$100K Cap and Salary Disclosure Legislation: 640 Toronto Interview

Interview Summary

The Ontario government recently proposed new legislation aimed at helping those entering the job market and ending potentially unfair hiring practices.

As a result of the proposed legislation, employers would be required to disclose salary ranges in job postings, as well as whether artificial intelligence was used during the hiring process.

Will this legislation have an impact on those hoping to find employment? Are there potential disadvantages to these changes?

Jon Pinkus, a Toronto employment lawyer and Partner at Samfiru Tumarkin LLP, joined Kelly Cutrara on 640 Toronto to discuss employee rights and employer obligations.

Interview Notes

• Salary discrepancies in the workplace: It is not common for employees to seek legal advice from an employment lawyer regarding pay discrepancies. However, it’s a common occurrence for employees to go through the hiring process only to discover the salary was lower than expected or previously indicated.
• Prior iterations of pay transparency in Ontario: The previous provincial governments also proposed pay transparency during the hiring process. The new legislation introduces a salary cap that was not mentioned by other parties. Many jobs pay above $100,000 a year and seemingly would be exempt from this stipulation.
• Benefits of restrained legislation: Employers with higher-earning staff could argue that they offer many benefits to staff such as bonuses and stock options that are not covered by base salaries. Employers will be restrained in recruiting new candidates as a result of this legislation.
• NDAs and workplace harassment: In employment cases, NDAs are used almost universally. This legislation would be welcomed as it allows individuals to speak more freely about their experiences. As a result of this legislation, however, more cases will be tried through the human rights tribunal and arguably, are less likely to settle out of court.