Ontario's Pay Equity Act in Plain Language
The Pay Equity Act is aimed at a specific problem: jobs mostly done by women have often been paid less than jobs of comparable value mostly done by men. It requires employers to compare the work itself, not just job titles.
- The Act applies to public sector employers and to private sector employers with 10 or more employees in Ontario.
- It compares the value of different jobs, based on skill, effort, responsibility and working conditions, and corrects pay gaps between female and male job classes.
- It is separate from the ESA rule against paying men and women differently for substantially the same work.
- Complaints go to the Pay Equity Office, and some disputes go to the Pay Equity Hearings Tribunal.
How pay equity works
- The employer sorts jobs into job classes and identifies which are female-dominated, male-dominated or neither, using the thresholds in the Act.
- It values each class using a gender-neutral method that looks at skill, effort, responsibility and working conditions.
- It compares female job classes with male job classes of the same or similar value.
- If a female class is paid less than a male class of equal value, the employer must raise the pay and keep the plan up to date.
Pay equity versus equal pay for equal work
Equal pay for equal work, in the Employment Standards Act, says men and women must be paid the same when they do substantially the same work in the same establishment. Pay equity is wider: it looks at different jobs that are of comparable value. A cleaner and a groundskeeper, for example, may do different work that is nevertheless of equal value.
What employees can do
- Ask your employer or union whether a pay equity plan exists and whether you can see the relevant parts.
- Raise concerns in writing, noting your job and the comparison you have in mind.
- Contact the Pay Equity Office for information or to make a complaint.
- If you are punished for raising pay equity, that is a reprisal, which the Act prohibits.
What employers should do
- Find out whether the Act applies, including whether you are close to 10 employees.
- Keep a written pay equity plan and review it when jobs or pay change.
- Post information as the Act requires and keep records of how jobs were valued.
- Get advice before restructuring jobs or pay bands, since changes can create new gaps.
Common questions
Does pay equity mean everyone gets paid the same?
No. It requires that jobs of equal value in female and male classes be paid fairly in relation to each other. People with the same job can still be paid differently for legitimate reasons, such as seniority.
Is a human rights claim also possible?
Sometimes. Pay differences based on sex can also be discrimination under the Human Rights Code. The routes are separate, so ask which fits your situation.
This guide is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.
Not sure where you stand? A licensed paralegal can look at your documents and tell you your options.
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