Upcoming reforms such as the Pay Transparency Directive, AI Act and IE&D regulations are adding to employment lawyers workload as multinationals navigate the changes.
Nicola James, Partner at Littler commented “we’ve definitely seen an increase in inquiries in the last three, four months as [clients] start paying more attention to what’s coming in 2026.”
Pay Transparency Directive
“In Littler’s survey of 400 in-house lawyers, human resources professionals and business executives, only around 24% said they’re “very prepared” to comply with the Pay Transparency Directive, which became law in 2023 but takes effect next year.”
James said employers have been hearing about the directive for years. But as key compliance deadlines approach, “we’ve definitely seen an increase in inquiries in the last three, four months as [clients] start paying more attention to what’s coming in 2026,” she said.
One complication is that many EU jurisdictions are dragging their heels on the June 2026 deadline to write the directive into national legislation. In view of this, “I think some employers have been reticent to start work” on compliance with the directive, said James.
“There are absolutely steps employers can and should be taking in preparation now,” James added.
AI Act
Some deadlines for AI Act requirements have already passed, but high-risk obligations for employers come into force in August 2026. Deborah Margolis, Senior Counsel at Littler thinks “that’s the deadline that most employers are going to need to take note of.”
IE&D
“The Littler report says more than two-thirds of responding employers with existing diversity, equity and inclusion policies are considering new or expanded rollbacks of these programs because of heightened scrutiny from the Trump administration. Meanwhile, 79% of those with U.S. operations are facing challenges in managing divergent approaches to DEI in the U.S. and Europe.”
“Straddling the gap between U.S. and European IE&D policies makes a global approach almost impossible for today’s multinational employers,” the report said.
