Ontario's New Pay Transparency Rules: What Job Seekers AND Current Employees Need to Know

With the new year comes a new slate of rules pertaining to job postings in Ontario, with significant implications for those looking to make a career move, those looking to stay put, those who post jobs, and those who make salary decisions and set budgets.

As of Jan. 1, most employers in the province are required to list salary ranges on job postings, follow up with candidates they interview within 45 days, and disclose artificial intelligence use in hiring, among other changes included in Bill 149, the Working for Workers Act.

The bill is modeled after similar regulations that have been enforced for federally regulated workplaces since 2021, on the books in Prince Edward Island and Newfoundland and Labrador since 2022, and in British Columbia and Nova Scotia since 2023.

“Overall, Ontario is seeking to provide fair and more transparent rules for job applicants,” says Charlie Herrera Vacaflor, a senior legal consultant for HR consulting firm Peninsula Canada. “It’s about bringing dignity and fairer treatment to the job market.”

Key Changes and Their Impact

The new set of rules also comes with a few items aimed at making it easier for new entrants into Ontario’s labour force, both from other provinces and from abroad.

“There is a specific prohibition against employers requiring Canadian work experience,” says Mr. Herrera Vacaflor. “For immigrant job seekers, this will empower them to have more stability and job security.”

Bill 149 also makes it easier for certain professionals who are trained and certified in other provinces to start working in Ontario as they pursue local accreditation as part of a broader push to reduce interprovincial barriers.

“Now they are able to start working on a conditional basis, with a six-month window to get certified in the province,” says Mr. Herrera Vacaflor. “There are over 30 professional associations that are impacted by this, including early childhood educators, dentists and dental hygienists, architects and engineers, nurses and healthcare professionals, and veterinarians.”

Compliance and Exemptions

Though it’s still early days, Mr. Herrera Vacaflor says employers seem to be complying with the new regulations, though job seekers may notice some non-compliant postings that are either exempt or posted prior to Jan. 1.

Those exemptions include jobs that pay more than $200,000 at the top end of the range for the base salary, contract positions, those posted by employers with fewer than 25 staff, or in cases where the majority of the work will be completed outside of Ontario.

“The No. 1 question we always get is, ‘what happens if we don’t comply?’” says Louisa Benedicto, the senior vice-president of HR recruiting for Hays Canada. “The answer is, we don’t know yet, but based on other laws like this that have come out, we expect that there will be a group that will be investigating when a claim comes in from an individual saying this organization didn’t comply with the legislation.”

Not only do employers who don’t comply run the risk of legal repercussions, but the data suggests it also won’t help their hiring efforts. According to a survey conducted by Hays Canada, 90 per cent of job seekers say they are more likely to submit an application when the salary is listed. Prior to Jan. 1, however, only about a third of Canadian organizations posted salary bands, according to the study.

Challenges and Opportunities for Employers

Coming up with the salary ranges can be a deceptively difficult task, as it requires organizations to have a strong understanding of various roles and compensation structures, according to Ms. Benedicto. She also suggests that, without much visibility into what the competition was offering, some may have also feared posting less competitive salaries.

As a result, many leaned on offering a slight premium from the candidate’s prior compensation, which could perpetuate pay inequities.

Now that everyone is required to be more transparent, Ms. Benedicto says those who don’t abide by the new requirements may find themselves struggling to attract candidates.

“When you’re searching for a job, and you see 95 per cent of organizations have salaries, and one doesn’t, guess what happens? They’re going to get less applications, and people aren’t going to trust the brand as much,” says Ms. Benedicto. “It’s not just about the law; it’s more about reputational risk and the fact that you’re less likely to fill the job as quickly.”

Impact on Current Employees

The new regulations seek to bring some fairness to job seekers, but Ms. Benedicto suggests the biggest impacts might be felt by existing staff. That’s because they can now see what their company offers candidates for similar roles.

“Now as a company you have to say, ‘this is what we would pay for this job,’” she says. “Every organization now is being forced into doing that good internal due diligence to make sure that people are getting paid fairly and equitably for the same job.”