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Minnesota Enacts Law Impacting Pay Transparency and Minimum Wage

07/03/24

Author: ADP Admin/Friday, June 28, 2024/Categories: Compliance Corner , State Compliance Update, Minnesota

Minnesota has enacted an omnibus bill SF 3852 that makes numerous changes to the states labor law. 

The details:

The changes enacted by SF 3852 and their effective dates are as follows:

Salary range for job postings: 

Effective Jan.  1, 2025

Minnesota employers with 30 or more employees, including nonprofits and state and local governments, are required to provide a minimum and maximum annual salary range or hourly range of compensation, or a fixed pay rate, on job postings. The range must be based on an employer’s good faith estimate and cannot be open-ended.  Covered employers must also provide a general description of benefits and other compensation offered, including health and retirement benefits. 

The law covers any posting, made electronically or in print, with desired qualifications for an available position, intended to recruit applicants, including postings on the employer’s behalf by recruiters and other third parties.

Minimum Wage:

Effective Jan. 1, 2025

The minimum state minimum wage will no longer differentiate between large and small employers. The current large employer rate of $10.85 per hour will be adjusted and will apply to employers of all sizes, beginning Jan.  1, 2025.

Effective Aug. 1, 2024

Effective Aug. 1, 2024, the minimum wage is required to be adjusted annually by the lesser of the inflation-based percentage or 5% (currently 2.5%) by September 30 of each year. 

Effective Oct. 1, 2024

The Minnesota Department of Labor and Industry is required to produce a poster that employers are required to display informing employees of their rights under the salary range for job postings provisions.  

Tips and gratuities:

Effective Aug.  1, 2024

The full amount of tips received by an employee through a debit or credit card must be credited to the pay period in which the tips were received.

Recordkeeping: 

Effective Aug. 1, 2024

Employers are required to keep a record of earnings statements for each employee for each pay period.  The records must be kept for three years in the premises where an employee works

Unpaid pregnancy and parenting leave: 

Effective Aug.  1, 2024

The 12-week entitlement to unpaid pregnancy and parenting leave may not be reduced for any paid or unpaid leave taken for prenatal care and medical appointments. 

Next steps:

Minnesota employers should review SF 3852 with legal counsel and ensure that all applicable provisions are implemented by their respective effective dates.

Have questions?

Please contact your ADP Service Representative with any questions.  

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