Minnesota pay transparency law puts strain on employers, expert says

(FOX 9) - Minnesota’s new pay transparency law, which requires most employers to include pay ranges in job ads, has led to a surge in applications from unqualified candidates, an expert said.

Minnesota’s pay transparency law has created hurdles for employers, expert says

What the law requires:

The law, which took effect on Jan. 1, requires most employers to post pay ranges with job ads. The aim is to increase pay transparency for employees. But companies have faced several hurdles, according to an expert who has consulted employers on the requirements of the law.

What they're saying:

"You want to make the most that you can, so we’re seeing high expectations from candidates, which can lead to negotiating and employers really having to justify the compensation that they’re willing to pay," said Jenna Estlick, president of human resources solutions at Versique, a Minneapolis-based recruitment and consulting firm that helps executives find jobs and counsels companies.

Surge in applications causes hiring process to lag, expert says

How it's changing job searches:

Estlick also said employers have been inundated with applications from unqualified candidates, causing the recruitment process to lag. In addition, there has been internal backlash when employees realize their colleagues earn more than them, she said.

"In some cases, it’s taking longer to screen and move more quickly through their recruiting process," she said.