On November 6, 2023, the Ontario government announced that it intends to introduce legislation that, if passed, would require employers to include expected salary ranges in their open job postings and disclose of the use of artificial intelligence (AI) during the hiring process. This announcement comes in the wake of a growing and broader global trend for companies to use transparency in pay practices to identify and eliminate pay differences for historically disadvantaged groups. British Columbia (BC), for example, recently passed the BC Pay Transparency Act which imposes a number of pay transparency obligations on BC employers, including the disclosure of wage information in job postings and the publishing of pay transparency reports.[1] Several other provinces, including Prince Edward Island, Newfoundland and Labrador and Manitoba, already have pay transparency legislation. Ontario has become the latest jurisdiction which intends to mandate pay transparency practices.
In addition, the proposed legislation would make Ontario the first jurisdiction in Canada to require businesses to disclose of the use of AI during the hiring process. Increasingly, employers are using AI to screen through resumes or job applications to quickly and efficiently match job requirements with candidates’ qualifications and experience. The Ministry stated that legislation is needed to address the ethical, legal and privacy implications that can be associated with AI.
Lastly, the Ontario government announced that it will be conducting consultations on prohibiting the use of non-disclosure agreements in sexual harassment and workplace violence settlements. In keeping along with the theme of transparency, the Ministry suggested that businesses should not be permitted to shelter sexually harassing behaviour from the public eye.
It is unclear what the proposed changes will look like as the draft legislation has not yet been published. Dentons Canada’s Employment and Labour group will continue to monitor these developments and provide updates. Should you have any questions about these changes, please contact the author, Maggie Sullivan, or a member of our team.
[1] See this Dentons Insight for a detailed overview of this legislative development.
