NB Pay Transparency Act

Overview

The New Brunswick Pay Transparency Act, introduced as Bill 24, represents a significant legislative advancement aimed at fostering greater equity and fairness within the province's workplaces. This landmark legislation received Royal Assent on June 12, 2026, marking a pivotal moment in New Brunswick's commitment to addressing systemic wage disparities and promoting inclusive employment practices. The Act's primary objectives include the elimination of gender bias and other forms of discrimination in hiring, promotion, employment status, and compensation. It seeks to achieve these goals by mandating clear and accurate compensation information in job postings and through annual pay transparency reports, thereby empowering employees and increasing accountability among employers.

The genesis of the Pay Transparency Act stems from decades of advocacy by pay equity groups, including Unifor and the New Brunswick Coalition for Pay Equity, who have consistently pushed for legislative measures to identify and close gender pay gaps. The provincial government, recognizing the disproportionate impact of these gaps on women, gender-diverse individuals, Indigenous people, racialized women, persons with disabilities, and 2SLGBTQIA+ individuals, championed this bill as a foundational step towards a more equitable economic landscape. The Act is designed to create an environment where every individual has the opportunity to thrive, sending a powerful message that transparency and equity are indispensable for building an inclusive workforce.

While some key provisions of the Act, such as salary range disclosure in job postings and prohibitions on compensation history inquiries, became effective immediately upon Royal Assent, other critical components, particularly those related to annual pay transparency reporting, are slated for phased implementation. These future provisions are expected to come into force before March 2028, with specific deadlines for different employer sizes. The Act also establishes robust protections against reprisal for employees who discuss their compensation and explicitly bans non-disclosure agreements that restrict such discussions, thereby safeguarding workers' rights and encouraging open dialogue about wages.

Definitions

The Pay Transparency Act provides clear definitions for several key terms to ensure consistent interpretation and application across New Brunswick workplaces. Central to the Act is the definition of “compensation,” which is broadly construed to encompass any salary or remuneration. This includes, but is not limited to, wages, various types of bonuses (such as cash bonuses, stock options, and securities), commissions, overtime bonuses, benefits, employer contributions, and severance pay. This comprehensive definition ensures that all forms of direct or indirect financial and non-financial benefits paid, payable, or offered to an employee are considered when assessing pay transparency and equity.

Another crucial term defined within the Act is “reporting employer.” This designation applies to employers who meet a specific size threshold, defined as having 50 employees or more, calculated as an average for each calendar year. This distinction is significant because reporting employers are subject to additional obligations, particularly the requirement to prepare and publish annual pay transparency reports. The Act also defines “equity group” to explicitly recognize and protect various marginalized communities, including women, gender diverse people, 2SLGBTQIA+ people, Indigenous people, Black people, racialized people, and persons with disabilities, or any other persons prescribed by regulation. This inclusive definition underscores the Act's commitment to addressing intersectional pay disparities.

Furthermore, the Act incorporates definitions from other relevant New Brunswick legislation to maintain consistency and avoid redundancy. For instance, “employee” and “employer” are defined as they are in the Employment Standards Act, ensuring that the scope of the Pay Transparency Act aligns with existing provincial employment law. The term “Bureau” refers to the Bureau as defined in the Pay Equity Act, 2009, indicating a coordinated approach to pay equity initiatives within the province. These interconnected definitions help to integrate the Pay Transparency Act within the broader framework of New Brunswick's labour and human rights legislation.

Covered Employers

The New Brunswick Pay Transparency Act applies broadly to all employers and employees whose relations fall under the legislative authority of the New Brunswick Legislature, irrespective of whether the work or services are performed entirely or partially outside the province. This extensive scope ensures that the Act's provisions are applicable across various sectors and organizational structures within provincial jurisdiction. While the immediate requirements, such as salary range disclosure in job postings, apply to all employers, specific obligations related to pay transparency reporting are phased in based on employer size, demonstrating a pragmatic approach to implementation that considers the administrative capacity of smaller businesses.

The Act introduces specific thresholds for what it terms “reporting employers,” which are defined as those with 50 employees or more, calculated as an annual average. These reporting employers will be subject to the requirement of preparing and publishing annual pay transparency reports. The implementation timeline for these reports is staggered: private-sector employers with 100 or more employees will be required to file their first report by March 31, 2029, while private-sector employers with 50 or more employees will need to file their first report by March 31, 2030. This phased approach allows larger organizations, which typically have more resources, to lead the initial compliance efforts, with smaller reporting employers following suit.

The legislation also explicitly states a commitment to expand pay transparency measures to public sector workers, with a further commitment to include the private and care sectors by 2028. This indicates a long-term vision for comprehensive pay equity across all employment domains in New Brunswick. While the Act does not explicitly list exemptions for specific sectors or types of employers, the phased implementation based on employee count effectively provides a temporary reprieve for smaller businesses from the more complex reporting obligations, allowing them time to prepare for future compliance. As additional provisions of the Act come into force and supporting regulations are released, further guidance on specific employer obligations and any potential exemptions is expected.

Employee Rights

The Pay Transparency Act significantly bolsters employee rights in New Brunswick, primarily by fostering an environment where discussions about compensation are protected and encouraged. A cornerstone of these new rights is the explicit prohibition against employer reprisal. Employers are strictly forbidden from taking any adverse action against an employee for exercising their rights under this Act, which includes discussing their compensation or inquiring about the compensation of others. This protection is crucial for empowering employees to engage in open dialogue about wages without fear of negative consequences, such as demotion, termination, or other forms of discrimination.

Furthermore, the Act directly addresses the historical barrier of non-disclosure agreements (NDAs) that often prevented employees from discussing their pay. Under the new legislation, an employer is prohibited from entering into, or attempting to enter into, a non-disclosure agreement with an employee that restricts discussions regarding compensation. This provision effectively nullifies any existing or future contractual clauses that would silence employees on wage matters, thereby promoting greater transparency and enabling workers to compare their pay with colleagues. This right is fundamental to identifying and challenging potential pay disparities, aligning with the Act's broader goal of eliminating systemic wage gaps.

Employees are also granted the right to access clear and accurate compensation information, which is facilitated through several mechanisms. Firstly, the requirement for employers to include salary ranges in all job postings ensures that applicants and current employees have upfront knowledge of potential earnings for specific roles. Secondly, for reporting employers, the annual pay transparency reports will provide aggregated and anonymized data on pay gaps, offering employees a broader understanding of compensation trends within their organization and sector. These provisions collectively ensure that employees have the necessary information to exercise their existing legal rights related to equal pay and non-discrimination, fostering a more informed and equitable workforce.

Pay Transparency Requirements

The New Brunswick Pay Transparency Act introduces several mandatory requirements designed to enhance transparency in compensation practices across the province. A key provision, effective June 12, 2026, mandates that employers must include the expected salary or hourly wage, or a clear range for either, in all job postings. This requirement applies universally to both publicly advertised positions and internal job postings, ensuring that all prospective and current employees have access to vital compensation information from the outset of the hiring or promotion process. This proactive disclosure aims to reduce information asymmetry, allowing job seekers to make more informed decisions and helping to mitigate discriminatory pay practices before they occur.

In addition to salary disclosure, the Act strictly prohibits employers from inquiring about an applicant's past compensation history. This means employers cannot directly or indirectly seek information about an applicant's previous wages, unless that compensation history is already publicly accessible. Furthermore, even if an applicant voluntarily discloses their compensation history, employers are explicitly forbidden from relying on this information when making hiring or compensation decisions. This ban on salary history inquiries is a critical measure intended to break the cycle of pay discrimination, where historically lower wages for certain demographic groups could perpetuate pay gaps throughout an individual's career. By focusing on the value of the role rather than past earnings, the Act promotes fairer compensation practices.

Beyond individual job postings, the Act also establishes requirements for annual pay transparency reports for designated “reporting employers” (those with 50 or more employees). While these reporting obligations are subject to a phased implementation, they will eventually require these employers to prepare and publish comprehensive reports detailing pay gaps within their organizations. These reports must be made available on the employer's website or, if no website exists, through other accessible means to employees and the public, and must also be filed with the provincial government. This broader publication of pay data is intended to provide a macro-level view of compensation equity, driving accountability and encouraging employers to proactively address any identified disparities.

Reporting & Audit Obligations

The New Brunswick Pay Transparency Act introduces significant reporting obligations for designated “reporting employers,” defined as those with 50 or more employees, calculated as an average for each calendar year. These employers will be mandated to prepare and publish an annual pay transparency report. The purpose of these reports is to provide a clear and comprehensive overview of compensation practices within the organization, with a specific focus on identifying and addressing pay gaps. The content of these reports is expected to include anonymized data on pay disparities, likely broken down by the equity groups recognized in the Act, such as women, gender-diverse individuals, Indigenous people, racialized people, and persons with disabilities.

The frequency of these reports is annual, ensuring regular monitoring and evaluation of pay equity progress. Reporting employers are required to make these reports publicly accessible, either by posting them on their official website or, in the absence of a website, by making them available to employees and the general public through other appropriate means. In addition to public disclosure, these reports must also be filed with the provincial government, allowing for central oversight and data collection by the relevant authorities. The staggered deadlines for these reports are designed to facilitate a smooth transition: private-sector employers with 100 or more employees must submit their first report by March 31, 2029, while those with 50 to 99 employees have until March 31, 2030, for their initial submission.

While the Act outlines the requirement for these reports, specific details regarding audit methodologies and who must conduct internal or external audits are expected to be further elaborated in supporting regulations. However, the overarching intent is to ensure that the reported data is accurate and reflects genuine efforts towards pay equity. The Act's framework suggests that the provincial government, likely through the Minister responsible for the administration of the Act and appointed inspectors, will play a role in reviewing these reports and potentially initiating investigations or audits if discrepancies or non-compliance are suspected. The emphasis on public and governmental filing underscores a commitment to transparency and accountability in addressing systemic wage disparities.

Governance & Enforcement Bodies

The administration and enforcement of the New Brunswick Pay Transparency Act fall under the purview of the provincial government, with specific responsibilities assigned to the Minister responsible for the administration of the Act. This Minister is empowered to appoint or designate inspectors who will be instrumental in ensuring compliance with the Act's provisions. These inspectors are equipped with specific powers to carry out their duties, including the ability to investigate potential violations, gather necessary information, and issue orders to employers found to be non-compliant. The Act mandates that inspectors carry a certificate of appointment or designation and produce it upon request, ensuring transparency and legitimacy in their enforcement activities.

The Act outlines a clear process for enforcement, indicating that the appointed inspectors will play a central role in monitoring employer adherence to the new pay transparency requirements. This includes verifying that salary ranges are included in job postings, that compensation history is not improperly sought or used, and that employees are protected from reprisal for discussing their wages. The inspectors' authority extends to issuing orders to rectify non-compliance, which could range from requiring an employer to correct a specific practice to mandating the submission of overdue reports. The Act also mentions administrative penalties and offences for non-compliance, suggesting a tiered approach to enforcement that can escalate based on the severity and persistence of violations.

While the Act primarily designates the Minister and appointed inspectors as the direct enforcement bodies, the broader ecosystem of governance involves interaction with other provincial entities. For instance, the Act references the “Bureau” as defined in the Pay Equity Act, 2009, implying a coordinated effort between different governmental bodies working towards pay equity. The requirement for reporting employers to file their annual pay transparency reports with the provincial government also indicates a centralized data collection and oversight mechanism. Employees who believe their rights under the Act have been violated would likely initiate a complaint process through the designated governmental body, which would then trigger an investigation by an inspector.

Monitoring & Evaluation

The New Brunswick Pay Transparency Act establishes a framework for ongoing monitoring and evaluation to ensure its effectiveness in achieving its stated goals of eliminating wage disparities and promoting equitable compensation practices. A key mechanism for monitoring is the requirement for “reporting employers” (those with 50 or more employees) to submit annual pay transparency reports to the provincial government. These reports, which must also be publicly accessible, will provide valuable data on pay gaps within organizations, allowing the government and the public to track progress over time. The collection of this aggregated and anonymized data will be crucial for evaluating the overall impact of the legislation and identifying areas where further intervention may be needed.

Inspection procedures form another critical component of the monitoring and evaluation strategy. The Minister responsible for the Act is authorized to appoint inspectors who possess the authority to investigate potential instances of non-compliance. These investigations can be triggered by employee complaints, proactive audits, or other intelligence suggesting a violation of the Act's provisions. Inspectors are empowered to gather information, examine records, and interview personnel to determine adherence to requirements such as salary range disclosure in job postings, the prohibition on compensation history inquiries, and protection against reprisal. The Act also outlines provisions for obstruction of an inspector, underscoring the importance of cooperation during these monitoring activities.

The evaluation criteria for the Act's success will likely be multifaceted, focusing on measurable outcomes such as a reduction in reported pay gaps across various equity groups, increased transparency in job advertisements, and a decrease in complaints related to pay discrimination or reprisal. The phased implementation of reporting obligations, with specific deadlines for different employer sizes, also allows for a structured evaluation of compliance rates and challenges faced by employers. As additional provisions come into force and supporting regulations are developed, it is anticipated that more detailed guidelines on audit frequency, specific data points for evaluation, and mechanisms for public feedback will be established to ensure the Act remains a dynamic and effective tool for promoting pay equity.

Enforcement & Penalties

The New Brunswick Pay Transparency Act includes provisions for enforcement and penalties to ensure compliance and deter violations of its requirements. The primary enforcement mechanism involves inspectors appointed by the Minister responsible for the Act. These inspectors are granted powers to investigate alleged contraventions, which may include examining records, interviewing individuals, and issuing orders to employers. An inspector's order can mandate specific actions to rectify non-compliance, such as requiring an employer to disclose salary ranges in job postings or to cease prohibited practices related to compensation history inquiries. Failure to comply with an inspector's order can lead to further enforcement actions.

The Act explicitly mentions administrative penalties for non-compliance, indicating that employers who fail to adhere to the legislation's requirements may face financial sanctions. While the specific fine amounts and penalty ranges are not detailed in the initial public information, the inclusion of administrative penalties signifies a commitment to holding employers accountable. These penalties are likely designed to be proportionate to the severity and frequency of the violation, with potential for escalation in cases of repeated non-compliance or willful disregard for the Act's provisions. The aim of these penalties is not only to punish but also to incentivize employers to proactively implement and maintain transparent and equitable pay practices.

Beyond administrative penalties, the Act also refers to “offences,” suggesting that certain egregious or persistent violations could lead to more severe legal consequences, potentially including criminal liability in extreme cases. The appeals process for administrative penalties or inspector orders would typically follow established provincial administrative law procedures, allowing employers to challenge decisions they believe are unjust. The Act also includes a provision regarding obstruction of an inspector, making it an offense to hinder an inspector in the execution of their duties. This comprehensive approach to enforcement, encompassing investigations, orders, administrative penalties, and potential criminal offenses, underscores the seriousness with which New Brunswick intends to uphold the principles of pay transparency and equity.

Relationship to Other Laws

The New Brunswick Pay Transparency Act operates within a broader legal framework and is designed to complement, rather than supersede, existing provincial and federal legislation related to employment standards, human rights, and pay equity. The Act explicitly states that the definitions of “employee” and “employer” align with those found in the Employment Standards Act, ensuring consistency in the scope of covered individuals and entities. This integration means that the Pay Transparency Act builds upon the foundational protections and obligations established by general employment law, adding specific requirements related to compensation disclosure and fairness.

A critical aspect of the Act's relationship with other laws is its interaction with privacy legislation. The Act acknowledges the need to balance transparency with the protection of personal information. It specifies that information, including personal information, may only be collected, used, or disclosed in accordance with the Pay Transparency Act and its regulations. Crucially, the Act includes a supremacy clause regarding the Right to Information and Protection of Privacy Act: if there is any inconsistency or conflict between the Pay Transparency Act and the Right to Information and Protection of Privacy Act, the Pay Transparency Act prevails. This ensures that the imperative for pay transparency takes precedence in situations where privacy concerns might otherwise impede the disclosure of necessary aggregated data.

Furthermore, the Pay Transparency Act is intended to work in conjunction with the Pay Equity Act, 2009, as evidenced by its reference to the “Bureau” defined within the latter. This indicates a strategic alignment between the two pieces of legislation, with the Pay Transparency Act serving as a proactive measure to prevent and identify pay disparities, thereby laying groundwork for the more comprehensive pay equity adjustments mandated by the Pay Equity Act. The Act also reinforces existing human rights protections by explicitly recognizing and aiming to eliminate biases affecting various equity groups, thus supporting the principles enshrined in the New Brunswick Human Rights Act. This layered approach ensures a robust legal framework for promoting fairness and equality in compensation.

National/Federal Alignment

The New Brunswick Pay Transparency Act aligns with a growing national trend in Canada towards greater pay transparency and equity, reflecting a broader commitment across various provinces to address systemic wage disparities. While Canada does not have a single, overarching federal pay transparency act that dictates specific salary disclosure requirements for all employers, the federal government has implemented its own Pay Equity Act for federally regulated workplaces. The New Brunswick Act complements these federal efforts by establishing similar principles and mechanisms at the provincial level, particularly for employers under provincial jurisdiction. This provincial initiative contributes to a more comprehensive national landscape of pay equity legislation, encouraging a race to the top among jurisdictions.

The Act's provisions, such as mandating salary ranges in job postings, prohibiting salary history inquiries, and requiring pay gap reporting, mirror or exceed measures adopted or proposed in other Canadian provinces like Ontario, British Columbia, and Prince Edward Island. This harmonization of legislative approaches across provinces indicates a shared understanding of the importance of pay transparency as a tool for achieving gender and intersectional pay equity. By explicitly recognizing multiple equity groups, including women, gender-diverse individuals, Indigenous people, racialized people, and persons with disabilities, the New Brunswick Act also aligns with the spirit of federal human rights legislation and broader national commitments to diversity, equity, and inclusion.

Implementation Timeline

Compliance Checklist

Sources and References