Pay transparency in the workplace and in hiring practices

Interview Summary

As the job market once more changes and employers experience a labour shortage in many areas, employees are asking for pay transparency and wage disclosure when beginning the hiring process. Are there legal limitations to this practice? What are employers obligated to disclose?

Lluc Cerda, an employment lawyer and senior associate at Samfiru Tumarkin LLP joins Kelly Cutrara on Radio 640 Toronto to answer these questions and more.

Interview Notes

• Delayed requirement for posting salary range: The previous provincial government had proposed that employers would have to clearly state expected salaries for jobs however this was not implemented.
• Employees asking for salary range in the hiring process: Employees can legally ask an employer what an expected salary might be for a position however there can be repercussions.
• The potential disadvantage for employers to post salary: Employers could benefit greatly from posting compensation and the labour market, in general, could be freer in terms of wage transparency and expectations.
• Employees’ ability to ask co-workers about their wages: While some employment contracts can contain language that prevents employees from asking their peers about their compensation, it is not a common practice. Employees should be prepared for potential repercussions such as termination.