Pay Equity British Columbia (Canada)

Basic Summary

British Columbia's Pay Transparency Act (enacted November 2023) requires employers to include expected salary or wage ranges in job postings, prohibits pay history inquiries, and mandates gender pay gap reporting for larger employers. BC also has equal pay protections under the Human Rights Code and Employment Standards Act.

Key Legislation

Pay Transparency Act (Bill 13)

Royal Assent: May 11, 2023 In Force: November 1, 2023 (phased implementation)

Three main requirements:

1. Salary transparency in job postings
2. Prohibition on pay history inquiries
3. Annual pay reporting (phased by employer size)

BC Human Rights Code

Prohibits discrimination in employment, including compensation, based on protected characteristics including sex, gender identity, race, and others.

Employment Standards Act

Establishes minimum employment standards including equal pay for equal work provisions.

Salary Transparency in Job Postings

Effective Date

November 1, 2023

Scope

All BC employers posting jobs publicly (no minimum employee threshold)

Covered postings:

• Job postings advertised publicly
• Positions to be performed in BC (in whole or in part)
• Posted by employer or on their behalf (recruiters, job boards)

Exemptions:

• Postings for internal candidates only (initially exempt; may change)
• Positions that cannot be performed in BC

Requirement

Must include expected salary or wage range for the position:

• Minimum to maximum the employer reasonably expects to pay
• Can be expressed as hourly wage, annual salary, or other basis (e.g., commission structure)

Does not need to include:

• Benefits, bonuses, stock options (but employer may include if desired)

Good Faith Range

• Must be a genuine, reasonable expectation of what will be paid
• Based on employer's applicable pay scale, budget, or market analysis
• Avoid excessively wide ranges that undermine transparency

Prohibition on Pay History Inquiries

Effective Date

November 1, 2023

Prohibition

Employers cannot ask job applicants:

• Current compensation
• Past compensation or salary history

Applies to:

• Application forms
• Interviews
• Any stage of recruitment

Exception

Applicant voluntarily discloses salary information without prompting or coercion from employer.

Public salary information: Employers can access publicly available salary information (e.g., public sector disclosure lists) but should not base offers solely on such data.

Pay Reporting Requirements

Phased Implementation

500+ employees: November 1, 2024 (first report) 300-499 employees: November 1, 2025 100-299 employees: November 1, 2026 (anticipated; subject to regulation)

Threshold: Number of employees in BC or globally (regulations will specify).

Required Metrics

Employers must report (annually):

1. Gender pay gap: Difference in average hourly pay between men and women
   • Calculated separately for different job categories
2. Gender distribution: Proportion of women and men by quartile pay bands
3. Other gaps (potentially): Gaps based on Indigenous identity, racialized groups, persons with disabilities (future phases)

Snapshot date: To be specified (e.g., specific pay period in the prior year)

Reporting Process

Submission: Online portal administered by the BC Government (Ministry of Finance or Ministry of Labour)

Publication:

• Employers may be required to publish reports on their website
• Government may publish aggregated or employer-specific data publicly

Exemptions and Deferrals

• Small employers (<100 employees) currently exempt
• Employers may apply for deferrals in exceptional circumstances

Equal Pay for Equal Work

BC Human Rights Code

Prohibits pay discrimination based on protected characteristics (sex, gender identity, gender expression, race, etc.) for:

• Same or substantially similar work
• Work of equal value

Defenses: Pay differences must be based on:

• Bona fide occupational requirement
• Reasonable and justifiable factors (seniority, merit, etc.)

Employment Standards Act

Ensures equal pay regardless of sex for employees performing the same or similar work in the same establishment.

Permissible differences:

• Seniority
• Merit system
• Quantity or quality of production

Enforcement and Penalties

Employment Standards Branch

Enforces Pay Transparency Act provisions:

• Investigates complaints
• Issues compliance orders
• Imposes penalties

Penalties

Failure to comply with posting or pay history ban:

• Administrative penalties (amounts to be determined by regulation)
• Potential fines per violation

Failure to submit pay reports:

• Penalties for non-reporting
• Potential public disclosure of non-compliant employers

Human Rights Tribunal

Adjudicates discrimination complaints including unequal pay claims:

• Remedies: Back pay, compensation for injury to dignity, policy changes
• No cap on damages

Best Practices

Job Posting Compliance

1. Establish pay ranges: Develop documented, good-faith salary ranges for all positions
2. Update templates: Modify all job posting templates to include expected range
3. Train recruiters: Educate internal HR and external recruiters on requirements
4. Review regularly: Audit job ads for compliance before publishing

Pay History Ban Compliance

1. Remove questions: Delete salary history fields from applications
2. Train interviewers: Ensure hiring managers and recruiters do not ask
3. Focus on budget: Share salary range and ask about candidate's expectations

Pay Reporting Preparation

1. Collect data: Ensure HRIS captures gender, pay, hours, job category
2. Conduct analysis: Run internal pay gap calculations before mandatory reporting
3. Identify gaps: Analyze drivers (representation, progression, part-time mix)
4. Develop action plan: Proactive measures to reduce gaps
5. Engage leadership: Board and executive ownership of pay equity

Pay Equity Audits

1. Use regression analysis: Control for legitimate factors (job level, experience, performance)
2. Remediate gaps: Adjust pay where differences are unjustified
3. Document rationale: Maintain records of pay-setting decisions

Resources

• BC Ministry of Finance (Pay Transparency): https://www2.gov.bc.ca/gov/content/gender-equity/pay-transparency
• Employment Standards Branch: https://www2.gov.bc.ca/gov/content/employment-business/employment-standards-advice
• BC Human Rights Tribunal: http://www.bchrt.bc.ca
• Pay Transparency Act (full text): https://www.bclaws.gov.bc.ca/civix/document/id/complete/statreg/23013

Comparison: BC vs. Other Canadian Jurisdictions

Requirement	BC	Ontario	Federal
Salary in job postings	Yes (all employers)	Yes (all employers)	No
Pay history ban	Yes	Yes	No
Pay gap reporting	Yes (100+ phased)	Yes (250+ phased)	No (but Pay Equity Act)
Pay equity regime	Human Rights Code	Pay Equity Act (1987)	Pay Equity Act (2018)

Compliance Calendar

Date	Action
November 1, 2023	Include salary range in all public job postings
November 1, 2023	Stop asking about pay history
November 1, 2024	First pay report due (500+ employees)
November 1, 2025	First pay report due (300-499 employees)
November 1, 2026	First pay report due (100-299 employees, anticipated)
Annual	Submit pay reports by deadline

---

Disclaimer: This guide is for informational purposes only and does not constitute legal advice.