Overview of the Legislation 

British Columbia recently passed the Pay Transparency Act (the Act). This legislation aims to identify and eliminate pay differences among groups of workers and close the gender pay gap. 

– Obligations of Employers Under the Act

Under this legislation, employers have several new obligations towards their employees regarding pay. For example, when employers publicly advertise job opportunities, they must now specify the expected salary/wage or the expected salary/wage range for the position. 

Employers over a specified size will also be obligated to prepare an “annual pay transparency report” comprised of a compilation of employee information. The full details of what employers must include in these reports have yet to be determined but will be outlined under future regulations.  Generally, these reports will require employers to collect information such as employees’ self-identified gender and outline how such factors impact their pay. Once these reports are finalized, employers will be required to publish them to a public website, or alternatively make a copy of the report available to employees in the workplace, as well as to members of the public who request it. 

– Restrictions on Employers Under the Act

Employers are also restricted from seeking pay history of job applicants, and are prohibited from dismissing, suspending, demoting, disciplining or harassing employees where employees make inquiries about their pay, disclose information about their pay to others, or attempt to assert their rights under the Act. 

Benefits of Pay Equity Legislation

The obvious aim of pay equity legislation is the eradication of systemic discrimination in the workplace. The gender pay gap remains a significant issue, with women generally earning substantially less than their male counterparts. As the name suggests, pay transparency legislation makes pay inequity overt and transparent. Making information in annual pay transparency reports readily available will bring employers with discriminatory payment practices under scrutiny. 

The benefits of BC’s pay transparency legislation extend beyond the traditional understanding of the gender pay gap. For example, the BC government’s discussion paper on the Act provides that this legislation “may require employers to provide information on equity characteristics in addition to gender and wages”. These additional categories include age, ability, race/ethnicity/faith identity and indigenous identity. Attention to such information takes into account the unique experience of individuals with intersecting identities (such as gender and race). In addition, the BC government has recognized that the Act is needed to address the disproportionate effects of the gender pay gap on non-binary people. 

Ontario’s Pay Equity Legislation

Ontario introduced pay equity legislation in 2018, however, it was never brought into force. The Ontario Pay Transparency Act imposes requirements on employers similar to those outlined in the BC legislation. Despite the obvious benefits for marginalized individuals posed by pay transparency legislation, the current Ontario government has not prioritized the implementation of the Pay Transparency Act.

Takeaway

BC’s pay transparency legislation represents a positive step in the direction of pay equity, not only with respects to the categories of men and women, but for women and non-binary individuals with other intersecting identities. 

While the Ontario government made strides with the passage of its own Pay Transparency Act, it is uncertain whether the current government will follow BC’s lead and bring this Act into effect. It would be wise for Ontario to do so in order to address ongoing issues of systemic discrimination.