Minnesota Compensation & Benefits: Compliance and Best Practices in 2025 and Beyond (Event Summary)

Posted on by Susan Isebrand

The employment landscape in Minnesota is undergoing significant changes, with new laws and regulations reshaping how organizations approach compensation, benefits, and workplace transparency.In a recent webinar, Compensation & Benefits: Key Strategies for Compliance and Best Practices in 2025 and Beyond, our panel of legal, compensation, and HR experts shared crucial insights on navigating these changes and preparing for what lies ahead.

Employment & Labor Attorney Leanne Litfin, Principal Compensation Consultant David Gramer, and Fractional HR Executive Darin Coble led us through an insightful and interactive seminar moderated by Manager of Talent Acquisition Cameron Reeves and hosted by Owner and Principal of Advent Talent Group, Mary Younggren.

Here’s what we learned:

Big Changes are Coming to Minnesota Workplaces

Perhaps the most significant shift is the unified minimum wage coming January 1, 2025, when all Minnesota employers will transition to $11.13/hour, eliminating the previous distinction between small and large employers. This change arrives alongside new Fair Labor Standards Act requirements that boost minimum salary requirements for exempt employees to $1,128/week by January 2025.

And the changes don’t stop there. Starting January 2025, organizations with 30 or more Minnesota employees must embrace unprecedented transparency in their job postings. This means including salary ranges and benefit details in all job postings – both internal and external. No more vague “competitive salary” descriptions or open-ended ranges; employers must provide good faith minimum and maximum salary projections.

The Shift Toward Pay Transparency

Is pay transparency here to stay? Our experts believe so. With many states already passing similar laws, younger generations are entering the workforce expecting open discussions about compensation. This trend shows no signs of slowing down.

The shift brings both opportunities and challenges:

  • Pros: Speeds up the recruitment process by filtering out candidates whose expectations don’t align with available ranges
  • Cons: Creates potential compression issues with current employees and adds administrative burden, especially for smaller organizations
  • Reality Check: Every candidate will likely try to negotiate for the top of the posted range

Preparing Your Organization for Success

Our experts emphasized a three-pronged approach to preparing for these changes:

1. Get Your House in Order

  • Develop competitive salary ranges
  • Review and update your compensation strategy
  • Ensure your documentation systems are robust

2. Define Your Transparency Approach

  • Decide how much additional information you’ll share beyond the legal requirements
  • Consider your organizational culture and values
  • Plan your communication strategy

3. Execute Strategically

  • Start with executive team communications
  • Train middle managers on having compensation conversations
  • Roll out information to employees in a thoughtful, structured way

Avoiding Common Pitfalls

One of the biggest challenges organizations face is what our experts called the “ostrich effect” – trying to ignore these changes and hoping they’ll go away. They won’t. Instead, successful organizations are:

  • Embracing the changes as opportunities to strengthen their culture
  • Investing in proper training for leadership
  • Building robust systems for compliance
  • Seeking expert guidance when needed

Looking Ahead to 2025 and Beyond

The employment landscape is becoming increasingly dynamic, with different market forces affecting various roles differently. Some positions continue to see wage growth while others plateau or decline. Organizations need to:

  • Develop flexible compensation strategies that can adapt to market changes
  • Consider offering more choice in benefits packages
  • Prepare for potential cost increases in benefits (some organizations are seeing 30-35% increases)
  • Build systems that can handle ongoing compliance requirements

Keep in Mind

While these changes may seem overwhelming, they also present an opportunity to strengthen your organization’s employment practices and culture. The key is to start preparing now, communicate clearly with your team, and don’t hesitate to seek expert guidance when needed.

Remember, these changes aren’t just about compliance – they’re about building a more transparent, equitable workplace for the future. Organizations that embrace this mindset will be better positioned to attract and retain talent in an increasingly competitive market.

For those feeling overwhelmed by these changes, you don’t have to navigate them alone. Consider working with employment law experts or Advent’s HR and compensation consultants to help guide your organization through these transitions successfully. Contact Advent Talent Group and connect with experts to guide you through these transitions.

About Advent Talent Group

Advent Talent Group helps businesses build teams driven by extraordinary people with uncommon strengths. We specialize in recruiting and staffing for Office, HR, and Marketing/Creative. Our services include contract, direct placement, and payrolling options.

Advent is changing the way people feel about staffing. Our focus on high touch and high quality is how we maintain an extraordinary 94% retention rate on our placements, year over year.

Our small, award-winning team puts people at the center of everything we do. Every year, we give back more than 10% of our profits through our giving program, Advent Cares. We are committed to partnering with organizations that share a dedication to service, collaboration, and equity. Our core values are Be You, Make a Difference, Save the Day, Have Fun, and Always be Growing.