Starting Thursday, job seekers in Ontario could have a better idea how much money they could earn before they apply.
New job posting rules will take effect, including pay transparency, and employment experts say that could help Ontario job seekers, although some argue the rules could go further.
“It’s a step in the right direction, I think it’s a baby step,” said Jon Pinkus, partner at Samfiru Tumarkin LLP.
The Ontario government introduced the new laws in 2023, requiring employers with 25 or more staff to include the expected pay or pay range in publicly advertised jobs starting Jan. 1, 2026.
“It is unique in the sense that the Employment Standards Act typically only protects people who are already employed whereas this is something that protects people who are not yet employed,” said Pinkus.
Under the new rules, companies must post either a specific compensation amount or a pay range that is no wider than $50,000 — for example a range of $60,000 to $110,000 — the only exception being jobs where the top end surpasses $200,000 annually or the pay is equivalent to $200,000 or more.
Bonuses, commissions, and other forms of compensation must also be disclosed.
In a statement to Global News, Ontario Minister of Labour, Immigration, Skills and Training David Piccini said the goal is to create a fairer job market.
“Our government is building a fairer, safer job market across the province by levelling the playing field for job seekers, cracking down on scams and bringing real transparency to hiring,” Piccini wrote.
Providing that range can help many workers when deciding what jobs to apply for, according to Deb Bottineau, a managing director with global recruiter Robert Half
“If you can narrow in on the organization that you know have salary ranges that are aligned with your expectations and your needs, you’re going to focus your efforts there first and foremost,” Bottineau said. “It also speaks to just, from an employer branding standpoint, a culture of transparency that that information is out there and allows you, as a job seeker, to really determine whether that aligns with your needs.”
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Bottineau added that having a range provided can also help workers with the sometimes-difficult question in interviews surrounding compensation as it can help avoid questions such as whether a candidate may “price myself outside of a range.”
However, the range isn’t perfect, Pinkus said, telling Global News it could lead some applicants to question whether a job is worth applying for.
“If they’re looking at hundreds and hundreds of different positions, how do they know whether it’s going to be worth any individual position applying if they don’t know whether it plays $100, $150, or $50 or $100 (thousand),” Pinkus said.
While the application process could see some help due to more pay transparency, there could also be benefits for some job hunters who make it to the interview process.
Under the new rules, an applicant invited to an interview must be informed of the company’s decision within 45 days of their final interview.
“It’s an appropriate starting point because I think what we’ve got to do is marry the need to provide the prospective employee with closure on their job search, positive or negative, but also work reasonably with organizations that are gonna have to make adjustments to their hiring process,” said Bottineau.
But while it could be a positive for people to know where they’re at in their job search, businesses may have a headache.
The Canadian Federation of Independent Business says a majority of its small business members won’t fall under the rules due to staffing falling below the requirement. But those that do will have more administrative requirements.
“You have to notify the applicants in person, in writing, or by phone or email and that’s a lot of information for an employer to unpack,” said Julie Kwiecinski, the Ontario director of provincial affairs for the CFIB.
She added she appreciates that the new rules don’t apply to most small businesses because of the “administrative burden” it puts on businesses.
In addition to pay transparency and efforts to eliminate “ghosting,” the rules also include requiring companies to be transparent if artificial intelligence is being used in the hiring process and for job posting platforms to have a method to report fraudulent postings.
In his statement, Piccini said the aim of the legislation is to end the “guessing” for job-seekers.
“Anyone looking for work deserves to know three things up front: what the job pays, whether the job is real, and how your application is being judged. This is about putting time, money and power back in the hands of job seekers, instead of leaving them guessing or wasting their energy on dead-ends.”
Bottineau said more could still be done to lessen the guessing games of job hiring, noting with AI being used more — the new rules require transparency on its usage in applications — job hunters could be notified even if they don’t get an interview. Under the current rules, only those interviewed must receive communication.
“If you’re leveraging AI and automation processes, you can at least provide that acknowledgement or an update as to where they sit in the process,” she said.
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