The Legislative Lowdown: January 2026 pay transparency updates

Legislative Lowdown January 2026

EU Pay Transparency Directive deadline approaches as New York, Virginia, Ontario, and Kentucky advance pay transparency laws

Editor's Note: The article below provides guidance on pay transparency legislation but should not be taken as legal advice. Pay transparency compliance is a legal analysis that should be conducted in conjunction with your employment counsel or General Counsel.

"New year, new me!" everyone shouts on January 1st while signing up for gym memberships that they'll ghost by February.

But unlike those abandoned fitness resolutions, pay transparency laws aren't going anywhere. In fact, they're showing up to 2026 with the kind of commitment that would make Marie Kondo proud.

January brought us the legislative equivalent of those people who actually do stick to their resolutions —laws that quietly went into effect while the rest of us were still recovering from holiday cookies, legislatures reintroducing bills that refuse to die, and the EU Pay Transparency Directive serving a final countdown that's making everyone sweat a little.

Let's dig into what happened while you were taking down all your holiday decorations.

EU Pay Transparency Directive: The Final Countdown (No Extensions, No Mercy)

June 7, 2026, is coming fast, and EU transposition is…well, let's call it "chaotic" and leave it at that.

The EU Pay Transparency Directive has been dominating pay transparency news as we watch 27 member states scramble (or in some cases, stroll very leisurely) toward the deadline. Here's where things stand as we ring in the new year:

The Overachievers

Poland dropped more draft legislation in December to cover pay reporting. They already passed recruitment transparency rules earlier in 2025, so at this point they're just showing off.

Finland is in public comment mode (comments due February 9) and targeting May 18 implementation. Classic Nordic efficiency—prepared, organized, and making everyone else look bad.

Sweden dropped draft legislation on January 16, 2026. Employer groups asked for a delay to 2027. The government's response? A very Swedish "nej."

The "Cutting It Close" Crew

Germany finally dropped its commission report in October. Cabinet approval expected by end of February. Thorough, methodical, and arriving fashionably late to meet the EU Pay Transparency Directive deadline.

Cyprus quietly released draft legislation in November. Comments closed December 4. They're on track, but nobody's making a big deal about it.

Romania is reportedly progressing on draft legislation, with transposition expected in Q1 2026. We'll believe it when we see it.

The "I'll Start on Monday" Vibes

Meanwhile…Austria, Bulgaria, Croatia, Denmark, Estonia, Greece, Hungary, Italy, Latvia, Luxembourg, Portugal, Slovenia, and Spain are radiating strong "I work better under pressure" energy.

Norway (not even in the EU but still showing up) announced in November they're working on implementation. Peer pressure works, apparently.

Czech Republic formed a new government in December and promises Q1 2026 drafts. New year, new government, new legislation energy.

France is having meetings about having meetings. A new draft is coming January 29. We're…cautiously optimistic?

The Rebel

Netherlands said, "we'll get there when we get there" and pushed implementation to January 2027. The European Commission was not amused. Infringement proceedings may follow. Even Ireland's business community is pressuring the Irish government to postpone transposition past the June 2026 deadline.

The Bottom line on the EU Pay Transparency Directive

On December 18, 2025, the European Commission made one thing crystal clear: the deadline is not moving.

No grace period. No extensions. No sympathy.

If you operate in the EU and haven't started pay transparency prep, you're already behind. The EU Pay Transparency Directive requirements are comprehensive, and the best time to act was yesterday. The second-best time is right now.

North America: Pay Transparency's Persistent Comeback Tour

Ontario pay transparency law goes live

While the U.S. was celebrating New Year's Eve, Ontario, Canada quietly flipped the switch on new pay transparency law Ontario requirements that went into effect January 1, 2026.

Here's what the Ontario pay transparency law requires for employers with 25+ employees:

Compensation disclosure is mandatory

  • Job postings must include expected compensation or a compensation range
  • Ranges cannot exceed $50,000
  • This doesn't apply to positions paying over $200,000 annually

No Canadian experience requirements: Employers cannot require "Canadian experience" in job postings or applications. Full stop.

AI disclosure required: If you're using AI to screen, assess, or select applicants, you must disclose this in the job posting under the new Ontario pay transparency law.

Interview follow-up obligations: If you interview a candidate, you must notify them within 45 days of their interview whether a hiring decision has been made.

Record-keeping requirements

  • Keep copies of job postings and application forms for three years after removal
  • Retain records of information provided to interviewed applicants for three years

HR takeaway: If you're operating in Ontario, your job posting templates should have been updated before the ball dropped. If they weren't, fix that now. The pay transparency law Ontario enacted is enforceable immediately.

Virginia Pay Transparency Law: HB 1164 returns (Third time's the charm?)

The Virginia pay transparency law proposal is back. Again.

If this feels familiar…that's because it is. Virginia has now proposed HB 1164, the exact pay-transparency/salary-history bill, three times.

The first two? Vetoed by Virginia's former Republican governor.

But then Virginia elected Governor Abby Spanberger (D), and suddenly that bill showed up like, "Miss me?"

Now the real question: How fast does HB 1164 make it to Governor Spanberger's desk?

What HB 1164 does (for real this time):

  • Bans asking candidates for salary history
  • Requires pay ranges in job postings
  • Prevents past pay from anchoring future offers

Why the Virginia pay transparency law matters: This is how pay transparency actually advances. Not with one dramatic attempt—but with "we'll be back" persistence until the politics align.

Virginia's message with HB 1164 is pretty clear:

  • Elections matter
  • Pay transparency isn't going away
  • Vetoes don't mean the conversation is over

If HB 1164 passes, the Virginia pay transparency law would join states like Colorado, California, New York, and Washington in requiring salary range disclosure.

Kentucky Pay Transparency Law: KY HB 210 returns

Kentucky lawmakers have reintroduced KY HB 210, a pay transparency bill that would require employers to be a little more honest about compensation.

They tried this last session, too. It didn't go anywhere. But here we are again.

What's actually in the Kentucky pay transparency law (KY HB 210)?

  • Salary ranges in job postings: Less "competitive pay" mystery, more actual numbers up front
  • Fairer hiring: Posting pay ranges helps shrink wage gaps and cuts down on negotiating behind closed doors
  • Protection for employees: Workers can ask about their pay or flag discrepancies without worrying about retaliation
  • Fewer pay whispers, more clarity: The idea is to make pay transparency normal instead of something people only discuss in DMs

Will the Kentucky pay transparency law pass this time? TBD. But the fact that KY HB 210 keeps coming back suggests pay transparency isn't just a trend — it's pressure. And that pressure isn't going away.

New York pay transparency law: proposed major expansion in 2026 (NY S 5990)

New York already has a pay transparency law on the books, requiring employers to disclose salary ranges in job postings. But proposed legislation NY S 5990 takes that foundation much further, strengthening worker protections and closing key gaps in how pay information is shared and enforced.

Here's what the expanded New York pay transparency law would do if passed:

  • Full pay transparency: Employers must share salary ranges PLUS bonuses, stock options, health insurance, paid time off, and more. No more guessing.
  • Stronger record keeping: If an employer offers pay outside the posted range, they must document why and keep records for three years. Accountability matters.
  • Info for current employees: Workers can request their current compensation range once a year under the New York pay transparency law expansion, so transparency doesn't stop after hiring.
  • Fair job ads: Even if a job isn't advertised, employers must share minimum and maximum pay upon request.
  • Clear benefits after an offer: Once you get a job offer, employers must provide detailed benefit info within five business days.
  • Anti-retaliation protections: The bill clearly bans retaliation against anyone using their rights under the law. Speak up safely.
  • Real enforcement and penalties: There's a clear complaint process and civil penalties for employers who don't comply with the New York pay transparency law requirements.

This proposal is a huge step toward fairness, clarity, and respect in the workplace. If NY S 5990 passes, New York will have one of the most comprehensive pay transparency frameworks in the United States.

That's a wrap…for now!

January 2026 showed us that pay transparency momentum isn't slowing down — it's accelerating.

Whether you're preparing for the EU Pay Transparency Directive, navigating the New York pay transparency law, watching Virginia's HB 1164, complying with the Ontario pay transparency law, or monitoring Kentucky's KY HB 210, staying ahead of these legislative changes is critical.

We'll be back next month with your February Legislative Lowdown. Until then, stay compliant, stay strategic, and maybe actually stick to that gym membership this year.

At Payscale, we help you stay ahead of global pay transparency regulations — from the EU Pay Transparency Directive to state-level laws like the New York pay transparency law, Virginia's HB 1164, Ontario's requirements, and Kentucky's KY HB 210 — with the market data and compensation insights you need to build fairer, more competitive workplaces.  

Whether you're preparing for new disclosure requirements or justifying pay decisions with confidence, we've got your back.

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