In 2021, the federal government appointed a task force to advise on how to modernize and strengthen the federal Employment Equity Act (the "Act").

The Act first came into force in 1986 and was significantly revised in 1995. The Act's stated purpose is to "achieve equality in the workplace so that no person shall be denied employment opportunities or benefits for reasons unrelated to ability" and "to correct the conditions of disadvantage in employment experienced by women, Aboriginal peoples, persons with disabilities and members of visible minorities."1 These four groups - women, Aboriginal peoples, persons with disabilities and members of visible minorities - are currently the designated groups that the Act seeks to promote through equitable representation.

There are three broad programs under the Act:

  • The Legislated Employment Equity Program ("LEEP") which applies to (i) federally regulated private-sector employers with 100 or more employees, (ii) federally regulated Crown corporations with 100 or more employees, and (iii) other federal organizations with 100 or more employees;
  • The Federal Contractors Program ("FCP") which applies to (i) provincially regulated organizations doing business with the Government of Canada, (ii) that have a combined workforce in Canada of 100 or more permanent full-time or part-time employees, and (iii) received an initial federal government goods or services contract valued at $1 million or more; and,
  • The Workplace Opportunities: Removing Barriers to Equity Program that supports employers subject to the Act in efforts to improve designated group representation.

So while the Act is federal, it applies, in a limited way, to provincially regulated employers participating in the FCP.

The Task Force's Recommendations

The task force has now published its modernization and strengthening recommendations in a December 11, 2023 report entitled ATransformative Framework to Achieve and Sustain Employment Equity(the "Report"). There are approximately 182 recommendations.

Several of the recommended changes have garnered significant media attention. These include:

  • The creation of Black workers as a separate designated group under the Act. In citing Census data, the report indicates that Black workers are more likely to report facing discrimination or unfair treatment in the workplace.2 Both Canadian and American studies have found that employers are still less likely to call back candidates with "racialized" names, or select them for interviews, compared to other candidates with the same qualifications.3
  • That 2SLGBT+ workers should comprise a new, separate designated group under the Act. The report highlighted that 2SLGBT+ workers have endured a "disturbingly recent history" of persecution and indicated that employees whose membership in the 2SLGBT+ community is more visible (by the way they present themselves, dress, speak, etc.) may be discriminated against and "othered" consciously or subconsciously.4
  • Replacing the term "Aboriginal Peoples" with "Indigenous People".
  • Replacing the term "members of visible minorities" with "racialized people".
  • Establishing an independent equity commissioner, who would report to Parliament, to ensure compliance with the Act and have authority to levy greater penalties for violations.

The federal government has indicated a commitment to conduct further consultations and consider potential legislative amendments to the Act. The federal government has advised that the next step will be to conduct further consultation with affected communities, unions and employers on how best to implement the task force's recommendations.

Takeaways for Employers

Federally regulated employers in the LEEP and provincially regulated employers in the FCP should review the report's recommendations and consider participating in any federal government consultations to ensure the voice of employers is heard. Potential revisions to Act will affect their employment equity obligations, possibly including the data you are required to collect from your employees and to report for various employment equity programs and your pay transparency obligations.

Footnotes

1. Act, s. 2

2. Statistics Canada (2020).

3. Statistics Canada (2020); Oreopoulos (2011).

4. Task Force Report, pg. 68.

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