B.C. Pay Transparency Act – Update
October 27, 2023
Article by:
James D. Kondopulos
The Pay Transparency Regulation, B.C. Reg. 225/2023 is now available and provides more information about the pay transparency reports that are required under the new legislation. [1]
What is in the Regulation?
Currently, the Regulation sets out what information employers are required to provide in their pay transparency reports and the calculations for determining the differences in mean and median pay, including bonuses, and overtime hours. The Regulation requires the calculations to reference hourly rates of pay for employees, and sets out the appropriate calculation to use to determine hourly rates of pay for salaried employees.
As expected, employers will be required to provide differences in pay and overtime information by gender. The Regulation sets out four gender categories: male, female, non-binary and unknown. “Unknown” is for employees who do not identify with one of the other gender categories, or who do not wish to specify their gender category. It is also the category that employers will use for employees who do not wish to provide their information. [2]
Employers will be required to report on the difference between the median and mean pay, overtime pay, overtime hours worked and bonus pay in each gender category. The Regulation also requires employers to provide the percentage of employees working in four specified segments (essentially divided equally based on hourly pay). Bonuses are defined broadly in the Regulation and include holiday and year-end bonuses, money related to profit sharing, securities, commission, money that is an incentive related to hours of work, production or efficiency, and money that is discretionary and not related to hours of work, production or efficiency.
However, employers will not be required to report percentages of employees in each gender category who receive overtime pay or bonus pay in the reporting period if there are fewer than 10 employees in the specific gender category, or if there is only one gender category with 10 or more employees. Similarly, if there are fewer than 10 employees in the specific gender category, employers are not required to provide differences in the mean and median pay or overtime hours worked.
What is not in the Regulation?
The Regulation currently focuses on pay transparency reports.
Notwithstanding the references in the Pay Transparency Act to prescribed information or exemptions by regulation, the following do not currently appear in the Regulation:
- employer exemptions in respect of the definition of “reporting employer”;
- employer exemptions in relation to the requirement to post salary or wage information in a publicly advertised job posting; and
- limitations on the use of a salary or wage range for a publicly advertised job posting.
As of the time of this update, the government has yet to appoint a Director of Pay Transparency.
Important: We previously shared updates on the Pay Transparency Act when the government issued additional guidance on the requirements around wage or salary transparency under section 2 of the legislation.
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[1] Pay transparency reports will be required for organizations with 50 or more employees.
[2] Section 6(2)(b) of the Pay Transparency Act makes it voluntary for an employee to disclose this information.
While every effort has been made to ensure accuracy in this article, you are urged to seek specific advice on matters of concern and not to rely solely on what is contained herein. The article is for general information purposes only and does not constitute legal advice.
October 27, 2023
The Pay Transparency Regulation, B.C. Reg. 225/2023 is now available and provides more information about the pay transparency reports that are required under the new legislation. [1]
What is in the Regulation?
Currently, the Regulation sets out what information employers are required to provide in their pay transparency reports and the calculations for determining the differences in mean and median pay, including bonuses, and overtime hours. The Regulation requires the calculations to reference hourly rates of pay for employees, and sets out the appropriate calculation to use to determine hourly rates of pay for salaried employees.
As expected, employers will be required to provide differences in pay and overtime information by gender. The Regulation sets out four gender categories: male, female, non-binary and unknown. “Unknown” is for employees who do not identify with one of the other gender categories, or who do not wish to specify their gender category. It is also the category that employers will use for employees who do not wish to provide their information. [2]
Employers will be required to report on the difference between the median and mean pay, overtime pay, overtime hours worked and bonus pay in each gender category. The Regulation also requires employers to provide the percentage of employees working in four specified segments (essentially divided equally based on hourly pay). Bonuses are defined broadly in the Regulation and include holiday and year-end bonuses, money related to profit sharing, securities, commission, money that is an incentive related to hours of work, production or efficiency, and money that is discretionary and not related to hours of work, production or efficiency.
However, employers will not be required to report percentages of employees in each gender category who receive overtime pay or bonus pay in the reporting period if there are fewer than 10 employees in the specific gender category, or if there is only one gender category with 10 or more employees. Similarly, if there are fewer than 10 employees in the specific gender category, employers are not required to provide differences in the mean and median pay or overtime hours worked.
What is not in the Regulation?
The Regulation currently focuses on pay transparency reports.
Notwithstanding the references in the Pay Transparency Act to prescribed information or exemptions by regulation, the following do not currently appear in the Regulation:
- employer exemptions in respect of the definition of “reporting employer”;
- employer exemptions in relation to the requirement to post salary or wage information in a publicly advertised job posting; and
- limitations on the use of a salary or wage range for a publicly advertised job posting.
As of the time of this update, the government has yet to appoint a Director of Pay Transparency.
Important: We previously shared updates on the Pay Transparency Act when the government issued additional guidance on the requirements around wage or salary transparency under section 2 of the legislation.
___________________________________________________________________________________
[1] Pay transparency reports will be required for organizations with 50 or more employees.
[2] Section 6(2)(b) of the Pay Transparency Act makes it voluntary for an employee to disclose this information.
While every effort has been made to ensure accuracy in this article, you are urged to seek specific advice on matters of concern and not to rely solely on what is contained herein. The article is for general information purposes only and does not constitute legal advice.