Ontario is the latest province in Canada to consider legislation on pay transparency in public job postings, with implications for employer pay and recruitment policies and practices.
Employer Action Code: Monitor
Ontario has introduced amendments to the Employment Standards Act, 2000 that will, if passed, include new requirements for publicly advertised job postings to increase pay transparency obligations of employers. Bill 149 (Working for Workers Four Act, 2023) was approved at Second Reading in the Legislative Assembly of Ontario on November 23 and was referred to a Standing Committee on Social Policy.
Key details
Specifically, employers would be required to:
- Set out the expected compensation or range of compensation for the advertised position
- State, if applicable, that artificial intelligence is used to screen, assess or select applicants
- Not include any requirements related to "Canadian experience" (i.e., experience working in Canada)
- Retain copies of publicly advertised job postings and associated application forms for three years after the posting is removed. Additional requirements and exceptions may be set out in regulations.
Employer implications
If approved, Ontario would become the third province to enact pay transparency legislation for the private sector (following British Columbia and Prince Edward Island). Similar legislation in Newfoundland and Labrador has yet to take effect. Employers should monitor progress of the proposed reforms and prepare to review their policies and practices on pay and recruitment to ensure compliance, including but not limited to the development of a pay transparency strategy, internal assessment of readiness, and communication and education approach.
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.
