What Employers Need to Know About Ontario’s New Pay Transparency Legislation

Note: This article is not legal advice; it’s our high-level interpretation of the current legislation as it exists today. If you have questions about Bill 149, especially any that are specific to your organization, we recommend seeking the advice of a lawyer.

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As with every new year, 2026 will bring a host of new changes to the workplace. And for employers hiring in Ontario, at least some of those changes will be tied to Bill 149, the Working for Workers Four Act, which introduces changes to the Employment Standards Act in phases over time.  

While the province has yet to release clear guidelines associated with the legislation, as of January 1, 2026, it requires updates to public job ads for Ontario-based jobs, new ways of communicating with candidates and disclosing specific information, notification of hiring decisions, recordkeeping and disclosure about the use of AI, and more.  

Like most legislation, the new rules associated with Bill 149 will evolve over time, becoming clearer as new case scenarios arise.  

In the meantime, our team is monitoring the legislation, updating our processes accordingly and advising our community of employers of any best practices as we learn them, so we can all shine as standout employers in 2026 and beyond.  

Below, we’ve summarized some of the highlights of the new legislation.  

The stated benefits of pay transparency

The legislation brings Ontario one step closer to other jurisdictions in Canada that already have pay transparency legislation in effect, such as BC and PEI, with the stated goal of improving the hiring process for job seekers and employers, increasing pay equity and even improving workplace culture.  

Salary is so important to candidates, one study from Indeed found that higher pay was the top motivator for employed Canadians seeking a new job. Posting a clear range will help them decide whether to even apply, respecting people’s time on both sides of the hiring table. After all, it can be frustrating for candidates and hiring managers alike to go through a lengthy interview process only to walk away due to mismatched salary expectations.

Posting clear pay ranges also signals to candidates and existing employees that the employer is honest and transparent and values fairness. And on the pay equity front, advocates of pay transparency note that it can help reduce wage disparities based on factors such as gender, ethnicity or age.

Here are some other proposed benefits of this legislation:  

• In a study, the World Economic Forum found the gender pay gap was reduced by up to 45% in organizations that disclosed salary info compared with those in the study that didn’t disclose such data. The researchers also found that organizations where pay transparency is in place see better collaboration among workers at all seniority levels.  

• According to a study by Indeed, postings that included salary information attracted more applications per day and were active for shorter periods of time than comparable postings that didn’t mention pay.  

Who/what the legislation applies to

The legislation applies to employers (including those based outside of Ontario) that have 25 or more employees in Ontario (as opposed to contractors) on the day when the job ad is posted and publicly advertise jobs that:  

• Will be performed by workers based in Ontario; and

• Offer guaranteed compensation of up to $200,000 annually; and

• Are governed by Ontario's Employment Standards Act.  

The legislation does NOT apply to:  

• Federally regulated employers.  

• Companies that only employ contractors (as opposed to employees) in Ontario.

• Ontario-based employers hiring for roles based in other provinces.

• An internal job posting.

• A general recruitment campaign or help wanted sign that does not advertise a specific position.

Notes:  

• The legislation applies to recruitment firms, including Altis, that advertise Ontario-based jobs on behalf of their clients.  

• Provided the employer and job meet the above criteria, the legislation applies to part-time, contract, temporary and permanent roles where the work being performed is within Ontario, or if partly performed outside Ontario, is a continuation of the work that was performed within Ontario.  

• The rules apply to public ads for positions that are accessible to Ontario job seekers, including remote or hybrid roles, in cases where the company’s employees are subject to Ontario's Employment Standards Act.  

What Bill 149 includes

As of January 1, 2026, public job ads for Ontario-based roles:  

Must include:

• A compensation range no greater than $50,000 (for jobs that pay less than $200,000)

• A statement about whether AI was used to screen, assess or select applicants

• A note about whether the ad is for an existing vacancy or a future vacancy (i.e., a pipelining job)

Must NOT include:

• Any requirement of Canadian experience

Additionally, as of January 1, 2026, employers in Ontario must:

• Advise applicants whether a hiring decision has been made within 45 days of the applicant’s last interview related to the publicly advertised job. This requirement does not apply to candidates who have only been given an initial phone screen for the publicly advertised job or candidates who have been interviewed for a role that was not publicly advertised.  

• Note: The communication can be done in person, in writing or “using technology.”  

• Keep records of all job postings / applications / related candidate communications for at least 3 years.

Pay transparency requirements

[Assuming the employer and job meet the above criteria.]

In publicly advertised jobs to be performed in Ontario, Bill 149 requires employers to include either a salary amount or a salary range no greater than $50,000 in external job postings that pay up to $200,000 annually.  

This applies to postings advertised on job boards, corporate career pages, recruiter channels and most online platforms (e.g., Indeed, LinkedIn, etc.).

Notes:  

• The legislation applies to wages as defined under the Employment Standards Act, which includes any payment required to be made by an employer to an employee under a contract (i.e., salary, non-discretionary bonuses, car allowances, commissions based on a fixed formula, etc.) or under Ontario's Employment Standards Act.  

• The range does NOT include discretionary bonuses or pensions and benefits.  

• The range applies to hourly rates as well as salaries.

• Employers may choose to post a fixed salary instead of a range.  

• Roles that pay more than $200,000 in wages per year are exempt.

• The salary range should reflect the real parameters of the role and what you are realistically going to offer in terms of compensation; it can’t be used only to cast a wider net and “see what comes in.”  

• If the range is too broad, candidates may have difficulty understanding the level or seniority of the position.  

AI disclosure in the hiring process

[Provided the employer and job meet the criteria listed above.]  

According to the legislation, as of January 1, 2026, “Every employer who advertises a publicly advertised job posting and who uses artificial intelligence to screen, assess or select applicants for the position shall include in the posting a statement disclosing the use of the artificial intelligence.”  

Notes:  

• In its current form, the legislation does not require you to say what types of AI tools you're using or to what extent you are using them; it only requires that you disclose if you use AI to screen, assess or select applicants.  

• The statement can be included anywhere on the public ad (there is no mandated location). However, it must appear on all publicly posted job ads, not just on your website, Careers page or company job portal.  

• This rule applies to hiring activities only; it does not apply to general internal tools that support workplace productivity. For example, if you use AI to support notetaking during interviews, you do not need to disclose this in your job ad because AI is not used to “screen, assess or select” applicants. However, as a best practice, it’s always a good idea to notify people when you are recording any conversation.

Your disclosure does not need to list the actual tools you use but rather should reflect how you use AI in the hiring process. For example, if your ATS automatically uses AI to rank candidates, then it is recommended that you include a statement to this effect in your public job ads. Example: “We use AI to review and shortlist applications based on job-related criteria. Human hiring managers decide who moves forward.”  

Examples of AI statements

Here are some examples of AI statements:  

• “We use AI-powered tools to review and shortlist applications based on job-related criteria. Human hiring managers decide who moves forward.”

• “Our hiring process includes AI tools that screen applications for keywords and qualifications. Human recruiters review all results.”

• “Video interviews may be conducted and scored with AI. Trained staff review the scores before any decision is made.”

Altis AI statement

At Altis, our human recruiters review all applications for jobs we post. Here’s a high-level overview of how we use AI in the hiring process:

• Occasionally, we supplement our human review of applications with AI-assisted tools (i.e., for high-volume hiring, complex job requirements etc.).

• For language assessments, we use an AI tool called Hallo.

• For help drafting job descriptions, we use LLMs like ChatGPT.

The Altis AI statement appears at the bottom of our publicly posted ads, beneath our diversity statement: “Our human recruiters review all applications and always make the final hiring decision. On occasion, we also use AI-assisted tools to help review applications.”

Existing vs. future job vacancies

[Provided the employer and job meet the criteria listed above.]  

As of January 1, 2026, the legislation mandates that all publicly posted ads specify whether the ad is for an existing vacancy or a pipelining (i.e., future) opportunity. Note that public postings for pipelining opportunities must also include the salary range.  

This requirement is designed to help candidates manage expectations and improve the job search experience by reducing misleading or inaccurate postings.

The legislation does not specify how this distinction must be worded or denoted on a public job ad.

At Altis, our public job ads will specify the number of vacancies (for existing vacancies) or will specify “Future opportunity” for pipelining job ads.  

Communications with interviewed candidates

In addition to the requirements listed above for public job postings, the legislation requires that employers in Ontario advise applicants whether a hiring decision has been made within 45 days of the applicant’s last interview related to the publicly advertised job.  

It is designed to encourage consistent communication and prevent candidate “ghosting” (i.e., not following up with candidates after they’re interviewed).  

Notes:

• This requirement only applies to candidates who have had an official interview for a publicly advertised job to be performed in Ontario.  

• It does not apply to initial phone/video screens or automated, recorded video interviews where no recruiter is present.

• The communication can be done in person, in writing or “using technology.”

• It does not mean you have to make a hiring decision within 45 days. Rather, if 45 days after the candidate’s last interview for the job in question, you still have not made a hiring decision or you put the job on hold, you must notify the candidate to tell them so.  

Tips for employers:

• To manage expectations, employers may want to consider blatantly advising candidates during each meeting whether it’s a screening or an official interview.  

• Employers will need to keep a record that they have informed the candidate (within 45 days of their last interview) whether a hiring decision has been made. As noted below, this record will need to be kept for a minimum of three years.  

Record-keeping obligations

Bill 149 introduces new record-keeping rules related to public job postings for Ontario jobs. The legislation requires that Ontario employers keep all records/communications related to a publicly advertised job posting for a minimum of three years. For example, the job posting itself, along with all related applications, correspondence, interview notes, assessments, etc.  

Notes:

• This requirement applies to all applications for a publicly posted job, along with all correspondence that you have with the applicants (including automated messages), regardless of whether the candidate is interviewed.  

• The legislation does not mandate how detailed your interview notes need to be.  

• Employers would be advised to keep a record that they have notified candidates when they are being screened vs. interviewed, and for interviewed candidates, that they have been notified within 45 days of their last interview whether a hiring decision was made.

Canadian experience

The legislation states that as of January 1, 2026, public job ads for Ontario-based roles must not include any requirement of Canadian experience. For example, in public job ads, you cannot write, “Experience within Canada preferred” or “Experience in the Canadian labour market required.”

However, employers are legally allowed to ask candidates if they are legally entitled to work in Canada. It is also acceptable to confirm whether an applicant has the required credentials to work in the role (e.g., security clearance, specific Ontario or Canadian licenses, designations, certifications or credentials, especially for roles in regulated professions etc.).  

For example, it is acceptable to seek the credentials of a CPA or someone who is licensed by a regulatory body in Ontario, assuming these credentials are bona fide occupational requirements for the role being advertised.

How employers can prepare

As noted, the guidelines for this legislation will evolve over time, so it’s important to keep a close eye on the Ministry of Labour for updates and adjust accordingly.

At a high level, here are some things to consider as you prepare for January 1, 2026.  

Review your compensation strategy

• Conduct an external pay audit to ensure you stay competitive

• Conduct an internal pay audit; prepare to adjust salaries of existing employees

• Highlight Total Rewards in job ads (e.g., time off, comprehensive benefits, or remote/hybrid work options)

Review your job posting process

• Confirm your company’s usage of AI and develop an AI statement for your public job ads

• Ensure your company’s job platform includes new fields for salary ranges, AI usage and existing/pipelining statements

• Consider the impact of your posting on existing employees

Adjust your hiring process

• Clarify with applicants what is an official interview vs. a screening call

• Avoid mentioning the need for Canadian experience

• Inform applicants (by email or phone) whether a hiring decision has been made within 45 days of their last interview in relation to the publicly advertised job posting.

Update your record-keeping policy

• Ensure you keep records of all public job postings, related applications, interview notes and correspondence for at least 3 years

Train your team on

• New compliance measures

• Best practices for internal pay discussions

• How compensation decisions are made

• How AI is used in the hiring process

Conduct a self-audit: Ask yourself

• Did we post our AI statement?

• Did we retain our ads and correspondence for 3 years?  

• Did we ensure there was no mention of Canadian experience listed as a requirement in our job ads?

• Did we include salary ranges, as required?  

Establish a queries / complaints process

• Ensure you have a mechanism for job seekers to submit questions and complaints, as well as staff trained to answer all queries.

How a recruitment partner can help

A staffing and recruitment partner can support employers by preparing compliant job posting templates, reviewing technology for AI features, advising on compensation ranges and managing candidate communication. Recruiters can also help ensure that hiring practices align with both compliance needs and the expectations of today’s job seekers.

Questions? Contact us at altisteam@altis.com.  

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