Vermont: employee or independent contractor?
The test depends on which law you're dealing with. A worker can be a contractor for one law and an employee for another.
| Law | Test | Statute |
|---|---|---|
| Unemployment insurance | ABC | 21 V.S.A. § 1301(6)(B) |
| Federal income tax, FICA, FUTA | IRS common-law test | IRS |
| Federal minimum wage and overtime | Economic reality test (FLSA) | DOL |
The ABC test
Under Vermont's unemployment law, a worker is an employee unless all three parts are met:
(i) free from control or direction over the performance of the services, both under the contract of service and in fact; (ii) the service is either outside the usual course of the business for which the service is performed or performed outside of all the places of business of the enterprise; (iii) customarily engaged in an independently established trade, occupation, profession, or business.
Details and exceptions
- effective_date is the DOL table baseline (in effect on or before 2023-01-01); the enactment date was not checked.
- Workers' comp test not checked in this pass (Business insurance lane).
Running payroll in Vermont?
Recent changes
Last verified against the official source on October 9, 2026.
No changes recorded since we started tracking this page.
Sources
- Vermont General Assembly (Vermont Statutes) · data as of October 8, 2026 · last checked October 9, 2026
We copy figures from official sources and re-check them against the source before every update. See our methodology. This is general information, not legal advice.