The Ontario government is set to table new legislation that would compel employers to disclose expected salary ranges in job listings, aiming to provide job seekers with enhanced clarity during their career pursuits. This move would also position Ontario as the first Canadian province to mandate companies to reveal the utilization of artificial intelligence (AI) in their hiring procedures.
David Piccini, Minister of Labour, Immigration, Training and Skills Development, stated, “At a time when many companies are posting record profits, it is only fair they communicate transparently about how they pay workers.” He also emphasized the government’s commitment to ensuring technological advancements like AI do not perpetuate biases and impinge on job seekers’ privacy rights.
This initiative stems from concerning statistics about the wage gap in Ontario. On average, women earn $0.87 for every dollar earned by men, with the disparity deepening for racialized and Indigenous women. By mandating the inclusion of salary ranges in job postings, the government aims to narrow this gap and address the province’s looming labour shortage of approximately 250,000 workers.
The swift adoption of AI tools by businesses in Ontario, which collect significant amounts of personal data and potentially influence employment outcomes, has raised ethical, legal, and privacy concerns. In response, the province proposes to require businesses to inform prospective employees about the role of AI in their hiring decisions.
Additionally, in light of the alarming statistic that seven out of 10 workers have faced some form of harassment or violence at work – a figure that escalates for women and gender-diverse individuals – the government plans to scrutinize the use of Non-Disclosure Agreements (NDAs) in settlements involving workplace misconduct. Minister Piccini remarked, “It’s past time we end a practice that allows businesses to shelter the behaviour of some of the worst members of our communities.”
This proposed legislation is an extension of the ongoing efforts encapsulated in the Working for Workers Acts of 2021, 2022, and 2023, with more details slated for release in the near future.
Notably, a 2022 study highlighted that only 37% of online job postings in Ontario disclosed salary details. Additionally, a recent report from Statistics Canada in February 2023 suggested nearly 7% of all Ontario businesses intend to incorporate AI in the next year.
Industry experts, including David Allen, President & CEO of YMCA of Central East Ontario, and Cathy Taylor, Executive Director of the Ontario Nonprofit Network, have lauded the government’s initiative, emphasizing the importance of transparency and equity in the hiring process.
This comprehensive approach underscores the government’s commitment to ensuring a fair and inclusive job market in Ontario.
