What you need to know about Ontario’s Bill 3, the Pay Transparency Act

Ontario’s Pay Transparency Act, which became official in May 2018, has most of its provisions come into force on Jan. 1, 2019.

Among other things, the changes:

• prohibit employers from seeking compensation history information about an applicant for a position
• require employers to include in the expected compensation or range for the position in any publicly advertised job posting
• include anti-reprisal and arbitration provisions

Although January 1, 2019 is a significant date, many employers are more concerned about the upcoming deadlines for their organization’s “pay transparency report.”  Annual reporting obligations are being phased-in based primarily on employee size. 

Bill 3: Background

As listed in s.4 of the Pay Transparency Act, its purposes are:

  (a)  to promote gender equality and equal opportunity in employment and in the workplace, including equality of compensation between women and men, through increased transparency of pay and workforce composition;

  (b)  to increase disclosure of inequities related to employment and compensation that women and other Ontarians may experience in the workplace to encourage the removal of such inequities to promote the full and equal participation of women and other groups in the workplace;

   (c)  to promote, amongst employers, the elimination of gender and other biases in hiring, promotion, employment status and pay practices;

  (d)  to support open dialogue and workplace consultation between employers and employees on issues concerning employment, compensation and equal opportunity; and

  (e)  to support economic growth through the advancement of equity in employment and in the workplace for women and other groups.

Employers await details on reporting requirements

The regulations that would detail the requirements for reporting have not yet been released. The Act is clear, however, that these reports are to be posted by employers online or in a conspicuous place in every workplace. Further, the responsible Ministry will make the copy of the report that employers file with them publicly available and/or publish them online.