What US Employers Need to Know About the EU Pay Transparency Directive

Labor and employment partner Erika Collins and associate Brooke Razor co-authored an article for the New York Law Journal titled “What US Employers Need to Know About the EU Pay Transparency Directive.” 

The authors explain that the directive is set to apply to organizations with 100 or more employees in any EU member state starting June 2026, with compliance obligations based on 2026 data beginning in 2027. Once the directive takes effect, both public reporting and individual employee access to pay information will become compulsory, marking a transformative shift in pay transparency and workplace equality. 

“The EU pay transparency directive represents a landmark shift in workplace equality and pay transparency, with far-reaching implications for US-based employers operating in Europe,” the authors note. “Preparation is essential: companies should review policies, update systems, train staff, and engage with local legislative developments to ensure compliance. By acting now, US employers can both only meet their legal obligations and strengthen their reputation, positioning themselves for success in an increasingly global labor market.”

The full article is available to New York Law Journal subscribers.