If any of the following descriptions apply to you, you might be considered an employer with unique requirements under the Pay Equity Act. You therefore need to meet the following obligations and deadlines:
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Option 1: You belong to a group of employers
Group of employers
A group of employers is two or more employers who are recognized by the Pay Equity Commissioner as a single employer. Employers that are part of a group work together on their pay equity plan.
As an example, employer A and employer B are small firms with less than 100 employees in the grain handling industry. Employer A and employer B have similar compensation practices and positions with similar duties and responsibilities.
They can decide to file a group of employers' applications to the Pay Equity Commissioner to be recognized as a single employer.
Forming a group of employers
Should two or more employers wish to form a group, they must apply to the Pay Equity Commissioner to have the group of employers recognized as a single employer.
Only federally regulated private sector employers who are covered by the Pay Equity Act can apply.
When reviewing an application, the Pay Equity Commissioner may recognize a group of employers as a single employer if all of the following criteria are met:
- the employers are part of the same industry
- they have similar compensation practices
- they have positions with similar duties and responsibilities
Once a group of employers is recognized by the Pay Equity Commissioner:
- Employers in the group have a collective responsibility to establish and maintain a pay equity plan for all employees of employers in the group.
- Employers in the group are individually responsible for posting both the draft and final versions of the pay equity plan in their workplace. They must do so on the same day.
- Employers are individually responsible for posting any notices required by the Pay Equity Act.
- Employers are individually responsible for implementing any increases in compensation owed to their employees.
Requirements for groups of employers
- Employee count: You must aggregate the total number of employees across all employers within the group.
- Pay equity committee: You must set up a single pay equity committee collectively if you have:
- 100 or more employees
- 10 to 99 employees if some or all are unionized
- Posting the final pay equity plan: You must post the final pay equity plan in the workplace within three years from the date the Pay Equity Commissioner determined the group became subject to the Act.
- Increasing compensation: You must individually implement increases in compensation, not as a group.
- Other posting requirements: You must individually fulfill posting requirements, for example:
- notice indicating the employer is part of a group
- notice that the employer is beginning the pay equity exercise
- draft pay equity plan and “Notice - Right to provide comments on the draft pay equity plan” (these must be posted by all employers in the group on the same day)
- final pay equity plan and “Notice - Increasing compensation” (these must be posted by all employers in the group on the same day)
Pay equity timelines for groups of employers
If the application is approved, a group of employers will have some timelines that differ from an employer that is not part of a group of employers.
If the pay equity Commissioner recognizes a group of employers as a single employer, they become subject to the Act on a date chosen by the Commissioner.
This means that timelines concerning the posting of the final version of the pay equity plan, the increases in compensation, pay equity maintenance and the filing of the group of employers' annual statement will be calculated from the date chosen by the Commissioner.
For more information, consult Pay equity dates and deadlines.
Option 2: You were a provincial business that has now become a federally regulated employer
- If you were in a province that did not require you to establish a pay equity plan, you must follow all the same obligations as other employers under the Act. Consult the Pay equity dates and deadlines for more information.
- If you were in a province that required you to develop a pay equity plan:
- Employee count: You must count the average number of employees in the calendar year in which your business became federally regulated.
- Posting the final pay equity plan: You must post the final pay equity plan within your workplace no later than 18 months after the date on which you became subject to the Act.
- Employers in this situation are given less time because they have already completed a pay equity plan.
Option 3: You are an employer that has taken over a business or organization that already has a pay equity plan
Once a federally regulated private sector or Crown corporation employer has posted a final pay equity plan, that plan continues to apply even when a new employer takes over the business or organization.
In these situations, the new employer becomes subject to the Pay Equity Act and picks up where the former employer left off. The new employer must honor revised salaries for eligible employees and maintain pay equity.
Option 4: You have received authorization from the Pay Equity Commissioner to extend your deadline for posting the final pay equity plan
- Posting the final pay equity plan: You must post the final pay equity plan by the deadline authorized by the Pay Equity Commissioner.
- Increasing compensation: You must, in addition to increasing compensation (if applicable), pay lump sums and interest amounts equal to the amount that would have been payable had no extension been granted.
- Additional posting requirements for authorizations received include, for example:
- After receiving authorization from the Pay Equity Commissioner, you must post a notice as soon as possible with the new deadline.
- You must include additional information about lump sums and interest payments owed in the “Notice - Increasing compensation,” specifying the dates on which compensation increases, lump sum payments, and interest payments are owed.
- If phasing in increases, you must post a schedule of increases with specific requirements.