The evolution of pay transparency laws is demonstrated by the Washington Supreme Court broadening the definition of “job applicant” under its Equal Pay and Opportunities Act, potentially raising employer liability for noncompliant postings, and the EU preparing to implement its comprehensive Pay Transparency Directive by June 2026, requiring salary disclosures and gender pay gap reporting.

Pay Transparency in Washington State Utilizes Broad Definition of “Job Applicant”

The Washington Supreme Court issued its long-awaited decision on who has standing to file a claim under the Washington Equal Pay and Opportunities Act (EPOA) in Branson v. Washington Fine Wine & Spirits, LLC.

The Court settled on a broad interpretation, holding that any person who applied to a noncompliant job posting may seek damages regardless of the individual’s subjective intent or whether the individual intended to seek employment with the employer.

The case has remanded to the trial court, but, in the meantime, the utilization of the broad definition of job applicants could expose Washington employers to “tester applicants” who are only looking for noncompliant postings to avail themselves of the recoveries available. Readers will recall that, originally, violators are subject to liability for the greater amount of actual or statutory damages of $5,000 per violation. The state legislator, after hearing complaints from employers, altered the damages recoverable under the statute to $100 - $5,000 per violation, as determined by the court hearing the case.

Perhaps the biggest change benefiting employers is the ability to cure and nullify any damage awards by correcting job postings to include the mandated disclosure of salary, wages, and benefit information within five business days of notification of noncompliance for a period of two years (July 27,2025-July 27,2027). The notice requirement, however, does not apply to cases filed prior to July 27,2025.

At present, Washington-based employers should monitor all postings, including those maintained on third-party platforms, with EPOA compliance and make corrections within the cure period when alerted to errors.

EU Pay Transparency Law Pending

The deadline of June 7, 2026, for European member state compliance with the EU Pay Transparency Directive is quickly approaching.

The Directive requires employers to:

• Disclose salaries at recruitment based on objective, gender-neutral criteria
  
  
• Comply with employee requests for individual pay and average pay levels, broken down by gender and categories of workers performing the same work or work of equal value
  
  
• For employers with more than 100 employees, publish gender pay gap statistics of median gender pay gap, the gender pay gap in variable components like bonuses or additional benefits, and the number of female/male workers in each quartile pay band
  
  
• Conduct a joint pay assessment alongside workers’ representatives
  
  
• Face compulsory audits and penalties when unjustified discrepancies are discovered
  
  

It’s important to note that each of the 24 EU member states and any non-EU employers who employ workers in the EU must integrate the Directive’s goals into their own laws and policies by the June 2026 date, but EU employers have until June 2027 or June 2031, dependent on size, to satisfy the enumerated requirements. This essentially means that there will be variations among all member states and employers of EU workers.

In addition to U.S. state pay transparency laws, Canada has likewise focused on pay transparency by enacting legislation in the provinces of British Columbia, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island. Legislation in Ontario is pending.