New pay transparency law aims to help job-seekers

Starting January 1, 2025, Minnesota-based employers with 30 or more employees will be required to provide pay and benefit information on all open job listings.

This comes as part of Omnibus Labor and Industry policy bill that was signed into law by Governor Tim Walz in late May.

Under the new law, these employers must provide a starting salary range, or a fixed pay rate for the listed position. In addition, a description of the benefits offered, such as insurance or retirement plans must be listed as well.

The listed pay range can’t be open ended, and should the employer not offer a range, an exact hourly rate or salary that the employer will pay a successful candidate must be provided.

“This is an equity issue.” explained Elena Foshay, Duluth’s Director of Workforce Development. “We know that women on average earn less than their male counterparts’ people of color tend to earn less than their non-BIPOC counterparts in the in the labor force so this will really help even the playing field.”

Foshay also says the new law will be beneficial to both job seekers and employers. For applicants, they’ll be able to sort through listings with less guesswork. For employers, they’ll be better matched knowing that candidates will apply knowing the financial compensation meets their needs.

Potential candidates having full pay information might be new to some employers. Helena Almeida is Vice President and Managing Counsel at ADP, a corporate HR management company. Her advice to employers is to be ready for the coming changes.

“Managers, HR, they have to feel comfortable explaining to their employees and applicants where their pay falls within the salary’s posted range. You should be prepared to have those conversations with new applicants as well because everybody’s asking questions with this advent of new information in the hands of applicants.” Almeida said.

Minnesota joins several other states who already have pay transparency laws on the books.