Minnesota employers will be required to include salary ranges in job postings — a requirement lawmakers say will help improve pay equity for potential employees.

Companies with 30 or more employees will be required to include the minimum and maximum annual salary or hourly range of compensation, as well as a description of all benefits and other compensation in their job postings.

The salary ranges should be a "good faith estimate," according to the bill that was signed into law by Gov. Tim Walz on May 17 as part of the larger omnibus labor and industry policy package.

The law is a big leap toward closing the pay gaps that continue to persist, said Rep. Kristin Bahner, DFL-Maple Grove, who authored the bill.

"It is a great step forward for job-seekers and employers alike to better find the perfect match," Bahner said. "We know job-seekers are more likely to apply when they have good information and employers see more qualified candidates."

Women in Minnesota lose an estimated $483,040 in lifetime earnings because of the gender wage gap, which further impacts women of color, according to a 2024 report by the Center on Women, Gender and Public Policy at the University of Minnesota's Humphrey School of Public Affairs.

The bill complements a law that went into effect in January that barred employers from asking candidates for their salary history.

"It is my belief employers want to do the right thing to pay workers fairly, and their best employees are demanding it," Bahner said.

The pay transparency law will go into effect on Jan. 1, 2025.