e2r Alert

Ontario Proposes Pay Transparency Bill

March 15, 2018

If you thought you could get away with major discrepancies between your employees’ compensation, think again. Ontario has now proposed a “pay transparency” bill which, if passed, will require employers to track and report compensation gaps based on gender or other various diversity measures.

If passed, the bill would include the following:

  • Publicly advertised job postings would need to include a salary rate or range.
  • Employers would not be able to ask job candidates about their past compensation.
  • Employers will be prohibited from reprisals against employees who discuss or disclose compensation.
  • Large employers would need to report compensation gaps based on gender and other diversity characteristics. This information would need to be publicly posted in the workplace and disclosed to the province.

The proposed bill would apply to Ontario public service initially, followed by employers with more than 500 employees, and would eventually extend to employers with more than 250 employees.

The proposed bill would make Ontario the first province in the country to legislate pay transparency in the recruitment process.

We will be sure to keep clients updated as this bill passes through the legislature. In the meantime, if you have any questions about how this proposed bill might affect you, please do not hesitate to contact us to speak with an e2r® Advisor.

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