Canada:
Update On British Columbia Pay Transparency Requirements
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Beginning on November 1, 2023, in accordance with British
Columbia's Pay Transparency Act (the "Act"),
employers will be required to specify the expected salary or wage
or expected salary or wage range, as well as any other information
prescribed by regulation, for any publicly advertised job
opportunity.
Purpose of the Act
The purpose of the Act is to address systemic discrimination
in the workplace and reduce pay gaps which disproportionately
impact women, people of colour, people with disabilities, and
non-binary people. Our
previous pay transparency bulletin provides
context about the general trend towards pay transparency across
Canada and in other jurisdictions.
Job Posting Requirements
The requirement to post wage and salary information applies to
all employers, including those based outside of British Columbia,
who post a publicly available job opportunity that is open to BC
residents and that may ever be filled by a BC resident, either
in-person or remotely. To comply with the Act, Employers will need
to specify either an expected salary or wage (i.e. $20 per hour or
$50,000 per year) or an expected salary or wage range (i.e. $20-$30
per hour or $50,000-70,000 per year). A statement that the
compensation will be "$20 per hour and up" or "start
at $50,000 per year" will not meet the requirements in the
Act. At this time, the provincial government has not limited how
large the advertised salary or wage range may be; the determination
of the range is up to the employer and should reflect the
employer's expectation of what the range will be.
There is no requirement for employers to provide additional
compensation information regarding bonus pay, overtime pay, tips,
or benefits in a publicly advertised job opportunity. Employers do
not need to provide salary or wage information for opportunities
that are not posted publicly or for general recruitment campaigns
not limited to any specific opportunity.
Reporting Requirements
The Act requires certain employers to prepare annual Pay
Transparency Reports available to all employees and the public,
including information about differences among prescribed groups of
individuals in relation to pay, a description of trends in relation
to the differences in pay for the prescribed groups of individuals,
the number of reports of the employer's non-compliance with the
Act and the nature of those reports, and any other prescribed
information. The British Columbia government and the largest
provincial Crown corporations are required to publish their first
annual pay transparency reports by November 1, 2023. After 2023,
private employers will need to prepare their first annual Pay
Transparency Report and make it available to all employees and the
public as follows:
- By November 1, 2024 if they have 1,000 employees or more in
British Columbia;
- By November 1, 2025 if they have 300 employees or more in
British Columbia;
- By November 1, 2026 if they have 50 employees or more in
British Columbia; and
- By November 1, 2027, if they have less than 49 employees in
British Columbia, but more than a number prescribed by
regulation.
The province is currently working on regulations to the Act
which are expected to be released later this Fall and which will
provide additional clarity about reporting requirements.
Prohibition on Inquiries Regarding Pay History and
Retaliation
In addition to posting and reporting obligations, the Act
prohibits employers from asking job applicants for information
about their pay history, unless the information is publicly
available. The Act further prohibits employers from retaliating
against employees for:
- Making inquiries to the employer about their pay;
- Disclosing information about their pay to another employee of
the employer or to an individual who has applied for employment
with the employer;
- Making inquiries to the employer about a Pay Transparency
Report or information contained within that Report;
- Asking the employer to comply with the employer's
obligations under the Act; or
- Making a report to the Director of Pay Transparency in relation
to the employer's compliance with the employer's
obligations under the Act.
Impact of the Act
Employers will need to revise their publicly available job
advertisements to ensure that the language in the advertisements
complies with the requirements of the Act. Employer representatives
will need to ensure they are aware of their obligations under the
Act, including the prohibition on inquiries regarding pay history
and reprisals.
As the Act will make salary or wage information available to
employees from the outset, employees may be better able to
determine whether the compensation for a specific role is aligned
with their expectations. However, the Act does not prohibit
employees from negotiating the salary or wage associated with a
role, and access to the salary or wage information associated with
a position may empower an employee to negotiate higher compensation
than they would have otherwise received. Employers will need to be
ready for employees to be better equipped to negotiate
compensation.
We will continue to update you regarding new obligations related
to pay transparency as more details emerge. If you have any
questions in the meantime, please do not hesitate to contact the
authors or your regular Fasken lawyer.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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