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Independent Contractor Test in Vermont

Vermont uses the ABC test for unemployment insurance: paid service is employment unless the worker is free from control, the work is outside the usual course or places of business, and the worker has an independently established business.

Last checked . General information, not legal advice.

Vermont at a glance

Test for unemployment insurance
ABC test
All three parts must be shown to the satisfaction of the Commissioner.
ABC test for unemployment
Yes

Sources

Last checked

The rules in Vermont

Which test does Vermont use to classify independent contractors for unemployment insurance?

Test for unemployment insurance in Vermont: ABC test. All three parts must be shown to the satisfaction of the Commissioner.

Does Vermont apply the ABC test for unemployment insurance?

Yes. ABC test for unemployment in Vermont: yes.

Where do the Vermont independent contractor tests come from?

The rules above come from 21 V.S.A. 1301(6)(B). Each source is linked on this page. We last checked them in October 2026.

What this means in practice

Write down how the working relationship actually operates: who sets the hours, who supplies tools, whether the worker serves other clients and whether the work is part of the business's usual line of work. These facts drive every classification test, and a written independent contractor agreement helps only if it matches them.

Check each law separately. A worker can be a contractor under one statute and an employee under another, because wage laws, unemployment insurance, workers' compensation and tax rules may each use their own test. Federal law also applies its own tests alongside the state rules.

Misclassification can lead to back wages, unpaid unemployment contributions, interest and penalties. If a role is close to the line, read the statute and agency guidance for the state where the work is performed, or ask the state labor or unemployment agency how it applies its test.

General information, not legal advice. Laws change, and cities can add their own rules, so check the current statute before you rely on it.