Compliance deadlines for pay equity plans approaching fast

On May 27, newly registered amendments to the Pay Equity Regulations came into force. The release of these long-awaited amendments is an opportunity to remind federally regulated organizations of two upcoming dates: July 5, 2024, and September 3, 2024.

Upcoming deadlines

These two dates are key to meeting the impending pay equity plan requirements under the federal Pay Equity Act (the Act).

Final posting date –  By September 3, 2024, federally regulated organizations with 10 or more employees must prepare and post a pay equity plan. Employers that are unionized, or have 100 or more employees, must prepare their pay equity plans by way of a pay equity committee, composed of various workplace representatives.

Draft plan comment period –  A draft of the pay equity plan must be posted for at least 60 days to obtain comments. As the final plan must be posted by September 3, the latest a draft plan can be posted is July 5, 2024. However, since an organization will need time to consider any feedback received draft plans should be posted as soon as possible prior to July 5.

Available guidance

While the deadlines are approaching quickly, important tools for achieving compliance have emerged in the past year:

Amended regulations – The new regulations clarify the information required in pay equity reports and proper composition of comparator job classes where there are no predominantly male job classes in the workplace. The new regulations also provide a framework for issuing administrative monetary penalties (AMPs) for non-compliance with reporting requirements.

Guidance on compensation comparison – The Pay Equity Unit of the Canadian Human Rights Commission has published further “Interpretations, Policies and Guidelines” (IPGs) on the technical details of compensation comparison required in a pay equity plan.  

Decisions on multiple plans – While default in the Act is one plan for all an employer’s employees, on application, the Pay Equity Commissioner may authorize establishment of multiple plans under certain circumstances. The commissioner has now rendered decisions on several multiple plan applications, providing guidance on when they will be permitted.

Bottom line

The work involved in preparing draft pay equity plans is significant, particularly where a pay equity committee must be formed and an organization is considering multiple plans. With reporting deadlines approaching soon, and given the government’s authority to issue AMPs, it is important that federally regulated organizations take steps to meet their obligations in a timely fashion. 

Any organization that requires assistance in completing this work, or is concerned it will not meet the upcoming deadlines, should seek the advice of counsel.