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ARTICLE · 30 MAY 2019

Recent Divisional Court Ruling Has Significant Implications For Public Sector Employers Using Proxy Method For Pay Equity Compliance

With smaller broader public sector employers like daycares and women's shelters already facing declining government funding, a recent Court decision overturning the Pay Equity

CanadaEmployment and HR

With smaller broader public sector employers like daycares and women’s shelters already facing declining government funding, a recent Court decision overturning the Pay Equity Tribunal’s long standing practice of not requiring employers using the proxy method of comparison to go back to the original Proxy employer for updated male comparator information to maintain pay equity could mean further significant costs to these organizations already struggling to meet the demands of those they service in our communities.

Since 1993, employers in the broader public sector (as defined in the Pay Equity Act “PEA” and Regulations) who did not have sufficient male comparators in their organization to conduct a pay equity analysis were required to use the “Proxy” method of comparison.  These “Seeking” employers were generally smaller, female dominated workforces.   Using male comparator data provided by a “Proxy Employer” (generally larger public sector employer where job rates

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