Yes. Or you can pay $30/mo for unlimited tethering and not worry about doing something against the TOS.
1. Buy iPhone full price so you dont lose your unlimited plan
2. Either pay Verizon $29.99/mth to activate an unlimited hotspot or jailbreak your phone and use the hotspot apps for their costs however much it is.
Me: I am paying $29.99, non jailbreak, using hotspot unlimited.