Effective January 1, 2025, Minnesota’s new Pay Transparency Law introduces significant changes to how employers must advertise job openings. Employers with 30 or more employees must now disclose salary ranges and benefit details in job postings. This move toward pay transparency is intended to promote fair pay practices and reduce wage disparities. For employers in Minnesota, especially in the construction industry and other sectors with high employee turnover, it’s important to understand these new requirements.
Why Pay Transparency Matters
Pay transparency promotes wage equality, reduces pay gaps, and gives job seekers a better understanding of compensation before applying for roles. By requiring salary disclosures in job postings, the law addresses pay disparities that affect underrepresented groups, such as women and minorities, and encourages pay equity for equal work.
Transparency also enhances the candidate experience, as applicants have a clear idea of pay expectations, which can lead to a more efficient hiring process. Additionally, companies that prioritize pay transparency are seen as more attractive employers, boosting their reputation and improving their ability to attract skilled candidates.
Key Provisions of Minnesota’s Pay Transparency Law
Employers need to understand the essential requirements of the law to ensure their job postings are compliant. Here are the key provisions to be aware of:
Applies to Employers with 30+ Employees: The law affects employers with 30 or more employees, regardless of whether the role is for a full-time, part-time, or temporary position.
Salary Range Disclosure: Job postings must clearly list either the starting salary range or a fixed pay rate for the role.
Benefit Description: Employers must include a general description of benefits offered, such as health insurance, retirement plans, paid time off, and other key perks.
Good Faith Estimate: If a salary range is provided, it must be a good faith estimate based on what the employer genuinely expects to pay for the role.
Fixed Pay Rate (If Applicable): If a role has a set wage (like hourly jobs with a fixed rate), employers can list a specific pay amount instead of a range.
No “Contact for Salary” Statements: Employers are prohibited from using language like “Contact us for salary details” in job postings.
Non-compliance with the law could lead to penalties, legal claims, and damage to a company's reputation.
How to Write a Compliant Job Posting
To ensure your job postings comply with Minnesota’s Pay Transparency Law, follow these essential steps:
Include a Salary Range or Fixed Pay Rate
How: Clearly state the pay for the position in the posting. Example: “$22 - $26 per hour” or “$60,000 - $75,000 per year.”
Why: Transparency about pay aligns with the law’s requirements and reduces the number of unqualified applicants.
Provide a General Description of Benefits
How: Summarize the benefits your company offers. For example, “This position includes health insurance, a 401(k) retirement plan, paid time off, and tuition reimbursement.”
Why: Candidates want to know what’s included beyond salary. Benefits are a major factor in a candidate’s decision to apply for a job.
Use Clear, Direct Language
How: Avoid vague statements like “competitive pay” or “market rate.” Instead, be clear and specific.
Why: Transparency builds trust with job seekers and reduces the need for follow-up inquiries.
Avoid “Contact Us for Salary” Language
How: Do not use phrases like “Contact us for salary information” or “Pay to be determined.” These statements are prohibited under the new law.
Why: Candidates should be able to see pay details directly in the posting to make an informed decision.
List the Benefits in Bullet Points
How: Use bullet points to make the benefits section easy to read. Include essential benefits such as health insurance, retirement plans, paid time off, and other perks.
Why: Job seekers often scan postings quickly. Bullet points make it easier to highlight key benefits and ensure compliance with the law.
Audit Existing Job Postings
How: Review all current job postings and update them to include salary ranges, fixed pay rates, and benefit descriptions.
Why: The new law takes effect on January 1, 2025, so employers must ensure all job postings are compliant before this date.
Use a Template for Job Postings
How: Create a job posting template that includes salary range, benefits, and other legal language. Ensure your hiring managers use this template consistently.
Why: A standard template ensures that all job postings comply with the law and reduces the risk of inconsistencies.
Example of a Compliant Job Posting
Job Title: Construction Site SupervisorLocation: Minneapolis, MNSalary: $75,000 - $85,000 per yearBenefits: Health insurance, 401(k) retirement plan, paid time off, and tuition reimbursement.
Description: We are seeking an experienced Construction Site Supervisor to oversee daily operations on our commercial job sites. This role involves managing subcontractors, maintaining safety protocols, and ensuring project deadlines are met. If you have 5+ years of experience in site supervision, we encourage you to apply.
Qualifications:
Minimum 5 years of experience as a Construction Site Supervisor
Ability to read blueprints and manage site safety
Strong communication and leadership skills
Apply today to join our growing team and be part of an organization that values transparency, equity, and opportunity!
How to Prepare Your Business for Compliance
To prepare for compliance with Minnesota’s Pay Transparency Law, businesses should take several proactive steps. Employers should train hiring managers and HR teams to ensure they understand the new requirements. Internal processes should be updated to create job posting templates that incorporate salary ranges and benefits. It’s also important to review and update job posting software, such as applicant tracking systems (ATS), to ensure they support pay transparency features. Employers should audit current job descriptions to ensure pay and benefits information is included. Consulting with legal counsel can provide further guidance on how to meet the requirements and avoid penalties.
Get Help from Minnesota Construction Law Services
Compliance with Minnesota’s Pay Transparency Law is essential to avoid penalties and protect your business’s reputation. If you’re unsure about how to create compliant job postings or need legal guidance, reach out to Minnesota Construction Law Services.
Our team of experienced attorneys can help you update your job posting templates, train your hiring managers, and ensure your company’s job advertisements meet all the legal requirements. Don’t wait until January 1, 2025, to make these changes. Contact MNCLS today to ensure your business is ready for pay transparency compliance.