New MN law requires information on salary and benefits in job advertisements

ST. PAUL, Minn. (FOX 9) – With several new laws taking effect in Minnesota on January 1, 2025, efforts will be made to further inform potential employees about the salary range and benefits they can expect from a given position before they even apply.

New requirements

What we know: Beginning in the new year, Minnesota employers are required to provide a starting salary range (or flat rate) and a general description of all benefits and other compensation – including health or retirement benefits – for every job posting they post. The requirements apply to employers with 30 or more employees.

The amendment to the Minnesota law comes via a bill authored by Rep. Kristin Bahner (DFL-Maple Grove) during the last legislative session.

What they say: “Today, the wage gap conundrum continues, and unfortunately, little progress has been made to move the needle,” said Rep. Bahner during a May 2024 committee hearing, shortly before it was passed by Gov. Tim Walz on May 17. The first solution is to ban past salary information, which we passed last year is salary transparency – specifically salary ranges and disclosure of benefits. This still allows for (wage) negotiation, but provides a significant advantage 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 other things, to create fairer hiring practices,” while citing a Columbia University study that indicates pay transparency reduces gender bias pay differences by 7%.

“Imagine you walk into a grocery store and a large portion of the items have no price at all. When you take the item to the checkout, they will only tell you the price after weeks of interviews and ask what your price expectation might be. Like where absurd as it may seem, that is the case for job applicants in Minnesota,” testified St. Paul resident Brian Smith during a committee hearing in May.

Wage differences widespread

By the numbers: Women working full-time, year-round in Minnesota earn an average of 79 cents for every dollar earned by a full-time, year-round male worker.

Currently, 31 other states have smaller gender pay gaps than Minnesota.

Why you should worry: While Minnesota’s “equal pay for equal work” law directly addresses wage disparities, wage disparities still exist among demographic groups due to a lack of transparency from employers.

In addition to reducing discrimination, supporters of the proposal said it would create a scenario that saves money for employers actively recruiting and time for job seekers to apply.

Jobs Policy Minnesota