New Compensation Rules Will Affect All Ontario Employers

Shortly before the Ontario legislature closed for business pending the outcome of the June 7 election, Ontario enacted Bill 3, which imposes new obligations on employers relating to the hiring process and the reporting of workplace compensation. This law presents some new risks but also some new opportunities for all employers in the province.

Bill 3, titled The Pay Transparency Act, 2018, means that, starting on January 1, 2019, Ontario employers must:

• Include a compensation rate or range in all publicly advertised job postings; and
• Not question a job candidate about past compensation.

Additionally, the government will establish a framework to require larger employers to track and report compensation gaps based on gender and other diversity characteristics. Once fully implemented, these measures would require employers to publicly post that data within their own workplaces and report it to the province which will, in turn, publish it. The timeframe