Pay Transparency Act is in effect in BC starting Nov 1, 2023. It will bring numerous changes to your recruitment process.
Article by courtesy of Meryl Yildirim, founder of Lightning HR Solutions
New Rules on Wage Negotiation
This is a friendly reminder that, starting Nov. 1, 2023, the new Pay Transparency Act will bring changes to your recruitment process.
Here’s what this new law means for BC employers and what you should do to ensure compliance.
No Inquiries on Previous Pay Rates
Change
Employers can no longer ask candidates about their previous pay rates during the hiring process.
What to Do
Please update your hiring processes to avoid questions about previous pay rates. It’s important to review your recruiting practices and implement training to ensure your recruiters understand and don’t violate these new laws.
Mandatory Pay Rates on Job Posting
Change
As of November 1, 2023, all job postings for positions in BC must include the expected pay or pay range. (If your roles are not publicly advertised, you are not required to share salary information at the early stage of the hiring process)
What to Do
Make sure that all job postings that are publicly advertised include clear information about the expected wage or salary or expected wage or salary range. You do NOT need to include bonus pay, overtime pay, tips, or benefits on job postings. However, you may voluntarily choose to include this or other information to attract top talent.
No Punishment on Pay Rate Discussion
Change
Employers CANNOT discipline employees for discussing their pay with colleagues, inquiring about the company’s pay transparency report, or providing information to the Director of Pay Transparency about their employer.
What to Do
Review and revise company policies to ensure they align with these new protections. Encourage open communication about pay while respecting confidentiality where necessary.
Pay Transparency Report
Change
By November 1, 2023, the BC government and the six largest Crown corporations are required to publish annual pay transparency reports. Eventually, all BC employers with more than 50 employees will have to create an annual pay transparency report.
What to Do
Prepare to generate and submit an annual pay transparency report if your company meets the criteria. This report should include data on compensation and pay equity within your organization.
Deadlines for Pay Transparency Report
Change
Employers should meet specific deadlines for creating pay transparency reports based on their company size.
What to Do
Familiarize yourself with these deadlines:
- By November 1, 2024: Employers with 1,000 employees or more
- By November 1, 2025: Employers with 300 employees or more
- By November 1, 2026: Employers with 50 employees or more
Source of information:
Government of British Columbia Website: Pay transparency laws in B.C.
FREE consultation by Meryl
If you have any questions about the new Pay Transparency Act and need guidance on how to implement it into your hiring practices, Meryl Yildrim current offers a 40-minute free consultation to answer any questions you may have. She can be reached at:
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