Minnesota Joins States with Pay Transparency Laws

By: Bill Osterndorf

The State of Minnesota has become the latest in a group of states to require pay transparency for job applicants. On May 17, 2024, Minnesota Governor Tim Walz signed the Omnibus Labor and Industry policy bill. The bill includes pay transparency requirements that become effective on January 1, 2025. 

The Minnesota law applies to employers that have 30 or more employees. In each job posting, these employers must provide the starting salary range and “a general description of all of the benefits and other compensation to be offered” for each job opening. If there is no defined salary range for the position, the employer must provide a fixed pay rate.  

Under the Minnesota law, “salary range” must include the minimum and maximum annual salary or hourly range for a job. Employers may not show a salary range that is open-ended in job postings. The salary range should be based on the employer’s good faith estimate for the open position. 

Job postings covered by the Minnesota law include any solicitation meant to recruit applicants for a specific available position. The Minnesota law covers postings done directly by an employer or through a third party. The Minnesota law does not indicate whether it applies to job postings for remote positions or only to job postings for positions based in Minnesota. 

Minnesota joins states such as Hawaii and Colorado that have pay transparency laws. The Minnesota law is not as comprehensive as some other pay transparency laws. However, it adds to the complexity facing employers who must comply with pay transparency laws in multiple states. 

Bill Osterndorf

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