Minnesota Passes Pay Transparency Law

On May 17^th, Minnesota Governor Tim Walz signed into law the requirement for certain employers to disclose starting salary ranges on job postings. The effective date of the law is January 1^st, 2025. Below is more information regarding the new pay transparency law:

Covered Employers: Employers with 30 or more employees at one or more sites in Minnesota. The law currently does not mention anything about remote positions.

Salary Range Disclosure: An employer is required to disclose in each positing for each job opening, including postings by third parties, the starting salary range and a general description of all benefits and other compensation, including but not limited to any health or retirement benefits. If an employer does not plan to offer a salary range for a position, then they must list a fixed pay rate. The law also specifies that the salary range may not be open-ended and must be based on a good faith estimate.

Next Steps: Covered Minnesota employers should get ahead of this law and start preparing as soon as possible. Employers without a compensation structure should consider creating one. This will not only help with determining the salary ranges to provide on the postings but will also help ensure that you’re remaining competitive. A well-defined compensation structure is also beneficial when conducting reviews for pay equity. It’s recommended that Minnesota employers also review salary ranges and identify where current employees reside within the ranges and adjust any employees who are currently outside the range. Berkshire can work with employers to conduct market benchmarking and creating a compensation structure. Berkshire can also assist in identifying those who may be at risk of leaving, especially once ranges are visible.