Brazil's Salary Transparency Law 14.611/2023 Upheld by Federal Court

The 6th Panel of the Federal Regional Court of the 3rd Region (TRF-3) reaffirmed the constitutionality of Brazil's Salary Transparency Law 14.611/2023, mandating companies with 100 or more employees to publish anonymized salary transparency reports that promote gender equality in the workplace. This landmark ruling, delivered on September 7, 2026, rejected challenges from two companies that claimed the law violated personal data protection (LGPD), free competition, and due process. The court emphasized that the law complies with the Federal Constitution's principle of gender equality and the LGPD by requiring reports to anonymize employee data, permitting objective salary comparisons without identifying individuals. Additionally, the court clarified that such reports serve an informational and supervisory role, with any penalties against companies subject to due process safeguards. In one case, an engineering firm’s challenge was dismissed, affirming the necessity of publishing salary data and addressing disparities. In another case involving a metalworking company, the court overturned a prior ruling favorable to the company, underscoring the law's validity and its regulatory norms, including Decree 11.795/2023 and Portaria MTE 3.714/2023. Judge Marisa Santos highlighted that while companies must comply with transparency, the data processing aligns with legally established public policies. This ruling strengthens efforts to promote wage equality between men and women across workplaces in Brazil and reinforces the legal framework ensuring transparency without compromising individual privacy.