Understanding Ontario’s New Pay Transparency and AI Disclosure Requirements
Ontario’s New Employment Law Changes: What Workers Need to Know
On March 21, 2024, the Ontario government enacted new legislation aimed at improving transparency in hiring practices. The Working for Workers Four Act, 2024 introduces two key requirements for employers:
- Job postings must include expected salary ranges.
- Employers must disclose when artificial intelligence (AI) is used in hiring decisions.
These changes aim to promote fair pay practices and ensure job seekers are aware of automated decision-making in recruitment. Employers who fail to comply with these requirements may face fines and legal consequences.
Recent Legal Developments in Ontario
As of December 2024, the Working for Workers Five Act, 2024 introduced additional hiring-related amendments to the Employment Standards Act, 2000 (ESA). Key provisions include:
- Employers with 25 or more employees must disclose expected salaries in job postings.
- AI hiring tools must be disclosed when used in recruitment.
- Canadian work experience requirements are prohibited in job applications.
- Employers must confirm whether the posted job represents an existing vacancy.
- Applicants must be notified of hiring decisions within 45 days of their interview (source).
These legislative updates are expected to shape hiring practices across Ontario and may serve as the basis for future legal cases.
Pay Transparency and Wage Equity
Requiring employers to disclose salary expectations is a significant step toward closing wage gaps. According to the Pay Equity Act, pay disparities persist across many industries, particularly affecting women and minority groups. By mandating salary disclosure, Ontario follows global efforts to create more equitable workplaces.
Employers should conduct internal pay equity audits to identify and rectify any wage gaps before making salary information public. Consulting an employment lawyer in Toronto can help businesses navigate compliance while maintaining competitive hiring practices.
AI in Hiring: Addressing Bias and Discrimination
The use of AI in hiring is growing, with many companies relying on automated tools to screen resumes and assess candidates. However, AI-driven recruitment can introduce bias, as seen in cases where algorithms favor certain demographics. The OHRC has been actively involved in discussions and initiatives concerning AI and human rights. Notably:
- Human Rights AI Impact Assessment (2024): In collaboration with the Law Commission of Ontario, the OHRC released a tool to help organizations assess and mitigate human rights impacts of AI systems. This assessment emphasizes the potential for AI technologies to inadvertently perpetuate biases if not properly monitored.
- Joint Statement on AI Technologies (2023): The OHRC, alongside the Information and Privacy Commissioner of Ontario, issued a statement highlighting concerns about AI technologies. They emphasized that AI systems, if not effectively governed, can perpetuate biases and lead to disparate impacts on marginalized communities.
Ontario’s new law requires employers to inform job applicants if AI plays a role in hiring decisions. This move aligns with growing concerns about AI accountability in employment practices. Candidates who suspect they have been unfairly evaluated due to AI bias may seek legal recourse through an employment lawyer in Toronto.
Secure Your Rights With Expert Legal Support
Ontario’s new employment laws represent a significant shift toward greater transparency and fairness in the workplace.
If you need guidance on Ontario’s new employment regulations or believe you’ve been impacted by unfair hiring practices, we’re here to help. Whether you require an employment lawyer near you or legal representation for workplace issues, Unified LLP is one of the leading employment law firms in Toronto and can ensure your rights are protected.
Schedule your free consultation today to take the first step in protecting your employment rights.
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