Do I need to include wage or salary ranges on publicly advertised jobs in BC?
The Pay Transparency Act (PTA) is a legislation in British Columbia, Canada, that requires employers to disclose compensation information for job vacancies, prohibits employers from asking job seekers for pay history, and prohibits employers from preventing or punishing employees from discussing their pay with one another. The Act is aimed at all employers in BC, regardless of size. In addition, transparency reporting will be introduced in stages based on the size and sector of the employer.
"Today, we’re taking the next step – all employers need to be transparent about what people are being paid to close the pay gap between men and women,” said Kelli Paddon, parliamentary secretary for gender equity. “Our work doesn’t end here. We’re determined to continue our engagement with all of our partners to close the pay gap and ensure people get the fair payment they deserve.”
The impact of the PTA on small businesses in BC can vary depending on several factors, including the nature of the business, its size, and the level of compliance required. Here are a few potential effects:
Administrative burden: Small businesses may face additional administrative burdens in complying with the PTA's requirements. For example, they may need to develop new policies and procedures, train their employees, collect and report on more data, and update job postings to include compensation information.
Recruitment and retention: The PTA may make it easier for small businesses to attract and retain employees by providing greater transparency about compensation. Employees may feel more valued and motivated when they understand how their pay compares to their peers.
Wage gaps: The PTA may highlight any pay inequities that exist within a small business. Employers may need to adjust compensation practices to ensure fairness and avoid potential legal liabilities.
Competitive disadvantage: Small businesses may feel at a competitive disadvantage if they are required to disclose compensation information. This may be particularly true if the small business is in a highly competitive industry competing with larger organizations to attract top talent.
What does this mean for BC businesses?
Overall, the impact of the PTA on small businesses in BC will depend on a variety of factors. However, the Act aims to promote greater transparency and equity in compensation practices, which can benefit both employers and employees in the long run. If the legislation is passed, the new rules will take effect starting on November 1, 2023. In addition, the publication of annual pay transparency reports will begin for small businesses (50+ employees) starting on November 1, 2026. Businesses should begin discussing this change with HR support staff, or look to consult with a trained HR consultant for more information.
