Then Now Next: Ontario’s Strategy for Women’s Economic Empowerment
Note: On November 15, 2018, the provincial government introduced a bill to delay the enactment of the Pay Transparency Act, 2018. Bill 57, Restoring Trust, Transparency and Accountability Act, 2018 affects a number of other acts, but specifically proposes to delay the planned January 1, 2019 enactment date of the Pay Transparency Act, 2018 “to a day to be named by proclamation of the Lieutenant Governor.” We will update this blog to advise you if and when Bill 57 passes.
Ontario has become the first province to introduce legislation (Bill 203) to increase pay transparency as part of a broad new strategy to advance women’s economic empowerment and build fairer, better workplaces.
If passed, the legislation would help ensure compensation is based on a job’s requirements and the candidate’s qualifications. Specifically, it would:
Require all publicly advertised job postings to include a salary rate or range.
Bar employers from asking a job candidate about their past compensation whether personally through the applicant, or through an agent. (However, an applicant may voluntarily disclose this information to a potential employer. The restriction does not apply to information which is publicly available.)
Prohibit reprisals against employees who discuss or disclose compensation. (Many employers have policies or terms in their contracts of employment which treat compensation as confidential information not to be disclosed by the employee to any one else. These policies and practices would have to change if Bill 203 becomes law.)
Establish a framework to require larger employers to track and report compensation gaps based on gender and other diversity characteristics, to be determined through consultation. (The current Bill proposes that some employers will be required to file a pay transparency report regarding its workforce’s compensation. The necessary components of this report would be outlined by the Ministry of Labour. The employer’s report would have to be posted online or in at least one conspicuous place in every workplace.)
The government has indicated that the proposed legislation is the central piece of Then Now Next: Ontario’s Strategy for Women’s Economic Empowerment, which also includes up to $50 million in funding over three years. The governmental strategy also proposes to:
Advocate for further enhancements to parental benefit entitlements
Expand and strengthen women’s centres, which provide skills training and a variety of supports to women — including immigrant, racialized and women experiencing, or at risk of, violence
Reinforce measures to promote women in corporate leadership
Increase women’s access to training and mentorship opportunities
Better support women entrepreneurs — including helping young women develop an entrepreneurial mindset, and creating the Ontario Women’s Entrepreneurship Association
Launch a social awareness campaign to break down gender stereotypes and promote gender equality at work, at home and in communities.
The pay transparency measures will begin with the Ontario public service before applying to employers with more than 500 employees. It will later extend to those with more than 250 workers.
PH TAKEAWAY
We will continue to monitor the progress of this proposed legislation and report on it accordingly. While employers do not immediately need to make changes, we suspect that, given the governments overall strategy, the Bill will move quickly to become law. Therefore, employers should familiarize themselves with Bill 203 and consider reviewing and revising their practices and polices to reflect the changes being proposed.
