Will the Pay Transparency Act Narrow the Gender Pay Gap? Bill 57 Halts our Chance to Find Out

Despite pay equity and anti-discrimination laws, female workers in Ontario earn less than their male counterparts. To address this gender wage gap, shortly before 2018 provincial election the Liberal government passed the Pay Transparency Act (“PTA”), putting the onus on employers to publicly report gender pay to build fairer workplaces. It was scheduled to take effect on January 1, 2019.

The PTA would have created numerous requirements for employers regarding compensation disclosure and filing pay transparency reports with the government. Specifically, the PTA prohibited all employers from either directly or indirectly asking job candidates about past compensation. It also would have required that employers post a compensation rate or range for all publicly advertised job postings, while prohibiting employers from reprising against employees who make inquiries about compensation practices.

Shortly after the election however, Premier Ford halted the coming into effect of the PTA by way of Bill 57.

On December 6, 2018, Bill 57, the Restoring Trust, Transparency and Accountability Act, 2018, received Royal Assent. It delayed the implementation of the Pay Transparency Act, 2018 (“PTA”) from January 1, 2019 to “a day to be named by proclamation of the Lieutenant Governor.”

What is the Status of Ontario’s Pay Transparency Act?

It is not known when the PTA will come into force. If I were a betting person I would say not while Doug Ford is Premier.

Since the PTA has been postponed, employers are currently not required to create pay transparency reports and may limit their employees’ ability to disclose their compensation information.

Further, employers do not have to determine a compensation range before posting a job; they can continue to determine compensation rates based on a variety of factors such as the candidate’s experience and qualifications.

For more information on an employee’s pay transparency obligations, contact an employment lawyer at MacLeod Law Firm. You can reach us at [email protected] or 647-204-8107.