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June 28 2018

Ontario, Canada Introduces New Legislation Banning Compensation Questions

Although compensation history is often used as a guide in determining an applicant's salary upon hire, evidence suggests that this process may negatively impact women, because in many industries, women are still being paid less than men for doing the same job.

In an effort to combat gender discrimination and increase transparency during this process, the Ontario government introduced The Pay Transparency Act (the PTA), which establishes requirements concerning disclosure of compensation particulars of employees and prospective employees.

If passed, the PTA, which could go into force on Jan. 1, 2019, will prohibit employers from asking candidates about their compensation history, along with other requirements.