Client Update: Pay equity legislation announced for federally regulated employers
On October 29, 2018, the federal government tabled national pay equity legislation as part of its second budget implementation bill, Bill C-86. This legislation is targeted at reducing the portion of the gender wage gap which is caused by the undervaluation of work traditionally done by women.
The Act, entitled An Act to Establish a Proactive Pay Equity Regime within the Federal Public and Private Sectors (Pay Equity Act) (the “Act”) applies to all federally regulated employers with 10 or more employees, including the federal public service, the federal private sector (i.e. banks, telecommunication companies, marine shipping companies, interprovincial and international transportation companies and others) and the Prime Minister and ministers’ offices.
It is worth noting that the requirements imposed under the Act are different for small employers (defined as those with 10 to 99 employees) and large employers (defined as those with 100 employees or more).
Obligations for employers
Development of a pay equity plan
The Act requires employers to develop a comprehensive pay equity plan within three years of becoming subject to the Act. The pay equity plan must, among other things, identify job classes and their gender predominance in the workplace, analyze the value of the job classes within the workplace and identify where imbalances exist between female and male predominant job classes of equal value.
If an employer’s pay equity plan identifies imbalances in a female-predominant job class when compared to male-predominant job classes of equal value, employers will have to phase-in compensation increases which equalize the compensation paid to the female-predominant job class. This may apply to more than one female-predominant job class. If the total equalization amount is at least one percent of the employer’s annual payroll, the employer will have to implement compensation increases. The number of years the entity will have to equalize payment is based on the size of the employer.
The Act also imposes other responsibilities on employers such as providing information to employees regarding dispute resolution procedures, updating the pay equity plan every five years and submitting a short annual statement regarding oversight of the program.
The Act contemplates the appointment of a Pay Equity Commissioner and the creation of a Pay Equity Unit of the Canadian Human Rights Commission which would administer and enforce the Act through a range of compliance and enforcement tools including monetary penalties.
This update is intended for general information only. If you have questions about the above information, and how it applies to your specific situation, please contact a member of the Stewart McKelvey Labour and Employment group.
Jennifer Taylor In an important decision for the auto insurance industry, the Nova Scotia Court of Appeal has confirmed that future CPP disability benefits are indeed deductible from damages awarded in Nova Scotia cases for…Read More
Brian Johnston, QC and Matthew Jacobs Bill C-86, enacted as SC 2018, c. 27, will effect massive changes upon how federal labour and employment relations are regulated. They come into effect in 2019 with staggered…Read More
We can all make 2019 a success by building on the year that was. For employers, 2018 was a year of many notable developments in labour and employment law across the country. We saw Ontario…Read More
Level Chan and Dante Manna As 2018 comes to an end, we countdown some pension and employee benefits developments in the last year that we anticipate may lead to developments in 2019. Discrimination in benefits…Read More
Kevin Landry The first look at regulations for cannabis edibles, extracts and topicals has arrived. The Federal Government has opened a 60-day consultation period respecting the strict regulation of additional cannabis products. Notice of the consultation was accompanied…Read More
Erin Best and Kara Harrington “This case is about pain, how it was caused, by what accident and the opinions of dueling experts.”¹ “In this case, like so many, the assessment of the evidence depends…Read More
Jonathan Coady and Michael Fleischmann Overview Once again, the time has come to review the year that was and to chart the course for the year ahead. For municipalities, developers and planning professionals throughout Prince…Read More
Following the various Stakeholder Consultations (which Stewart McKelvey participated in on behalf of Nova Scotia Employers), the Government has changed the Labour Standards Code Regulations effective January 1, 2019 to: a) provide for up to…Read More
Version française à suivre Sara Espinal Henao Canada has expanded its permanent and temporary immigration requirements to include biometrics – the measurement of unique physical characteristics, such as fingerprints and facial features. The new requirements,…Read More
Many businesses rely on trade-mark, copyright, and patent law for the protection of their intellectual property (IP). The Federal Government recently proposed changes to IP laws, which may impact your business. Bill C-86, Budget Implementation Act,…Read More