New Pay Transparency Laws Coming to Minnesota and Maryland

Pay transparency has been a growing trend across the country, with approximately six states and D.C. requiring employers to disclose salary ranges or hourly pay in job postings. Now, as a result of two new laws passed in April and May 2024, Minnesota and Maryland have become the eighth and ninth states to pass laws requiring employers to disclose salary information and benefits in job postings.  

Maryland’s Pay Transparency Requirements

On April 25, 2024, Maryland Governor Wes Moore signed SB525/HB649 into law, which amends the state’s existing law on pay transparency. Previously, Maryland employers only needed to provide wage ranges to applicants upon request.  

When Does Maryland’s Pay Transparency Law Become Effective?

Beginning October 1, 2024, employers with job postings for positions that will be physically performed at least in part in Maryland must disclose in each internal and public posting the wage range for the position, a general description of benefits, and any other compensation offered for the position. 

If no public or internal job posting is issued for an available position, the employer is required to disclose to the applicants the wage range, general description of benefits, and any other compensation offered for the position prior to any discussion with the applicant about compensation and at any other time upon request of the applicant.  

Maryland’s law includes recordkeeping requirements of employee wages, job classifications, and other conditions of employment for at least three years after a position is filled, or if the position is not filled, for at least three years after the position was initially posted. 

Minnesota’s Pay Transparency Requirements

Minnesota Governor Tim Walz signed into law on May 17, 2024, pay transparency requirements which were included in the Omnibus Labor and Industry policy bill.  

The law requires employers with 30 or more employees at one or more sites in Minnesota to disclose in each job posting the starting salary range and a general description of all benefits and other compensation including health or retirement benefits, bonuses, or other financial benefits to be offered. This requirement also extends to job postings issued by third–party recruiting agencies on behalf of Minnesota employers. Job postings include postings made electronically or via printed hard copy. 

The law defines “salary range” as the minimum and maximum annual salary or hourly range of compensation based on the employer’s good faith estimate at the time of the job posting for the employment opportunity. 

When Does Minnesota’s Pay Transparency Law Become Effective?

Minnesota’s pay transparency law becomes effective on January 1, 2025. 

Prior to the effective date of the pay transparency requirements in job postings, employers must display a labor law poster outlining the requirements. Minnesota’s commissioner will be developing an educational poster in English and the five most common languages spoken in Minnesota. The poster must be displayed by employers subject to this law effective October 1, 2024. 

Next Steps for Employers

Employers in Maryland and Minnesota should identify pay ranges for their positions consistent with the law’s requirements in order to meet the disclosure requirements. Additionally, employers may want to review and revise job posting procedures and templates and train talent acquisition staff to comply with the new laws. 

Finally, it may be a good time to consider a pay equity audit to ensure pay practices and posted salaries comply with federal and state equal pay laws.

This Employment Law News blog is intended for market awareness only, it is not to be used for legal advice or counsel.