225/2023

O.C. 576/2023

October 23, 2023

Pay Transparency Act

Pay Transparency Regulation

Definitions and

interpretation

In this regulation:

Act means the Pay Transparency Act ;

bonus pay means any of the following:

pay as defined in paragraphs (

b) and (

c) of the definition of "pay" in the Act;

a bonus received by an employee in the form of securities;

money received by an employee as a commission;

employee means an employee of a reporting employer;

gender category , in relation to an employee, means the applicable category set

out in subsection (2);

hourly rate of pay , in relation to an employee, means the amount determined

under subsection (3);

NAICS code means the North American Industry Classification System Canada

2022 sector code that applies to the greatest number of employees of a reporting

employer;

ordinary pay means any of the following:

money paid as salary;

money paid for an employee's usual hours of work;

money paid for hours worked in excess of an employee's usual hours of

work, if the money is not overtime pay;

overtime hours means hours worked for which an employee receives overtime

pay;

overtime pay means money paid to an employee if

the money is for hours worked in excess of the employee's usual hours of

work, and

the money is based on a rate of pay that is at least 1.5 times the rate of pay

applicable to the employee's usual hours of work;

reference category , in relation to a pay transparency report, means the applicable

gender category determined under subsection (4);

reporting period , in relation to a pay transparency report, means the applicable

12-month period described in

section 4.

The following are the gender categories that apply in relation to reporting

requirements under this regulation:

Man, for an employee who identifies as a man;

Woman, for an employee who identifies as a woman;

Non-binary, for an employee who identifies as non-binary;

Unknown, for an employee

who does not identify as being in a gender category set out in

paragraph (a), (

b) or (c),

who does not wish to specify which gender category applies, or

iii

about whom the reporting employer does not have information

respecting the employee's gender category.

For the purposes of this regulation, an employee's hourly rate of pay for a

reporting period is to be determined by dividing the total amount of ordinary pay

received by the employee during the reporting period by the number of hours for

which the employee received ordinary pay during that reporting period.

For the purposes of preparing a pay transparency report, the reference category is

the gender category Man, if there are 10 or more employees in that gender

category,

the gender category Unknown, if there are fewer than 10 employees in the

gender category Man and 10 or more employees in the gender category

Unknown, or

the gender category Non-binary, if

there are 10 or more employees in the gender category Non-binary,

and

there are fewer than 10 employees in both the gender category Man

and the gender category Unknown.

Despite subsection (4) (a), if there are fewer than 10 employees in each of the

gender categories Man, Non-binary and Unknown then there is no reference

category.

For greater certainty, bonus pay includes

a holiday bonus,

a year-end bonus, and

money that relates to profit-sharing.

Information to be collected by reporting employers

For the purposes of

section 6 (1) (a), (

b) and (

c) of the Act, the prescribed information

is the gender category of each employee of the reporting employer.

Information to be included in pay transparency reports

For the purposes of

section 5 (

a) of the Act, the following is the prescribed

information that must be included in a pay transparency report:

the name of the reporting employer;

the reporting employer's mailing address;

the applicable NAICS code;

the dates on which the reporting period began and ended;

the number of employees of the reporting employer as of January 1 in the

year the pay transparency report is prepared, expressed in terms of one of

the following ranges as applicable:

50 to 299 employees;

300 to 999 employees;

iii

1 000 or more employees;

the applicable reference category determined under

section 1 (4);

the information described in subsection (2), unless there is no reference

category;

subject to subsection (3),

the percentage of employees in each gender category who received

overtime pay during the reporting period, and

the percentage of employees in each gender category who received

bonus pay during the reporting period.

Subject to subsection (3), the following information must be included in a pay

transparency report:

the difference between the mean hourly rate of pay of employees in the

reference category and the mean hourly rate of pay of employees in each of

the other gender categories, determined in accordance with

section 5;

the difference between the median hourly rate of pay of employees in the

reference category and the median hourly rate of pay of employees in each

of the other gender categories, determined in accordance with

section 6;

the difference between the mean amount of overtime pay of employees in

the reference category who received overtime pay during the reporting

period and the mean amount of overtime pay of employees in each of the

other gender categories who received overtime pay during that reporting

period, determined in accordance with

section 7;

the difference between the median amount of overtime pay of employees in

the reference category who received overtime pay during the reporting

period and the median amount of overtime pay of employees in each of the

other gender categories who received overtime pay during that reporting

period, determined in accordance with

section 8;

the difference between the mean number of overtime hours of employees in

the reference category who worked overtime hours during the reporting

period and the mean number of overtime hours of employees in each of the

other gender categories who worked overtime hours during that reporting

period, determined in accordance with

section 9;

the difference between the median number of overtime hours of employees

in the reference category who worked overtime hours during the reporting

period and the median number of overtime hours of employees in each of

the other gender categories who worked overtime hours during that

reporting period, determined in accordance with

section 10;

the difference between the mean amount of bonus pay of employees in the

reference category who received bonus pay during the reporting period and

the mean amount of bonus pay of employees in each of the other gender

categories who received bonus pay during that reporting period, determined

in accordance with

section 11;

the difference between the median amount of bonus pay of employees in the

reference category who received bonus pay during the reporting period and

the median amount of bonus pay of employees in each of the other gender

categories who received bonus pay during that reporting period, determined

in accordance with

section 12;

the information described in

section 13.

A reporting employer must not include any of the following information in a pay

transparency report:

the information described in subsections (1) (

h) and (2) (

a) to (

h) respecting

a gender category in which there are fewer than 10 employees;

if there is only one gender category in which there are 10 or more

employees, the information described in subsection (1) (

h) and

section 13.

If subsection (3) (

a) or (

b) applies, the reporting employer must, in the pay transparency

report, include a statement that explains why the subsection applies.

The information that a reporting employer is required to include in a pay transparency

report must, to the extent practicable, be set out in the following order:

the information described in

section 3 (1) (

a) to (f);

the information described in

section 3 (2) (

a) to (f);

the information described in

section 3 (1) (h) (i);

the information described in

section 3 (2) (

g) and (h);

the information described in

section 3 (1) (h) (ii);

the information described in

section 13.

Time periods respecting pay transparency reports

A pay transparency report must, at the option of the reporting employer, cover one of

the following 12-month periods:

the most recently completed financial year of the reporting employer;

the calendar year immediately preceding the year in which the pay transparency

report is prepared.

Differences between gender categories — mean hourly rates of pay

The difference between the mean hourly rate of pay of employees in the reference

category and the mean hourly rate of pay of employees in each of the other gender

categories is to be determined by taking the following steps in sequence:

calculate the hourly rate of pay for each employee in the manner described

section 1 (3);

for each gender category, add the hourly rate of pay for each employee in

the gender category and divide the total by the number of employees in that

gender category;

for each gender category other than the reference category, subtract the

amount determined under paragraph (

b) from the amount determined under

paragraph (

b) for the reference category;

divide each amount determined under paragraph (

c) by the amount

determined under paragraph (

b) for the reference category;

multiply each amount determined under paragraph (

d) by 100 and round the

result to the nearest whole number, which whole number is the difference,

expressed as a percentage, between the mean hourly rate of pay of

employees in the reference category and the mean hourly rate of pay of

employees in the other gender category.

Differences between gender categories — median hourly rates of pay

The difference between the median hourly rate of pay of employees in the reference

category and the median hourly rate of pay of employees in each of the other gender

categories is to be determined by taking the following steps in sequence:

calculate the hourly rate of pay for each employee in the manner described

section 1 (3);

for each gender category, list the hourly rate of pay for each employee in the

gender category from lowest to highest, and

if there is an odd number of employees in the list, the median hourly

rate of pay for employees in the gender category is the hourly rate of

pay in the middle of the list, and

if there is an even number of employees in the list, the median hourly

rate of pay for employees in the gender category is the amount that is

half-way between the two hourly rates of pay in the middle of the list;

for each gender category other than the reference category, subtract the rate

of pay determined under paragraph (

b) from the median hourly rate of pay

determined under paragraph (

b) for the reference category;

divide each amount determined under paragraph (

c) by the rate of pay

determined under paragraph (

b) for the reference category;

multiply each amount determined under paragraph (

d) by 100 and round the

result to the nearest whole number, which whole number is the difference,

expressed as a percentage, between the median hourly rate of pay of

employees in the reference category and the median hourly rate of pay of

employees in the other gender category.

Differences between gender categories — mean overtime pay for reporting period

The difference between the mean amount of overtime pay of employees in the

reference category who received overtime pay during a reporting period and the mean

amount of overtime pay of employees in each of the other gender categories who

received overtime pay during that reporting period is to be determined by taking the

following steps in sequence:

for each gender category, add the total amount of overtime pay of all

employees in the gender category who received overtime pay during the

reporting period and divide the total by the number of employees in that

gender category who received overtime pay during the reporting period;

for each gender category other than the reference category, subtract the

amount determined under paragraph (

a) from the amount determined under

paragraph (

a) for the reference category;

divide each amount determined under paragraph (

b) by the amount

determined under paragraph (

a) for the reference category;

multiply each amount determined under paragraph (

c) by 100 and round the

result to the nearest whole number, which whole number is the difference,

expressed as a percentage, between the mean amount of overtime pay

received by employees in the reference category who received overtime pay

during the reporting period and the mean amount of overtime pay received

by employees in the other gender category who received overtime pay

during that reporting period.

Differences between gender categories — median overtime pay for reporting period

The difference between the median amount of overtime pay of employees in the

reference category who received overtime pay during a reporting period and the

median amount of overtime pay of employees in each of the other gender categories

who received overtime pay during that period is to be determined by taking the

following steps in sequence:

for each gender category, list from lowest to highest the overtime pay

received by each employee in the gender category who received overtime

pay during the reporting period, and

if there is an odd number of employees in a list, the median amount

of overtime pay for the gender category is the amount of overtime pay

in the middle of the list, and

if there is an even number of employees in a list, the median overtime

pay for the gender category is the amount of overtime pay that is

half-way between the two amounts of overtime pay in the middle of

the list;

for each gender category other than the reference category, subtract the

amount determined under paragraph (

a) from the amount determined under

paragraph (

a) for the reference category;

divide each amount determined under paragraph (

b) by the amount

determined under paragraph (

a) for the reference category;

multiply each amount determined under paragraph (

c) by 100 and round the

result to the nearest whole number, which whole number is the difference,

expressed as a percentage, between the median amount of overtime pay

received by employees in the reference category who received overtime pay

during the reporting period and the median amount of overtime pay

received by employees in the other gender category who received overtime

pay during that reporting period.

Differences between gender categories — mean number of overtime hours for reporting period

The difference between the mean number of overtime hours of employees in the

reference category who worked overtime hours during a reporting period and the

mean number of overtime hours of employees in each of the other gender categories

who worked overtime hours during that reporting period is to be determined by taking

the following steps in sequence:

for each gender category, add the total number of overtime hours of

employees in the gender category who worked overtime hours during the

reporting period and divide the total by the number of employees in that

gender category who worked overtime hours during the reporting period;

for each gender category other than the reference category, subtract the

amount determined under paragraph (

a) from the amount determined under

paragraph (

a) for the reference category, and round the result to the nearest

whole number, which whole number is the difference between the mean

number of overtime hours of employees in the reference category who

worked overtime hours during the reporting period and the mean number of

overtime hours of employees in the other gender category who worked

overtime hours during the reporting period.

Differences between gender categories — median number of overtime hours for reporting

period

The difference between the median number of overtime hours of employees in the

reference category who worked overtime hours during a reporting period and the

median number of overtime hours of employees in each of the other gender categories

who worked overtime hours during that reporting period is to be determined by taking

the following steps in sequence:

for each gender category, list from lowest to highest the number of overtime

hours of each employee in the gender category who worked overtime hours

during the reporting period, and

if there is an odd number of employees in a list, the median number

of overtime hours for the gender category is the number in the middle

of the list, and

if there is an even number of employees in a list, the median number

of overtime hours for the gender category is the number that is

half-way between the two numbers in the middle of the list;

for each gender category other than the reference category, subtract the

amount determined under paragraph (

a) from the amount determined under

paragraph (

a) for the reference category, and round the result to the nearest

whole number, which whole number is the difference between the median

number of overtime hours of employees in the reference category who

worked overtime hours during the reporting period and the median number

of overtime hours of employees in the other gender category who worked

overtime hours during the reporting period.

Differences between gender categories — mean bonus pay for reporting period

The difference between the mean amount of bonus pay of employees in the reference

category who received bonus pay during a reporting period and the mean amount of

bonus pay of employees in each of the other gender categories who received bonus

pay during that reporting period is to be determined by taking the following steps in

sequence:

for each gender category, add the total amount of bonus pay of all

employees in the gender category who received bonus pay during the

reporting period and divide the total by the number of employees in that

gender category who received bonus pay during the reporting period;

for each gender category other than the reference category, subtract the

amount determined under paragraph (

a) from the amount determined under

paragraph (

a) for the reference category;

divide each amount determined under paragraph (

b) by the amount

determined under paragraph (

a) for the reference category;

multiply each amount determined under paragraph (

c) by 100 and round the

result to the nearest whole number, which whole number is the difference,

expressed as a percentage, between the mean amount of bonus pay of

employees in the reference category who received bonus pay during the

reporting period and the mean bonus pay of employees in the other gender

category who received bonus pay during the reporting period.

Differences between gender categories — median bonus pay for reporting period

The difference between the median amount of bonus pay of employees in the

reference category who received bonus pay during a reporting period and the median

amount of bonus pay of employees in each of the other gender categories who

received bonus pay during that reporting period is to be determined by taking the

following steps in sequence:

for each gender category, list from lowest to highest the amount of bonus

pay received by each employee in the gender category who received bonus

pay during the reporting period, and

if there is an odd number of employees in a list, the median amount

of bonus pay for the gender category is the amount in the middle of

the list, and

if there is an even number of employees in a list, the median amount

of bonus pay for the gender category is the number that is half-way

between the two amounts in the middle of the list;

for each gender category other than the reference category, subtract the

amount determined under paragraph (

a) from the amount determined under

paragraph (

a) for the reference category;

divide each amount determined under paragraph (

b) by the amount

determined under paragraph (

a) for the reference category;

multiply each amount determined under paragraph (

c) by 100 and round the

result to the nearest whole number, which whole number is the difference,

expressed as a percentage, between the median amount of bonus pay of

employees in the reference category who received bonus pay during the

reporting period and the median amount of bonus pay of employees in the

other gender category who received bonus pay during the reporting period.

Information about the percentage of employees in specified segments

The reporting employer must, for the purpose of preparing a pay transparency

report,

rank all of its employees from the lowest hourly rate of pay to the highest

hourly rate of pay, and

divide the employees, as ranked under paragraph (a), into four segments,

each containing an equal number of employees or as close as is possible to

an equal number of employees.

If, in respect of the division of employees into segments under subsection (1) (b),

employees with the same hourly rate of pay could be allocated to more that one

segment, the employer must, in respect of those employees, allocate an equal

number, or as close as is possible to an equal number, of employees from each

gender category into each of those segments.

For each segment into which employees are divided, the reporting employer must

specify the percentage of employees who are in each of the gender categories,

unless subsection (4) applies.

If, in respect of a segment into which employees are divided, a gender category

has fewer than 10 employees in the segment, the reporting employer must not

specify the percentage of employees who are in that gender category in that

segment.

For the purpose of calculating the percentage of employees who are in a gender

category in a segment, the number of employees in the respective segment must

be reduced by the number of employees in that segment who are in gender

categories consisting of fewer than 10 employees.

If, in accordance with subsection (5), the total number of employees in a segment

is reduced, the reporting employer must, in the pay transparency report, state that

this has been done.

[Provisions relevant to the enactment of this regulation: Pay Transparency Act , S.B.C. 2023, c. 18, s. 13 (2).]