Authorization requests to the Pay Equity Commissioner

What you can request

The Pay Equity Act lays out the rules all employers must follow. However, there may be certain situations when an employer or pay equity committee needs to ask the Pay Equity Commissioner for permission to change the way certain rules apply to them.

The Commissioner has the authority to approve these requests if they meet certain criteria. The table below outlines the kinds of requests possible.   If you wish to file a request for authorization, you can do so through the Pay Equity Portal.

Types of authorization requests

Group of employers

What can you request?

You can request to be recognized as a group of employers as per Section 106 of the Pay Equity Act.

Description

Employers that are part of the same industry, that have similar pay practices and have jobs with similar duties and responsibilities, can request to be recognized as a single employer. If the formation of a group of employers is approved, all of the employers in the group have the same timeline to meet their obligations and must then prepare a single plan that covers all of the employees of the group of employers.

Assessment process

We will assess if:

• The employers are part of the same industry: the employers perform the same or similar lines of work, which provide a closely related set of products, goods or services.
• The employers have similar compensation practices: the employers share common characteristics in the way that compensation is determined and paid. For instance, we may assess information about the employers' salary structure, benefits, and human resources policies.
• The employers have positions with similar duties and responsibilities, including positions with similar requirements and skills, use of the same equipment or processes, completion of the same or similar tasks, and similar levels of responsibility and authority.

Multiple pay equity plans

What can you request?

You can request to establish more than one pay equity plan as per Section 107 of the Pay Equity Act.

Description

The Pay Equity Act requires employers to develop one pay equity plan for their whole workforce. However, there may be some circumstances that justify the establishment of more than one plan.

An employer, or a group of employers, or any bargaining agent or representative of the non-unionized employees may apply for an authorization to develop multiple pay equity plans.

Assessment process

After we have received an application and given opportunities to those affected by the application to provide evidence and representations, we will assess whether:

• There are enough predominately male job classes to compare compensation in each plan. This includes assessing both the quantity and quality of male job classes.
• The circumstances are appropriate for establishing multiple plans and, where applicable, whether the outcome will be consistent with the purpose of the Act.

Pay equity committee

Different method for comparing compensation

What can you request?

You can request authorization to use a different compensation comparison method as per Section 111 of the Pay Equity Act.

Description

An employer or a pay equity committee must either use the equal average or the equal line method to compare compensation while developing or updating a pay equity plan.

In the case of an employer or a group of employers without a pay equity committee, an authorization by the Pay Equity Commissioner is required before a different comparison method can be used.

However, if a pay equity committee determines that neither method can be used, they can use a different compensation comparison method, without the need for an authorization.

Assessment process

We will assess:

• the reasons provided by the employer that neither the equal average method nor the equal line method can be used
• if it is appropriate to authorize the employer's proposed method of comparison of compensation, including if the use of the different method, is consistent with the purposes and goals of the Pay Equity Act

Extension to post the pay equity plan

What can you request?

You can apply for an extension of the deadline to post the final or updated pay equity plan as per Section 112 of the Pay Equity Act.

Description

An employer or a group of employers who needs more time to post their final or updated pay equity plan can apply to the Commissioner for an extension of the deadline set out in the Act.

Assessment process

We will assess:

• Why the employer is unable to complete the final pay equity plan under the legislated timeline. This includes assessing the amount of time and resources that the employer has dedicated to the pay equity exercise, taking into account their circumstances.
• If the employer has taken genuine and meaningful steps to establish the pay equity plan under the prescribed timeline.
• If it is appropriate to authorize the extension of the periods for posting the final or revised pay equity plans, considering the purposes and goals of the Pay Equity Act.
• If the Commissioner grants the request, we will determine the appropriate time period for posting the pay equity plan.

Longer phase-in period for increases in compensation

What can you request?

You can apply for an extension of the deadline to phase in increases in compensation as per Section 113 of the Pay Equity Act.

Description

If an employer is experiencing extreme financial hardship, they may ask for an extension of the deadline to phase in increases in compensation. Demonstrating extreme financial hardship is a high threshold to cross. If the Commissioner approves the request, the employer must meet the new deadline when phasing in increases in compensation.

Assessment process

We will assess:

• if the increases in compensation would amount to at least 1% of the employer's payroll
• evidence of the employer's financial situation is required, including:
  1. information about income, expenses, assets, and liabilities
  2. if the employer's current and anticipated resources would allow it to pay the increases in compensation according to the schedules in the Act
  3. if the costs could be recovered in the normal course of business
  4. the effects on the employer and the workplace of not granting the extension
• if it is appropriate in the circumstances to authorize the request, considering the purposes and goals of the Act

What to expect: authorization requests

The Pay Equity Act and Regulations set out the rules that employers must follow to develop a pay equity plan. However, there are certain situations when an employer, a bargaining agent or non-unionized employees (“Workplace parties”) may ask the Pay Equity Commissioner for permission to modify some of these rules. These are called Authorization requests.

Submitting your request

As the requestor, you are responsible for demonstrating to the Pay Equity Commissioner that your authorization request should be granted. Be sure to provide all relevant supporting materials when you submit your form. Please take note of the following important information:

• You should submit an authorization request using the Pay Equity Portal. The form and a guidance document are available in the Portal. Review them carefully, along with the materials available on our website, to ensure that you are providing all relevant information.
• The decision on your authorization request will be based on your completed form, supporting materials, and if requested, representations from affected workplace parties.
• You are expected to add the name of any workplace party that might be affected by your authorization request. Please see the guidance document in the Portal and the Pay Equity Portal page for more information on identifying workplace parties.

What to expect next

Once you submit your authorization request application, the Office of the Pay Equity Commissioner will review your information to ensure:

• the matter falls within the Commissioner's mandate and jurisdiction
• the request includes the required information
• a formal authorization request is necessary

The Office of the Pay Equity Commissioner will then contact you in the Pay Equity Portal. Where appropriate, workplace parties may be provided an opportunity to submit representations to your request.

Workplace parties

A workplace party can be any certified bargaining agent, employer or non-unionized employee that is not the requestor and who might be affected by an authorization request (affected party).

For multiple plan authorization requests, workplace parties affected by the request are given the opportunity to provide written representations to add to the request. The workplace parties are provided access to the authorization request application in order to prepare their representations.

For all other authorization requests, the Office of the Pay Equity Commissioner may ask for written representations from affected workplace parties if this assists in the assessment of the request. The workplace parties are provided access to the authorization request application, and all non-confidential information for the purpose of preparing their representations.

The Office of the Pay Equity Commissioner will inform the affected parties of the next steps in the process

Important reminders on timelines and compensation increases

Please note that filing an authorization request does not extend the timeline to create a pay equity plan. Additionally, even if an authorization request is made to extend the timeline for posting the pay equity plan, and that extension is granted, any compensation increases are still due on the day after the three-year deadline. Employers who owe their employees increases will have to pay them a lump sum plus compounding daily interest, calculated as of the three-year deadline.