Pay Transparency Act, 2018

The Pay Transparency Act, 2018 (the “PTA”) passed its third reading on April 26, 2018 and received Royal Assent on May 7, 2018. It is scheduled to come into force on January 1, 2019. The PTA establishes requirements for employers to disclose information about compensation of employees and prospective employees, and prohibits an employer from requesting certain information. The key changes that this legislation will make are the following:

  • Compensation History – No employer will be permitted to request compensation history information about an applicant by “any means”.

  • Posting Requirements – Every employer who publicly advertises a job must include in the posting the expected compensation for the position or the range of expected compensation.

  • Pay Transparency Reports – Employers with more than 100 employees will be required to prepare and post a pay transparency report that contains information relating to the employer, their workforce, and differences in compensation with respect to gender and other prescribed characteristics. This obligation will begin on May 15, 2021 for employers with 100-250 employees, and on May 15, 2020 for employers with more than 250 employees.

  • Reprisal – The PTA sets out specific reprisal provisions prohibiting, for example, disciplining an employee for sharing their compensation information with another employee or asking the employer about compensation. Complaints in this regard are filed with the OLRB.

  • Compliance – The PTA sets out a rigorous compliance scheme which includes compliance audits which may be performed without a warrant, monetary penalties (to be determined by regulation), and non-monetary penalties such as publishing the notice of contravention on the internet.