Vermont primarily uses the ABC test under its Unemployment Insurance and Wage and Hour laws to classify gig workers as employees or independent contractors, presuming employee status unless a business proves otherwise. Gig platforms like Uber often treat workers as contractors, but recent state regulations add oversight without reclassifying most as employees. No ABC-plus test like California’s exists, leaving classification fact-specific.​
Classification Criteria
To qualify as an independent contractor, the worker must be free from the employer’s control or direction over work details, perform services outside the employer’s usual business, and operate an independent trade or business. Gig workers fail this if integral to the platform’s core operations, like driving for rideshares, triggering employee protections such as minimum wage and overtime. Courts examine actual practice over contracts.​
Gig-Specific Rules
Vermont’s 2018 rideshare law regulates Uber and Lyft with insurance, background checks, and inspections but preserves contractor status. Short-term rental rules apply to Airbnb hosts without altering classification. 2025 pay transparency laws (effective July 1) require salary ranges in job postings but exempt commission-based gig roles.​
Worker Implications
Misclassified contractors can pursue back wages via the Department of Labor; platforms face fines for violations. Federal DOL rules may influence via economic realities test, but state prevails for unemployment and wages. Gig workers lack benefits like paid leave unless reclassified.
SOURCES
[1](https://www.berkshireassociates.com/blog/vermonts-pay-transparency-law-takes-effect-july-1-2025)
[2](https://www.vtchamber.com/vermont-july-2025-employment-law-changes/)
[3](https://www.vermontpublic.org/vpr-news/2018-09-04/new-vermont-rules-regulate-gig-economy-companies-including-airbnb-and-uber)
[4](https://www.postercompliance.com/blog/labor-law-compliance-for-gig-workers-what-employers-need-to-know/)
[5](https://answerconnect.cch.com/topic/86a21b707cce1000988390b11c18cbab02/state-tax-issues-related-to-sharing-gig-economy)
