Also, the EU's Directive is poised to serve as a roadmap for future pay transparency developments in the United States — likely driven by state action during the upcoming administration.

How employers can prepare

Here are five actions you can take going into 2025 to ensure you are prepared for the changing pay transparency landscape. Three of these will take just minutes:

Check for benefits gaps: Here's one you can knock off your to-do list quickly. Quickly connect with the colleague leading your organization's pay equity efforts to see if they're including benefits in their analyses. Benefit disparities can contribute to overall pay gaps, and they are increasingly top-of-mind for regulators, so understanding your current state is crucial. (Time: 10 minutes)
Review your job postings: Visit your company's career page and check if your job postings include salary ranges and a brief benefits overview. Adding this information can attract a larger and more qualified applicant pool, even if not legally required. (Time: 10 minutes)
Stay ahead of pay transparency laws: Don't assume the new administration means less focus on pay transparency. Stay informed about the evolving laws in the states where you operate, as they will drive change. For companies in the EU, monitor the implementation of the EU Pay Transparency Directive. Bookmark these trackers: U.S. pay scale transparency laws and EU Pay Transparency Directive transposition tracker. (Time: 3 minutes)
Centralize pay gap reporting: Evaluate if centralizing your organization's pay gap reporting makes sense, as we are increasingly seeing many employers looking to navigate a complex and changing landscape with stakes that are getting higher. This can help you proactively identify and address pay gaps, ensuring compliance and promoting pay equity.
Prioritize communication: What we hear the most from employers is angst about how to communicate about pay and pay gaps. It's one thing to analyze and identify the pay gaps and make adjustments or to share pay and benefits information on job postings — it's another thing for leaders and managers to be ready to communicate with employees about it. Ensure your team is shoulder-to-shoulder with your comms team so you can prepare to communicate.

While we may see a wave of new pay equity laws flourish at the state level under this new administration, employers should stay informed and adopt pay equity and transparency best practices – even when not required by law.

Instant Insights /

What to expect for pay and benefits transparency in 2025

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