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EU Pay Transparency Directive vs US state pay transparency laws

Where the EU rules and two major US state laws differ, with primary sources. Not legal advice.

Short answer: same goal, different duties

US state laws such as California's and New York's mainly require a pay range in job postings. The EU Directive goes further: it also bars asking applicants about pay history, gives workers a right to pay information, and requires pay gap reports by headcount. Some US employers need to meet both.

Sources: Directive (EU) 2023/970, Arts 5, 7 and 9, EUR-Lex; California Lab. Code § 432.3, DIR; NY Labor Law § 194-B, NY Senate.

Side by side

EU Directive vs California vs New York
TopicEU Directive (EU) 2023/970CaliforniaNew York
Who is coveredEmployers in the public and private sectors; applicants for pay information before hiring (Art 2)Employers with 15 or more employees must include the pay scale in a job posting (§ 432.3(c)(3))Employers with four or more employees (§ 194-B)
What a job ad must showApplicants have the right to the initial pay or its range (Art 5(1))The pay scale: a good faith estimate of the salary or hourly wage range the employer reasonably expects to pay upon hire (§ 432.3(m)(1))The compensation or a range of compensation, and the job description if one exists (§ 194-B)
Pay history questionsEmployers may not ask applicants about pay in current or previous jobs (Art 5(2))Not covered on this pageNot covered on this page
Location reachSet by each EU country's national lawNot covered on this pageJobs performed at least in part in New York, or reporting to a supervisor, office or work site in New York (§ 194-B)
Pay gap reportingFirst reports 7 Jun 2027 (250+ and 150 to 249 workers) and 7 Jun 2031 (100 to 149) (Art 9)Not covered on this pageNot covered on this page

Pay gap reporting dates and indicators · Job ads and pay

Where US habits fall short in the EU

  1. A range alone is not enough. The Directive also bars asking applicants about current or previous pay. (Art 5(2))
  2. Pay criteria. Criteria for pay and pay progression must be objective, gender-neutral and easy for workers to access. (Art 6(1))
  3. Worker requests. Workers can ask for their pay level and average pay levels by sex for comparable work. (Art 7(1))
  4. Reporting. Reports by headcount, and a joint pay assessment where an unjustified gap of 5% or more is not fixed. (Arts 9 and 10)

Step-by-step checklist

What this page does not cover

Only California and New York are compared, and only on points checked against the sources above on 8 Nov 2026. Other states, penalties, salary history rules in the US, and each EU country's national law are not covered. Laws change. Confirm current rules with counsel.

Frequently asked questions

Does the EU Pay Transparency Directive replace US state pay transparency laws?

No. They are separate laws. The Directive is EU law applied through each EU country's national law. California and New York laws apply to jobs under their own rules. A US employer with staff or applicants in both places can be covered by both.

Do US job ads that already show a pay range satisfy the EU rules?

Not automatically. The Directive gives applicants the right to the initial pay or its range, and bars employers from asking about pay history. How that is applied depends on each EU country's law. Check with counsel before reusing US posting language.

Does a New York pay range rule apply to remote jobs?

It can. NY Labor Law 194-B covers jobs performed at least in part in New York, and jobs performed outside New York that report to a supervisor, office or other work site in New York.

Is a California pay scale the same as an EU pay range?

They are close but not identical. California defines a pay scale as a good faith estimate of the salary or hourly wage range the employer reasonably expects to pay upon hire. The Directive refers to the initial pay or its range, as applied in each EU country.

Sources: Directive (EU) 2023/970, Arts 2, 5, 6, 7, 9, 10. EUR-Lex

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