Salary History Ban in Minnesota: What Employers Can Ask

Federal law does not ban salary history inquiries. The Equal Employment Opportunity Commission has not established a nationwide prohibition on asking candidates about prior pay. However, some federal agencies subject to Executive Order have internal salary history restrictions. The Fair Pay and Safe Workplaces Executive Order (2014) applies only to federal contractors and subcontractors, requiring them to not inquire about salary history for federal contracts. For non-federal employers, federal law permits salary history questions unless they are used as a pretext for gender-based pay discrimination under the Equal Pay Act, 29 U.S.C. § 206, or Title VII of the Civil Rights Act of 1964, 42 U.S.C. § 2000e.

The EEOC has cautioned that reliance on salary history can perpetuate historical wage inequities, particularly affecting women and minorities, but federal statute does not prohibit the practice outright. Individual states have increasingly enacted their own salary history bans to address pay equity concerns and eliminate barriers to wage transparency.

Minnesota Statutes section 181B.061 provides one of the nation's earliest and broadest salary history bans. The statute prohibits employers from seeking, requesting, or considering an applicant's salary history (including base salary, bonus, commission, benefits, or other compensation) in making hiring decisions. The law applies to all employers operating in Minnesota, regardless of company size, headcount, or classification.

Unlike some state laws that carve out narrow exceptions, Minnesota's statute is very strict. An employer cannot ask about prior salary verbally, in writing, electronically, or through a third party such as a recruiter or background check company. Employers also cannot consider information about salary history if they possess it from any source. The statute explicitly permits applicants to voluntarily disclose their own salary history, and permits employers to ask about salary expectations for the position being filled—a material distinction under Minnesota law.

The law is stronger than federal protections because it creates an affirmative ban with explicit penalties rather than relying on discrimination statutes. Minnesota Statutes section 181B.062 establishes civil penalties up to $10,000 per violation, plus reasonable attorney fees and costs. A "violation" is defined as any single instance of seeking or considering salary history. This means that asking one candidate about prior pay exposes the employer to statutory damages. The law also establishes that violations constitute unfair labor practices under Minnesota Statutes section 181B.061(e).

Minnesota's approach differs from federal law in that it does not require proof of discriminatory intent or disparate impact. An employer violates Minnesota law simply by asking about salary history, regardless of whether the inquiry resulted in discriminatory hiring. The law took effect January 1, 2018, and applies to all hiring decisions made on or after that date.

Minnesota Statutes section 181B.065 provides limited exceptions to the salary history ban. First, an employer may confirm salary history if the applicant has already voluntarily disclosed it and the employer is verifying the information provided by the applicant themselves. The employer cannot initiate the disclosure; the applicant must first offer the information.

Second, the law does not prohibit employers from asking about salary expectations or compensation requirements for the position being filled. This distinction is critical: asking "What salary are you seeking for this role?" is permissible; asking "What was your last salary?" is not. Some employers have attempted to blur this line by asking what candidates earned "in a similar position," which courts may view as effectively seeking salary history.

Third, the statute does not prohibit employers from obtaining salary information through publicly available sources, such as LinkedIn profiles or professional directories, provided the employer does not specifically solicit that information. However, the practical enforceability of this exception is limited because the statute also prohibits "considering" salary history; therefore, even if an employer legitimately obtains such information, using it in hiring decisions creates exposure.

Fourth, Minnesota law does not restrict an employer's ability to conduct background checks that might incidentally reference employment dates or job titles. The prohibition applies specifically to seeking or considering compensation data, not employment history verification.

Fifth, internal promotions may operate under different rules because the employer already has access to the employee's compensation history. The statute primarily targets external hiring, though it technically applies to all hiring (which could include internal applicants). Employers should avoid explicitly referencing an internal candidate's current salary when making promotion decisions.

Unions and collective bargaining agreements may contain provisions requiring salary transparency, but such provisions do not override the statutory ban; rather, they operate in parallel, and the stricter requirement applies.

At-will employment principles do not create an exception to the salary history ban. Minnesota is an at-will employment state, but the salary history statute is a separate floor that applies regardless of at-will status.

Step 1: Document Everything Carefully. If an employer asks about your salary history—verbally, in writing, via email, or through a recruiter—document the exact date, time, method (phone, email, in-person), the person's name and title, and precisely what was asked. Save the original communication if it is written. If the inquiry was verbal, write down contemporaneous notes immediately after the conversation, including context. Retain any job postings, emails, text messages, or communications from recruiters. This documentation is critical because Minnesota law holds employers strictly liable simply for asking, regardless of how the information was used.

Step 2: Understand Your Internal Complaint Options (Why It Matters). Before filing with an outside agency, check whether your employer has an internal complaint procedure. Minnesota does not require employers to have an internal process for salary history violations specifically, but many large employers do maintain grievance procedures. Filing an internal complaint may preserve evidence, create a paper trail, and sometimes prompt resolution without litigation. However, filing internally does not extend any legal deadline for filing with the state. Even if you file internally first, you should simultaneously track the deadline to file with the Minnesota Department of Labor and Industry (see Step 3).

Step 3: File a Complaint with the Minnesota Department of Labor and Industry (Agency, URL, Deadline, Information Needed). You must file a complaint with the Wage and Hour Division of the Minnesota Department of Labor and Industry. The agency URL is www.pca.state.mn.us/business-taxes-licensing/wage-and-hour-division or contact the department at 651-284-5005. Minnesota law does not specify a statute of limitations for salary history complaints in the statute itself, but the general civil statute of limitations for unfair labor practices is typically interpreted as 2-6 years depending on characterization. To be safe, file within two years of the violation.

When filing, provide: (1) your full name, address, and phone number; (2) the employer's name, address, and business type; (3) the specific date(s) the salary history question was asked; (4) the exact wording of the question or request; (5) the name and title of the person who asked; (6) how the question was posed (email, phone, in-person, recruiter); (7) any documentation (emails, recordings notes if permitted by law); (8) whether you were hired or rejected; (9) any harm or damages you suffered (lost job opportunity, emotional distress); and (10) the names and contact information of any witnesses.

Step 4: Investigation and Resolution Process (What to Expect and Timeline). The Minnesota Department of Labor and Industry will acknowledge receipt of your complaint and may request additional information from you within 10-15 business days. The department will then contact the employer to investigate. The employer will be asked to respond to the allegations, typically within 20 days. The state will conduct a fact investigation, which may include interviews with witnesses, review of hiring materials, and examination of job postings and recruiter communications. This investigation phase typically takes 30-90 days, though complex cases may take longer.

If the department finds a violation, it may issue a citation and assess civil penalties up to $10,000. The employer has a right to contest the citation through a hearing before an administrative law judge. If the employer contests, the case may proceed to litigation through the Minnesota Court of Appeals process. This can extend the timeline to 6-12 months or longer. If no contest is filed, the penalty becomes final.

Step 5: When and How to Consult an Attorney and What Type. Consult an employment law attorney immediately if: (1) the employer retaliated against you after you complained (the salary history ban includes anti-retaliation provisions); (2) you were denied a job opportunity and suspect discrimination; (3) the employer contests the state's violation finding; or (4) you seek damages beyond the statutory penalties (such as lost wages, emotional distress, or punitive damages). An employment law attorney licensed in Minnesota should specialize in wage-and-hour or civil rights law. Minnesota does not require exhaustion of administrative remedies before filing a civil lawsuit, so you may pursue both the state complaint and a private lawsuit in district court simultaneously. An attorney can also represent you in the administrative hearing and any subsequent appeals.