Inez has worked with The Company for 5 years making $25.00/hr. The Company opens a different position that Inez thinks could be a good opportunity for Inez. The new position posts a salary range of $20.00/hr to $30.00/hr. Inez applies and is selected for an interview.
The Hiring Manager is impressed by Inez. Inez has worked at The Company for years. And would transition well into this new role, especially because Inez has a good understanding of the unique database systems that this division uses. No other candidate has these unique skills. The interview goes well and Inez is selected as a finalist.
The Hiring Manager knows Inez’ hourly wages because Inez works in the same division.
Instead, when making the decision for what to offer, the Hiring Manager should base the offer on the position’s salary range: Inez’ skills, unique knowledge of this database system, abilities, relevant educational background, market conditions, and then make a fair offer.
Under the Minnesota Human Rights Act, an employer cannot consider the pay history of an applicant for employment for the purposes for determining wages, salary, earnings, benefits, or other compensation for that applicant.
The law applies for all job applicants, including current employees seeking an internal promotion or transfer.