Minnesota bans salary history questions starting Jan. 1
MINNESOTA, UNITED STATES — Minnesota employers will be prohibited from asking job applicants about their current or past compensation, including salary, wages and benefits, when a new state law takes effect January 1, 2024.
The “Preventing Pay Discrimination Act” bars employers from considering an applicant’s pay history when making hiring or pay decisions. Exceptions exist if the applicant voluntarily discloses the information.
“When someone’s future pay is locked to their past pay, the cycle of unequal pay impacts them over the course of their life. This new law seeks to break that cycle,” said Minnesota Department of Human Rights Commissioner Rebecca Lucero.
On average, white women in Minnesota make 81 cents for every dollar earned by white men. Disparities are greater for women of color.
The department said pay increased 8% for women and 13% for Black workers after similar laws passed in other states.
The law applies to all Minnesota employers, job applicants, and internal candidates for promotion. The Minnesota Department of Human Rights will enforce it and could issue penalties and punitive damages for violations.
Related news
- Remote work decreases innovation, says study · 1 Jan
- Tech firms boost hiring in smaller Indian cities · 2 Jan
- Hourly workers unfazed by AI job concerns – U.S. survey · 18 Dec 2023
Disclosure: Outsource Accelerator uses AI tools in the backend of its editorial workflow. Every article is reviewed and verified by a human editor before publication.
Stay ahead of the outsourcing industry. Join thousands of business leaders who rely on Outsource Accelerator for the news, trends, and expert insights that matter. Subscribe to our free newsletter and never miss an update.
