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Further to our updates provided regarding the delayed
implementation of the Pay Transparency Act (which can be
found here), the federal government has recently
released proposed amendments to legislation which would impose pay
transparency requirements.
On August 10, 2019, the federal government released proposed amendments to the Employment
Equity Regulations (which governs the required reporting of
salary data by employers) made under the federal Employment
Equity Act, that would provide new pay transparency
requirements. These proposed amendments follow the federal
government's announcement in the 2018 budget of its'
commitment to address the gender wage gap through the inclusion of
new pay transparency requirements in the federally regulated
private sector.
In efforts to achieve this goal, the proposed amendments intend
to revise the current salary reporting requirements to collect
further information regarding: determining an hourly rate of pay,
hours of work, bonuses, overtime pay and overtime hours, and
information that will be used to publicly report on the wage and
bonus gaps of employees. Further to the existing reporting
requirements, the amendments, once in force, will require federally
regulated private sector employers to provide any other information
relating to employees' salaries as may be prescribed.
While employers will be required to adhere to additional record
keeping obligations, the amendments seek to revise and implement
new definitions of "salary," "bonus pay,"
"overtime hours", and "overtime pay." The
amendments will: (i) simplify salary reporting; (ii) require
maintenance of records of new salary data elements including each
employee's occupational unit group classifications and code;
(iii) impose mandatory requirements regarding the use of
definitions provided for in the Employment Equity Act;
(iv) expand the scope of the annual employment equity reporting
requirements; and (v) align the legislation with the salary
breakdown used by Statistics Canada to capture salary increments up
to $250,000.
Currently, the federal Labour Program is inviting submissions
from the public, including employers, on the proposed regulatory
amendments. Submissions are due by September 9, 2019.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Chapter 4: Employees (Video)
