Time to Prepare for Minnesota's New Pay Transparency Law

Minnesota has become the most recent state to mandate pay transparency. Earlier this year, Governor Tim Walz signed an omnibus labor bill into law that will require employers to include salary ranges in job postings. The Minnesota pay transparency law is slated to take effect on January 1, 2025. Employers should start planning now to help ensure compliance with the new law.

Which Employers are Covered?

Any employer with 30 or more employees within Minnesota must comply. This applies to any employer, including individuals, businesses, non-profit organizations, and governmental entities.

What Must Employers Disclose?

• Starting salary or wage range, including a minimum and maximum; or a fixed pay rate if no range will be offered. An open-ended range is not acceptable.
• A general description of all benefits and other compensation, including but not limited to health and retirement benefits.

What is a “Job Posting?”

Any electronic or printed solicitation for a specific position that includes desired qualifications. This applies to postings made directly by the employer and indirectly by third parties.

What Should Employers Do Now?

Employers should review their job posting processes to ensure compliance starting January 1, 2025. This includes training hiring managers and human resources personnel on the requirements of the law, and ensuring that third-party recruiters are provided necessary information on job openings.