Do I have pay equity obligations as an Ontario employer?
Ontario's Pay Equity Act requires private sector employers with ten or more employees to achieve and maintain pay equity — meaning female job classes and male job classes of comparable value in the same organization must receive equal pay.
The Act uses a job-to-job comparison or a proportional value method to determine whether female-dominated job classes are compensated equitably relative to male-dominated comparators within the organization. The goal is to eliminate systemic gender-based wage discrimination.
Employers covered by the Act must establish a pay equity plan (or maintain pay equity if a plan was established years ago) and review compensation regularly to ensure equity has not eroded. The Pay Equity Commission of Ontario oversees compliance and handles complaints.
The obligations differ depending on employer size: smaller employers face different timelines and may have more flexibility in how they implement. Violations can result in compliance orders and orders to pay compensation to affected employees.
If you are growing and approaching or exceeding the ten-employee threshold, getting advice on your pay equity obligations before you cross it allows you to structure compensation proactively rather than retroactively.
Key takeaways
- The Pay Equity Act covers Ontario private employers with ten or more employees.
- It requires female and male job classes of comparable value to receive equal pay.
- Employers must establish a pay equity plan and maintain equity over time.
- The Pay Equity Commission of Ontario handles compliance and complaints.