Starting salary range for job postings could soon be required in MN
ST. PAUL, Minn. (FOX 9) - Wondering how much a new job you’re eyeing actually pays? A proposal being discussed by Minnesota lawmakers would require employers to tell you ahead of time in the posting.
The change to Minnesota law in a new bill authored by Rep. Kristin Bahner (DFL-Maple Grove) this legislative session, would require an employer with 30 or more employees to include the starting salary range and general description of benefits – or other compensation – for any job posting, whether printed or electronic.
A "salary range" would be defined in law as the minimum or maximum salary or hourly range of compensation for a job at the time of posting.
"Today the conundrum of pay gaps continues, and unfortunately little progress has been made to move the needle in recent decades," Rep. Bahner said during the House Labor and Industry Finance and Policy Committee on Thursday. "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."
Noting that efforts to amend federal law to require employers to disclose wage ranges have been unsuccessful, Rep. Bahner said that keeping wages secret can help facilitate pay discrimination among employees.
According to a fact sheet on gender and employment in Minnesota, women who work full-time and year-round in Minnesota earned 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.
"One of the reasons is that employers often keep their salary secret, which makes it easier to pay specific people less," testified Jill Hasday, a professor at McKnight University and a centennial professor of law with the University of Minnesota.
As of October 2023, there were 11 states that had wage requirement transparency laws in place. Another dozen states are considering similar legislation, according to Rep. Bahner.
The Minnesota Council of Nonprofits (MCN) wrote in support of the requirements, saying in a statement that 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 now for job applicants in Minnesota," testified St. Paul resident Brian Smith on Thursday.
In addition to quelling discrimination, supporters of the proposal say it would also create a scenario that saves money for employers actively recruiting, and time for jobseekers applying.
"98% of workers believe that salary ranges should be posted, and positions with pay transparency report a higher rate of employee satisfaction," Rep. Bahner said. "Positions with salary range postings have tripled since 2020, and the reality is that the world is changing."
Rep. Bahner said that 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.
"This still allows for [salary] negotiation. But this is the way the world is moving, and this provides a substantial benefit for both employers and employees," said Rep. Bahner. "Not only is it the right thing to do, but it makes sense for both."
The proposal was formally laid over for consideration in a larger collection of bills, known as an omnibus bill. Its companion currently awaits a hearing in the Senate Labor Committee.