Ontario Employers, Pay Equity Or Pay The Price (if you are 10 or more staff, PLEASE READ)

Though this is not specifically benefits related, we see many Ontario employers failing to implement or properly maintain a Pay Equity plan.  This can create a very high cost problem when the auditors come knocking, and it doesn’t just hit high profile companies, but huge settlements can be forced on companies as small at 10 employees.

The article below helps employers to understand who Pay Equity applies to… 

In Ontario, since January 1, 1988, all public sector employers and all private sector employers with 10 or more employees have obligations under the Pay Equity Act (the “Act”) to ensure jobs of equal value receive equal pay.

It also explains where things can go wrong…

The financial consequences for non-compliance may be devastating. There is no limitation period on pay equity, meaning that an employer can be ordered to pay retroactive adjustments to the date the adjustment should have first been paid. This date can be as early as 1988, depending on when the employer became subject to the Act and when the non-compliance occurred, plus interest. These retroactive adjustments are payable not only to current employees, but also to former employees.

Ontario Employers, Pay Equity Or Pay The Price: Comply Now Or Face Potential Liability Retroactive To 1988