Employment Update

By Barry W. Kwasniewski and Martin U. Wissmath

Apr 2024 Charity & NFP Law Update
Published on April 25, 2024

 

   
 

New Employment Law Amendments Require Disclosures for Salary in Job Ads, AI Usage

With new legislation for employers in Ontario, including charities and not-for-profits, employers will have to disclose expected salary ranges for publicly advertised job positions, state whether they use artificial intelligence to screen applicants, and can no longer require Canadian work experience. Bill 149, the Working for Workers Four Act, 2024 (the “Act”), received Royal Assent in the Ontario Legislative Assembly on March 21, 2024, with amendments to four employment law related statutes: the Employment Standards Act, 2000 (the “ESA”), the Digital Platform Workers’ Rights Act, 2022 (the “DPWRA”), the Fair Access to Regulated Professions and Compulsory Trades Act, 2006 (“FARPCTA”), the Workplace Safety and Insurance Act, 1997 (“WSIA”). Not all of the amendments have yet come into force, as noted below. The Act is the fourth in a series of employment law amending statutes enacted by the provincial legislature over the past four years since the Working for Workers Act, 2021.

The Ontario government highlighted several of the legislative changes brought by the Act in a March 21, 2024 announcement:

  • Firefighters and fire investigators diagnosed with esophageal cancer would qualify for compensation after 15 years of employment instead of 25.
    • This amendment is not yet in force, and is to be proclaimed into force at a future date.
  • Employers cannot deduct service workers’ wages for “dine and dash” incidents in the restaurant and hospitality industry, or “gas and dash” theft at gas stations. Trial shifts are now paid, and employers sharing in pooled tips must perform the same work as their staff. Employees can choose their direct deposit account for tip payments.
    • This amendment is now in force as of March 21, 2024.
  • Eliminating Canadian experience requirements: Ontario has become the first province to ban the use of Canadian experience as a job requirement, facilitating the hiring of qualified workers, particularly in health care.
    • This amendment is not yet in force, and is to be proclaimed into force at a future date.
  • Employers are now required to disclose salary ranges in job postings and indicate if AI is used in the hiring process to help candidates make informed decisions.
    • This amendment is not yet in force, and is to be proclaimed into force at a future date
  • The Fair Access to Regulated Professions and Compulsory Trades Act, 2006 is amended to ensure regulated professions assess qualifications transparently, objectively, and fairly, including third-party assessments.
    • This amendment is not yet in force, and is to be proclaimed into force at a future date.
  • Clarifying vacation pay provisions: Employees must be informed if their vacation pay is provided in a manner other than a lump sum before their vacation and require a written agreement.
    • This amendment will come into force on June 21, 2024.
  • Supporting injured workers: Measures have been introduced to enable additional increases to Workplace Safety and Insurance Board benefits above the annual inflation rate, providing greater support for injured workers.
    • This amendment is not yet in force, and is to be proclaimed into force at a future date.

Further amendments to the ESA include provisions recognizing trial period work as part of employee training. The Act adds a new Part III.1, titled “Job Postings”, which includes new sections 8.2, 8.3, and 8.4 to be proclaimed into force by the Lieutenant Governor at a future date:

Compensation range information

8.2  (1)  Every employer who advertises a publicly advertised job posting shall include in the posting information about the expected compensation for the position or the range of expected compensation for the position.

[…]

Canadian experience

8.3  (1)  No employer who advertises a publicly advertised job posting shall include in the posting or in any associated application form any requirements related to Canadian experience.

[…]

Use of artificial intelligence

8.4  (1)  Every employer who advertises a publicly advertised job posting and who uses artificial intelligence to screen, assess or select applicants for the position shall include in the posting a statement disclosing the use of the artificial intelligence.

Under this new part to the ESA, employers will also be required to retain copies of all of their publicly advertised job postings, along with applications for those postings, for a minimum period of three years after the job posting is removed from public access.

Some ESA amendments will come into force on June 21, 2024. Amendments to subsection 11(4) expand regulations concerning direct deposit wage payments. Another addition, section 14.1, outlines permissible methods for tip payments or other gratuities and related requirements. Subsection 14.4(6) mandates the disclosure of employer policies regarding tip sharing or sharing in other gratuities. Employers will need to retain copies of all written policies with regard to sharing tips or gratuities for three years “after the policy ceases to be in effect.” Changes to subsection 36(3) clarify vacation pay methods, to ensure the employer adheres to the employment agreement.

The full list of the Act’s amendments is available on the Ontario Legislative Assembly website.

   
 

​Read the April 2024 Charity & NFP Law Update