Pay Transparency Bills Await Signature in Minnesota, Vermont

Author: Emily Scace, Brightmine Senior Legal Editor

May 16, 2024

Update: Minnesota S.F. 3852 was signed into law on May 17, 2024. Vermont H. 704 was signed into law on June 4, 2024.

Vermont and Minnesota may soon join the growing list of states that require employers to include pay information in job postings. Bills requiring pay transparency have passed the legislatures in both states and await a governor's signature.

The Vermont bill (H. 704) would apply to employers with five or more employees. Covered employers would be required to include a pay range in any advertisement for a position physically located in Vermont - as well as for any remote role that will predominately perform work for a Vermont-based office or work location.

The required pay information would consist of the minimum and maximum annual salary or hourly wage the employer expects in good faith to pay for a position at the time it creates the advertisement. Special requirements would apply to commission-based roles and tipped positions. However, an employer would be permitted to hire an employee for an amount outside the posted range based on circumstances outside the employer's control, such as an applicant's qualifications or labor market factors.

The pay transparency requirement would apply to roles that are open to internal candidates, external candidates, or both, as well as to positions into which an employer's current employees can transfer or be promoted. Only written advertisements for a specific job opening would be covered. General announcements of employment opportunities with an employer that do not advertise a particular position would be excluded, as would verbal announcements of job opportunities made either in person or via radio, television or other electronic medium.

If signed by Gov. Phil Scott, the measure will take effect July 1, 2025.

The Minnesota bill (S.F. 3852), part of a larger measure that also addresses minimum wage, child labor and other topics, would apply to employers with 30 or more employees in Minnesota. It would require covered employers to include a starting salary range - a good-faith estimate of the minimum and maximum annual salary or hourly rate - in any job posting.

In addition to pay information, covered employers would be required to disclose information on the benefits and other compensation a hired applicant would be eligible to receive, such as health insurance or retirement benefits. The Vermont bill does not include a comparable provision.

If signed by Gov. Tim Walz, the bill will take effect January 1, 2025.

Ten states have enacted a law mandating pay transparency. Of those, seven require pay information in job postings, while the remaining three require employers to disclose a pay range directly to an applicant during the hiring process.