Occupational Licensing in Vermont

What is Occupational Licensing?

An occupational or professional license is a permit issued by the government that lets someone work in a particular field. In Vermont, almost one out of five workers must now get an occupational license before they can legally do their jobs. But many licenses don’t even improve service quality or protect the public from actual harm. 

Licenses Create Barriers to Working in Vermont

Occupational licenses often impose high barriers to entry. That makes it much harder for people to find work or to start a new business. According to the Institute for Justice’s report, License to Work, the average license for low- and moderate-income jobs in Vermont takes 266 days of education and experience. And those required classes can be very expensive.  

For instance, cosmetology is one of the state’s most popular licenses. In Vermont, it takes at least 1,000 hours of classes to get a license in cosmetology. On average, a cosmetology program in the state costs $17,409. But despite such a hefty investment, many cosmetologists barely earn enough to get by: Half of cosmetologists make less than $26,830 a year. 

Sunrise Review in Vermont 

Under “sunrise review,” whenever a new job regulation is proposed, state regulators must determine whether the regulation is needed, its potential costs and burdens, and if there are any less restrictive alternatives. Between 1999 and 2017, Vermont regulators conducted 24 sunrise reviews across 19 different occupations. Many proposed regulations were unfounded: Only 25% of sunrise reviews recommended creating new licenses. All told, the Institute for Justice found that Vermont’s sunrise law “generally produces rigorous sunrise reports.” 

Recent Licensing Reforms in Vermont 

Vermont enacted universal recognition, which lets people with out-of-state licenses work without having to get a duplicate license from a Vermont board. The state also eased licensing barriers for ex-offenders.  

How You Can Help

If you are an Vermont resident and you want to help fight against these unfair and unnecessary licensing laws, there are a few ways you can get involved. You can donate to the Institute for Justice, sign up for our email updates, and share our message with your network. Together, we can make sure that all Vermont workers have the economic liberty they deserve.