Vermont Paid Family and Medical Leave: The Voluntary FMLI Program for Workers and Employers

Vermont does not require every employer to offer a statewide paid family leave benefit. Paid leave in Vermont runs through the Vermont Family and Medical Leave Insurance (FMLI) program (opens in a new tab), which is voluntary: an employer chooses whether to opt in, and the plan it picks sets the covered reasons, the share of wages paid, the number of weeks, the eligibility rules and who pays the premium. Announced plan options run from six to 26 weeks at 60% to 70% wage replacement, with other options subject to underwriting review. Unpaid, job-protected leave comes from two separate laws: Vermont's Parental and Family Leave Act, 21 V.S.A. § 472 (opens in a new tab), and the federal Family and Medical Leave Act (opens in a new tab). Your first step is to ask your employer whether it participates and to get the plan terms in writing.

Three different things go by "Vermont family leave"

When you hear "Vermont family leave," it can mean any of three systems, and each one answers a different question for you.

FMLI is insurance. It replaces part of your paycheck while you are out for a qualifying family or medical reason, if your employer (or you, as an individual buyer) has a plan. It is an employer opt-in program, not a mandatory statewide payroll tax, according to the Governor of Vermont (opens in a new tab).

Vermont's Parental and Family Leave Act is a leave law. It gives eligible employees up to 12 weeks of unpaid leave in a 12-month period, and you may be able to use accrued paid leave or short-term disability insurance during that time, under 21 V.S.A. § 472 (opens in a new tab).

Federal FMLA is also a leave law. It provides unpaid, job-protected leave for eligible employees of covered employers, though accrued paid leave can sometimes be substituted, according to the U.S. Department of Labor (opens in a new tab).

So, the paycheck question and the "will my job be there" question have different answers, and you may need to check all three to get the whole answer for your leave.

How the FMLI program rolled out

Governor Phil Scott designed FMLI as a private, insurance-based alternative to a mandatory statewide payroll tax. It came in three phases, according to the Governor's program page (opens in a new tab):

• July 1, 2023: coverage began for eligible Vermont state employees.
• 2024: private and non-state public employers with two or more employees could select plan options, with benefits beginning July 1, 2024.
• 2025: purchasing opened for individual workers without employer access, self-employed Vermonters and employers with fewer than two employees, with benefits beginning July 1, 2025.

The first phase for state employees paid up to six weeks at 60% of average weekly wages, according to the Governor's June 2023 announcement (opens in a new tab). The later six-to-26-week and 60%-to-70% choices describe the expanded plan options, so a figure you see quoted as "60% for six weeks" may describe only that first phase.

Does your employer have to offer FMLI?

No. Employers have the opportunity to purchase coverage, and participation is optional, according to the Governor of Vermont (opens in a new tab). That means two coworkers at two different Vermont companies can have completely different paid leave situations, or one may have none.

If you are an employee, ask your HR or benefits contact directly: does the company have an FMLI plan, and can you get the plan certificate or summary? If your employer does not participate, the individual purchasing phase was built for workers without employer access, and the Vermont Department of Financial Regulation (opens in a new tab) regulates the insurers and producers who sell coverage in the state.

Who can participate

Employer eligibility followed the phases above: employers with two or more employees in the 2024 phase, and individuals, self-employed people and employers with fewer than two employees in the 2025 phase, according to the Governor's program page (opens in a new tab).

Employee eligibility is plan-specific. Hours-worked or length-of-service requirements come from the plan documents your employer chose, so ask for those terms in writing before you plan around a benefit.

Vermont's unpaid leave law has its own thresholds. After the 2025 expansion, parental, bereavement, safe and qualifying exigency leave generally cover employers with at least 10 employees who average 30 or more hours a week, while family leave covers employers with at least 15 such employees, according to the Vermont Department of Labor's Act 32 summary (opens in a new tab). The same summary uses a 30-hours-per-week, 12-month employee eligibility rule for several leave categories and a 20-hours-per-week, six-month rule for safe leave.

How much FMLI pays and for how long

The announced plan options are:

• Six to 26 weeks of benefits per 12-month period.
• 60% to 70% wage replacement.
• Additional options subject to underwriting review.

Those figures come from the Governor's January 2024 program description (opens in a new tab). Your plan's documents control the actual percentage and duration you can receive.

A weekly dollar maximum, if your plan has one, limits the benefit no matter what percentage applies. Ask for the weekly maximum in your plan certificate or summary before you rely on any benefit estimate.

Who pays the premium

Plans can be fully paid by the employer, split between the employer and employees, or fully paid by employees as a voluntary benefit, according to the Governor of Vermont (opens in a new tab). There is no single statewide employee contribution rate.

As an employee, ask your employer or plan administrator for the current contribution schedule and how the deduction appears on your paycheck. As an employer, the premium split is one of the plan design choices you make, and it affects how attractive the benefit looks to your staff.

Reasons that qualify for FMLI benefits

The program covers these qualifying events, according to the Governor's program page (opens in a new tab):

• Your own serious health condition.
• Caring for a family member with a serious health condition.
• Bonding with a new child.
• Military caregiver leave.
• Certain qualifying exigencies related to a family member's active military duty.

Plans can also be structured as combined family and medical leave or as stand-alone family leave insurance. If you are counting on coverage for your own medical leave, confirm that your employer's plan includes the medical side.

Is FMLI job-protected?

Getting paid during leave and keeping your job are separate questions. FMLI replaces income; job protection comes from Vermont leave law, federal FMLA, your employer's policy or a collective bargaining agreement.

Under 21 V.S.A. § 472 (opens in a new tab), an employer must continue your employment benefits during leave at the same level and under the same conditions as if you were working, and you may be required to keep paying your share at the existing employee rate. When you return, you must be offered the same or a comparable job at the same pay, benefits, seniority and other terms, subject to statutory exceptions.

Federal FMLA separately requires continued group health benefits under the same conditions as if you had kept working and generally requires restoring you to the same or a virtually identical position, according to the U.S. Department of Labor (opens in a new tab).

If your employer falls below the size thresholds for both laws, ask HR in writing how your job will be handled during the leave.

How FMLI compares with federal FMLA

Federal FMLA applies to private employers with at least 50 employees for 20 or more workweeks, plus public agencies and schools. To qualify, you generally need 12 months of employment, 1,250 hours worked in the past year, and a worksite with 50 employees within 75 miles, according to the U.S. Department of Labor (opens in a new tab).

FMLA does not pay wages. FMLI does not, by itself, protect your job. When both apply, ask whether your FMLI claim runs at the same time as your FMLA leave or Vermont leave, because the timing affects how long you can be away with pay and with protection.

Private disability coverage is different again. A disability policy may focus on your own medical condition rather than caring for a relative or bonding with a child, and an employer paid-leave policy pays wages under the employer's rules rather than through an insurance claim. How these overlap depends on each plan's coordination terms and exclusions.

What to do before you take leave

The claim form, notice deadline and proof requirements come from your plan, so get them early. A working checklist:

• Confirm your employer participates and request the plan certificate or summary.
• Identify your qualifying event and confirm you meet the plan's eligibility rules.
• Ask about the notice deadline and any waiting or elimination period.
• Gather documentation: medical certification, proof of family relationship, birth or placement records, or military paperwork, as your situation calls for.
• Confirm the wage-replacement percentage, weekly maximum and number of weeks.
• Ask whether you must use paid time off first and how short-term disability coordinates with the benefit.
• Ask whether intermittent or reduced-schedule leave is covered.
• Confirm job protection and health benefit continuation separately.
• Save the claim, appeal and complaint contacts.

For Vermont statutory leave, you must give reasonable written notice of the expected start date and duration. Your employer may ask for documentation of the family relationship and, for a serious health condition, a certification from a health care provider, under 21 V.S.A. § 472 (opens in a new tab).

Questions for employers considering FMLI

If you run a Vermont business and are deciding whether to offer FMLI, the plan design choices shape what your employees actually receive. Ask the insurer or your agent:

• Which employees are included, and what eligibility rules apply?
• Is the plan family leave only, or combined family and medical leave?
• What wage-replacement percentage, weekly maximum and duration does each option carry?
• Is there a waiting period, and are intermittent claims covered?
• How will premiums be funded and deducted from pay?
• How does the benefit coordinate with your PTO policy, short-term disability, Vermont leave and FMLA?
• What exclusions, underwriting rules or preexisting-condition provisions apply?
• Who decides claims and appeals, and what notices must you give employees?
• Are the insurer and the producer licensed in Vermont?

You can check producer licensing through the Vermont insurance license lookup (opens in a new tab), and DFR reviews insurance forms and rate filings through its rates and forms division (opens in a new tab). If you are building a wider benefits and coverage plan, an independent agent can help you compare options; Riskado's Vermont agency directory lists agencies by city and by category.

Where to take a question or complaint

For Vermont unpaid leave rights, non-state employees can contact the Vermont Office of the Attorney General, and state employees can contact the Vermont Human Rights Commission, according to the Vermont Department of Labor (opens in a new tab). The statute also allows a private lawsuit for injunctive relief, economic damages up to the statutory limit, attorney fees and court costs under 21 V.S.A. § 472 (opens in a new tab).

For a problem with an insurer, agent or adjuster, contact Vermont DFR Insurance Consumer Services (opens in a new tab) at 800-964-1784 or 802-828-3302, or email dfr.insuranceinfo@vermont.gov.

For FMLA questions, the U.S. Department of Labor's Wage and Hour Division (opens in a new tab) is the federal contact.

Frequently asked questions

Is Vermont paid family leave mandatory?

No. FMLI is a voluntary program, and each employer decides whether to opt in, according to the Governor of Vermont (opens in a new tab). Workers without employer access and self-employed Vermonters had an individual purchasing option with benefits beginning July 1, 2025.

How much unpaid leave does Vermont law allow?

Up to 12 weeks in a 12-month period for eligible employees under 21 V.S.A. § 472 (opens in a new tab). You may be able to use accrued paid leave or short-term disability insurance during that time.

Does FMLA pay me while I'm out?

No. Federal FMLA provides unpaid, job-protected leave and continued group health benefits for eligible employees of covered employers, according to the U.S. Department of Labor (opens in a new tab). Accrued paid leave can sometimes be substituted.

Can a self-employed Vermonter get FMLI?

The program's final phase opened purchasing to self-employed Vermonters, workers without employer access and employers with fewer than two employees, according to the Governor of Vermont (opens in a new tab). Ask the insurer for the individual plan's eligibility rules, premium and benefit terms.

What should I ask my employer first?

Ask whether it participates, then request the plan certificate or summary. From there, confirm the qualifying event, notice deadline, documentation, benefit percentage, weekly maximum, duration and job-protection rules.

Getting your answer

Vermont paid leave comes down to your plan: whether your employer bought one, which options it chose, and how that plan lines up with Vermont's unpaid leave law and federal FMLA. Start with a written request for the plan summary, keep the job-protection question separate from the paycheck question, and keep the DFR and Department of Labor contacts handy if something goes wrong.

Sources: Governor of Vermont, Vermont FMLI (opens in a new tab); Governor of Vermont, June 2023 FMLI announcement (opens in a new tab); 21 V.S.A. § 472 (opens in a new tab); Vermont Department of Labor, Act 32 (2025) (opens in a new tab); U.S. Department of Labor, FMLA Fact Sheet #28 (opens in a new tab); Vermont DFR, Insurance (opens in a new tab); Vermont DFR, insurance complaints (opens in a new tab).