Minnesota Salary Transparency Law (Minn. Stat. § 181.173): Complete Employer Guide

Overview: What Is Minn. Stat. § 181.173?

Minnesota's new pay transparency law, codified as Minn. Stat. § 181.173, represents a significant update to employment regulations in the state. Going into effect on January 1, 2025, this law places Minnesota firmly among the growing number of states requiring proactive salary disclosure in job postings.

The law is designed to promote equity in hiring and compensation practices. Unlike some states that only require salary information, Minnesota goes a step further by mandating that employers also disclose a general description of benefits and other compensation. This holistic approach ensures candidates have a complete picture of the total compensation package before applying.

Who Must Comply?

Important: The 30-employee threshold is generally counted based on total headcount. If your organization has 30 or more employees and you are recruiting for a position that can be filled by someone working in Minnesota, you must adhere to these disclosure requirements.

Requirements: What Must Be Included in Job Postings?

Minnesota requires the following information to be prominently displayed in all job postings:

• Starting Salary Range: The minimum and maximum annual salary or hourly wage for the position.
• Fixed Pay Rate: If applicable, the exact fixed rate of pay.
• Good Faith Estimate: The range must reflect the employer's good faith estimate of what they are willing to pay for the position at the time of the posting.
• Benefits Description: A general description of all benefits and other compensation, including but not limited to health insurance, retirement plans, bonuses, commissions, or equity compensation.

Employers cannot circumvent the law by stating "salary commensurate with experience" or providing an open-ended range like "up to $100,000" without a defined minimum.

Example: Compliant vs Non-Compliant

Remote Work

Minnesota's law applies to remote positions if:

• The job could be performed by a resident in Minnesota.
• You are open to hiring Minnesota residents.
• You meet the 30+ employee threshold.

If you post a "Remote - US" job and do not explicitly exclude Minnesota residents, you must include the required salary and benefits disclosures. Best practice is to include compliant ranges and benefits descriptions for all remote postings to ensure nationwide compliance.

Penalties for Non-Compliance

Enforcement of Minn. Stat. § 181.173 falls under the jurisdiction of the Minnesota Department of Labor and Industry (DLI). Employers found in violation can face significant consequences:

• Civil Penalties: The DLI can impose civil penalties against employers who fail to include the required disclosures.
• Compliance Orders: The state may issue orders compelling the employer to correct their job postings and internal practices.
• Reputational Damage: Beyond legal penalties, non-compliant employers risk negative public perception and difficulties in attracting top talent.

It is crucial for employers to proactively audit their job postings to avoid these penalties and maintain a positive employer brand.

How to Comply

To ensure full compliance with Minnesota's salary transparency law, employers should take the following steps:

1. Audit Current Postings: Review all active job listings across your website, job boards, and social media channels to ensure they include both salary ranges and benefits descriptions.
2. Define Compensation Frameworks: Work with your compensation team to establish clear, good faith pay ranges for all roles within your organization.
3. Standardize Benefits Descriptions: Create boilerplate text describing your standard benefits packages that can easily be appended to any job posting.
4. Train Your Team: Ensure that recruiters, hiring managers, and third-party agencies understand the new requirements and are equipped to implement them consistently.
5. Monitor Updates: Stay informed on any additional guidance or rules issued by the Minnesota DLI regarding the enforcement of the law.