Ontario employers should prepare for upcoming changes to the Employment Standards Act (ESA) specifically the Working for Workers Four Act, 2024 (Bill 149).
As of January 1st, 2026, many changes will be made to the hiring practices that can impact Ontario employers with more than 25 employees.
What are New Hiring Practices? Or Some Key Changes to Hiring Practices?
Salary Disclosure:
- Employers must include an expected compensation amount or salary range in job postings. Where a range is identified, the difference between the top and bottom ends cannot exceed $50,000 (e.g. $60,000-$110,000).
- Postings with an annual compensation range exceeding $200,000 are exempt.
Ban on Canadian Experience:
- Employers who advertise a publicly advertised job posting cannot include any requirements related to Canadian experience in the posting or in any associated application form.
Artificial Intelligence (AI) Usage Disclosure:
- Employers must disclose in job postings at which points AI technologies are used in the recruitment and hiring process, and for what purpose. Bill 149 requires employers to disclose, and how AI technologies can use data associated with personal characteristics of the applicant.
Vacancy Status:
- The job posting must identify whether it is for a current job opening.
Record Retention:
- The employer is required to maintain a copy of the job posting for a period of three years.
Post-Interview Follow-up:
- Employers must inform job applicants on hiring decisions 45 days after their interview or final interview. This can be done in person, in writing or through e-meetings (e.g. Zoom or Teams).
Who is exempt from these New Rules?
These new hiring policies will not apply to:
- Employers with fewer than 25 employees at the time of the job posting.
- Internal Job Postings or general recruitment campaigns.
- Job postings for positions performed outside of Ontario.
How can Employers Prepare for Compliance?
To ensure compliance, Ontario employers should take the following steps:
- Review Compensation Structure: ensure all job postings accurately reflect compensation details within the established ranges.
- Educate Hiring Teams: Train HR personnel on the new requirements and develop protocols to ensure pay transparency, AI usage and record keeping are effectively implemented.
- Update Recruitment Practices: Revise job posting templates and hiring procedures to align with these regulatory changes.
Frequently Asked Questions (FAQs)
What happens if an employer fails to include salary information in a job posting?
- Employers that do not comply may face penalties and fines under the ESA. It is important to ensure transparency in all publicly posted job listings.
Does the AI disclosure requirement apply to all hiring stages?
- Yes, employers must disclose if AI is used at any stage of the recruitment process, including screening, shortlisting, or assessment.
How can employers demonstrate compliance with the record retention requirement?
- Employers should maintain digital or physical copies of job postings for the required three-year period, along with documentation of any amendments or updates.
Do these regulations apply to employers hiring independent contractors?
- The new hiring rules generally apply to job postings for employees under the ESA. However, best practices suggest ensuring transparency in all hiring communications, including those involving independent contractors.
Takeaways
- These legislative changes reflect a broader trend toward greater transparency and fairness.
- Employers should review compensation structures to ensure all compensation details are clearly outlined in job postings, and ensure employers are not mandating Canadian work experience in their postings.
- Human Resource teams should be trained to meet these legal standards and review that all job postings comply with the Ontario Human Rights Code.
Thank you to Fotini Sioukas for her contribution to this article. The contents of this article are not to be construed as legal advice. Contact Emerge Law’s lawyers for legal assistance.