Rep. Bahner Bill Would Require Most Employers To Disclose Pay Ranges
A new bill being considered at the Minnesota Legislature would require employers to disclose a job’s pay range in job postings.
According to the bill’s sponsor, Rep. Kristin Bahner, DFL-Maple Grove, it could help to reduce the pay gap between men and women.
The House Labor and Industry Finance and Policy Committee discussed the bill on March 7.
Bahner said the secretive nature of labor negotiations and compensation rates can negatively impact women in the workforce. Revealing pay rates up front can help level the playing field for men and women going into job interviews, she said.
“Most states actually do have equal pay laws on the books and have been in implementation for decades,” said Bahner. “In fact many of them date back all the way to the 60s. What we have found is, unfortunately because there isn’t very much transparency in the process, we have found that those gaps have moved very little over time. But in structures where pay transparency is readily apparent, we have seen significant narrowing of those wage gaps.”
Minnesota Rep. Kristin Bahner (DFL-Maple Grove) speaks on her bill requiring employers to disclose their pay range in job postings.
If the bill becomes law, job postings could not have an open ended salary range.
This law would apply to any enterprise with 30 or more employees.
According to Bahner, the transparency in the hiring process would also benefit employers by bringing in more qualified applicants.
“The real bottom line is that pay transparency produces 70 precent more applicants, 66 percent more qualified candidates, creating greater efficiencies while reducing the time spent recruiting and hiring,” Bahner said.
Bahner also believes that job applicants feel strongly about knowing potential wages before starting the application process.
“There aren’t very good reasons for us not to be transparent,” Bahner said. “Let’s be honest about that.”
Bahner estimated that 17 other states have enacted similar laws.
Meanwhile, Minnesota is one of about 15 states currently considering a wage transparency law.
