By: Stephanie Horn
As DCI has previously reported, the State of Minnesota has a pay transparency law requiring employers to include certain pay and benefits information in job postings that became effective on January 1, 2025. The pay transparency law was part of the state’s Omnibus Labor and Industry Policy bill signed in May of 2024. With the new pay transparency law, Minnesota now joins nearly a dozen other states with active pay transparency laws.
Which Employers are Covered by Minnesota’s Pay Transparency Requirements?
The pay transparency requirements apply to any employer with 30 or more employees. It is not clear if Minnesota employers must include pay information for roles that will be worked outside of the state and/or if non-Minnesota employers with postings that may have applicants within Minnesota must comply with this law.
What is a Job Posting?
A job posting refers to any solicitation, either print or electronic, intended to recruit job applicants for a specific available position that includes qualifications for desired applicants. Both an employer's own recruiting efforts and those handled by a third party are covered by the law.
What Information is Required to be Included in Job Postings?
Covered employers must include the starting salary range and a general description of all benefits including health and retirement benefits and any other compensation in all job postings. A salary range means the minimum and maximum annual salary or hourly range of compensation for a job opportunity, based on the employer's good faith estimate at the time of the job posting is made. An employer that does not plan to show a salary range must include a fixed pay rate in the posting. A salary range may not be open-ended.
Enforcement
The law does not currently spell out how violations will be handled, what specific sanctions will be applied when violations occur, or which agency will enforce the law. Minnesota’s new pay transparency law is part of chapter 181 in the Minnesota statutes. The laws in chapter 181 are enforced by the Minnesota Department of Labor and Industry (MDLI), and thus it seems like MDLI will enforce the pay transparency law. Regardless, whichever agency will be enforcing the law will need to create administrative rules to help employers understand their obligations and to define sanctions for violations of the law.
DCI will continue to monitor any developments and provide updates as they occur.