Navigating Global Payroll Under The Impending EU General Data Protection Regulation

The European Union's General Data Protection Regulation (GDPR), while designed primarily to update current law to address the digital economy, will impact every aspect of the employment relationship, including the processing of payroll for all employees located in the European Union (EU). In light of the new rules, which go into effect on May 25, 2018, U.S. multinationals with EU subsidiaries will need to scrutinize their current payroll practices at both the parent corporation and the subsidiary level and likely introduce new policies and procedures to address GDPR's heightened protections for personal data. After providing some brief context for these changes, this article will explain the steps that global payroll departments should consider taking to comply with GDPR's requirements.