Pay History

Overview and Background

Effective January 1, 2024, Minn. Stat. Sec. 363A.08 Subd. 8 prohibits employers from inquiring into the pay history of applicants for any position. Under the law, employers are prohibited from inquiring into, considering, or requiring disclosure from any source the pay history of an applicant for employment to determine wages, salary, earnings, benefits, or other compensation.

What It Means for Recruiting at the University

  • It is unlawful to ask an internal or external applicant what they are currently earning. Pay must be determined using other factors, such as: 
    • Available market data
    • Experience, education, and competencies of the candidate
    • Budgeted pay range for the position
  • It is unlawful to look up an internal applicant's current salary (for example, in PeopleSoft) for purposes of determining a salary offer, or for purposes of ensuring that the offer reflects a minimum increase of 4% for a promotion.
  • The applicant may voluntarily disclose their current salary to aid their negotiations for an incoming salary, or for purposes of being offered a minimum 4% increase for an internal promotion, but may not be asked to do so.
  • Once an applicant accepts an offer and is employed in the new job, they are no longer an applicant. At that point, their previous salary should be compared with the offered salary to ensure compliance with applicable University policies, rules or collective bargaining agreements regarding the minimum increase for a promotion.
  • It is acceptable to ask an applicant about the pay they are seeking, but the applicant cannot be required to answer.
  • It is acceptable to disclose the pay range in the job posting or during the interview (and will be required January 1, 2025).
  • It is acceptable to look up the salaries of non-applicants in the work unit for the purpose of offering a salary to an applicant that aligns with current employee salaries, but it is unlawful to look up the salary history or current salary of the applicant, whether or not such data is considered “public information,” or include such data in any report generated for this purpose.
  • Although this new law excludes labor-represented employees with contracts currently in effect, the exclusion is temporary and will last only until new agreements are negotiated. For purposes of consistency and to avoid confusion as to who is covered and who isn’t, the University is treating all employee groups as if they are covered under this law effective January 1, 2024.

Roles and Responsibilities

GroupRole
OHR
  • Provide guidance on offer management
Local HR departments
  • Ensure that hiring managers are aware of the new pay disclosure law and do not ask unlawful questions about applicants’ current or past wage or salary
  • Help hiring managers determine offer amounts based on the candidate’s experience, education, and competencies, as well as the budgeted pay range
Supervisors and managers
  • Avoid engaging in conversations about current or past pay with the candidate, unless the candidate brings this up without being asked

Frequently Asked Questions (FAQs)

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How do I determine a salary for a candidate?

Salary can be determined by factors including available market data; the experience, education, and competencies of the candidate; the budgeted pay range for the position, and salaries paid to current staff in the work unit. For more information, talk to your local HR office or reach out to your TA consultant or specialists. 

For internal candidates, can I use their salary data in PeopleSoft to determine a salary offer?

No.

What about positions where promotional increases must be at least 4% according to a policy, labor contract, or Civil Service rule?

It is now unlawful to ask for or look up the current wage for purposes of deciding on the new wage you will offer. You need to determine the new wage using other information as described above. However, the employee may voluntarily counter your offer and cite the 4% rule and their current wage, which you can then use to increase your original offer.

Once the applicant has accepted the offer and is employed in the position, they are no longer an applicant and therefore, you should review their salary to ensure compliance with the 4% rule.

What if the candidate discloses their current salary during the interview or job offer negotiations?

If the candidate shares their current salary without being asked, you can consider this information in deciding what to offer.

Can I consider a current employee’s compensation to determine a new rate of pay when they are not an applicant for a new job, such as when they are reclassified, or the unit is considering an internal equity adjustment?

Yes, this is acceptable. The new law applies to applicants for employment, including an internal applicant for a new job. The law does not apply to employees who remain in the same job. Seeking reclassification or an internal equity review is not the same as applying for a new job.

What if I already know the applicant’s salary because they work for me and have applied for a new job that I supervise?

Even if you know the applicant’s current salary, you cannot consider it in deciding what to offer for the new role, unless the employee brings it up without being asked and asks you to do so.