BILL AS INTRODUCED H.344 2025 Page 1 of 2 VT LEG #379817 v.1 H.344 1 Introduced by Representatives Logan of Burlington, Bos-Lun of Westminster, 2 Casey of Montpelier, Cina of Burlington, Cordes of Bristol, 3 Headrick of Burlington, Hooper of Burlington, McCann of 4 Montpelier, McGill of Bridport, Priestley of Bradford, and 5 Tomlinson of Winooski 6 Referred to Committee on 7 Date: 8 Subject: Labor; employment practices; good cause termination of employment 9 Statement of purpose of bill as introduced: This bill proposes to establish a 10 good cause standard for termination of employment. 11 An act relating to creating a good cause standard for termination of 12 employment 13 It is hereby enacted by the General Assembly of the State of Vermont: 14 Sec. 1. 21 V.S.A § 495 is amended to read: 15 § 495. UNLAWFUL EMPLOYMENT PRACTICE 16 * * * 17 (b)(1) It shall be an unlawful employment practice for an employer to 18 discharge an employee for other than good cause shown. As used in this 19 subdivision, “good cause” means either a reasonable, good-faith reason for 20 BILL AS INTRODUCED H.344 2025 Page 2 of 2 VT LEG #379817 v.1 discharge related to a legitimate business reason or that the employee has been 1 employed by the employer for fewer than 90 days. “Good cause” does not 2 include reasons for discharge that are trivial, arbitrary, capricious, or otherwise 3 unrelated to a legitimate business reason. A “legitimate business reason” 4 includes the employee’s failure to satisfactorily perform job duties. 5 (2) The provisions of this section shall not be construed to limit: 6 (A) the rights of employers to discharge employees for good cause 7 shown; or 8 (B) any other rights of employees provided pursuant to law or in a 9 contract or collective bargaining agreement. 10 (3) An employer shall post notice of the provisions of this subsection in 11 a form provided by the Commissioner in a place conspicuous to employees at 12 the employer’s place of business. 13 * * * 14 Sec. 2. EFFECTIVE DATE 15 This act shall take effect on July 1, 2025. 16