermont. However, employers must ensure compliance with federal and state laws. The Equal Employment Opportunity Commission (EEOC) warns against AI biases. For instance, algorithms may disproportionately flag candidates based on race or gender. Vermont’s Fair Employment Practices Act reinforces non-discrimination. Always audit AI tools for fairness.