Employment and Labor Law

Employment Update: Pay Transparency, the Use of AI in the Hiring Process, and More

On November 6, 2023, the government of Ontario announced plans to introduce pay transparency legislation that, if passed, would require Ontario employers to include expected salary ranges in job postings. According to the Ministry of Labour’s News Release, only 37% of online job postings in Ontario include salary information. This move is aimed at closing the gender pay gap, which in Ontario stands today at women earning an average of $0.87 for each dollar earned by men.

The anticipated Ontario pay transparency legislation is part of a growing trend in Canada. In May 2023, British Columbia passed its own Pay Transparency Act, requiring BC employers to include salary or wage information on public job postings. BC’s Pay Transparency Act also prohibits BC employers from asking job applicants about their previous salaries or wage rates with other employers and prohibits reprisals against employees who disclose information about their pay to other employees and job applicants.

USE OF AI IN THE HIRING PROCESS
In addition, the proposed legislation would also make Ontario the first jurisdiction in Canada to require employers to let job candidates know if artificial intelligence (AI) will be used during the hiring process. This move is in response to increasing concerns about the ethical, legal and privacy implications of AI tools and algorithms, which according to the Ontario government are being adopted by Ontario businesses at a rapid rate.

NON-DISCLOSURE AGREEMENTS
Further, the government of Ontario announced that it will be conducting consultations on banning the use of Non-Disclosure Agreements (NDAs) in settlement cases involving workplace sexual harassment, misconduct and violence. The government News Release states that 7 in 10 workers have reported experiencing a form of harassment or violence in the workplace, and that rate is even higher for women and gender-diverse workers. This move is intended to protect workers and address mistreatment and abuse in the workplace.

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