Under the Working for Workers Act, which came into force on Jan. 1, employers with 25 or more employees must disclose pay ranges in online job postings. The legislation ends the long-standing practice of asking candidates to apply without knowing a role’s compensation. Employers are also prohibited from posting excessively broad ranges, with salary bands capped at a maximum spread of $50,000.
Labour Minister David Piccini said the changes are designed to give job seekers clarity and fairness from the outset of the hiring process.
“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,” Piccini said, adding that the law shifts time, money and power back to workers.
The new rules bring Ontario in line with other provinces, including British Columbia and Prince Edward Island, that have already implemented similar pay-transparency measures.
Beyond salary disclosure, employers are no longer allowed to require previous Canadian work experience as a condition of employment. Companies must also disclose how artificial intelligence is used during recruitment, including whether it plays a role in drafting job ads or screening applications.
Louisa Benedicto, senior vice-president of HR recruitment at Hays, said the requirement applies to any use of AI across the hiring process. Statistics Canada data shows that more than 12 per cent of Canadian businesses reported using AI in recent months, up sharply from the previous year.
Experts say the changes could significantly alter the job application experience. Negotiating salary late in the hiring process may become less common, with candidates instead being paid based on skills and experience rather than bargaining ability.
“It makes the job search more equitable,” Benedicto said. “You’ll get paid what your skills are worth, not how well you negotiate.”
The law is also expected to save time for both employers and applicants by ensuring key details are clear upfront. According to Hays’ hiring trends data, more than 90 per cent of job seekers want salary information included in job ads.
Pay transparency could also help narrow wage gaps. Statistics Canada data from 2024 shows women aged 25 to 54 earned 87 cents for every dollar earned by men, with larger gaps affecting Black, Indigenous and racialized women.
Deb Bottineau, managing director at recruitment firm Robert Half, said public salary ranges introduce accountability and support pay equity by removing secrecy around compensation.
Another major change requires employers to notify candidates within 45 days of their final interview if they are no longer being considered. York University human resources professor Parbudyal Singh said this could reduce the common practice of “ghosting” applicants.
Recruitment experts say the requirement may also benefit employers’ reputations. Candidates who feel respected during the process are more likely to reapply in the future or recommend the organization to others.
For employers, the new law means compensation structures must be clearly defined before posting jobs. Companies will need well-established salary bands tied to skills and experience, a process that may require internal adjustments to ensure existing employees are fairly placed.
While organizations will not be required to publish individual salaries, experts say transparency around pay ranges will encourage more structured, equitable and consistent compensation practices across Ontario workplaces.
