Information from this blog post can be viewed on the government of BC’s website here.
In a commitment to fostering fairness and equality in workplaces, the Pay Transparency Act, enacted on May 11, 2023, brings forth important changes for employers in British Columbia. This legislation seeks to ensure fair compensation practices, particularly addressing the challenge of pay disparities among different groups.
Reasons Behind the Change
At the heart of every community lies the principle of fairness. However, recent findings revealed a concerning gap in earnings, where women in British Columbia earned, on average, 17% less than men. These disparities call for measures to promote equal pay for equal work, nurturing an environment of fairness and equality.
Essential Aspects of the Pay Transparency Act
Elimination of Pay History Inquiry: Employers are now restricted from inquiring about an applicant’s previous salary from other employers during the hiring process. This change aims to prevent perpetuating pay gaps based on historical earnings.
Protection from Retaliation: Employers are prohibited from penalizing employees who seek information about their pay, discuss compensation with colleagues or potential employees, or inquire about their employer’s pay transparency report. This safeguard ensures that employees can freely seek fair compensation without fear of repercussions.
Implications for Job Postings
Starting November 1, 2023, all employers in British Columbia are required to include the expected salary or salary range for publicly advertised job postings. This step promotes transparency, empowering job seekers with essential information to make informed decisions.
Employer Reporting Requirements: Employers of various sizes must submit annual pay transparency reports, highlighting any pay discrepancies within their workforce. This reporting requirement will be phased in over the next few years based on the size of the employer’s workforce, beginning with government entities and larger corporations.
- By November 1, 2023: The British Columbia government and the six largest Crown corporations will commence annual pay transparency reports.
- By November 1, 2024: Employers with 1,000 or more employees will initiate annual reporting.
- By November 1, 2025: Employers with 300 or more employees must begin annual reporting.
- By November 1, 2026: Employers with 50 or more employees will start annual reporting.
These reports will help identify disparities in pay among different groups within the organization, fostering a fairer work environment.
How this affects BCYD
Our job posting submission form on the jobs page now requires employers to submit the expected pay. Job postings that don’t include the expected salary will not be accepted.
Further, if you are publicly posting a position on your own website, or a service like Indeed, you will be required to disclose the expected salary amount.
Disclaimer: This blog post aims to provide information and guidance and should not be considered as legal advice.