New MN law requires disclosure of salary and benefits in job postings
ST. PAUL, Minn. (FOX 9) - As several new laws take effect across Minnesota on Jan. 1, 2025, one will seek to further inform prospective employees about the salary range and benefits they can expect from any given position before they even apply.
New requirements
What we know: Beginning in the new year, Minnesota employers are required to disclose a starting salary range (or fixed pay rate), and a general description of all benefits and other compensation – including health or retirement benefits – for each job posting they create. The requirements apply to employers with 30 or more workers.
The change to Minnesota law comes via a bill authored by Rep. Kristin Bahner (DFL-Maple Grove) during the last legislative session.
What they're saying: "Today the conundrum of pay gaps continues, and unfortunately little progress has been made to move the needle," Rep. Bahner said during a committee hearing in May 2024, shortly before its passage into law by Gov. Tim Walz on May 17. "The first solution is prohibiting previous salary information from being asked about, which we passed last year. The second is pay transparency – specifically salary ranges, and the disclosure of benefits. This still allows for [salary] negotiation, but provides a substantial benefit for both employers and employees."
The Minnesota Council of Nonprofits (MCN) testified in support of the requirements during a committee hearing, saying the practice is, "a critical step, among others, to create more equitable hiring practices," while citing a Columbia University study that states wage transparency reduces the gender pay gap by 7%.
"Imagine going into a grocery store and a large portion of the items have no price at all. When taking the item to the cashier, they'll tell you the price only after weeks of interviews and asking what your price expectation might be. As absurd as that may seem, that is the case for job applicants in Minnesota," testified St. Paul resident Brian Smith during a committee hearing in May.
Pay gap prevalent
By the numbers: Women who work full-time and year-round in Minnesota earn an average of 79 cents for every dollar that a full-time, year-round male worker makes.
Currently, 31 other states have smaller gender wage gaps than Minnesota.
Why you should care: While Minnesota’s "equal pay for equal work" law addresses direct pay disparities, there still remains gaps in wages among demographics due to the lack of transparency from employers.
In addition to decreasing discrimination, supporters of the proposal said it would create a scenario that saves money for employers actively recruiting, and time for job-seekers applying.