New pay transparency rules are now in force in Ontario, requiring many employers to disclose salary ranges in job postings and marking a significant shift in how hiring is conducted across the province.
Under the Working for Workers Act, which took effect on Jan. 1, employers with 25 or more employees must now include the salary or hourly wage range in publicly advertised job postings. To prevent overly broad disclosures, the law limits posted pay ranges to a maximum spread of $50,000.
The legislation ends the long-standing practice of asking candidates to apply for positions without knowing what the job pays, bringing Ontario in line with jurisdictions such as British Columbia and Prince Edward Island, which have already adopted similar measures.
The new rules also prohibit employers from requiring “Canadian experience” as a condition of employment — a practice critics have long argued creates barriers for newcomers. In addition, companies must disclose the extent to which artificial intelligence is used during the hiring process.
Louisa Benedicto, senior vice-president of HR recruitment at the staffing firm Hays, said the AI disclosure requirement applies to the entire recruitment cycle, from drafting job ads to screening résumés.
Based on the latest data from Statistics Canada, 12.2 per cent of Canadian businesses reported using AI in the second quarter of 2025 to deliver services or produce goods — up from about six per cent during the same period in 2024.
What it means for job seekers
Experts say one of the most immediate impacts for candidates will be the end of opaque salary negotiations.
“I think it’s going to make the job search more equitable,” Benedicto said. “You’ll be paid based on your skills and experience, rather than how well you negotiate.”
Having pay information upfront is also expected to save time for both applicants and employers. According to Hays’ latest salary and hiring trends guide, 90.5 per cent of job seekers want to see salary information included in job postings.
The change could also help address pay gaps affecting women and marginalized groups. Statistics Canada data shows that in 2024, women aged 25 to 54 earned 87 cents for every dollar earned by men, with even wider gaps for Black, Indigenous and racialized women.
Deb Bottineau, managing director at recruitment firm Robert Half, said transparency creates accountability.
“There’s no hidden secret around compensation anymore,” she said. “The net outcome should be a more equitable playing field.”
Another provision of the legislation requires employers to inform candidates who have been interviewed of the hiring decision within 45 days of the final interview.
Parbudyal Singh, a professor of human resource management at York University, said the rule should reduce the common experience of being “ghosted” after interviews.
Benedicto added that timely communication can improve employer reputation, noting that candidates who feel respected are more likely to reapply or recommend the organization to others.
What it means for employers
For companies, the law requires a more structured and clearly defined compensation framework. Each role must have an internally consistent pay band tied to specific skills and experience.
“To be transparent, you need clear salary bands,” Benedicto said. “If companies don’t already have that, they’ll need to invest time in building it.”
Singh said the legislation is likely to push organizations toward more formal and consistent compensation systems. It may also prompt internal reviews to ensure existing employees are paid appropriately before new roles are advertised.
However, Benedicto emphasized that the law does not require employers to publicly disclose what individual employees earn — only the salary range for posted positions.
As the new rules take hold, experts say both job seekers and employers will need time to adjust, but the changes are expected to make Ontario’s hiring landscape more transparent, predictable and equitable in the long run.