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October 25, 2023
2023-1774

Minnesota law prohibits inquiries into applicants' pay history starting in 2024

Effective January 1, 2024, Minnesota SF 2909, prohibits inquiries into an applicant's current wage, salary, benefits or other compensation for purposes of determining the compensation that will be paid to the applicant. The law applies to employers, employment agencies and labor organizations doing business in Minnesota.

Minnesota joins 28 states and localities that currently impose a similar salary history ban. (EY survey of state and local laws, August 2023.)

Exceptions to the requirement

  • Salary that is a matter of public record. The prohibition against inquiring into the compensation history of an applicant does not apply if the applicant's pay is a matter of public record under federal or state law, unless the employer accessed those records for purposes of determining the applicant's compensation.
  • Salary information volunteered by applicant. The salary history of applicants may be considered when determining their compensation if such information was volunteered by the applicants without being asked, encouraged or prompted by the employer, employment agency or labor organization.
  • Salary negotiations. Employers may provide information concerning the pay and benefits that applies to a job position and they may ask applicants about their expectations or requests concerning pay and benefits.

Ernst & Young LLP insights

Employers should be aware that while they cannot inquire into the salary history of applicants, Minnesota's wage disclosure law prohibits employers from preventing employees from telling others about their wages or conditions of employment. Additionally, employers cannot require that employees sign waivers that remove their right to discuss their wages and working conditions with others.

Employers must include information about the state's wage disclosure law in their employee handbook.

For more information, see the wage disclosure fact sheet and FAQs.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)

Published by NTD’s Tax Technical Knowledge Services group; Andrea Ben-Yosef, legal editor

 

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