Ontario's new hiring and pay-transparency rules face enforcement questions

Ontario's Jan. 1 rules require employers with 25 or more staff to post salary ranges, disclose use of AI in hiring and respond to applicants within 45 days; employment lawyers say the measures lack specific enforcement mechanisms.

Ontario introduced new hiring and pay-transparency rules that took effect on Jan. 1 under the Working for Workers Act. The rules apply to employers with at least 25 employees and require posting a salary range or hourly wage bracket, disclosing use of artificial intelligence in applicant screening, and responding to candidates within 45 days of an interview. The annual salary range shown on postings cannot exceed $50,000. Employment lawyers and others are raising questions about how those requirements will be enforced. Key details: - Employers with 25 or more employees must include salary ranges or hourly wage brackets in public job postings, with the annual range capped at $50,000. - Employers must disclose when they use AI to screen, assess or select applicants in publicly advertised postings. - Employers are required to respond to applicants about hiring decisions within 45 days of an interview. - Enforcement falls under the general provisions of the Employment Standards Act, which provides administrative fines for individuals and corporations that can range up to $500,000, but lawyers expect initial penalties to be modest. - Lawyers note the onus often falls on applicants or employees to file complaints, and employment standards officers will take action mainly in cases of repeated or habitual violations. - The legislation requires employers to retain job postings for three years; the article also notes prior Working for Workers Acts and past rules (such as 2022 requirements on monitoring and a right-to-disconnect policy) tended to require policies rather than prohibit practices. Summary: These measures are intended to increase transparency around pay and the use of AI in hiring and to give applicants clearer information about roles. Legal experts say the lack of targeted enforcement mechanisms means compliance will rely largely on employer self-compliance and complaints processed under existing Employment Standards Act tools. Undetermined at this time.