Pay Equity Act (S.C. 2018, c. 27, s. 416)
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Act current to 2024-08-18 and last amended on 2021-08-31. Previous Versions
PART 2Process for Establishment of Pay Equity Plan (continued)
Comparison of Compensation (continued)
Marginal note:Equal line method
50 (1) An employer or pay equity committee, as the case may be, that uses the equal line method of comparison of compensation must apply the following rules:
(a) a female regression line must be established for the predominantly female job classes and a male regression line must be established for the predominantly male job classes;
(b) the compensation associated with a predominantly female job class is to be increased only if
(i) the female regression line is entirely below the male regression line, and
(ii) the predominantly female job class is located below the male regression line;
(c) if the compensation associated with a predominantly female job class is to be increased, the increase is to be determined by multiplying the factor calculated in accordance with the regulations by an amount equal to the difference between the compensation associated with the predominantly female job class and the compensation associated with a predominantly male job class, were such a job class located on the male regression line, in which the value of the work performed is equal to that of the predominantly female job class; and
(d) an increase in compensation associated with the predominantly female job classes is to be made in such a way that, after the increase, the female regression line coincides with the male regression line.
Marginal note:Crossed regression lines
(2) Despite paragraphs (1)(b) to (d), if the female regression line crosses the male regression line, an employer or pay equity committee, as the case may be, must apply the rules for the comparison of compensation that are prescribed by regulation.
Contents and Posting
Marginal note:Contents of plan
51 A pay equity plan must
(a) indicate the number of pay equity plans required to be established in respect of the employer’s employees or, if the employer is in a group of employers, in respect of the employees of the employers in the group;
(b) indicate the number of employees that the employer — or, in the case of a group of employers, each employer in the group — was considered to have for the purpose of determining whether a pay equity committee was required to be established in respect of the pay equity plan;
(c) indicate whether a pay equity committee has been established and, if so, whether it meets the requirements set out in subsection 19(1) or, if not, whether the employer or group of employers, as the case may be, obtained the authorization of the Pay Equity Commissioner to establish a pay equity committee with different requirements;
(d) set out a list of the job classes that have been identified to be job classes of positions occupied or that may be occupied by employees to whom the pay equity plan relates;
(e) indicate whether any job classes referred to in paragraph (d) were determined to be predominantly female job classes and, if so, set out a list of those job classes;
(f) indicate whether any job classes referred to in paragraph (d) were determined to be predominantly male job classes and, if so, set out a list of those job classes;
(g) indicate whether a group of job classes has been treated as a single predominantly female job class and, if so, set out a list of the job classes referred to in paragraph (d) that are included in the group of job classes and identify the individual predominantly female job class within the group that was used for the purpose of subsections 41(3) and 44(2);
(h) if there was a determination of the value of work performed in certain job classes, then, for each of those job classes, describe the method of valuation that was used and set out the results of the valuation;
(i) indicate any job classes in which differences in compensation have been excluded from the calculation of compensation under section 46 and give the reasons why;
(j) if a comparison of compensation was made, indicate which of the methods referred to in subsection 48(1) was used to make the comparison — or, if neither was used, explain why not and describe the method that was used — and set out the results of the comparison;
(k) identify each predominantly female job class that requires an increase in compensation under this Act and describe how the employer — or, in the case of a group of employers, each employer in the group — will increase the compensation in that job class and the amount, in dollars per hour, of the increase;
(l) set out the date on which the increase in compensation, or the first increase, as the case may be, is payable under this Act; and
(m) provide information on the dispute resolution procedures that are available under Part 8 to employees to whom the pay equity plan relates, including any timelines.
Marginal note:Draft pay equity plan and notice
52 Once an employer — or, if a pay equity committee has been established, that committee — has prepared a draft of the pay equity plan, the employer must post the draft as well as a notice informing employees to whom it relates of their right to provide the employer or committee, as the case may be, with comments on the draft and the time within which and the manner in which they may exercise that right.
Marginal note:Draft pay equity plan and notice — group of employers
53 (1) Once a group of employers — or, if a pay equity committee has been established, that committee — has prepared a draft of the pay equity plan, each employer in the group must post the draft as well as a notice informing the employer’s employees to whom it relates of their right to provide that group of employers or that committee, as the case may be, with comments on the draft and the time within which and the manner in which they may exercise that right.
Marginal note:Same-day posting
(2) Employers that are in a group of employers must all post the draft pay equity plan on the same day.
Marginal note:Written comments
54 (1) Employees to whom the draft pay equity plan relates have 60 days following the day on which it is posted to provide the employer — or, if a pay equity committee has been established, that committee — with written comments on it.
Marginal note:Consideration of comments
(2) The employer or pay equity committee, as the case may be, must consider any comments that have been provided under subsection (1) when preparing the final version of the pay equity plan.
Marginal note:Final version — three-year maximum
55 (1) An employer — or, in the case of a group of employers, each employer in the group — must post the final version of the pay equity plan no later than the third anniversary of the date on which the employer or the group of employers, as the case may be, became subject to this Act.
Marginal note:Same-day posting
(2) Employers that are in a group of employers must all post the final version of the pay equity plan on the same day.
Marginal note:Notice of increases
56 (1) An employer must post, before the date on which an increase in compensation — and any lump sum — is payable under section 61 or 62, a notice indicating the following:
(a) if the pay equity plan was posted in accordance with section 55 or paragraph 94(1)(b),
(i) the date on which any increase in compensation is payable under subsection 61(1), and
(ii) if the employer has chosen to phase in the increase in accordance with subsection 61(2), the dates on which each increase will be made and the percentage of the increase referred to in paragraph 51(k) that each increase represents; and
(b) if the pay equity plan was posted in accordance with subsection 57(2),
(i) the date on which any increase in compensation under subsection 62(1) and any lump sum under subsection 62(2) or (3) is payable, and
(ii) if the employer has chosen to phase in the increase in accordance with subsection 62(4), the dates on which each increase will be made and the percentage of the increase referred to in paragraph 51(k) that each increase represents.
Marginal note:Notice for longer phase-in period
(2) If an employer is authorized by the Pay Equity Commissioner to phase in the increase in compensation over a longer phase-in period than the one set out in paragraph 61(2)(c) or (d) or 62(4)(e) or (f), as the case may be, the employer must post, as soon as feasible after obtaining the authorization, a notice indicating the new dates on which the increases will be made and the percentage of the increase referred to in paragraph 51(k) that each increase represents.
Marginal note:Extension of time limit for posting
57 (1) An employer may apply to the Pay Equity Commissioner for an extension of the period set out in subsection 55(1) or paragraph 94(1)(b), as the case may be, for the posting of a final pay equity plan.
Marginal note:Authorization of Pay Equity Commissioner
(2) If the Pay Equity Commissioner authorizes an extension, the employer — or, in the case of a group of employers, each employer in the group — must
(a) post, as soon as feasible after obtaining the authorization, a notice indicating the date on which the extended period ends; and
(b) despite subsection 55(1) and paragraph 94(1)(b), post the final pay equity plan within the extended period.
Marginal note:Same-day posting
(3) Employers that are in a group of employers must all post the final version of the pay equity plan on the same day.
Marginal note:Establishment of pay equity plan
58 An employer is deemed to have established a pay equity plan on the day on which it posts the pay equity plan in accordance with subsection 55(1) or 57(2) or paragraph 94(1)(b), as the case may be.
Marginal note:Establishment of pay equity plan — group of employers
59 A group of employers is deemed to have established a pay equity plan on the day on which each employer in the group posts the pay equity plan in accordance with subsections 55(1) and (2) or 57(2) and (3), as the case may be.
Increases in Compensation
Marginal note:Obligation to increase compensation
60 If a pay equity plan posted by an employer in accordance with section 55, subsection 57(2) or paragraph 94(1)(b), as the case may be, discloses differences in compensation between predominantly female job classes and predominantly male job classes or, if there are no predominantly male job classes, differences in compensation that are determined in accordance with regulations made under paragraph 181(1)(c), the employer must increase — in accordance with the provisions of the pay equity plan that meet the requirements set out in paragraph 51(k) — the compensation that is payable to its employees who occupy positions in the predominantly female job classes for which an increase in compensation is required to be made under that pay equity plan.
Marginal note:Date payable — plan posted under section 55 or paragraph 94(1)(b)
61 (1) In the case of an employer that posted a pay equity plan in accordance with section 55 or paragraph 94(1)(b), as the case may be, the increase in compensation required to be made under section 60 is payable,
(a) subject to paragraph (b),
(i) if the pay equity plan was posted in accordance with subsection 55(1), on the day after the third anniversary of the date on which the employer became subject to this Act, or
(ii) if the pay equity plan was posted in accordance with paragraph 94(1)(b), on the day after the day that is 18 months after the date on which the employer became subject to this Act; or
(b) in the case of an employer that is in a group of employers, on the day after the third anniversary of the date on which the group of employers became subject to this Act.
Marginal note:Phase in of increase
(2) Despite subsection (1), if an employer posted a pay equity plan in accordance with section 55 or paragraph 94(1)(b), as the case may be — or posted, on the same day, more than one pay equity plan in accordance with that section or paragraph — and if the total amount, in dollars, of the increase in compensation required to be made by the employer under section 60 in respect of all employees to whom the pay equity plan or plans relate is, for the year in which the increase is required to be made under subsection (1), more than 1% of the employer’s payroll for the year that is immediately before that year, the employer may choose to phase in the increase in respect of that plan or those plans, in which case
(a) the employer must establish, in accordance with the following, a schedule of increases for the phase-in period:
(i) the increases
(A) are to begin on the day after the third anniversary of the date referred to in subparagraph (1)(a)(i) or paragraph (1)(b), as the case may be, and end on the day on which the phase-in period ends, if the pay equity plan or plans were posted in accordance with section 55, or
(B) are to begin on the day after the day that is 18 months after the date on which the employer became subject to this Act and end on the day on which the phase-in period ends, if the pay equity plan or plans were posted in accordance with paragraph 94(1)(b),
(ii) each increase is to be made on the anniversary date of the previous increase, and
(iii) for each year in which an increase is to be made, the total amount, in dollars, of the increase in compensation required to be made by the employer in respect of all employees to whom the pay equity plan or plans relate is to be equal to or more than 1% of the employer’s payroll for the year that is immediately before the year in which the increase is required to be made under subsection (1), except for the final increase, which is, in respect of all employees, to be in an amount that is sufficient to eliminate the differences in compensation;
(b) the employer must make the increases in accordance with the schedule;
(c) if the employer is considered to have 100 or more employees for the purpose of section 6 or 7, as the case may be, it must make the final increase no later than
(i) the day after the sixth anniversary of the date referred to in subparagraph (1)(a)(i) or paragraph (1)(b), as the case may be, if the pay equity plan or plans were posted in accordance with section 55, or
(ii) the day after the day that is 54 months after the date on which the employer became subject to this Act, if the pay equity plan or plans were posted in accordance with paragraph 94(1)(b); and
(d) if the employer is considered to have 10 to 99 employees for the purpose of section 6 or 7, as the case may be, it must make the final increase no later than
(i) the day after the eighth anniversary of the date referred to in subparagraph (1)(a)(i) or paragraph (1)(b), as the case may be, if the pay equity plan or plans were posted in accordance with section 55, or
(ii) the day after the day that is 78 months after the date on which the employer became subject to this Act, if the pay equity plan or plans were posted in accordance with paragraph 94(1)(b).
Marginal note:Definition of year
(3) For the purpose of subsection (2), year means,
(a) in the case of an employer referred to in any of paragraphs 3(2)(a) to (d), its fiscal year; and
(b) in the case of an employer referred to in any of paragraphs 3(2)(e) to (i), the calendar year.
Marginal note:Date payable — plan posted under subsection 57(2)
62 (1) In the case of an employer that posted a pay equity plan in accordance with subsection 57(2), the increase in compensation required to be made under section 60 is payable on the day after the day on which the employer posted the pay equity plan in accordance with subsection 57(2).
Marginal note:Lump sum
(2) In the case of an employer that, but for the authorization referred to in subsection 57(2), would have been required to post a pay equity plan under section 55, the employer is, on the day on which compensation is required to be increased under subsection (1), also required to pay to each of its employees referred to in section 60, as a lump sum — for the period beginning on the day after the third anniversary of the date referred to in subparagraph 61(1)(a)(i) or paragraph 61(1)(b), as the case may be, and ending on the day after the day on which the employer posted the pay equity plan in accordance with subsection 57(2), or for any shorter period within that period during which the employee occupied a position referred to in section 60 — an amount in dollars equal to the increase in compensation that would have been payable to the employee had that increase been made starting on the day after the third anniversary of the date referred to in subparagraph 61(1)(a)(i) or paragraph 61(1)(b).
Marginal note:Lump sum — person that carried out or operated provincial business
(3) In the case of an employer that, but for the authorization referred to in subsection 57(2), would have been required to post a pay equity plan in accordance with paragraph 94(1)(b), the employer is, on the day on which compensation is required to be increased under subsection (1), also required to pay to each of its employees referred to in section 60, as a lump sum — for the period beginning on the day after the day that is 18 months after the date on which the employer became subject to this Act and ending on the day after the day on which the employer posted the pay equity plan in accordance with subsection 57(2), or for any shorter period within that period during which the employee occupied a position referred to in section 60 — an amount in dollars equal to the increase in compensation that would have been payable to the employee had the increase been made starting on the day after the day that is 18 months after the date on which the employer became subject to this Act.
Marginal note:Phase in of increase
(4) Despite subsection (1), if an employer posted a pay equity plan in accordance with subsection 57(2) — or posted, on the same day, more than one pay equity plan in accordance with that subsection — and if the total amount, in dollars, of the increase in compensation required to be made by the employer under section 60 in respect of all employees to whom the pay equity plan or plans relate is, for the year in which the increase is required to be made under subsection (1), more than 1% of the employer’s payroll for the year that is immediately before that year, the employer may choose to phase in the increase in respect of that plan or those plans, in which case
(a) the phase-in period is deemed to have started
(i) on the day after the third anniversary of the date referred to in subparagraph 61(1)(a)(i) or paragraph 61(1)(b), as the case may be, if the pay equity plan or plans were posted in accordance with section 55, or
(ii) on the day after the day that is 18 months after the date on which the employer became subject to this Act, if the pay equity plan or plans were posted in accordance with paragraph 94(1)(b);
(b) the employer must establish, in accordance with the following, a schedule of increases for the phase-in period:
(i) the increases are to begin on the day on which the phase-in period is deemed to have started under paragraph (a) and end on the day on which the phase-in period ends,
(ii) each increase is to be made on the anniversary date of the previous increase, and
(iii) for each year in which an increase is to be made, the total amount, in dollars, of the increase in compensation required to be made by the employer in respect of all employees to whom the pay equity plan or plans relate is to be equal to or more than 1% of the employer’s payroll for the year that is immediately before the year in which the increase is required to be made under subsection (1), except for the final increase, which is, in respect of all employees, to be in an amount that is sufficient to eliminate the differences in compensation;
(c) on the day after the day on which the employer posts the pay equity plan or plans in accordance with subsection 57(2), the employer must make the increase indicated in the schedule that corresponds to that day, and then make any subsequent increases in accordance with the schedule;
(d) the employer must
(i) determine, for each employee, for the period beginning on the day on which the phase-in period is deemed to have started under paragraph (a) and ending on the day on which the employer posts the pay equity plan or plans in accordance with subsection 57(2), or for any shorter period within that period during which the employee occupied a position referred to in section 60, an amount in dollars equal to the amount of the increase or increases that would have been payable to the employee had the increase or increases been made, in accordance with the schedule, during that period, and
(ii) pay to the employee, as a lump sum, the amount so determined, on the day after the day on which the employer posts the pay equity plan or plans in accordance with subsection 57(2);
(e) if the employer is considered to have 100 or more employees for the purpose of section 6 or 7, as the case may be, it must make the final increase no later than
(i) subject to subparagraph (ii), the day after the sixth anniversary of the date referred to in subparagraph 61(1)(a)(i) or paragraph 61(1)(b), as the case may be, or
(ii) in the case of an employer that, but for the authorization referred to in subsection 57(2), would have been required to post the pay equity plan or plans in accordance with paragraph 94(1)(b), the day after the day that is 54 months after the date on which the employer became subject to this Act; and
(f) if the employer is considered to have 10 to 99 employees for the purpose of section 6 or 7, as the case may be, it must make the final increase no later than
(i) subject to subparagraph (ii), the day after the eighth anniversary of the date referred to in subparagraph 61(1)(a)(i) or paragraph 61(1)(b), as the case may be, or
(ii) in the case of an employer that, but for the authorization referred to in subsection 57(2), would have been required to post the pay equity plan or plans in accordance with paragraph 94(1)(b), the day after the day that is 78 months after the date on which the employer became subject to this Act.
Marginal note:Interest
(5) An employer that is required to pay a lump sum to an employee under subsection (2) or (3) or subparagraph (4)(d)(ii) must also
(a) in the case of a lump sum paid under subsection (2) or (3), pay interest on the amount of each increase that the employee would have received at each payday within the period for which the lump sum is payable had the employer posted the pay equity plan in accordance with section 55 or paragraph 94(1)(b), as the case may be, and had not phased in the increase; and
(b) in the case of a lump sum paid under subparagraph (4)(d)(ii), pay interest on the amount of each increase that the employee would have received — at each payday within the period for which the lump sum is payable — based on the schedule established in accordance with subsection (4).
The interest is to be calculated and compounded daily on the amount, at the rate that is prescribed by regulation or calculated in a manner that is prescribed by regulation, for the period beginning on the day on which the amount would have been required to have been paid and ending on the day on which it is paid.
Marginal note:Interest rate if none prescribed
(6) If no regulations are made for the purpose of subsection (5), the rate of interest is the rate per annum that is the aggregate of 2% per annum and the bank rate in effect on the day in respect of which the interest is calculated.
Marginal note:Former employees
(7) The requirement under this section to pay a lump sum and interest to employees also applies to former employees who occupied a position referred to in section 60 during the period described in subsection (2) or (3) or paragraph 4(d), as the case may be.
Marginal note:Definition of year
(8) For the purpose of subsection (4), year means,
(a) in the case of an employer referred to in any of paragraphs 3(2)(a) to (d), its fiscal year; and
(b) in the case of an employer referred to in any of paragraphs 3(2)(e) to (i), the calendar year.
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