Most provisions of the Pay Equity Act, as well as its supporting regulations, took effect on August 31, 2021. The act, passed in 2018, applies to federally regulated employers (such as banks, telecommunications and airlines) and replaced the prior complaint-based pay equity process with a proactive regime. It requires employers to identify and correct any pay differences between male- and female-dominated positions for work performed of equal value. Related amendments to the Canadian Human Rights Act took effect on the same day, establishing the position of commissioner, Pay Equity Unit and Pay Equity Division.
Federally regulated employers with 10 or more employees are required to:
While only an estimated 6% of the total workforce is employed by federally regulated companies, it’s possible that the new legislation could have a broader influence over time. Though the deadline for covered employers to complete their initial pay equity plan is three years out, doing so may involve a substantial effort, and employers would be advised to begin the process, keeping employees informed and involved as appropriate.