Ontario’s new pay transparency law takes effect, reshaping how employers hire

Job postings in Ontario must now include pay ranges, giving job seekers a clearer idea of what a position pays before they apply.

The change is part of the Working for Workers Act, which came into effect on Jan. 1. Companies with 25 or more employees are now required to list the salary or hourly wage range in online job ads. The posted range cannot be wider than $50,000, preventing employers from using overly broad pay estimates.

Ontario joins other provinces with similar rules, including British Columbia and Prince Edward Island. Employers are also no longer allowed to require Canadian work experience for a job.

Another new rule requires companies to say whether they use artificial intelligence in hiring, such as writing job ads or screening resumes.

Experts say the changes could make job hunting more fair and efficient. Listing pay up front may reduce awkward salary negotiations and help close wage gaps. Statistics Canada data shows women in Canada earned 87 cents for every dollar earned by men in 2024, with even larger gaps for racialized women.

The law also requires employers to respond to interviewed candidates within 45 days, which could reduce “ghosting” and improve company reputations.

For employers, the changes mean jobs must have clear pay bands based on skills and experience. While companies do not need to share what current employees earn, they must ensure pay structures are clear and consistent before posting new jobs.