Ontario Government to require employers to disclose salary ranges and AI usage in job postings, amongst other proposed changes

By: Amanda Pizzardi

The Ontario government is set to introduce legislation that, if passed, would require employers to include expected salary ranges in job postings. Moreover, the new legislation would require businesses to disclose if artificial intelligence (AI) is used during their hiring process.

The purpose of this proposed legislation, according to the government’s news release (found here), is for employers to be transparent with prospective employees about how workers are paid, especially “at a time when many companies are posting record profits”. Moreover, it is an attempt for the government to “continue to take action to ensure workers aren’t excluded from the job market because of technological biases and that their privacy rights are protected”. Other stated motivations behind the proposed changes are to close the gender pay gap, and help companies find qualified candidates more quickly and improve retention.

The government will also examine banning the use of Non-Disclosure Agreements (“NDAs”) in the settlement of cases of workplace sexual harassment, misconduct or violence. “It’s past time we end a practice that allows businesses to shelter the behaviour of some of the worst members of our communities” said David Piccini, Minister of Labour, Immigration, Training and Skills Development.

What these changes mean for your business: While the proposed legislation has yet to be passed, employers should be mindful of how they plan to disclose salary ranges and be prepared to answer questions about how those figures are calculated (for example, is it tied to years of experience, educational requirements, or other factors?). With respect to the potential ban on NDAs connected to the settlement of workplace harassment claims, it remains to be seen how this will impact an employer’s appetite to settle such claims outside of a courtroom.