Are You Ready for Pay Transparency?

BC has taken a significant step to promote pay equity and combat systemic workplace discrimination with the introduction of the Pay Transparency Act. It's a game-changer for both employees and job seekers, offering them easy access to crucial data points during their job searches and shedding light on internal pay disparities.

As discussions on transparency and pay gain momentum globally and provincially, leaders should brace themselves for a growing interest in compensation discussions.

WHAT DOES THE PAY TRANSPARENCY ACT MEAN FOR EMPLOYERS?

BC employers will now:

• Be required to include wage information or salary ranges on all job postings.

• Refrain from asking about candidates' pay history.

Employers now also cannot discipline or dismiss an employee if they: 

• Ask their employer questions about their pay 

• Reveal what they’re paid to another employee or applicant

• Ask the employer about the pay transparency report

• Give information to the Director of Pay Transparency about their employer

Finally, employers are also mandated to prepare and publish pay transparency reports, addressing the gender pay gap. To facilitate a smooth transition, this requirement will be phased in:

• November 1, 2023: BC government and public-sector organizations (ex. BC Hydro, BC Housing, BC Transit, the Insurance Corp. of British Columbia, and WorkSafeBC)

• November 1, 2024: Employers with 1,000 or more employees

• November 1, 2025: Employers with 300 or more employees

• November 1, 2026: Employers with 50 or more employees

Regardless of your org’s size and when you will be officially required to publish pay transparency reports, the Pay Transparency Act is set to make significant waves in every workplace. In today's competitive landscape, even small businesses must proactively address pay transparency and tackle gender pay gap issues sooner rather than later.

AS AN EMPLOYER, WHAT’S THE FIRST STEP YOU NEED TO TAKE? 

Be ready for the tough questions from your team! This means understanding your duties under the Act and taking a critical look at your current internal pay philosophy, strategy, policies, procedures and practices. 

We recommend that every employer conduct a thorough internal pay audit to prepare for close scrutiny. This will allow you to identify any potential gender pay gaps or areas where you may need to adjust your total compensation practices to address inequities (and comply with the Act). 

Wondering how this new legislation will impact your organization? Unsure about where to begin with an internal pay audit? Reach out for a conversation with one of our experts today, we’re happy to help.