Skip to content

Pay Transparency: Recent Changes to PEI’s Employment Standards Act

Murray Murphy and Kate Profit

Changes to Prince Edward Island’s Employment Standards Act (“ESA”) regarding pay transparency received royal assent on November 17, 2021 and has recently come into force as of June 1, 2022.

 

Pay History

 

Under these amendments, employers are prevented from seeking pay history information from applicants, whether directly or indirectly. This does not prevent an applicant from voluntarily disclosing their pay history information without prompting from the employer. When such information is provided by an applicant, an employer is entitled to rely on such information when determining pay for the applicant.

 

Employers are still able to seek information about pay ranges or aggregate pay provided for comparable positions for which the applicant is applying.

 

Pay Range Information

 

Employer’s who publicly advertise a job to the general public must include information about the expected pay or pay range for the posted position. “Publicly advertised job positing” is defined as:

 

an external job posting for a specific job that an employer advertises to the general public in any manner, but for greater certainty does not include recruitment campaigns, general help wanted signs or positions that are only advertised to existing employees of the employer

 

Anti-Reprisal

 

The amendments provide safeguards to allow employees to seek information from the employer and share pay information in the workplace without fear of reprisal. Specifically, employers are prevented from intimidating, dismissing, or otherwise penalizing an employee (or threatening to do so) when an employee:

 

  • Makes inquiries about pay or requests information on the employer’s pay policies;
  • Discloses pay information to another employee;
  • Provides information regarding the employer’s compliance or non-compliance; or
  • Asks the employer to comply with pay history, pay transparency, or anti-reprisal provisions.

 

Application

 

These changes will apply to all non-unionized workplaces. However, some changes will not apply to those governed by a collective agreement.

 

Subsection 2(4) of the ESA sets out that only certain provisions of the ESA are applicable to employees whose terms and conditions are established by a collective agreement pursuant to the Labour Act R.S.P.E.I. 1988, Cap. L-1.

 

Pay transparency provisions span sections 5.8 (pay history), 5.9 (pay range information), and 5.10 (anti-reprisal) of the ESA, however, it is only section 5.10 that will apply to unionized workplaces.

 

Key Takeaways

 

Pay transparency amendments will likely result in changes to employer’s hiring practices, including what questions they ask and what information is offered to the applicant. Namely, these changes will require many employers to share pay information (being either expected pay or a pay range) when jobs are posted publicly.

 


This client update is provided for general information only and does not constitute legal advice. If you have any questions about the above, please contact a member of our Labour and Employment group.

 

SHARE

Archive

Search Archive


 
 

Client Update: A Return to Reasonableness – Assessing Damages after Section D Settlements

April 4, 2015

An uninsured driver strikes another vehicle, injuring its occupants. These injured persons obtain a settlement from their own motor vehicle insurer (pursuant to Section D of the standard policy), and they assign their action against…

Read More

Atlantic Employers’ Counsel – Spring 2015

March 26, 2015

The Editors’ Corner Michelle Black and Sean Kelly Hello! We are very pleased to be the new Atlantic Employers’ Counsel (AEC) editors. We look forward to bringing you what we hope you will find to be interesting…

Read More

Client Update: The Employer’s implied contractual obligation to supply work: common law developments in employment law

March 10, 2015

Following several Supreme Court of Canada decisions in the late 1990s and early 2000s, the law of constructive dismissal was well defined – or so many thought. The Court’s decision in Potter v. New Brunswick Legal…

Read More

Client Update: Auto Insurance – Direct compensation for property damage is coming to PEI

March 5, 2015

In our May 20, 2014 client update, we reported on significant changes affecting automobile insurance in Prince Edward Island, including changes to no-fault benefits available under section B and changes to the damages cap for minor…

Read More

Labour and Employment Legislative Update 2014

February 10, 2015

2014 LABOUR AND EMPLOYMENT ATLANTIC CANADA LEGISLATIVE UPDATE As we move forward in 2015, we know our region’s employers will want to be aware of new legislation that has passed or could soon pass that…

Read More

Client Update: 2015 Minor Injury Cap

January 30, 2015

On January 28, 2015, the Office of the Superintendent of Insurance issued a bulletin in Nova Scotia. The 2015 minor injury cap has been set at $8,352, an increase of 1.7 per cent over 2014.…

Read More

Client Update: Outlook for the 2015 Proxy Season

January 29, 2015

In preparing for the 2015 proxy season, you should be aware of some regulatory changes that may impact disclosure to and interactions with your shareholders. This update highlights what is new in the 2015 proxy…

Read More

Client Update: Reaching New Limits – Recent Amendments to the PEI Lands Protection Act

January 6, 2015

During the Fall 2014 legislative sitting, the Province of Prince Edward Island passed legislation that results in significant changes to the Lands Protection Act. The amendments have just been proclaimed and were effective January 1, 2015.…

Read More

Atlantic Employers’ Counsel – Fall 2014

December 17, 2014

The Editor’s Corner Clarence Bennett This issue focuses on the family and the interaction between employment and family obligations. As 2014 comes to a close, I would like to extend Seasons Greetings to all of…

Read More

Client Update: Recent Developments: Disability Insurance Policies

December 17, 2014

RECENT DEVELOPMENTS: DISABILITY INSURANCE POLICIES & LIMITATION PERIODS IN NOVA SCOTIA Two recent Nova Scotia decisions have clarified the issue of limitation periods in disability insurance policies and “rolling” limitation periods.   THORNTON V. RBC…

Read More

Search Archive


Scroll To Top