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Employment Law For Employers

Ontario Pay Transparency Rules in 2026: A Practical Compliance Guide for Windsor-Essex Employers

Ontario employers are entering a new era of “pay transparency” in recruitment. Beginning January 1, 2026, many organizations will be legally required to include compensation information in publicly advertised job postings, along with several other hiring-process disclosures and restrictions.

These changes arrive in a labour market that is already competitive and influenced by cross-border factors. Whether you hire for manufacturing and skilled trades, logistics, healthcare, agriculture, professional services, or tech, job postings are often the first (and sometimes only) touchpoint a candidate has with your organization. The new rules raise the stakes: job postings will need to be more standardized, more accurate, and better aligned with your internal compensation practices.

What Counts as a “Publicly Advertised Job Posting”?

The new rules target publicly advertised job postings, generally described as external postings advertised to the general public (for example, on job boards, public-facing career pages, or social media).

Some exclusions include general recruitment campaigns that don’t reference a specific position, internal-only postings, and certain postings for work performed outside Ontario.

From a practical standpoint, if the posting is visible to the general public and invites external applicants for a specific role, you should treat it as caught by the rules unless you have a clear basis to rely on an exclusion.

The 25-Employee Threshold

The new requirements apply to Ontario employers with 25 or more employees (based on the day the publicly advertised job posting is posted). Employers under this threshold are generally not subject to the new job-posting rules.

For some organizations, especially growing manufacturers, multi-location retailers, hospitality groups, and professional practices, this threshold may be met seasonally or fluctuate from year to year. If your business stays near 25 employees, the risk is not just whether you are covered in a general sense, but whether you are covered on the day a specific posting goes live.

A prudent approach is to assume coverage if you regularly operate at or near 25 employees, and implement compliant posting templates as your default.

Compensation Disclosure: What Must Be Included

Starting January 1, 2026, covered employers must include either:

  • The expected compensation for the position; or
  • A range of expected compensation.

This is the “headline” pay transparency requirement. It will change how many employers approach posting design, internal approvals, and salary negotiations.

The $50,000 Range Cap

If you choose to post a range, guidance consistently describes a requirement that the range cannot exceed $50,000 (for example, $80,000–$120,000 may be acceptable; $80,000 to $140,000 would not be).

This is a critical operational detail: many employers currently post very wide ranges to preserve flexibility. In 2026, that strategy may no longer be available for covered postings.

The $200,000 Threshold (Where Disclosure May Not Be Required)

Summaries of the regulation also describe an exemption where compensation disclosure is not required for positions where expected compensation exceeds $200,000, or where the top end of a posted range would exceed $200,000.

For most employers, this exemption will primarily apply to senior leadership or specialized professional roles.

Defining “Compensation” Under the New Rules

In the context of the new pay transparency rules, “compensation” is tied to the concept of “wages” under Ontario employment standards, and is broader than base salary alone in many contexts.

The practical takeaway is that employers should avoid rushing to post a number without first confirming what they are actually committing to communicate. If you include only base salary, but the role regularly earns non-discretionary commissions or other earnings, you may need a defensible rationale for how the posted figure was determined.

Just as importantly, once a range becomes public, employees and candidates will compare it to internal realities. A compliant posting that triggers an internal pay equity issue can still become a business problem.

Vacancy Status: Avoiding “Ghost Postings”

Covered employers must include a statement disclosing whether the posting is for an existing vacancy. This requirement aims to reduce “ghost postings” and help applicants understand whether they are applying for a currently available role or if the employer is building a pipeline.

For legitimate reasons, many employers build candidate pools (for example, to address ongoing needs in skilled trades, seasonal roles, or growth planning). In 2026, you can still recruit strategically, but you will need to be transparent about what the posting represents.

Disclosing AI Use in Screening and Selection

If you use artificial intelligence to screen, assess, or select applicants, you must disclose that fact in the publicly advertised posting.

This matters for more employers than many realize. AI use can encompass a wide range of tools, including resume-screening features within applicant tracking systems, automated ranking or scoring, and third-party screening platforms. Even if a human makes the final decision, the posting obligation may be triggered if AI is used earlier in the funnel.

A practical first step is to map your hiring workflow and identify where automation occurs, especially in vendor tools that HR teams may use as “standard features.”

No “Canadian Experience” Requirements in Postings and Application Forms

Starting in 2026, covered employers will be prohibited from including requirements related to Canadian experience (or equivalent) in publicly advertised job postings and associated application materials.

This does not mean you cannot require lawful, job-related qualifications. It does mean you should audit templates for language that can be read as excluding qualified newcomers (for example, “must have Canadian experience”).

In roles that require compliance knowledge, safety training, licensing, or familiarity with Ontario workplace norms, the best practice is to specify the real requirement:

  • Required certification or licence;
  • Specific technical competency;
  • Ability to work in Canada (where applicable); and
  • Ability to perform the essential duties safely and effectively.

Post-Interview Candidate Communications

Covered employers must notify applicants who were interviewed for a publicly advertised job posting of whether a hiring decision has been made within 45 days of the applicant’s interview (or last interview, if multiple).

This is a process rule, not just a posting rule. Employers should plan for:

  • What counts as an “interview” in your process (especially where there are screening calls, panel meetings, working interviews, or virtual meetings); and
  • Who is accountable for triggering the notification (HR, the hiring manager, or the recruiter).

A simple compliance-minded approach is to implement a standard, courteous message that confirms either: (a) a hiring decision has been made, or (b) a hiring decision has not yet been made (if that is permitted by the applicable rule interpretation). You should also keep records, as discussed below.

Retaining Posting Records

Employers must retain copies of publicly advertised job postings and associated application forms for three years after the posting is removed, along with related records of the post-interview notifications for a similar period.

This is where many employers will need to modernize their recordkeeping. If you post on multiple platforms (Indeed, LinkedIn, industry boards, community groups), you need a reliable method to capture what was actually posted and when. Screenshots, PDF exports, or platform archives can work, so long as the system is consistent and searchable.

A Windsor-Essex Employer’s Compliance Plan

Many organizations can reduce risk (and avoid last-minute scrambling) by taking certain steps now to adapt their internal processes to comply with the new pay transparency rules.

Step 1: Build Compliant Posting Templates

Prepare standardized job posting templates that include:

  • A compliant pay disclosure format (single figure or capped range);
  • A vacancy status statement;
  • An AI disclosure statement (where applicable), and
  • Language that avoids “Canadian experience” requirements.

Templates reduce the chance that a hiring manager posts a non-compliant ad under time pressure.

Step 2: Create Defensible Compensation Ranges

Pay transparency raises an internal question: Do we have accurate salary ranges for each job family, and can we clearly explain them? If you do not, you may end up posting numbers that create internal compression or employee relations issues.

A structured compensation approach can help you stay competitive without improvising on every posting.

Step 3: Audit Your Hiring Tech for AI Use

Identify whether your applicant tracking system (ATS), human resources information system (HRIS), or recruitment vendors use AI to screen, rank, or recommend candidates. If AI is used, prepare a consistent disclosure statement and ensure your HR team understands when it must appear in a posting.

Step 4: Update Interview Workflows to Meet the 45-Day Rule

Decide who owns candidate communications and build reminders into your ATS or HR calendar. Create message templates that are professional and consistent across departments.

Step 5: Implement a Three-Year Posting Archive Process

Make it easy to prove when you posted and what you posted. A lightweight approach can include:

  • Saving a PDF of the posting as published;
  • Storing any application form used; and
  • Retaining the post-interview notification record in the same file.

Contact Willis Business Law in Windsor-Essex County for Trusted Guidance on Ontario’s Pay Transparency Rules

Ontario’s 2026 pay transparency rules are manageable, but they are not “set it and forget it.” Compliant job postings rely on effective compensation design, HR policies, hiring technology, record retention, and training for hiring managers.

At Willis Business Law, our employment law team works with employers to prepare practical, defensible compliance programs, including job posting and application template updates, compensation range reviews, recruitment and interview policies, vendor contract reviews, and audit-friendly record retention practices. If you would like help preparing for these changes, please contact us online or call (519) 945-5470.

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