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Vermont - Compensation & Benefit Legislation

VERMONT - AASHOWME

Demonstrates www.BenefitsReview.com™ site. Illustrates insurance carriers' coverages within the State.

VERMONT - ADOPTED CHILD HEALTH CARE MANDATE

OBRA 1993 (Federal) requires group health plans to honor medical and child support orders. Also, plans must treat adopted children like biological children covered by the plan, and plans are precluded from applying pre-existing condition exclusions to an adopted child where no such exclusion applies to a newborn biological child. Health plans that covered the cost of pediatric vaccines as of May 1, 1993, and fail to continue that level of coverage, will be subject to an excise tax penalty applicable to plans that fail to meet the health care continuation coverage requirements under OBRA 1993.

Mandatory coverage of birth of adopted children is included in state's newborn health care mandate.

Preventive care for children: No.

(Vermont Stat. Ann. tit. 8, Sections 4090, 4092, 4100C)

VERMONT - ALCOHOLISM & DRUG ABUSE

Mandatory coverage (alcoholism treatment only).

Minimum yearly inpatient coverage: Detoxification: 5 days per occurrence, inpatient and rehabilitation: 28 days per occurrence.

Minimum yearly outpatient coverage: 90 hours per occurrence for patient and family.

Minimum lifetime coverage: Inpatient and rehabilitation: 56 days; outpatient: 180 hours for patient and family.

(Vermont Stat. Ann. tit. 8 Section 4098)

VERMONT - CAFETERIA PLAN TAX LAWS

State income tax, unemployment insurance tax on salary reduction: For state Unemployment Insurance purposes, the total amount of employees' salary reductions and any cash that the employee has the option to receive (whether or not the employee chooses the cash option) must be treated as wages.

VERMONT - CONTINUATION OF COVERAGE CONVERSIONS

Events Triggering Continuation of Coverage:

• Death: Yes, maximum of 6 months of coverage.

• Job Termination: Yes, unless employee is terminated for misconduct. (Coverage must be 90 days continuous coverage prior to termination, and conversion coverage maximum is 6 months.)

• Reduction of Hours: No.

• Divorce or Legal Separation: No.

• Medicare Eligibility: No.

• Early Termination of Continuation of Coverage: Becoming eligible for Medicare; becoming eligible for similar benefits, including coverage for pre-existing conditions under another group policy; failure to make a timely payment. (Vermont Stat. Ann. tit. 8 Sections 4090a, 4090c.)

VERMONT - COORDINATION OF BENEFITS

State reports no statutory requirements.

VERMONT - COST-OF-LIVING

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian cost-of-living data and U.S. Automobile Cost Survey.

VERMONT - DRUG TESTING AND EMPLOYEE ASSISTANCE BENEFITS

Who is Covered by Statute: All employers, employees, and applicants. Written policy is required.

Applicant Testing: Applicant testing is allowed, but only after the conditional offer of employment has been made. Applicants residing over 200 air miles from test site need note be given conditional offer (and thus may be tested first). Ten-day notice must be given before testing. The test must be given in conjunction with a physical exam.

How Test Results are Used: Test results may be used to screen out drug-using applicants or to discharge or discipline employees. An employee's first offense results in referral to an EAP. The employee may be terminated if, after completion of an EAP, the employee receives another positive drug test result.

Enforcement of Statutes: Enforcement is by private civil action; state pursues violation of statute.

Employee Remedies: Employees may seek attorney's fees and court costs, damages, and injunctive relief.

Employer Penalties: Employer penalties include civil penalty (civil fine of $500 - $2,000 and criminal sanction (criminal fine of $500 - $1,000, imprisonment for not more that 6 months, or both).

Who Pays for Testing: Employee can retest sample at a laboratory at employee's expense.

Employee Assistance Benefits: To require, request, or conduct drug testing, employer must have available an EAP that is provided by employer or that is available to the extent provided by a policy of health insurance or under contract by a nonprofit hospital service corporation.

Other Requirements: If urinalysis is positive, testee may request, at own expense, a blood test. Results must be confidential.

Vermont Stat. Ann. tit. 21, Sections 511-520.)

VERMONT - GROUP HEALTH CODE ADDITIONS (MANDATED)

Alcoholism Treatment: Group policies must cover at least five days of detoxification per occurrence, 28 days of inpatient (or equivalent partial hospitalization, more than two but not less than 24 hours) rehabilitation per occurrence with a lifetime maximum of 56 days; and 90 hours of outpatient treatment for the patient and family with a lifetime maximum of 180 hours. (Vermont Stat. Ann. tit. 8 Sections 4097-4099.)

Chemotherapy: Group policies, including HMOs, must cover medically necessary growth cell stimulating factor injections which are administered as part of chemotherapy. (H255, 1997) (Vermont Stat. Ann. tit. 8 Section 8079e.)

Coverage Continuation and Conversion: Group hospital, surgical, and major medical policies must provide continuation rights of up to six months and subsequent conversion rights to terminating employees and to spouses and dependents ineligible due to death of the insured. (Vermont Stat. Ann. tit. 8 Section 4090.)

Handicapped Dependents: Coverage for dependent children cannot be terminated while a person is incapable of employment due to mental retardation or physical handicap and chiefly dependent on the insured. (Vermont Stat. Ann. tit. 8 Section 4090.)

Home Health Care: Insurers must make available coverage of at least 40 home health care visits per year. Coinsurance of 80 percent of deductible of $50 are permitted. (Vermont Stat. Ann. tit. 8 Section 4096.)

Mental Health : Insurers must make available group coverage of at least 45 days per year of inpatient treatment, or equivalent partial hospitalization (more than two but less than 24 hours per day) and outpatient treatment including 100 percent of the first five visits and 80 percent of subsequent outpatient visits up to a maximum of $500 per year. (Vermont Stat. Ann. tit. 8 Section 4089.) Effective January 1, 1998, health insurers (managed care organization included) must not establish any rate, term, or condition which places a greater financial burden on an individual for access to treatment for mental health condition than for access to treatment for a mental health condition than for access to treatment for a physical health condition. Services must be provided in mental health facilities, non-profit hospitals, and medical service corporations. (H57, 1997) (Vermont Stat. Ann. tit. 8 Section 4089b.)

Newborns: Policies providing family coverage must provide benefits for newborns from the moment of birth for injury or sickness including treatment of medically diagnosed congenital defects and birth abnormalities. (Vermont Stat. Ann. tit. 8 Section 4091.)

VERMONT - GROUP HEALTH FOR SMALL EMPLOYERS

For insurance plans offered to small employers:

• Eligibility Criteria: 1 - 50 employees.

• Restrictions on premiums: Yes.

• Restrictions on cancellation: No specific provision for small employers.

• Pre-existing Conditions: No more than 12 months after effective date of coverage.

• Other: Minimum inpatient and outpatient coverage according to the guidelines approved by the insurance commissioner. (Vermont Stat. Ann. tit. 8, Section 4080a.)

VERMONT - GROUP LIFE CODE ADDITIONS

Employer required to pay part of premium: Yes.

Percent of employees who must elect coverage (if employees pay part of premium): 75%.

Percent of employees who must be covered if employer pays all of premium: 100%.

Minimum number of employees in group plan: 10.

Employer prohibited as beneficiary: Yes.

Grace period (days): 31.

Mandatory conversion: Yes.

Other provisions: None.

(Vermont Stat. Ann. tit. 8, Sections 3803, 3813, 3820)

VERMONT - HOLIDAYS

January 1, Washington's Birthday (or 3rd Monday in February), Memorial Day (or last Monday in May), July 4, Labor Day (or 1st Monday in September), Veterans Day, and December 25 are state holidays in all 50 states and in the District of Columbia. Other holidays under State law include: Martin Luther King's birthday (or 3rd Monday in January), Columbus Day (or 2nd Monday in October), Thanksgiving. Other: All days set apart by the Governor or President. If any holiday falls on Sunday, following Monday is a holiday; if any holiday falls on Saturday, preceding Friday is a holiday.

VERMONT - IMMIGRATION (PREVAILING WAGE POLICY)

See U.S. Federal General Administrative Letter 1-2000

VERMONT - JURY DUTY & WITNESS TIME OFF

Employer Restriction For Discharging Employee For Taking Leave For Jury Service: Yes.

Remedies and Penalties: Violator is fined not more than $200.

Other Requirements: None reported. (Vermont Stat. Ann. tit. 21, Section 499.)

Employer Restriction For Discharging Employee For Taking Leave to be a Witness: Yes.

Remedies and Penalties: Violator is fined not more than $200.

Other Requirements: None reported.

VERMONT - LEAVES OF ABSENCE

Employers Subject to Leave Laws: Parental leave: employers with 10 or more employees. Family leave: employers with 15 or more employees.

Criteria for Eligibility: Must be employed an average of 30 hours per week for at least 12 months.

Maximum length of leave: 12 weeks in any 12 month period.

Paid Leave: State does not require paid leave.

Acceptable Reasons for Leave: Family leave: illness of employee or to care for ill child, spouse, parent, or parent-in-law. Parental leave: birth/adoption of a child.

Employment Guarantees After Leave: Entitled to reinstatement in the position held prior to leave or equivalent position, unless a layoff occurred during leave.

Use of Vacation or other Time-off Benefits: Employer may required employee to use up to 6 weeks of accrued sick leave or vacation time as part of the leave.

Certification Required: Employer may required certification if leave is taken for employee illness or to care for serious illness of family member.

Effect Of Leave on Other Benefits: All benefits continue while on leave, but employee may be required to pay health premiums.

Effect of Seniority Accrual During Leave: Seniority benefits do not accrue on leave.

Minimum Requirements for Notification to Employer: Reasonable notice of departure and duration of leave is required.

Conditions for Denial of a Request For Leave: State reports no statutory requirements.

(Vermont Stat. Ann. tit. 21 Sections 470 - 472.)

See U.S. Federal Family and Medical Leave Act

VERMONT - LONG TERM DISABILITY CODE ADDITIONS

State does not require employer to provide long term disability benefits; although many employers do in order to remain competitive in hiring/retention of employees.

See LEAVES OF ABSENCE (above), WORKERS' COMPENSATION (below) and U.S. Federal Americans With Disabilities Act

VERMONT - MANDATED PROVIDERS

State reports no statutory requirements.

VERMONT - MENTAL HEALTH CARE

Employer option.

Minimum yearly inpatient coverage: Inpatient: 45 days; partial hospitalization: 45 days.

Minimum yearly outpatient coverage: 100% coverage for first 5 visits; 80% thereafter; up to $500.

Minimum lifetime coverage: No statutory coverage. (Vermont Stat. Ann. tit. 8, Section 4089)

VERMONT - MINIMUM WAGE

$6.25 per hour.

Exemptions: Certain professionals, agriculture workers, domestics, outside sales, students, apprentices (lower) and handicapped workers in special environments (lower). (Vermont Stat. Ann. tit. 21, Sections 383-385)

See U.S. Minimum Wage

VERMONT - NEW HIRE REPORTING

Who is required to report: All employers.

Who must be reported: All employees and new hires.

Exempt from reporting: No exemptions.

Form(s) to file: Employer may develop own report of W-4 form.

Filing deadline: Within 20 days of hire.

Employer information to be included: Name, address, and federal EIN.

Employee information to be included: Name, address, and SSN.

Penalty for failure to report: Fine of $500 may be imposed if employer and employee conspire in not reporting.

(Vermont Stat. Ann. tit. 33 Section 4110(B), as amended by House Bill No. 208)

VERMONT - NEWBORN CARE MANDATE

Mandated coverage.

Preventive care for children: No. (Vermont Stat. Ann. tit. 8, Sections 4090, 4092, 4100C)

VERMONT - PARENTAL LEAVE

See U.S. Federal Family and Medical Leave Act

VERMONT - PRE-EXISTING CONDITIONS

For insurance plans offered to small employers, plan may not deny coverage for losses incurred more than 12 months following the effective date of coverage due to pre-existing conditions. (Vermont Stat. Ann. tit. 8 Section 4080a.)

See U.S. Federal Health Insurance Portability & Accountability Act

VERMONT - PROTECTED CLASSIFICATIONS

Age:  Yes, 18 or older.

Race:  Yes.

Color:   Yes.

National Origin:  Yes.

Ancestry:  Yes.

Religion:  Yes.

Sex:  Yes.

Pregnancy:  No specific law. State has expressed policy against discrimination.

Sexual Harassment:  Yes.

(Vt. Stat. Ann. tit. 21, Sections 495, 495d, 495h.)

VERMONT - SALARY SURVEY

ERI's Relocation Assessor™ is a recommended source for U.S./Canadian wages & salaries (covering 3,000 positions).

VERMONT - SHORT TERM DISABILITY CODE ADDITIONS

State does not require employer or employee participation in short term disability plans.

VERMONT - TERMINATION & SEVERANCE PAY

Date pay is due if employee is discharged: Within 72 hours.

Date due if employee resigns: Last payday, or if no regular payday, the following Friday.

Wages: Yes.

Vacation Pay: No.

Holiday: No.

Sick leave: No.

Severance: No.

(Vermont Stat. Ann. tit. 21, Section 342)

VERMONT - UNEMPLOYMENT TAX

Employer Contributions:

• Tax Rate (%):      

• Standard: 5.4

• Maximum: 5.9

• Minimum: 0.6

Voluntary Contribution Provision: No.

(Vermont Stat. Ann. tit. 21 Sections 1314, 1314a, 1324, 1326, 1365, 1370.)

VERMONT - VACATION PAY

State reports no statutory requirements.

VERMONT - VOTING TIME OFF

State reports no statutory requirements.

VERMONT - WORKERS' COMPENSATION

Private Employers: Mandatory as to all employments. Corporate officers may reject coverage. Elective as to sole proprietors and partners.

Public Employers: Mandatory coverage to all public employments, including legislators while in session, teachers, police, firefighters, town and school employees, other municipal employees entitled to pensions, and road commissioners or select persons engaged in highway maintenance or construction. (Note: Municipalities may elect coverage of other employees. Excludes other elected officials, certain judges, sheriffs, and county treasurers and clerks. All state organizations must participate in the state employees' workers compensation fund.)

Exceptions: Casual or domestic employees; amateur athletes; farm labor where employer's payroll is under $2,000 per year.

Special Coverage Provisions: Exempted farmers and employers of domestics may elect coverage.

(U.S. Chamber of Commerce, 1994 Analysis of Workers' Compensation Laws.)