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Minnesota Bans Employers from Asking Employees About Pay History

by | Jan 9, 2024 | Small Business |

What are the details?

As of January 1, 2024, all Minnesota employers are prohibited from asking job applicants, including contractors and current employees seeking internal promotions or transfers, about their pay history. This law does not stop job applicants from voluntarily disclosing their pay history with prospective employers. Employers should review applicant materials and communicate to applicants what information will be used in determining the salary offer.

How can my business prepare?

  • Review applicant materials. Review employment applications and interview questions to make sure they do not ask for current or past pay. If they do, remove that information;
  • Make clear how you will set pay. Plan for what information other than past and current pay will be used to determine an applicant’s pay. This could include, for example, the market and an applicant’s skills, education, and other qualifications;
  • Communicate this change to all employees – including leadership, human resources, and supervisors. Provide extra training to anyone responsible for hiring. Early communication can help prevent any confusion or violations once the law goes into effect.

If you have questions about how best to comply with this ban, contact rb LEGAL at (763) 582-1414. We’re here to help protect your business.