Ontario Passes Pay Transparency Legislation
On April 26, 2018 Ontario passed legislation introducing pay transparency disclosure requirements. The legislation is aimed at creating fairness and improving gender pay equality.
The legislation will:
- Require all publicly advertised job postings to include a salary rate or range
- Bar employers from asking a job candidate about their past compensation
- Prohibit reprisals against employees who discuss or disclose compensation
- Establish a framework to require larger employers to track and report compensation gaps based on gender and other diversity characteristics, to be determined through consultation.
The transparency measures will be first implemented in the Ontario Public Service in 2019. Following consultation, the proposed new rules will then apply to employers with more than 250 employees in 2020, and will extend to those with more than 100 employees in 2021. Once fully implemented pay disclosure measures will require employers to share wage gap data within the workplace in addition to reporting them to the province.
HR professionals and employers in other jurisdictions will certainly be paying attention to the implementation and impact of these measures.