CWC members that have workers in any of the 27 European Union countries will have to comply with extensive pay transparency and reporting requirements beginning in 2026.
Employers’ obligations under Directive 2023/970 (the Pay Transparency Directive) depend on the number of workers they have in the EU and the member states in which they work. For any employer with at least one worker in the EU, this can include providing salary information to job applicants and giving workers access to information about their pay level and that of colleagues doing similar work, broken down by gender. Employers with at least 100 workers also must report to the state on the pay gap between male and female workers. These pay gap reporting requirements will be phased in starting in 2027, with frequency and due dates based on employer size.
Damages could include back pay, bonuses, and compensation for lost opportunities. Poor reporting can hinder an employer’s ability to get government contracts with EU member states.