The 60 Second Ontario Pay Equity Audit -
Do you have an Unfunded Retroactive Liability?
1. Do you have a copy of your original Pay Equity Plan?*
If YES, read on
If NO, you do not meet Pay Equity Legislation in Ontario
2. Do you have documents showing job evaluation scores, gender of jobs, content of jobs, and compensation rates for jobs for each year since your original Pay Equity Plan?*
If YES, congratulations!
If NO, you do not meet Pay Equity Legislation in Ontario.
*New employers need proof they established and maintained Pay Equity from the beginning.
Pay Equity Review Officers respond to complaints from employees and unions.
Random audits of employers are being carried out to determine if they meet pay equity requirements.
If there is no solid proof of pay equity compliance, the employer will have to reconstruct Pay Equity from the first day they were required to comply; this may be as far back as 1990. The absence of job, employee and pay information from that time is no defence, nor is the ability to pay a concern to the Pay Equity Commission.
The results for an employer can be devastating. In simple terms, one female job class underpaid 50 cents an hour in 1990 would result in each job holder (current and past, including ex-employees) receiving $1,000 a year from 1990 to the present day.
This legislation covers all jobs, including those in Management or a union.
Many employers are still unaware that Pay Equity is in effect in Ontario and very much in force. We frequently are contacted by employers with potentially massive unfunded, retroactive liability under Ontario Pay Equity legislation.
Believing you pay women fairly compared with men, or that a Pay Equity Plan was posted, is not enough. Above is a quick self audit. If the answers are bad, it's best that you are the first to know... call us and we can help before the Review Officer calls!