Minnesota is kicking off the new year by joining the list of salary history bans nationwide. These laws are part of a growing trend to address workplace pay equity and discrimination issues. Over the past few years, salary history bans have become common across the country. We previously covered other states implementing a state-wide pay history ban, such as New York and New Jersey.
What is Minnesota’s Preventing Pay Discrimination Act?
The Minnesota Preventing Pay Discrimination Act was signed by Governor
Walz in May 2023 and went into effect on January 1, 2024. The act is designed to bring Minnesota one step closer to narrowing the gender and racial pay gap by prohibiting employers from asking about or considering an applicant’s past or current pay during the hiring process.
As of January 1, 2024, employers are no longer permitted to ask candidates about current or past pay either on an application, in an interview, or as part of salary negotiations. See the full law here to learn more about Minnesota’s Preventing Pay Discrimination Act.
What does Minnesota’s new Salary History Ban mean for employers?
The pay history ban covers all job applicants, including current employees seeking an internal promotion or transfer, and applies to full-time and part-time positions. Under the new law, employers in Minnesota are prohibited from:
- Asking job applicants for their current or past pay rate.
- Basing internal job offers, transfers, and promotions on an employee’s current pay scale.
- Taking an applicant’s past or current pay into account when making a hiring decision. However, this does not apply to candidates who voluntarily disclose salary information for negotiation or have a salary that is public, such as a government employee.
The Minnesota Department of Human Rights is authorized to enforce the new pay history ban, investigate complaints, and impose civil penalties. The law applies to all Minnesota public, private, and nonprofit employers, regardless of size or location. Additional resources for employees and employers regarding the law, including hypothetical scenarios involving pay history and candidate consideration, can be found here.
More salary history bans may be coming soon
Minnesota's new salary history ban is part of a larger movement to promote pay equity and prevent pay discrimination in the workplace. These laws aim to protect employees and reduce pay scale inequality based on gender, race, and other protected characteristics.
So far, over 20 states and localities have enacted laws or ordinances restricting employers from asking about or using salary history information in the hiring process. Employers hiring in-office and remote employees in these states and jurisdictions should consult their legal counsel to ensure compliance and foster a fair work environment. Verified Credentials will attempt to provide updates on similar upcoming laws in the future.
