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Bill 203, the Pay Transparency Act, 2018, was introduced by the Ontario Government on March 6, 2018. The purpose of this Act is to address the wage gaps and increase pay transparency by requiring employers to track and publish employee compensation details.
With the increased discussion regarding gender-based wage discrimination in the workplace, the Ontario Government examined the policies of other countries such as Australia, Germany and the United Kingdom when creating Bill 203.
If Bill 203 is passed, the legislation will:
· Prohibit employers to ask job applicants what their past compensation was;
· Require employers to include expected compensation rates/ranges in all publicly advertised job postings;
· Require larger employers to publish pay transparency reports that include information on the workforce composition and difference in pay based on gender and other characteristics;
· Allow compliance officers significantly broader powers to conduct investigations and compliance audits of employers; and
· Prohibit employers from reprising against employees for making inquiries into compensation or the pay transparency reports, disclosing their compensation to coworkers or requesting employers comply with pay transparency obligations.
If the Bill is passed, the Ontario Government has indicated that the changes will be brought forth in phases, beginning in the public service sector, followed by employers with more than 500 employees and then employers with more than 250 employees.
It is expected that the legislation will be passed in May and come into effect in January 2019.
Contact Monkhouse Law today for a free 30-minute consultation regarding any issues you are experiencing as a result of pay equity or discrimination in the workplace.
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