If you’re in HR, then you’re already well aware that pay transparency is no longer just a trending topic. It’s increasingly becoming the law and Minnesota has officially joined the wave. Minnesota’s new pay transparency law took effect on January 1, 2025, and HR teams are continuing to implement important updates and changes to their pay processes. From updating job postings to educating hiring managers, you need to stay ahead of the curve.
Let’s get into the key elements of the law in an easy-to-read and understandable format. Here are three key takeaways you’ll learn in this article:
- A breakdown of what the law means for you
- What’s expected of you as an employer
- Proactive steps for HR
What’s the Minnesota Pay Transparency Law About?
Minnesota’s pay transparency law is part of the 2024 Omnibus Labor and Industry Policy Bill (SF 3852) and amends Minn. Stat. § 181.173. Again, it went into effect on January 1, 2025, and anyone who meets the minimum employee count, must comply.
Who’s Impacted by the Law?
If your company has 30 or more employees in Minnesota, regardless of whether you're in the private, public, or nonprofit sector, this law applies to you.
What’s required in job postings?
Starting in 2025, every job ad, internal or external, must include:
- A good-faith salary range, minimum to maximum, or an exact pay rate.
- A general overview of benefits and compensation, like health insurance, retirement plans, bonuses, or stock options.
This also applies if you're posting through a third-party recruiter or advertising a remote role tied to a Minnesota office or team.
The goal? More transparency, more equity, and a more informed and empowered job seeker.
What HR Teams Need to Know and Implement
This law applies to any job posting that’s intended to recruit applicants for a specific job, both internal and external, and includes electronic and hard-copy postings.
- Salary Info Is Now Mandatory in Job Postings
No more phrases like “competitive salary” or “depending on experience.” Every job post must include an actual pay range or rate on every platform you use, from LinkedIn and Indeed to your internal website and recruiting vendors. Employers must disclose the minimum and maximum annual salary or hourly range for a position, based on a “good faith estimate” at the time of posting.
Plus, a summary of benefits and perks like PTO, healthcare, retirement match, and bonuses needs to be part of the posting. These don’t need to be specific, but again, at least a summary needs to be included.
- Requesting Salary History is No Longer Allowed
This has already been in effect in MN since 2024. Minnesota law prohibits employers from asking candidates about their salary history during the hiring process (Source MN.gov). Keep in mind that:
- Candidates can offer that info on their own, but you can't request it.
- The objective is to break the cycle of historical pay gaps, something HR has long advocated for.
- Employee Rights Are Expanding
Employees are protected when they talk about wages and benefits with coworkers. They’re also shielded from retaliation if they report concerns about non-compliance with these new laws. In summary, this means:
- Issues can be reported to the Minnesota Department of Labor & Industry or the Attorney General’s Office.
- Under Minn. Stat. § 181.172, whistleblower protections are in place, so make sure your teams understand what is acceptable and what is not acceptable.
- Keep Your Documentation in Check
Even though there’s no official recordkeeping requirement just yet, it is wise to get ahead of it and start to:
- Save copies of all job postings, including salary ranges and benefits.
- Track updates and communication with vendors or platforms where listings are published.
That way, you have documentation for historical purposes, as well as for supporting documentation if challenges arise.
What Happens If You Don’t Comply?
There aren’t specific penalties outlined in the law yet, but don’t let that give your team a false sense of security.
- The Minnesota DLI and Attorney General’s Office will handle enforcement.
- Violations could open the door to broader legal issues tied to employee rights.
The message is clear that it’s better to be proactive now than to face consequences later.
Action Items for HR Teams
Refresh Your Job Postings
- Create a standardized job description template that include fields for the required information
- Add clear salary ranges and a brief benefits summary to all job descriptions.
- Review and revise your postings of any outdated, non-compliant language.
- Review listings on every channel, including job boards, internal systems, agency partners. Nothing should be overlooked.
Additional Action Items for HR
- Audit your current compensation structure. Make sure salary bands are current and defensible.
- Policies and Procedures. Confirm that your compensation philosophy, policies, and pay practices are clear, concise, and transparent.
- Create or update your job posting templates. Include sections for pay and a general description of benefits.
- Train hiring managers, recruiters, and third-party partners on key elements of the new requirements and how to handle delicate employee compensation issues when they come up.
- Address issues proactively. Identify and address any equity issues proactively in current pay structures in order to minimize issues and legal risk. This can be done by doing a pay equity analysis.
- Third-party vendors. Make sure that any third-party vendors are compliant to avoid liability.
For Employers Hiring Across States
Do you hire across the country? If so, add Minnesota to your compliance checklist. This is a great time to consider a centralized job posting strategy so you’re not reinventing the wheel for every state. Consult OutSolve’s Ultimate Guide to State Pay Transparency Laws here to ensure you are compliant with all of them.
Additional Resources
Need support? OutSolve can help with pay audits, compliant templates, and multi-state strategy. Download our State Pay Transparency Guide for information on staying compliant with various state laws.
What Minnesota Pay Transparency Laws Mean for Your Organization
Minnesota is now one of many states to enact pay transparency laws. Minnesota’s 2025 pay transparency law is a milestone and also an opportunity. For HR, this is a chance to reinforce credibility, demonstrate equity, and modernize your hiring process. This helps attract and retain top talent and also boosts your company’s reputation.
This law is already in effect, so continue to be proactive. Get ahead now and review your pay bands, clarify your compensation philosophy and policies, update job ads, and train your team.
If you need a partner to guide the way, OutSolve's here to make it simple and compliant. Contact us today for more information and next steps.