Ontario Pay Transparency Update
March 18, 2019
Employment Standards
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Employment
Bill 57, Restoring Trust, Transparency and Accountability Act, 2018, which received Royal Assent at the end of 2018, suspended the coming into force of the Pay Transparency Act, 2018. As a result, the Pay Transparency Act, 2018 is not yet in force and it is currently unclear when or whether it will be.
As we previously reported, the now halted Pay Transparency Act, 2018 would prohibit employers from seeking compensation history information from applicants; would require employers to include information about the expected compensation or range of compensation in publically advertised job postings; and would also require certain employers to file pay transparency reports. Upon coming into force, the Pay Transparency Act, 2018 would also provide for employer audits and contraventions, including anti-reprisal provisions.
Why the delay?
The Ontario Ministry of Labour is currently conducting public consultations with respect to the above-noted pay transparency reporting requirements, which would require certain employers to report on differences in compensation between men and women, and on workforce composition with respect to gender. These consultations will close on April 5, 2019.
It is unknown whether the Pay Transparency Act, 2018 will be further amended following the government’s public consultation. We will monitor the progress of pay transparency initiatives and post additional updates regarding the development of Ontario’s pay transparency legislation as they become available.
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Unlike pay equity obligations, which are already applicable to most provincially regulated employers by virtue of the Pay Equity Act, there are currently no legislated pay transparency obligations in Ontario. However, employers are well advised to follow pay transparency developments.
Need more information?
Should you need more information about pay transparency or pay equity obligations, please contact your regular lawyer at the firm.
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