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Pay Transparency Legislation Gets the Green Light

Practice Areas: Employment Standards

Back in March we blogged on the Ontario Government’s announcement of a strategy on pay transparency called “Then Now Next: Ontario’s Strategy for Women’s Economic Empowerment”. The Ontario Government has followed through on this strategy just days before the writ dropped for the June 7 election. On May 7, 2018 Bill 3 or the Pay Transparency Act, 2018 received Royal Assent.

Bill 3 creates new rules governing the disclosure of information about compensation of employees and prospective employees. Publicly advertised job postings must include information about the expected compensation for the position or the range of expected compensation for the position.

The good news for employers is that this Act will not come into force into January 1, 2019 – and if a new government is elected it is possible that this Act may be repealed. 

Employers should take note of the obligations outlined in Bill 3. Bill 3 has been clarified since it was first proposed to provide details on employer obligations. We now know the following:

  • Employers with 100 or more employees must collect prescribed information for the purposes of preparing a pay transparency report no later than May 15 of each year.
  • Employer with 250 or more employees must submit the first pay transparency report no later than May 15, 2020.
  • Employers with 100 to 249 employees must submit the first pay transparency report no later than May 15, 2021.

Bill 3 also outlines that employers cannot ask for compensation history from an applicant – but if voluntarily provided, employers may continue to rely on the information.

Employers who are captured by this Bill should take note of these new obligations and the reporting dates. Although this Bill does not apply – employers should begin preparing now. The lawyers at CCPartners can assist you in determining your obligations and navigating this new piece of legislation.

Click here to access CCPartners’ “Lawyers for Employers” podcasts on important workplace issues and developments in labour and employment law. 



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