Pay Transparency Act, 2018: New Requirements for Employers

 

On April 26, 2018 the Ontario government passed Bill 3, Pay Transparency Act, 2018, which establishes requirements regarding the disclosure of compensation details of employees and potential employees.

The purpose of the Pay Transparency Act, 2018 is to help close the gender pay gap through increased transparency surrounding compensation. These new requirements are in addition to the recent legislative changes made under Bill 148.

As of January 1, 2019, the Pay Transparency Act, 2018 will:

• Prohibit employers from requesting compensation history from any job applicant;
• Require employers to post the expected compensation or compensation range on publically advertised job postings;
• Implement the requirement of employers with 100 employee or more to prepare pay transparency reports; and,
• Prohibit reprisals against employees who inquire about their compensations, disclose their compensation to other employees, inquire about the pay transparency report of the content thereof, provide information to the Ministry of Labour regarding the employer’s compliance or non-compliance with the Pay Transparency Act, 2018, or ask the employer to comply with the Pay Transparency Act, 2018.

In regards to the pay transparency report requirement, employers with 250 employees or more will have to submit their first report by May 15, 2020 and employers with 100 or more employees but fewer than 250 employees will have to submit their first report by May 15, 2021.

For employers, while there are several months before this Act comes into effect, now may be a good time to review hiring and compensation practices to ensure they will be in compliance once the Pay Transparency Act, 2018 comes into force on January 1, 2019.

Minken Employment Lawyers is your source for expert advice and advocacy on today’s employment law issues. Whether you are an employer or an employee, we can help. For further information regarding the new Act and its requirements, contact us.

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