Salary Transparency Laws Expand, But Loopholes Undermine Equity Goals
Salary Transparency Laws Expand, But Loopholes Undermine Equity

Eileen Dooley, a talent and leadership development specialist and leadership coach based in Calgary, highlights a significant shift in Canadian employment practices. Disclosing salary ranges in job postings, once primarily a feature of the unionized public sector, has become a legal requirement in several provinces. British Columbia mandated this in November 2023, Ontario followed suit on January 1, 2026, and Prince Edward Island has enforced it since June 2022. Consequently, vague phrases like "pay will commensurate with education and experience" or "we offer a competitive compensation package" are disappearing from public job advertisements in these regions. Instead, employers must include a specific number or range, all in the name of transparency and equity.

Transparency Laws Face Critical Limitations

While these regulations represent a positive step for job seekers and employees, Dooley argues that posting salaries with excessively broad ranges does little to advance true transparency or equity. Employers can still set salaries outside the advertised range, and discriminatory pay practices may persist, with individuals in identical roles receiving different compensation based on biased factors. Moreover, the law's patchwork application across Canada creates inconsistencies. A company might post a role in British Columbia with a salary range, omit it for the same position in Alberta, and list a different range in Ontario, reflecting regional variations in cost of living and labor supply.

Provincial Disparities Complicate Compliance

The laws themselves vary significantly by province, adding to the confusion. For instance, British Columbia and Prince Edward Island prohibit employers from asking about salary history during interviews, whereas Ontario does not. Ontario imposes a maximum range limit of $50,000, but British Columbia and PEI have no such restriction, allowing ranges as wide as $50,000 to $150,000. These discrepancies undermine the uniformity needed for effective transparency, leaving candidates uncertain and potentially disadvantaged.

Strategies for Meaningful Salary Disclosure

To make salary postings genuinely transparent and beneficial, Dooley offers several recommendations. Employers should share realistic, narrow ranges—ideally within $15,000 to $20,000—that give candidates a clear idea of starting pay, rather than broad bands like $90,000 to $140,000. They should avoid requiring salary expectations at the application stage, as this can filter out qualified candidates and reduce bargaining power. Instead, focus on skills and experience during initial interviews, reserving salary discussions for later stages. Including other compensation elements, such as hybrid work options or extra vacation days, can also attract candidates who value more than just base pay.

Empowering Job Seekers in Negotiations

For candidates, Dooley advises using salary ranges as a baseline, not a definitive cap. Aim for the lower to mid-point of the range to allow for future growth, and remember that compensation is negotiable. Consider the overall fit, including team culture and non-salary benefits, as value extends beyond education and experience. Ultimately, she emphasizes, "You do not get paid what you deserve. You get paid what you negotiate." By adopting these practices, both employers and job seekers can foster greater equity and transparency in the hiring process.