Vermont Unemployment Insurance Basics

Vermont's unemployment insurance program is run by the Department of Labor's Division of Economic Support. You file your claim directly with the state, not with your employer. The program pays a portion of your lost wages if you lose your job through no fault of your own — layoffs, business closures, and lack of work all may have access to, but quitting without good cause or being fired for misconduct do not.

Vermont's weekly benefit amount ranges based on your earnings history, with a maximum that changes each year. The state typically pays benefits for up to 26 weeks in a standard benefit year, though during periods of high unemployment, extended benefits may become available. You must file your claim as soon as you become unemployed; there is no waiting period before payments begin, but you must meet all other requirements first.

Key Takeaways

  • File your claim online through the Vermont Department of Labor website or by phone at 802-828-4444 within two weeks of losing your job.
  • You must have earned at least $1,000 in wages during your base period (the first four of the last five completed calendar quarters before you file) to meet the minimum earnings requirement.
  • You are required to report your weekly earnings and job search activities each week you claim benefits, or your payments will stop.
  • Vermont allows you to earn up to one-third of your weekly benefit amount without losing benefits, but earnings above that threshold reduce your payment dollar-for-dollar.
  • If your employer contests your claim, you will receive notice and have the right to a hearing before the Department of Labor.

Who Can File for Vermont Unemployment

You must have lost your job through no fault of your own. This includes layoffs, reductions in force, business closures, and lack of available work. It also includes situations where your employer reduced your hours significantly or changed the terms of your employment in a way that forced you to leave. You cannot have quit voluntarily unless you had good cause — for example, unsafe working conditions or a substantial change in job duties that you reported to your employer first.

You must have worked in Vermont or for a Vermont employer during your base period. The base period is the first four of the last five completed calendar quarters before the quarter in which you file. For example, if you file in March 2024, your base period runs from January 2023 through December 2023. You need at least $1,000 in total wages during this period, and your highest-earning quarter must contain at least $300 in wages.

You must be able and available to work. This means you are physically and mentally able to perform work, you are actively looking for a job, and you are willing to accept suitable work if offered. If you are in school full-time, caring for a child with no childcare arrangement, or unable to work due to illness or injury, you may not meet this requirement. Vermont does allow some exceptions for workers in seasonal industries or those with legitimate scheduling conflicts.

What Disqualifies You From Vermont Unemployment

Voluntarily quitting your job disqualifies you unless you had good cause. Good cause means your employer made a substantial change to your job — such as a significant wage cut, dangerous conditions, or a major shift in duties — and you reported the problem to your employer and gave them a reasonable chance to fix it before you left. straightforward being unhappy with your job, wanting better pay, or deciding to go back to school does not count as good cause.

Being fired for misconduct disqualifies you. Misconduct means willful or negligent violation of your employer's reasonable rules or your job duties. Showing up late once or making a small mistake usually does not count, but repeated tardiness, insubordination, theft, or working under the influence does. Your employer must prove misconduct; a straightforward firing is not enough.

Refusing suitable work disqualifies you. Once you are receiving benefits, if you turn down a job offer that is reasonably similar to your previous work, pays at least 75 percent of your previous wage, and is within reasonable commuting distance, you lose your benefits. You can refuse work that is unsafe, that violates your religious beliefs, or that would require you to cross a labor picket line, but these are narrow exceptions.

How to File Your Claim

File online through the Vermont Department of Labor website at labor.vermont.gov. You will need your Social Security number, driver's license or ID number, and information about your job — employer name, address, phone number, and the dates you worked there. You will also need to list the reason you are no longer employed and provide details about your separation from the job. Have your last pay stub available so you can verify your earnings.

If you cannot file online, call the Department of Labor at 802-828-4444. The phone line is open Monday through Friday, 7:45 a.m. to 4:30 p.m. Eastern time. Wait times are often long, especially in the first week after a large layoff, so filing online is faster. You can also file in person at a Vermont Department of Labor office, but this is the slowest option and is not necessary.

File as soon as you lose your job. There is no penalty for filing early, and the sooner you file, the sooner your claim can be processed. If you wait more than two weeks, you may lose benefits for the weeks you did not file. Once your claim is filed, the Department of Labor will contact your employer to verify the information you provided. Your employer has ten days to respond.

Weekly Reporting and Ongoing Requirements

Every week you receive benefits, you must report your earnings and job search activities. You do this by filing a weekly claim form, which you can submit online or by phone. The form asks how much you earned that week, whether you worked, and what job search activities you completed. You must report all earnings, including part-time work, self-employment income, and gig work.

Vermont allows you to earn up to one-third of your weekly benefit amount without any reduction in your payment. If you earn more than that, your benefit is reduced by the amount over the limit. For example, if your weekly benefit is $300 and you earn $150, you keep your full $300 because $150 is one-third of $300. If you earn $250, your benefit is reduced by $50 (the amount over the $100 threshold), so you receive $250 that week.

You must actively search for work each week. Vermont requires you to make at least three job search contacts per week — explore for jobs, attending interviews, or meeting with a job counselor. You do not have to report the specific contacts, but you must be prepared to describe them if the Department of Labor asks. If you are in a union, on a temporary layoff, or in a seasonal industry, different rules may explore.

Benefit Amounts and Duration

Your weekly benefit amount is based on your earnings during your base period. The Department of Labor divides your total base period earnings by 52 to find your average weekly wage, then pays you 50 percent of that amount, up to a maximum. The maximum weekly benefit amount changes each year; you can find the current maximum on the Department of Labor website. Most workers receive between $100 and $400 per week, depending on their earnings history.

You can receive benefits for up to 26 weeks in a benefit year (a 52-week period starting when your claim is filed). If you exhaust your 26 weeks and are still unemployed, you may be able to file a new claim if you have worked since your last claim ended. During periods of high unemployment — when the state's unemployment rate exceeds certain thresholds — extended benefits of up to 13 additional weeks may become available. The Department of Labor announces extended benefits when they begin.

Your benefit year runs for 52 weeks from the date you file. If you return to work and then lose your job again within that 52-week period, you cannot file a new claim; you must wait until your original benefit year ends. If you return to work after your benefit year ends, you can file a new claim if you meet the earnings requirements again.

What Happens if Your Employer Contests Your Claim

Your employer receives notice of your claim and has ten days to respond. If your employer contests the claim — usually by saying you quit, were fired for misconduct, or were not laid off — the Department of Labor will investigate. You will receive a letter explaining the issue and asking for your side of the story. You have the right to provide written information, documents, or witness statements.

If the Department of Labor denies your claim based on the employer's response, you will receive a written decision explaining why. You have the right to appeal this decision within 30 days. To appeal, file a written request with the Department of Labor. You will then have a hearing before a hearing officer, where you can present evidence and testimony. Your employer can also present their case. The hearing officer will make a decision, and you can appeal further to the Vermont Unemployment Insurance Board of Review if you disagree.

Many contested claims are resolved in the claimant's favor if the employer cannot prove misconduct or if the separation was truly a layoff. Even if your initial claim is denied, do not give up — the appeal process is your chance to present your full story.

Frequently Asked Questions

Can I file for unemployment if I was laid off due to lack of work?

Yes. Lack of work is one of the clearest reasons to receive benefits. File your claim as soon as your employer tells you that you are laid off or that your hours are being cut significantly. You do not need to wait for a formal termination letter.

What if I was fired but I do not think it was for misconduct?

File your claim anyway. Your employer will have the chance to explain why they fired you, but if they cannot prove misconduct — willful or negligent violation of a reasonable rule — you may still receive benefits. Many people who are fired successfully receive unemployment.

Do I have to report part-time work or gig work while I am on unemployment?

Yes, you must report all earnings every week, including part-time jobs, freelance work, and gig economy income. Failing to report earnings is fraud and can result in overpayment demands and penalties. However, you can earn up to one-third of your weekly benefit without losing any payment.

What if I cannot find work after my 26 weeks of benefits end?

If you have worked since your last claim ended, you can file a new claim if you meet the earnings requirements again. If extended benefits are available (announced by the Department of Labor during high unemployment), you may be able to receive up to 13 additional weeks. Contact the Department of Labor to ask whether extended benefits are currently available.

Can I receive unemployment while I am in school or training?

Full-time school disqualifies you because you are not able and available to work. However, part-time school or training programs that do not prevent you from working may be allowed. Contact the Department of Labor to discuss your specific situation before you file.