Bill H.344 proposes to establish a "good cause" standard for the termination of employment in Vermont. The bill amends 21 V.S.A. § 495 to make it unlawful for employers to discharge employees without demonstrating good cause. Good cause is defined as a reasonable, good-faith reason related to legitimate business needs or if the employee has been employed for fewer than 90 days. The bill clarifies that trivial, arbitrary, or capricious reasons do not qualify as good cause, and it includes the employee's failure to satisfactorily perform job duties as a legitimate business reason.

Additionally, the bill ensures that the rights of employers to discharge employees for good cause are not limited and preserves any other rights employees may have under existing laws or contracts. Employers will be required to post a notice regarding these provisions in a conspicuous location at their place of business. The act is set to take effect on July 1, 2025.