In this podcast, Daniella McGuigan (partner, London) and Jim McGrew (Chief Client Services Officer, New Orleans) discuss the European Union’s (EU) pay transparency directive and its implications for employers. Daniella provides an overview of the directive, emphasizing its aim to enforce equal pay for equal work or work of equal value, and outlines the requirements and challenges employers will face in complying with this new legislation. The conversation also touches on the potential penalties for noncompliance and compares the directive to similar legislation in other parts of the world, highlighting the unique aspects of the EU’s approach. Daniella and Jim discuss some best practices for employers—such as evaluating job architecture and pay structures—as they start to prepare for the directive’s June 2026 effective date.