Special thanks to guest contributors Monica Kurnatowska, Bernhard Trappehl and James Brown.

In brief

The EU Commission has proposed a directive that would reinforce the entitlement to equal pay for men and women for the same work, or work of equal value, including by giving employees the right to comparative pay information and by requiring gender pay gap reporting for employers with 250+ employees, amongst other measures. Some EU member states already have aspects of these rules, while others do not, meaning that the rules could be a significant additional compliance burden for some organisations. The rules, if adopted, would be unlikely to come into force before late 2024.

Key takeaways

The EU Commission has proposed a new directive on pay transparency. If adopted, it would:

  • Require measures to ensure employers pay the same work, or work of equal value, equally.
  • Require employers to provide initial salary (or salary range) information to job applicants, pre-interview.
  • Prohibit employers from asking job applicants about salary history.
  • Create a right for a worker to request information about:
  • Their own pay level
  • Average pay levels, broken down by gender and categories of workers doing the same work / work of equal value
  • Require gender pay gap (GPG) reporting for employers with 250+ employees.
  • Create joint pay assessments if:
  • GPG is 5%+ for any category of workers doing the same work or work of equal value, and
  • employer has not justified the GPG.

Based on previous experience, we estimate that these proposals, if adopted, would need to be implemented by sometime in late 2024.


Continue Reading European Union: Commission Proposes Pay Transparency Rules to Secure Equal Pay

It’s hard to miss the uptick in litigation against high profile US companies over alleged unequal pay for female employees these days. Cases seem to hit the headlines frequently and several targeted industries include professional sports, professional services organizations, and technology companies. With equal pay protections constantly expanding, and employees often seeking class certification, in 2021, employers should be especially diligent in identifying and rectifying unjustified pay disparities.

So, if you need a New Year’s Resolution, consider undertaking a pay equity audit. This will position your company to determine, at baseline, whether any unjustified pay disparities exist, where those disparities lie and proactively take any remedial measures to help mitigate against becoming a headline. In conducting a pay equity audit, employers should pay close attention to the legal backdrop of pay equity, and how that landscape is changing.

As we head into the New Year, here are several US developments companies ought to know:

California Enacts First Employee Data Reporting Law

On September  30, California Gov. Gavin Newsom signed Senate Bill 973, Sen. Hannah-Beth Jackson’s bill relating to annual reporting of employee pay data. SB 973 requires private employers with 100 or more employees to report employee pay data to the Department of Fair Employment and Housing (DFEH) by March 31, 2021, and annually thereafter, for specified job categories by gender, race and ethnicity. California will be the first state to require employers to submit such employee data.


Continue Reading US Pay Equity and Transparency Developments: What You Need to Know Going Into 2021

As predicted, on September 30, 2020, California Governor Newsom signed SB 973 into law. SB 973 requires private employers with 100 or more employees to report pay data to the Department of Fair Employment and Housing by March 31, 2021, and by March 31 each year thereafter, for specified job categories by gender, race, and

Join us in our new Palo Alto office for a breakfast briefing on October 30 as we explore the top 5 trends impacting multinational employers in EMEA.

Hear from leading practitioners in 5 key EMEA jurisdictions – France, Germany, South Africa, Spain and the United Kingdom – as we address these key developments:

1. Tips

This summer the U.S. Women’s Soccer team won more than the World Cup – they’ve had tremendous success in garnering public support in their bid for equal pay. However, beyond the star power of Alex Morgan and Megan Rapinoe, pay equity continues to be a hot button issue for employers in the U.S.

We’re pleased

Less than two weeks ago we reported that all employers with 100 or more workers in the US would have until September 30 to provide the EEOC with pay data (read more here).

Then, just days later, on May 3rd, the Justice Department appealed the two rulings resurrecting the Obama-era mandate. Ironically, the appeal

Last month, we reported that a federal court in Washington D.C. lifted the government’s stay of the revised EEO-1 form that requires companies to submit summary wage data by race/ethnicity and gender. Following the court’s order, uncertainty loomed concerning whether employers would need to include the additional data by the current EEO-1 Report deadline

Today is Equal Pay Day in the US. It marks the date women need to work into 2019 to earn what men were paid in the previous year. (And, in fact, this particular date does not take into account that women of color are often paid less than white women.)

Collecting, sharing, maintaining (and possibly publishing) diversity data (of any type but including gender pay) remains a significant undertaking for employers. And the complexity compounds for multinationals.

While we are still waiting to see if the EEOC will begin collecting aggregate pay data by gender (READ MORE HERE), many countries outside the US already do (e.g. the UK and Australia).

The global trend towards requiring transparency is not slowing. Just recently, France, Spain and soon Ireland have jumped aboard.


Continue Reading France, Spain And Soon Ireland, Kick Off New Gender Pay Gap Reporting Requirements

Today is International Women’s Day. The day marks a call to action for accelerating gender parity.

In our global gender pay gap thought leadership series, we’ve highlighted the numerous ways governments around the world are taking actions aimed at closing the gap. In the US, the movement to prohibit the practice of inquiring about an applicant’s salary history continues to gain steam. Cities and states across the country have enacted legislation making it unlawful to inquire about prospective employees’ salary history. Proponents of salary history bans argue that using past compensation in future employment decisions perpetuates existing pay disparities among women and minorities.


Continue Reading Salary History Bans Sweep The US, While Most Global Efforts To Close The Gap Target Transparency

With thanks to Barbara Klementz for authoring this post.

Gender pay gap and pay equity are big discussion topics for companies around the world as more and more countries enact laws intended to close the gender pay gap and as case law develops involving discrimination claims related to pay equity. Beyond strictly legal obligations, many companies also face shareholder and employee pressure for increased transparency around diversity and gender pay.


Continue Reading Role Of Share-Based Compensation For Gender Pay Gap/Pay Equity