Effective January 1, 2026, the Ontario Pay Transparency Act introduced significant changes to job posting and hiring requirements across the province. These updates to the Employment Standards Act, 2000 are designed to improve pay transparency, reduce bias in hiring, and increase accountability for employers.
If you are an Ontario employer with 25 or more employees, these new pay transparency rules directly impact how you advertise jobs and communicate with candidates.
This guide explains what the legislation requires — and how employers can ensure compliance.
What Is the Ontario Pay Transparency Act?
The Ontario Pay Transparency Act (effective January 1, 2026) requires certain employers to disclose compensation information and hiring practices in publicly advertised job postings.
The goal of this legislation is to:
- Increase salary transparency
- Reduce wage gaps
- Improve fairness in recruitment
- Remove systemic barriers for internationally trained candidates
Who Does the Pay Transparency Act Apply To?
The legislation applies to:
- Ontario employers with 25 or more employees at the time the job is posted
- Publicly advertised job postings (external postings only)
It does not apply to:
- Employers with fewer than 25 employees
- Internal job postings
- General “help wanted” advertisements
- Positions located outside Ontario
- Some temporary help agencies
New Job Posting Requirements in Ontario (2026)
Under the Ontario Pay Transparency Act, all publicly advertised job postings must include:
Salary Disclosure
Employers must include either:
- A specific salary or hourly wage
OR
- A salary range of less than $50,000 between the minimum and maximum
Exception:
If the maximum salary exceeds $200,000 per year, the range requirement does not apply.
What Must Be Included in Pay?
Employers must disclose all non-discretionary compensation, including:
- Base salary
- Guaranteed bonuses
- Guaranteed commissions
- Other fixed compensation
This ensures job seekers can clearly understand the compensation before applying.
AI Disclosure Requirements in Hiring
If employers use artificial intelligence (AI) to screen, assess, rank, or select candidates, this must be disclosed in the job posting.
This includes:
- Resume screening software
- Automated ranking systems
- AI-based assessment tools
Employers must clearly inform candidates if AI is part of the recruitment process.
Ban on Canadian Experience Requirements
Job postings can no longer require “Canadian experience.”
This change is intended to:
- Reduce barriers for internationally trained professionals
- Promote equity and diversity in hiring
- Expand access to talent across Ontario
Employers should review job descriptions and remove any language requiring Canadian work experience.
45-Day Candidate Notification Rule
Employers must inform candidates about hiring decisions within 45 days of their last interview.
This requirement aims to:
- Eliminate candidate “ghosting”
- Increase accountability in recruitment
- Improve the overall candidate experience
Record-Keeping Requirements
Employers must retain:
- Job postings
- Applications
- Candidate communications
These records must be kept for at least three years.
Proper documentation is essential in the event of an Employment Standards complaint.
Penalties for Non-Compliance
Failure to comply with the Ontario Pay Transparency Act may result in:
- Employment Standards complaints
- Orders to comply
- Financial penalties
Employers who fail to disclose pay, AI usage, or candidate decisions within 45 days may face enforcement action.
Why the Ontario Pay Transparency Act Matters
For Job Seekers
- Clear understanding of compensation before applying
- Greater transparency in hiring decisions
- Awareness of AI screening processes
- Reduced systemic hiring barriers
For Employers
- Increased brand trust
- Reduced legal risk
- More ethical hiring practices
- Improved recruitment transparency
Practical Example
For example, an Ontario employer with 30 employees posting a Customer Service role must:
- Include a salary range (e.g., $55,000–$62,000)
- Disclose if AI resume screening software is used
- Remove any Canadian experience requirement
- Notify interviewed candidates of the hiring decision within 45 days
- Retain related records for three years
Failure to meet any of these requirements could result in compliance issues.
How Employers Should Prepare
Ontario employers should:
- Audit job posting templates
- Review compensation structures
- Update recruiting policies
- Train hiring managers on disclosure obligations
- Ensure AI tools are properly disclosed
- Implement a candidate follow-up tracking system
Proactive compliance reduces risk and protects your employer brand.
The Impact on the Current Workforce?
For many organizations, the biggest challenge under the Pay Transparency Act won’t be the changes to job postings, it will be managing the internal impact. If current employees discover that their pay is misaligned, outdated or simply never explained, the result can be confusion, frustration and loss of trust.
This is where preparation matters. Employers who take the time to articulate a clear compensation philosophy, review internal equity and proactively communicate with their teams will navigate this transition with more credibility.
ExcelerateHR Services supports organizations in building this foundation. That includes:
· Clarifying your compensation philosophy so employees understand how pay decisions are made and what your organization values.
· Reviewing internal pay practices to identify gaps, risks or inconsistencies before they become employee relations issues.
· Developing communication plans that help leaders speak confidently and consistently about pay, equity and progression.
· Equipping managers with the language and tools they need to respond to employee questions.
Pay transparency isn’t just a compliance requirement. It is an opportunity to strengthen trust, modernize your compensation approach and reinforce your employer brand. With the right preparation, employers can turn a potentially difficult shift into a meaningful step forward in their culture.
