Ontario becomes first province to pass 'pay transparency' legislation

Apr 26 2018, 4:25 pm

Ontario is the first province in Canada to pass pay transparency legislation.

According to the province, the legislation passed today to “increase transparency in hiring processes and give women more information when negotiating compensation that is equal to their male peers.”

Starting on January 1, 2019, the province will require all publicly advertised job postings to include a salary rate or range, ban employers from asking a job candidate about their past compensation, prohibit reprisals against employees who discuss or disclose compensation, and 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.

“This new legislation is part of our overall commitment to fairness in Ontario’s workplaces and will help ensure that women and other groups are treated equitably,” Kevin Flynn, Minister of Labour, in a statement. “The Pay Transparency Act, 2018 will aid us in narrowing the gender wage gap.”

Ontario’s pay transparency disclosure measures will begin with the province’s Public Service.

The province says that proposed new rules will apply to employers with more than 250 employees in 2020, and will extend to those with more than 100 employees in 2021.

“This will shine a light on the practices of the majority of Ontario businesses and will set the standard for all workplaces to follow,” states a government release.

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