Wage Transparency and Minnesota – Statute 181.173

Minnesota has recently enacted a wage transparency law that will require employers to disclose salary ranges and benefits in job postings, effective January 1, 2025. This legislation, codified at Minn. Stat. § 181.173, mandates that employers with 30 or more employees in Minnesota must include the minimum and maximum salary range, as well as a general description of benefits, in all job advertisements.

The law is part of broader efforts in Minnesota to promote pay equity and transparency in the workplace. It aims to reduce wage gaps by ensuring that applicants have access to pay information upfront, which can prevent discrimination, particularly against women and minorities. This requirement will apply to both direct job postings by employers and those made through third-party recruiters.

However, the law does not specify penalties for non-compliance or provide clear guidelines on its enforcement, leaving some ambiguity that may require further legal interpretation. The statute also leaves open questions about its application to remote positions and other specific situations.

This new pay transparency law follows Minnesota’s prohibition on asking about an applicant’s pay history, which took effect earlier in 2024, and comes alongside other recent employment law changes in the state.

Reference Date is June 10, 2024. [Open Source]