In 2017, Germany enacted a new law requiring employers that regularly employ more than 500 employees in that country, including the operations of U.S. companies, to publicly report on their efforts to achieve pay equity for women and men, and encouraging them to conduct voluntary internal audits of their pay systems to ensure compliance with the new law. NT Lakis recently obtained an English translation of the so-called “Pay Transparency Act.”
A major component of Germany’s sweeping new pay transparency and reporting law is set to take effect on January 6, 2018, when companies employing more than 200 employees must begin disclosing to employees, upon request, their peers’ compensation data and information.
More specifically, beginning January 6, 2018, covered employers must provide to an employee, upon request, the median of the average monthly gross compensation of other employees in that same occupation (or a comparable occupation), along with up to two other pay “components.”
NT Lakis attorney have prepared a general summary of the law, given its obvious relevance to ongoing pay equity efforts in the U.S. Indeed, pay equity proponents often point to the laws of European countries as models for enacting similar provisions here.
Members of the Center for Workplace Compliance (CWC) can read more here.