"This is where it starts.": Minnesota's new pay gap law to go into effect Jan. 1
MINNEAPOLIS — A law going into effect in the new year aims to shrink the pay gap between genders and races.
The Preventing Pay Discrimination Act encourages employers to rely on a job applicant's skills to set pay. It also prevents employers from asking about past or current pay during the hiring process.
"In Minnesota, white women make 81 cents on the dollar. Asian women make 70 cents on the dollar. Black women make 61 cents on the dollar. Indigenous women also make 61 cents on the dollar. And Latinx women make 55 cents on the dollar compared to their white male counterparts," said Lieutenant Governor Peggy Flanagan. "That's unacceptable and that's real money."
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Flanagan went on to call out how this pay gap continues to impact other areas of the state's socioeconomic make-up like homeownership, wealth creation, and overall health and well-being.
"This is where it starts," said Flanagan.
The inequity that this pay gap has rendered also hits close to home for the lieutenant governor.
"And even as lieutenant governor, I have not been spared from this discrimination," said Flanagan.
She went on to describe the process she underwent while applying for the lieutenant governor position and the screening questions that had made her uncomfortable, particularly when it came to pay.
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Flanagan recalled feeling uncomfortable to disclose her previous salary, but felt that her opportunity was at stake.
"I got the position and later on found out I made $40,000 dollars less than the person who was in that position before me," said Flanagan.
"When you're interviewing for a job or negotiating a salary, you should be judged on your skills. Not on how you look, and finally our state law will reflect exactly that," said Flanagan.
The new law goes into effect Jan. 1.
