As of January 1, 2026, Ontario employers are operating under a new set of pay transparency and job posting requirements that significantly reshape how organizations recruit, advertise positions, and communicate with job applicants. These changes amend the Employment Standards Act and reflect a broader policy shift toward increased openness, fairness, and accountability in the hiring process.
For employers, the new framework requires more than simply adding a salary figure to a job posting. The legislation introduces detailed obligations regarding compensation disclosure, the use of artificial intelligence in recruitment, candidate communication, and record retention. Failure to comply can expose organizations to enforcement action and reputational risk at a time when hiring practices are under increased public scrutiny.
The Policy Rationale Behind Pay Transparency
Pay transparency legislation is grounded in the recognition that compensation secrecy can perpetuate inequities and inefficiencies in the labour market. When applicants lack meaningful information about pay expectations, they may self-select out of opportunities, negotiate from an uneven footing, or unknowingly accept compensation below market value.
Ontario’s new rules are designed to promote fairness at the earliest stages of employment by ensuring that candidates have access to essential information before applying for a role. From a regulatory perspective, transparency is also intended to support broader pay equity objectives, reduce systemic wage gaps, and encourage more consistent compensation practices across industries.
For employers, these changes require a more deliberate and disciplined approach to how roles are classified, priced, and presented to the public.
Which Employers Must Comply
The new pay transparency and job posting requirements apply to employers who employ 25 or more employees on the day a public job posting is made. This threshold is assessed at the time the posting is published, not based on annual averages or peak staffing levels.
Only publicly advertised job postings are subject to the new rules. Internal postings that are limited to existing employees are excluded, as are general recruitment advertisements that do not reference a specific role. Employers should be cautious, however, as many postings that appear informal or exploratory may still qualify as public job advertisements if they describe a particular position and are accessible to the general public.
Understanding What Qualifies as a Public Job Posting
A job posting is considered publicly advertised if it is made available to external candidates through any medium that is open to the public. This includes online job boards, company websites, social media platforms, recruitment agencies, and print publications.
The determining factor is not the employer’s intent, but whether members of the public can reasonably access and apply for the position. Employers that rely on multiple recruitment channels should ensure that all public-facing versions of a posting are compliant, as inconsistent disclosures across platforms may create compliance risks.
Mandatory Compensation Disclosure Requirements
The most widely discussed element of the new legislation is the requirement to disclose compensation information in public job postings. Where the rules apply, employers must include either a specific expected compensation amount or a compensation range.
If a range is used, the difference between the lowest and highest figures may not exceed $50,000 annually. This requirement is intended to prevent excessively broad ranges that offer little practical guidance to applicants.
Employers may disclose compensation as an hourly rate, salary, or another wage structure, provided the information reflects what the employer reasonably expects to pay for the role. The disclosed figure or range should be based on genuine compensation planning rather than aspirational or theoretical numbers.
Exceptions for High-Compensation Positions
The pay disclosure requirement does not apply to positions where the expected annual compensation exceeds $200,000. Similarly, if the top end of a compensation range is above $200,000, employers are not required to disclose compensation information for that posting.
While this exemption may reduce administrative burden for executive-level recruitment, employers should be mindful that other job posting obligations introduced by the legislation may still apply, even where compensation disclosure is not required.
What Employers Must Include (and What They Can Exclude)
Compensation disclosure is limited to wages as defined under the Employment Standards Act. This generally includes base salary, hourly pay, and other forms of non-discretionary remuneration tied to the performance of work.
Employers are not required to disclose discretionary bonuses, benefits, pension contributions, expense reimbursements, or other indirect forms of compensation. That said, some employers may voluntarily choose to reference benefits or incentives as part of their recruitment strategy, provided the information is accurate and not misleading.
Care should be taken to ensure that disclosed compensation aligns with internal pay practices. Posting a salary range that does not reflect how employees are actually paid may lead to internal employee relations issues and increased legal risk.
New Non-Compensation Disclosure Obligations
In addition to pay transparency, the new framework introduces several other mandatory disclosures that apply to public job postings.
Disclosure of Artificial Intelligence Use
If an employer uses artificial intelligence tools at any stage of screening, assessment, or selection of applicants, the job posting must include a statement indicating that AI is used in the recruitment process. The definition of artificial intelligence is broad and may capture resume-screening software, automated ranking tools, and algorithm-based candidate assessments.
Employers should carefully evaluate their recruitment technologies to determine whether they fall within the scope of this requirement and ensure that disclosures are accurate and consistent.
Vacancy Status
Job postings must now indicate whether the position is for an existing vacancy or whether it is being advertised for future or anticipated hiring needs. This requirement is intended to increase transparency for applicants and discourage postings that do not correspond to a real hiring opportunity.
Prohibition on Canadian Experience Requirements
Employers may no longer include requirements for “Canadian experience” in public job postings or application forms. This change reflects longstanding concerns that such requirements unfairly disadvantage qualified candidates who obtained experience outside Canada.
While employers may continue to require specific skills, certifications, or knowledge relevant to the role, care must be taken to ensure that requirements are framed in a way that does not implicitly reintroduce prohibited experience criteria.
Candidate Communication Obligations After Interviews
The new legislation also addresses how employers communicate with candidates once interviews have taken place. Where an applicant has been interviewed, the employer must notify the individual within 45 days of the final interview as to whether a hiring decision has been made.
This obligation does not require employers to provide detailed reasons for their decision, nor does it mandate personalized feedback. The requirement is limited to notifying candidates that a decision has been made or that the process is ongoing.
Nonetheless, employers should implement clear internal processes to track interview timelines and ensure timely communication. Failure to do so may result in technical non-compliance even where the hiring process was otherwise fair and well-managed.
Record-Keeping Requirements
To support enforcement, employers must retain certain recruitment-related records for at least three years after a public job posting is removed. These records include copies of the job posting, application forms used in the process, and any communications sent to interviewed candidates regarding hiring decisions.
Proper record retention is essential, particularly for employers that conduct frequent hiring or rely on decentralized recruitment practices. Centralizing recruitment documentation and implementing retention protocols can significantly reduce compliance risk.
Practical Compliance Considerations for Employers
The new pay transparency rules require employers to rethink how they approach recruitment from both a legal and operational perspective. Organizations should begin by reviewing existing job posting templates and recruitment workflows to identify gaps or inconsistencies.
Compensation structures may need to be reassessed to ensure that posted ranges are defensible, internally consistent, and aligned with market conditions. In some cases, the requirement to disclose pay may prompt broader discussions about wage equity, compression, or progression frameworks.
Training is also critical. Hiring managers, recruiters, and human resources personnel should understand the new requirements and their role in ensuring compliance. Missteps often occur not because of intentional non-compliance, but because decision-makers are unaware of how the rules apply in practice.
Risks of Non-Compliance
Non-compliance with the new pay transparency and job posting rules can result in enforcement action under the Employment Standards Act, including monetary penalties and compliance orders. Beyond regulatory consequences, employers may also face reputational harm if postings are publicly criticized for failing to meet transparency standards.
In an increasingly competitive labour market, employers that demonstrate openness and fairness in their recruitment practices may also enjoy advantages in attracting and retaining talent.
Looking Ahead: Transparency as a Long-Term Shift
Ontario’s pay transparency rules represent more than a technical regulatory update. They signal a broader shift in expectations around how employers communicate with candidates and structure compensation practices.
Employers that treat these changes as an opportunity to modernize recruitment practices rather than a compliance burden may be better positioned to adapt as transparency expectations continue to evolve.
Bader Law Provides Comprehensive Employment Law Support in Mississauga & Oakville
Navigating Ontario’s new pay transparency rules requires more than updating job postings. Employers must ensure their compensation practices, recruitment processes, and record-keeping systems comply with evolving legal obligations. At Bader Law, our employment law team advises Ontario employers on pay transparency compliance, hiring policies, and risk management strategies. If you have questions about your obligations or would like assistance reviewing your recruitment practices, contact us online or call (289) 652-9092.