The Pay Transparency Act as of November 1, 2023 requires all employers to set out the expected salary range for all publicly advertised job vacancies. {efn_note] Pay Transparency Act, S.B.C., c. 18 [/efn_note] The Act received royal assent in May of 2023.
The objective of the law is to eliminate the pay gap which may impact indigenous women, women of colour, immigrant women, and those women suffering from disabilities and non-binary persons.
Employers are now forbidden from asking candidates what their prior salaries have been. A company may, however, use data showing existing pay information to determine the salary for a new position and may also rely upon publicly accessible information detailing compensation for similar positions.
An employer may not take disciplinary action against an employee who reveals their salary to a colleague or a person applying for a new position, or asks the employer about its pay transparency report or gives information to the Director of Pay Transparency, or makes inquiries to the employer about their pay.
The Province has now introduced guidelines as to its expectations. These do not have the force of law, yet are certainly well worth a complete review. A summary of the significant components is as follows:
- The company must provide the expected base salary. The decision to include incremental details such as bonuses, commissions, gratuities, benefits and the like is strictly voluntary;
- The salary range must include a low and high amount, such as $50,000 to $60,000;
- Neither party is limited by the offered range as to the high side amount. The employee may request a sum over and above the stated range as may the employer offer a higher sum;
- These requirements apply to positions advertised outside the province, as long as the position is open to B.C. residents and may be offered to a B.C. resident for on site employment or remotely;
- The law applies only to positions that are posted publicly.
The law also requires the completion and posting o “pay transparency reports” by November 1 of each year. The first filing date is determined by the number of employees, part from the B.C. Government and its six largest Crown corporations which must report as of November 1, 2023. This is followed by companies with over 1,000 employees, 300 employees, and 50 employees being added to this obligation in each successive following year. These reports must be published on the company’s website. There is not presently a penalty or enforcement section of the Act.