VDOL Issues New Guidance for Small Nonprofit Employer UI Exemption

A memo released on July 1, 2022 by the VT Department of Labor issues new guidance affecting the small nonprofit unemployment insurance exemption. Previously, small nonprofits were considered exempt from providing unemployment insurance coverage to their employees if they had fewer than four employees in the State of Vermont.

Under the new guidance, “for the purposes of determining the size of a non-profit organization in accordance with 21 V.S.A. § 1301(6)(A)(ix), the Unemployment Insurance Division will include all employees of such organization performing services in the United States and not just those performing services in the State of Vermont.”

This change will impact nonprofits with fewer than four employees working in VT but four our more employees working nationwide that do not already provide unemployment insurance coverage.

View the full memo here:

Does this impact you? Please reach out if you have any questions or would like to share about your experience with this change.