As November 1st is fast approaching, we are reminding our BC based clients that there is a new BC Pay Transparency Act (BC Reg. 225/2023) which places new legislated requirements on employers to address the potential of systemic pay discrimination in the workplace.
Two of the key requirements of this Act require all employers in BC to:
- Include the expected base hourly or salary range for all advertised positions (note: the compensation cannot read “up to…”); and
- prohibits interviewers from asking candidates about their current compensation or pay history.
What does this mean for you?
- You must include the expected pay or a pay range on all job postings. If you are planning to post a position after November 1st, and do not have a pay range in place, you will need to establish the expected pay prior to posting the position, both internally and externally.
- You cannot ask applicants what they have been paid in previous positions. It is a good time to review standard interview materials and delete any unacceptable questions about salary and hourly pay information or history. It is also recommended to ensure your hiring managers are aware of this change in interview practices.
- You cannot dismiss, suspend, demote, or discipline any employee who asks their employer about their pay, reveals their pay to another employee or job applicant, or gives information to the BC Ministry about their employer.
- You will be required to reporting gender and pay data beginning November 1, 2024:
- Employers with over 1,000 employees.
- Employers with 300 or more beginning in 2025, and
- Employers with 50 or more employees starting November 1, 2026.
Employers will be required to post their annual pay transparency report identifying pay gaps or differences between pay, and other compensation received by men, women, and non-binary people. Note: Employees can decline to provide their gender information.
This might sound onerous, however, pay transparency for job postings will increase the efficiency of your interview process because candidates will likely not apply if the pay information doesn’t match their expectations. It can also be a great way to build trust among team members, as it allows employees to understand how pay decisions are made and can help foster a culture of open communication within your workplace.
As always, we are here to support you through these changes with the Act. Anything from answering basic questions to gaining clarity on the new requirements to defining positional pay scales across your organization or supporting the implementation of pay bands, our team of HR professionals are here to help you be successful.