Vermont Business Magazine The National Federation of Independent Business (NFIB) in Vermont, which represents more than 800 small businesses in the state, is urging lawmakers to reject a new mandate on the smallest businesses. The Vermont Treasurer is proposing to expand mandatory participation in Vermont Saves to businesses with fewer than five employees.
"This mandate just adds to the burden of running a small business in Vermont," said John Reynolds, NFIB Vermont State Director. "The change is unnecessary, as affected employees already had the option of signing up for Vermont Saves on their own. Expanding this mandate is especially disappointing given that, just less than three years ago, the state’s smallest employers were told that participation would be voluntary."
Vermont has approximately 10,500 small businesses with 1-4 employee, per the U.S. Census Statistics of U.S. Businesses. They employ an average of 1.6 people per business. According to a Vermont Public report on the legislation that created Vermont Saves, participation was not intended to be mandatory for employers with fewer than five employees:
"If you’re under five employees or you're self-employed, our intent is to draft rules that allow you to participate," Pieciak said. "So it's not a requirement, but it is an option."
Vermont Saves currently allows employees of a business that is not required to participate to enroll on their own.
"Many of the smallest employers do not use expensive payroll processing systems, so this is more complicated than it may seem for them," added Reynolds. "We’re talking about very small businesses where employees are often partners, family members, or close friends who have ample existing low or no cost retirement savings options. They are focused on keeping their doors open and shouldn’t have to worry about more red tape from Montpelier."
Vermont Saves is a state-created retirement savings program for private sector employees. Under current rules, employers with five or more employees who do not already offer a retirement plan are required to create an account, add detailed employee and payroll information, and submit employee contributions to the state’s vendor. Employers face fines of up to $75 per employee for errors and noncompliance.
The Vermont Legislative Committee on Administrative Rules (LCAR) will consider the proposed rule changes at 8:35 am on Thursday, January 15.
For over 80 years, NFIB has been advocating on behalf of America’s small and independent business owners, both in Washington, D.C., and in all 50 state capitals. NFIB is nonprofit, nonpartisan, and member-driven. Since our founding in 1943, NFIB has been exclusively dedicated to small and independent businesses, and remains so today. For more information, please visit nfib.com.
BARRE, VT (Jan. 14, 2026) – National Federation of Independent Business (NFIB) in Vermont
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