On March 6, 2018, the Ontario Government introduced Bill 203, the Pay Transparency Act, 2018, which is intended address wage gaps and increase pay transparency by requiring employers to track and publish employee compensation details.
If passed, the legislation will:
The Ontario Government has indicated that the proposed pay transparency disclosure measures will be phased in, beginning with the public service, followed by employers with more than 500 employees, and finally, extended to employers with more than 250 workers. In addition, consultations will take place regarding which specific diversity characteristics – in addition to gender – larger employers will be required to track and report on with respect to compensation gaps.
If passed, Bill 203 will impact hiring processes for all employers and create significant new compensation tracking and reporting obligations for larger employers.
Bill 203 passed first reading on March 6, 2018, and the current draft legislation can be found here.
We will be monitoring this legislation and will report on any changes as it progresses.