Minnesota Latest State to Require Pay Transparency in Job Postings

Effective Jan. 1, 2025, employers with 30 or more employees in Minnesota will be required to include a pay range or fixed pay rate in all job postings. The new requirement, signed into law as part of the 2024 Omnibus Labor and Industry policy bill by Minnesota Gov. Tim Walz on May 17, specifically includes both postings by the employer itself and through third parties, such as staffing agencies.

The listed pay range must be a “good faith estimate” by the employer and, importantly, cannot be open ended, which has caused employers challenges when complying with other states’ similar laws. Postings must also include a general description of benefits and “other compensation.”

The broad language of the statute creates ambiguities that may require additional clarification. For example, the requirement applies only to solicitations that seek to fill a “specific available position,” so it is not clear what the impact would be on “pipeline” type requisitions. Other open questions include what types of bonuses, if any, would be considered “other compensation” and the effect of the law on postings for positions by Minnesota companies that would be located outside Minnesota.

The law is also silent as to remote positions that can be performed anywhere in the U.S., another issue that has made compliance with pay transparency laws a particular challenge for employers.

This new requirement comes on the heels of Minnesota’s law prohibiting inquiries into the pay history of applicants for employment, which went into effect on Jan. 1, 2024. In addition, Minnesota has recently enacted laws limiting the use of non-competes and establishing paid sick and safe time. Employers should be on the lookout for more employee-friendly developments in the North Star State.

For more information, please contact the Barnes & Thornburg attorney with whom you work or Rebecca Bernhard at 612-367-8771 or rebecca.bernhard@btlaw.com, Jennifer Service at 612-367-8727 or jennifer.service@btlaw.com or Tim Wong at 612-367-8725 or twong@btlaw.com.

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