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New Minnesota law requires companies to list salary range on job postings

A new law will benefit employees and employers when it comes to pay equity
A new law will benefit employees and employers when it comes to pay equity 01:49

ST. PAUL, Minn. — A new Minnesota law is considered a win-win for people in search of a job and those in search of workers.

Starting in January 2025, businesses with 30 or more employees will have to include the salary range or hourly wages when listing a job opening, as well as a description of other benefits. The law was passed and signed near the end of the legislative session this month.

"If you don't post the wage, you can get away with paying people less, which is exactly why people want to know," said law professor Jill Hasday. 

She said keeping salary ranges secret has been more of an issue in the private sector compared to the public. Regardless, revealing the range can actually benefit an employer.

"There's a lot of evidence that people are more likely to respond to job postings that include the salary for obvious reasons," she said.

It can also be a time saver since people might skip on applying for a job if they know it doesn't fit their expected salary or wages.

Closing the wage gap is another reason lawmakers drafted the bill. A recent report found women in Minnesota make 81 cents for every dollar a man makes, a problem that worsens for women of color.

"It's critical to note that we see wage gap not only persist but increase as women of color move up the economic ladder," said Tawanna Black, the CEO for the Center of Economic Inclusion. 

She said the new law — and the one enacted last year prohibiting employers from asking a prospective employee's salary history — are major steps in the fight for equal pay

"It only accelerates the work for us and helps those employers start to take on more and more the standards that complement this particular one in order to truly foster the results in their workplace. Not just talent attraction, but talent retention and advancement that they want to see," said Black.

The change will also impact the LGBTQ+ community. Studies show LGBTQ+ workers make about 90 cents for every dollar a typical worker earns.

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