Lawyer Maria Constantine warns employers that the greatest challenge of Ontario’s new pay transparency rules may come from their own workforce
Employers preparing for Ontario’s new pay transparency rules may be focused on complying with the new requirements but need to also be aware of the impact of the changes on existing teams.
Effective January 1, 2026, employers in Ontario with 25 or more staff will be required to include expected compensation—or a range capped at $50,000—in all publicly advertised job postings.
For employers, one issue will be managing the internal response from employees who suddenly realize they’re earning less than new hires for the same job, says Maria Constantine, partner at Cassels Brock & Blackwell.
“There may be employees who are earning compensation at the lowest end of the range for their role, and they may not learn of that until they see a job posting for their same position that their employer has posted,” she says. “That's, I think, going to be the more challenging aspect for employers.”
This change, introduced under the Working for Workers Four Act and modifies the Employment Standards Act and reflects a growing push for wage transparency across Canadian jurisdictions. Exceptions exist for roles exceeding $200,000 in annual compensation and for jobs performed outside Ontario or posted only to internal candidates.
But as Constantine points out, while the regulatory...
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