BC Pay Transparency Act: Employers – What You Need To Know
By: Michelle QuinnCo-authored by Summer Student, Roan Wallace
What is the Pay Transparency Act?
In 2021, the average pay gap between men and women in B.C. was 16.7% – higher than the national average of 12.9% and most other provinces. While current government statistics are limited, pay disparities also disproportionately impact those who identify as transgender, gender diverse, or non-binary.
The Pay Transparency Act (the “Act”) was passed on May 11, 2023 to address systemic discrimination and work toward eliminating gender-based pay disparities in British Columbia’s workforce. The Act introduces new transparency obligations for employers regarding the collection, disclosure, and reporting of pay information. The data will be used to identify and address pay disparities based on gender and other factors.
Most Canadian provinces and territories have already implemented pay transparency and pay equity legislation of various kinds. Alberta and Saskatchewan are the only provinces who have not yet implemented this type of legislation.
Key Requirements of the Act
Job Postings: As of November 1, 2023, B.C. employers must include the expected salary or wage range in publicly advertised job opportunities. However, general “help wanted” posters or recruitment campaigns where no specific position is advertised are not captured by this requirement.
Pay History: As of May 11, 2023, employers cannot ask applicants about their previous wage or salary unless the applicant’s pay information is publicly available.
Pay Secrecy: As of May 11, 2023, employers cannot dismiss, suspend, demote, discipline, or harass an employee who:
- Asks their employer about their pay;
- Shares their pay information with a co-worker or prospective applicant;
- Asks their employer about their pay transparency report; or
- Gives information about their employer to the Director of the Pay Transparency Report (The Director is the government official who monitors compliance with the Act).
Pay Transparency Report: Employers must complete annual transparency reports by November 1 of each year. The report will contain information on employee gender and diversity characteristics, and show differences in pay percentages across certain groups.
The reporting obligation will be phased in over the next four years as follows:
- November 1, 2023: the B.C. government and BC Hydro, BC Housing, BC Lottery Corp., BC Transit, ICBC, and Work Safe BC;
- November 1, 2024: all employers with 1,000 employees or more;
- November 1, 2025: all employers with 300 employees or more; and
- November 1, 2026: all employers with 50 employees or more.
The data will be gathered voluntarily from employees. Employers will also have access to an online tool to help them prepare the report. The Gender Equity Office will seek ongoing feedback from employers to ensure the reporting tool is working. Employers must publish the report publicly on their website. If employers do not have a public website, they must make copies of the report available to all employees and members of the public upon request.
The Government of BC aims to implement regulations by Fall 2023, which will describe the specific reporting format, and outline any exemptions from the obligations for which employees may qualify.
Enforcement: While there are currently no formal enforcement mechanisms in the Act, employers who fail to meet their reporting obligations may be listed as non-compliant in the Government of BC’s annual summary report. The Government will follow up with non-compliant employers to ensure future compliance.
Compliance with the Act
Employers can ensure compliance by:
- Understanding the year your reporting obligations will commence, based on the number of employees on January 1 of each year; and
- Start collecting data and implementing systems and procedures to ensure compliance well in advance of the deadline.
While the Act creates new and potentially challenging obligations for employers, it also presents the opportunity for employers to identify pay disparities, and be part of the trend toward improving fairness and equality in workplaces across BC.
If you would like more information or advice about the Pay Transparency Act and how to ensure compliance in your workplace, please contact any member of our Employment and Human Rights Group.
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Employers Beware – if you are contemplating retracting an offer of employment from a potential candidate you might want to think again in light of the recent B.C. court decision of Buchanan v. Introjunction Ltd., 2017 BCSC 1002. In this case, the B.C. Supreme Court found that the plaintiff employee was wrongfully dismissed when his employment was terminated shortly after his contract of employment with the defendant employer was executed but before he actually started work. The Court awarded him 6 weeks’ severance pay.
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When an employee resigns to pursue a new employment opportunity with a new employer, or to start a new business venture of their own, the departing employee has to be careful not to do anything which may breach the terms and conditions of their employment agreement, or the duties of loyalty, good faith, fidelity and confidence which all departing employees owe to their former employer.
