British Columbia has the worst gender pay gap in Canada, with women earning 17% less than men. For people of color, the pay gap is much wider. In an effort to close this pay gap, British Columbia introduced pay transparency legislation with several parts.
On May 11, 2023, British Columbia’s Bill 13-2023: Pay Transparency Act received Royal Assent, becoming law with an effective date of November 1, 2023.
What does the new law require?
British Columbia’s Pay Transparency Act has three parts: pay transparency in job postings, salary history bans, and pay transparency reporting.
Pay transparency in job postings:
- The expected salary or wage for the job; or
- The expected salary or wage range for the job
This language is different from the requirements we are seeing in the U.S., where most laws require employers to post a range only. Interestingly, British Columbia’s law does not define which “employers” are subject to this requirement. The law does say that employers must post, “unless exempted by regulation.” This may assume that all employers with any sort of presence in British Columbia, looking for individuals to work in British Columbia, must comply with this requirement. We will update this blog if any clarifying information arises.
Salary history bans
British Columbia will now prohibit employers from asking candidates about their pay history during the interview process. The law goes so far as to prohibit employers from seeking this information “by any means, including seeking it through a third party. It seems that British Columbia is attempting to prevent prospective employers from obtaining this pay information from a candidate’s prior employer. However, this requirement does not apply if an applicant’s pay history is publicly accessible.
Pay transparency reporting
Before November 1 of each year, “Reporting Employers” (defined below) will have to prepare and publicly publish a pay transparency report. Reporting Employers can publish their pay transparency report on their website, or they must make a hard copy of the report available to their employees in a conspicuous place. If a Reporting Employer does not have a publicly available website, it must make a copy available to any member of the public who requests it.
The “Reporting Employer” designation includes many government agencies, but it also includes private companies of more than 49 employees. For private companies, the pay transparency reporting requirements will be rolled out over the next few years, as follows:
- By November 1, 2023, the British Columbia government and the six largest Crown corporations must comply (BC Hydro, BC Housing, BC Lottery Group, BC Transit, ICBC, and Work Safe BC);
- By November 1, 2024, employers who have 1,000 or more employees as of January 1, 2024, must comply;
- By November 1, 2025, employers who have 300 or more employees as of January 1, 2025, must comply;
- By November 1, 2026, employers who have 50 or more employees as of January 1, 2026, must comply;
- After November 1, 2026, employers that have more than the lesser of 49 employees or any prescribed number of employees as of January 1 of that year must comply.
The report will have to show pay gaps for certain groups, and the British Columbia government will launch an online reporting tool to assist employers in preparing the report. The details regarding what will be required in the report are still being developed, so stay tuned!
Where can I find more information?
The British Columbia government has a website with some initial FAQs.
Payscale’s pay transparency solution
At Payscale, we believe in helping our customers approach pay transparency with confidence. We help organizations establish and follow a fair pay pathway to confidently approach pay transparency by:
- Understanding their competitive landscape and determining a strong data strategy
- Evaluating current employee pay against the market to ensure competitive and fair compensation across the organization
- Implementing standardized and scalable practices with job architectures and salary ranges
- Providing an added layer of confidence to pay transparency practices by offering technology and resources focused on pay equity analysis, job description management, compensation planning, and effective communications about pay
Learn more about how Payscale can help your organization achieve pay transparency.
