Introduction
On November 6, 2023, the Government of Ontario announced its plan to introduce legislation Ontario Mandate Salary Disclosures in Job Postings requiring employers to include an expected salary range in job postings.
Addressing the Wage Gap in Ontario
While intended to benefit a wide range of job seekers, according to the Government the primary motive behind the proposed legislation is to close the wage gap that endures in the province between men and women.
Gender Disparity in Ontario’s Workforce
According to a news release issued by the Government, women in Ontario earn an average of $0.87 for every dollar earned by men, and the disparity is worse for racialized and Indigenous women.
“It’s an unacceptable reality that women today in Ontario earn an average of 87 cents for every dollar earned by men,” Ontario Labour Minister David Piccini said at a news conference. “Including salary ranges with job postings can help close the gender pay gap, while allowing companies to find qualified candidates faster and improve retention, helping tackle the labour shortage.”
Comparison with British Columbia Pay Transparency Laws
Once the legislation passes, Ontario would become the second province in Canada to mandate salary disclosures in job postings. Earlier this year, the Government of British Columbia enacted Bill 13, Pay Transparency Act (“Act”), requiring employers to include the expected pay, or expected pay range for publicly advertised job opportunities starting November 1, 2023.
Prospects for Ontario Salary Disclosure Legislation
In British Columbia, few employers governed by the salary disclosure mandate are also required to prepare and annual “Pay Transparency Report”, and publish it on a publicly-accessible website as soon as possible after the report’s completion. Employers must also make a copy of the report available to any member of the public (not necessarily an employee or prospective employee) who requests one. It is unclear at this time whether Ontario will impose the same or similar requirements. When the legislation tables, more details will become available.
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Ontario – to Require Employers to Disclose Salary Ranges and AI Use in Hiring