In Ontario, employers are legally required to include expected compensation or a transparent salary range in all publicly advertised job postings. This law, part of the Working for Workers Act updates, is designed to close the gender pay gap. Failing to disclose pay ranges can result in heavy administrative fines from the Ministry of Labour.
Searching for a new job can be a frustrating and exhausting process, especially when you spend hours preparing a resume and attending interviews, only to discover the salary is far below your living requirements. Fortunately, the provincial government has massively shifted the balance of power in favour of job seekers. Across Ontario, from large corporate offices in Toronto to manufacturing plants in Hamilton and tech startups in Waterloo, transparency is now the strict legal standard. Employers can no longer hide behind vague phrases like “competitive salary” or “compensation based on experience.”
Under the recent amendments to the Employment Standards Act (ESA) through the Working for Workers legislation, any employer publishing a public job advertisement must explicitly list the expected pay or a reasonable salary range. 📍 Furthermore, the law requires employers to disclose if artificial intelligence (AI) is being used to screen candidates, and absolutely forbids companies from requiring “Canadian experience” as a strict hiring metric. These progressive changes aim to make the labour market fairer for everyone, particularly newcomers and marginalized groups. In this guide, we will outline exactly how employers must comply with this law and how job seekers can spot illegal job postings.
Step-by-Step Process for Employers in Ontario
Ensuring your company’s recruitment strategy complies with Ontario law is absolutely critical to avoiding surprise audits and hefty provincial fines. Human Resources departments and hiring managers must modernize their job templates immediately. Here is the step-by-step process every employer must follow.
Step 1: Determine if the Posting is Public
The law specifically targets publicly advertised job postings. 🔍 If you are posting a role on a public job board (like Indeed, LinkedIn, or the Canada Job Bank) or on your company’s external career page, the transparency rules strictly apply. However, if you are conducting an entirely internal recruitment drive, posting exclusively on an internal intranet meant only for existing staff, the strict salary range requirement may not apply, though transparency is still best practice.
Step 2: Establish a Reasonable Pay Range
You cannot simply write “$30,000 to $250,000” to technically satisfy the law while remaining completely vague. The Ministry of Labour, Immigration, Training and Skills Development (MLITSD) requires a “reasonable” range that reflects what you realistically intend to pay the successful candidate. Consult your payroll budget and decide on a practical minimum and maximum hourly rate or annual salary before publishing the ad. Ensure the lower end of the range never falls below the current Ontario minimum wage.
Step 3: Include the Required AI Disclosure
Modern recruitment relies heavily on algorithms. 💻 Under the newest Ontario regulations, if your company uses artificial intelligence to scan resumes, evaluate candidate video interviews, or filter applications, you must explicitly disclose this fact right inside the job posting. This ensures applicants know that a computer, rather than a human, might be making the initial decision on their career.
Step 4: Remove “Canadian Experience” Requirements
Ensure your job description does not accidentally violate the Ontario Human Rights Code or the ESA. You are strictly prohibited from demanding “Canadian work experience” in the job posting. You can ask for specific professional skills, language proficiencies, or industry certifications, but demanding that those skills were acquired exclusively inside Canada is highly discriminatory and completely illegal.
Step 5: Maintain Detailed Recruitment Records
To survive a potential Ministry audit, you must keep excellent records. 📂 The ESA requires employers to retain a copy of every single publicly advertised job posting, along with the date it was posted and removed. You must securely store these digital or physical records for at least three years after the job ad is taken down, allowing government inspectors to verify that you properly included the required salary ranges.
How Much Does it Cost in Ontario?
Complying with basic transparency laws should not cost a business anything, but breaking the law carries significant financial risk. Here is a breakdown of the potential costs associated with the pay transparency rules in Ontario as of May 2026:
- Reporting a Violation: $0 CAD. It is completely free for an applicant to anonymously report a non-compliant job posting to the Ministry of Labour.
- Employer Compliance Audit: Updating your HR software and job templates internally generally only requires staff time, costing $0 CAD in direct fees.
- Administrative Fines: If an MLITSD inspector catches an employer posting non-compliant job ads, they can issue a Notice of Contravention. Fines can range from $250 to $1,000 CAD per individual illegal job posting.
- Lawyer Consultation: If a company wants an employment lawyer to review their recruitment policies and AI usage, expect a one-time fee of $200 to $500 CAD.
| Cost Category | Estimated Cost (CAD) | Description |
|---|---|---|
| Filing a Complaint | Free | Free service for job seekers via MLITSD |
| Ministry Fines | $250 – $1,000 CAD | Penalties for non-compliant job ads |
| Legal Policy Review | $200 – $500 CAD | Hiring a lawyer to ensure full compliance |
How Long Does the Process Take?
Correcting a non-compliant job ad is a rapid process. ⏱ An employer can log into LinkedIn or Indeed and update a job description to include the salary range in a matter of minutes. Proactive compliance is the fastest way to avoid government interference.
If a job seeker reports an illegal posting to the MLITSD, the government investigation timeline varies. It generally takes 2 to 6 weeks for a provincial inspector to review the complaint, contact the employer, and order them to either update the active advertisement or pay an administrative penalty.
Frequently Asked Questions (FAQ)
Does the law apply to commission-only sales jobs?
Yes, but the disclosure looks different. If the job is entirely commission-based or involves piece-work, the employer must explicitly state the commission structure or piece-rate in the posting, ensuring candidates know exactly how their pay will be calculated.
What if the employer pays me less than the posted range?
Once hired, your actual signed employment contract dictates your legal pay. However, if an employer advertises a range of $60,000 to $80,000 and then offers you $40,000, they are engaging in highly deceptive “bait-and-switch” tactics, which could trigger a Ministry investigation.
Can an employer still ask about my previous salary?
In many jurisdictions pushing for pay transparency, asking an applicant “What did you make at your last job?” is highly discouraged or restricted. Employers should base their offers on the value of the role and the candidate’s skills, not their past pay history.
Does this apply if a third-party recruiter posts the job?
Yes. If a staffing agency, headhunter, or external recruitment firm posts a job advertisement on behalf of an Ontario employer, that public posting must still fully comply with the salary range and AI disclosure requirements.
Can I be fired for discussing my salary with a coworker?
Absolutely not. The Ontario ESA strictly prohibits employers from punishing or firing employees for discussing their own compensation with coworkers. Firing someone for talking about wages is considered an illegal reprisal.
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