Minnesota Employers Now Required To Share Wage Info

Do you feel like you are being fairly compensated? Have you been loyal to a job for years, only to suspect that new hires are making more money than you? Well, in Minnesota, a new law that took effect on January 1st could give you an insight on what fair pay is.

Ombinus Labor And Industry Policy Signed Into Law

Governor Tim Walz signed the Ombnibus Labor and Industry Policy Bill last year. Several things were included in that bill, and one of them is that employers must include a starting salary range and a general description of benefits and compensation in the posting for open positions.

Which employers does it apply to?

Employers who have 30 or more employees in the state of Minnesota are affected. Minnesota isn't the first state to have this requirement. Employers in other states have started to disclose starting wages on their own in recent years. Following the labor shortage during and after the COVID-19 pandemic, many employers needed to share wages to entice potential workers to apply.

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What happens if an employer isn't transparent with wages in a job posting?

So here's the kicker, there are no penalties and enforcement for the law, yet. As it stands now, according to Seyfarth Shaw LLP, a person can file a claim with the Minnesota Department of Labor or the State Attorney General to enforce a violation.

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Salary Or Hourly Wage?

Under the law, employers must give a minimum and maximum annual salary range. If it is not a salaried position, they must give the range of hourly pay. Employers are also prohibited from offering an open-ended salary range. Health benefits and retirement benefits and other compensation also must be disclosed under the law.

Employees can discuss their pay without penalty.

A law already in Minnesota Statutes protects employees' rights to talk about their wages without penalty. In section 181.172, it's written that an employer cannot take action against an employee if they disclose their wages.