According to Statistics Canada, British Columbia has one of the biggest divides between pay for men and women in Canada. In an effort to increase pay equity and decrease the gender pay gap in British Columbia, on March 7, 2023, the provincial government introduced for first reading Bill 13 – 2023, also known as the Pay Transparency Act (the “Act”).

If the legislation is passed, as of November 1, 2023, the Act will impose the following obligations on employers:

1) Public Job Advertising

The Act will require employers, unless exempt by regulations, to specify salary or wage range on all publicly advertised job opportunities.

2) Pay History

The Act prohibits an employer from seeking any form of pay history information about a job applicant’s pay history. This prohibition includes asking the applicant directly for this information or asking through a third-party.

3) Prohibited Reprisals

The Act prohibits an employer for retaliating against an employee who makes inquiries to their employer about their pay or discloses their pay to other employees or prospective employees. Retaliation includes the act or threat of dismissal, suspension, demotion, discipline, harassment, or any form of workplace disadvantage.

4) Reporting

The Act imposes reporting requirements for certain employers (“Reporting Employers”) to prepare and publicly post reports on their gender pay gap. The “prescribed information” required by the Act is currently not detailed in Bill 13. However, this reporting requirement will be introduced in stages, by number of employees. Reporting Employers includes employers that have the following number of employees in the applicable year:

  • 1, 2023: BC Public Service Agency and Crown corporations with more than 1,000 employees (ICBC, BC Hydro, WorkSafeBC, BC Housing, BC Lottery Corporation and BC Transit);
  • 1, 2024: all employers with 1,000 employees or more;
  • 1, 2025: all employers with 300 employees or more; and
  • 1, 2026: all employers with 50 employees or more.

Reporting Employers be required to publish their annual pay transparency report on their own publicly accessible website, or for employers that do not have a website, they must make copies of their annual report available to their employees and any member of the public who requests one.  Under this new legislation, the Ministry of Finance will also publish an annual report that will serve as centralized reporting of gender pay in British Columbia.

5) Enforcement

At this moment, the Act does not stipulate enforcement measures or the liability of employers if they do not comply with the Act. According to a discussion paper written by the Ministry of Finance and the Ministry of Labour, some enforcement options they considered were publishing a non-compliant employer list publicly, issuing sanctions, such as monetary fines and penalties, as well as limiting eligibility to apply for government grants or procurement opportunities. We will provide further updates once enforcement measures are outlined in the Act.

Further, as discrimination based on wage is a protected ground under the British Columbia Human Rights Code, it is possible that a violation of this Act could potentially strengthen complaints made under the Human Rights Code, in certain circumstances. If the Act is made into law, we caution employers to be wary of breaching the Act, as there could be further consequences beyond what is stipulated in the Act.

Conclusion

If passed, the Act would make British Columbia the first jurisdiction in Canada to take such an approach towards increasing pay equity.

However, the Act has only passed First Reading and will need to progress through further readings and review sessions before it becomes law. There may be further changes and the current version of the Act is not final. The final wording of the Act and implications, which are not yet outlined, could be varied slightly or significantly. If necessary, a further update will be provided when the final form of the Act is confirmed.

Nonetheless, if the Act is passed, the advertising requirements will come into effect on November 1, 2023. The remainder of the Act will come into effect by proclamation.

If you have any questions or would like further updated regarding this legislation, please contact our office. We are happy to assist you with any workplace related matters.