Minnesota has enacted a new law requiring employers to disclose salary ranges in job postings, addressing a common frustration for job seekers who often encounter listings without crucial details like pay. This law, effective January 1, 2025, mandates that employers with 30 or more employees provide wage ranges and descriptions of benefits in all job advertisements, whether posted on their websites, job boards like Indeed, or through recruiting agencies.
Governor Tim Walz signed this legislation as part of an Omnibus Labor and Industry policy bill in May 2024. Many employers have been preparing for this change since then. Greta Bauer Reyes, a partner at Stinson, noted that her clients have utilized the time since the law’s passage to strategize compliance measures.
The law reflects a broader trend toward pay transparency across the United States. A LinkedIn survey revealed that 91% of respondents believe knowing a salary range influences their interest in a job. Melissa Muro Lamere, a partner at Maslon, emphasized that while compliance may present challenges for employers, it also offers an opportunity to highlight unique benefits and compensation structures.
Under the new regulations, the salary range must represent a good-faith estimate of the minimum and maximum pay for the position. If an employer cannot provide a range, they must list a fixed pay rate instead. This requirement applies to all job applicants, including current employees seeking promotions or transfers.
Employers have begun reviewing their pay practices to align with the new standards. Reyes suggested that conducting an internal audit of salaries can reveal inconsistencies and help organizations prepare for the transparency required by the law. She pointed out that disclosing salary ranges could expose disparities between what new hires and existing employees earn for similar roles.
As the implementation date approaches, the League of Minnesota Cities has provided guidance to help employers comply effectively. Recommendations include avoiding inquiries about previous salaries on applications and ensuring hiring teams are well-versed in the new requirements.
This law aims to benefit both job seekers and employers by reducing stress during salary negotiations. Reyes noted that it also encourages employers to assess where they post job openings beyond their websites. Lamere added that including information about bonuses and commissions can attract higher-quality candidates.
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