The end of pay secrecy: the Pay Transparency Directive 2026

By Jeff Altman, Big Game Hunter
In 2026, the career landscape has reached a clear turning point: Pay secrecy is no longer an option for companies, but a significant legal liability. For college-educated LinkedIn professionals, this year marks a shift from “dark negotiations” to a marketplace defined by data and validation. From the full implementation of the EU Pay Transparency Directive to the patchwork of state-level mandates in the US, “hiding” pay is officially a thing of the past. As of January 2026, approximately 17 U.S. jurisdictions, including 15 states and major cities such as New York City and Washington, D.C., have effective pay transparency laws in place, covering more than half of the U.S. workforce.
The main driver of this change in the United States is a set of “voluntary disclosure” laws. Unlike previous legislation that only required employers to provide salary information upon candidate request, the 2026 standards in benchmark states such as California, New York, Washington and Illinois require salary ranges to be included in every internal and external job posting. California’s improved Labor Code (enhanced by SB 642) now requires these ranges to reflect a “good faith” estimate of what the employer reasonably expects to pay. This effectively eliminates “infinite ranges” – the practice of posting ridiculous spreads ranging from $50,000 to $250,000 to circumvent the law. By 2026, both regulators and job seekers will view such broad scope as a lack of compliance, and in states like California, violations could result in civil penalties of up to $10,000 per non-compliant issuance.
Washington state and Illinois have raised the bar even further, requiring job postings to include not just salary but a general description of all benefits and other compensation. This includes bonuses, commissions, stock options, and even travel expenses. For professionals evaluating new positions in 2026, the law ensures that “total rewards” packages are visible before the first recruiter calls. Additionally, Illinois and Colorado now require employers to notify all current employees of any promotion opportunities within 14 days of external posting. This “internal transparency” is designed to ensure promotions are not a hidden process but an accessible one, allowing internal talent to see the same salary data as external applicants.
In the Northeast, 2026 will bring new layers of complexity and protection. Massachusetts implemented pay transparency requirements in late 2025, and as of February 2026, large employers (those with more than 100 employees) now face the first major annual reporting deadline for federal EEO-1 data. Maryland’s law, which takes full effect in late 2024, is now ripe to strictly prohibit employers from asking candidates about their salary history, a move aimed at stemming the “inherited” pay gap that often plagues underrepresented groups throughout their careers. New York State continues to lead the way with lower compliance thresholds, requiring any employer with four or more employees to comply with transparency requirements, ensuring that even small boutique firms and startups can be part of the open payroll ecosystem.
The definition of “wage” also undergoes a fundamental shift in 2026. In jurisdictions such as California, “wages” for equal pay claims now explicitly include total compensation: wages, hourly wages, overtime, profit sharing, and holiday pay. This expansion allows employees to challenge inequalities not only in base pay, but also in how bonuses and equity are distributed. To support this, many states have extended the statute of limitations for pay discrimination claims. In some areas, professionals can now obtain relief for up to six years of back pay differentials, and the legal doctrine that “every paycheck creates a new violation” has become a standard enforcement tool.
This transparency is a powerful vetting tool for the modern job seeker. In 2026, legitimate recruiters or employers will provide specific, realistic scopes and clear links to benefits summaries. If an employer is located in a state such as Colorado or New York but attempts to omit salary information for remote positions, they are likely violating the “remote coverage” doctrine. The rule states that if a job can be performed in a state with transparency laws, the employer must comply with those laws regardless of where the headquarters is located. Professionals are now trained to recognize these omissions as red flags for corporate culture and legal compliance.
Beyond the US, the EU Pay Transparency Directive is setting global standards. By June 7, 2026, all EU member states must finalize their national versions of the directive. It represents the most aggressive pay equality legislation in the world, giving every employee the right to demand pay levels equal to the average of their peer group, broken down by gender, for categories of workers doing “work of equal value”. This “right to know” extends to the recruitment stage, where candidates must be provided with salary data before their first interview. If a company’s gender pay gap exceeds 5% and cannot be justified by objective factors, they are legally required to conduct a “joint pay review” to address the gap.
As 2026 approaches, the impact of these laws is clear: They shift the burden of proof from employees to employers. If a pay differential exists, the onus is now on the employer to prove that the differential is based on legitimate, genuine factors such as seniority, performance or production volumes. The days of “gut salary” or “negotiation skills” have been replaced by data marketplaces. This means a more level playing field for college-educated professionals, whose value is determined by their skills and the objective requirements of the role, rather than how well they handle corporate secrecy.
Ⓒ Big Game Hunters, Asheville, NC 2026
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