By Wendy Ferguson, Chemistry Consulting Group

The Pay Transparency Act is now law in British Columbia, and all employers must take necessary steps to comply with the new legislative requirements. Organizations that fail to adapt risk non-compliance and reputational damage. Federally regulated employers must comply with the Employment Equity Act instead.

Disclosure of Salary/Wage Information on Job Postings

As of November 1, 2023, all BC employers are required to include the expected salary, wage, or salary/wage range in every publicly advertised job posting. This includes:

• Job boards
• Company career pages
• Professional association postings
• Recruitment agency listings

Ensuring accurate disclosure in job postings is a critical step for HR compliance and talent acquisition.

Prohibited Conduct Under the Act

Employers may no longer request an applicant’s pay history unless it is publicly accessible. Direct inquiries or third-party information gathering is prohibited.

The Act also strictly prohibits retaliation against employees who:

• Make inquiries about their pay
• Disclose pay information to colleagues
• Request pay transparency reports
• Ask employers to comply with the Act
• Report compliance concerns to the director

Retaliation can include suspension, demotion, discipline, harassment, termination, or other disadvantages.

Reporting Requirements

Reporting obligations will roll out in stages, starting with large organizations:

• 2024: Employers with 1,000+ employees
• 2025: Employers with 300+ employees
• 2026: Employers with 50+ employees
• After 2026: Employers with fewer than 49 employees (unless exempted)

Reporting employers must prepare an Annual Pay Transparency Report by November 1 each year. Reports must be distributed to all employees and published on a publicly accessible website.

The report will include:

• Employer and workforce details
• Pay gaps based on self-identified gender
• Differences in wages, overtime, and bonuses for men, women, and non-binary employees

Employers must also make reasonable efforts to collect gender information following the new Gender and Sex Data Standard.

Starting June 2024, the provincial government will publish an annual summary highlighting pay differences, trends, and non-compliance reports.

Human Rights and Privacy Considerations

While the Act does not create new employee rights to contest pay, BC employees retain the ability to file complaints with the BC Human Rights Tribunal if discrimination occurs based on sex or gender identity.

Employers should also carefully manage personal information collected for pay transparency reporting. Privacy requirements differ for public and private sector organizations.

Summary and Next Steps for BC Employers

The Pay Transparency Act aims to close the gender pay gap and address systemic discrimination in the workplace. While most BC employers are not immediately subject to full reporting requirements, the majority of the Act is already in force.

Key compliance steps include:

• Updating recruitment and hiring practices prior to November 1, 2023
• Revising job postings to include salary or wage ranges
• Eliminating requests for pay history during recruitment
• Preparing for future reporting obligations

At Chemistry Consulting Group, we support BC employers in:

• Updating HR policies and employment contracts
• Creating communication plans for employees
• Ensuring compliance with recruitment regulations
• Conducting training on pay transparency and HR compliance