Ontario’s Bill 149 Proposes AI Transparency and Pay Equity Changes in Employment Law

On November 14, 2023, the Government of Ontario introduced the Working for Workers Four Act, 2023 (“Bill 149”). This bill, if passed, represents a considerable change to the Ontario Employment Standards Act, 2000 (the “ESA”), primarily in relation to job postings. The new amendments include pay transparency provisions, restrictions on the posting of requirements relating to Canadian experience, and the obligation to disclose the use of artificial intelligence (“AI”) in the recruitment process. This information is made available by
Stikeman Elliott LLP.

The pay transparency provisions proposed by Bill 149 could form part of a broader effort to tackle discrepancies in employee wages. By requiring companies to disclose salary ranges in job postings, the government intends to create an environment promoting wage equity and discouraging wage discrimination within the workplace.

In a similar vein, the prohibition on posting job requirements related to Canadian experience aims at breaking barriers hindering foreign workers’ access to employment opportunities in Ontario. This amendment, if enacted, would prevent employers from only considering candidates with Canadian work experience, thus opening new paths for international job seekers and reducing employment discrimination.

Lastly, the proposal has included a potentially significant element: the compulsory disclosure of AI usage in recruitment. If this section of the bill passes, companies will need to reveal whether they utilise AI software or tools during the recruiting process in job advertisements. This move comes amidst growing global conversations around AI transparency and ethical conduct, highlighting the increasing interface between technology and labour law.

It should be noted that these changes are not yet in force. Bill 149 remains a proposed amendment to the ESA, implying that its suggestions may face modifications or, in some cases, may not come to fruition. Legal professionals in corporations and law firms should keep an attentive eye on the progress of this legislation, as it could significantly influence employment law practices in Ontario and potentially offer precedent for other jurisdictions.

Moreover, alongside Bill 149, Bill 79 – another important legislative piece – has also been recently enacted, with details yet to be fully unveiled. Therefore, legal professionals are urged to maintain an up-to-date view of the legislative landscape to ensure compliance and proactive legal strategy planning.