Human Resources Legislative Update
Federal Pay Equity Commissioner May Now Impose Monetary Penalties for Violations of the Pay Equity Act
Date: June 14, 2024
Recent amendments to the federal Pay Equity Act (PEA) regulations establish a framework for the imposition of administrative monetary penalties (AMPs) for violations of the PEA. This is a significant development that may result in an employer being penalized if it fails to comply with its obligations, including the requirement to establish a pay equity plan discussed in our March 11, 2024 Human Resources Legislative Update.
The regulations specify how the amount of any AMP is to be determined. For any potential infraction there is a penalty range established. The penalty range can vary based on a number of factors, including:
- role of the party (e.g., employer, bargaining agent, or other person)
- severity of the violation
- size of the workplace
- nature of the violation
- compliance history
The Pay Equity Commissioner then considers the gravity of the offence, through an examination of aggravating and mitigating factors, to determine the appropriate penalty for a particular infraction.
In addition to receiving a financial penalty, the Pay Equity Commissioner may also publish the name of any party that has received an AMP as well as additional identifying information, such as the city and province in which they are located and the nature of the violation. These measures are all aimed at incentivizing employers and bargaining agents to comply with their obligations under the PEA.
For more information about the new AMP framework, or for assistance with any federal pay equity issue, please contact your regular Hicks Morley lawyer.
The article in this client update provides general information and should not be relied on as legal advice or opinion. This publication is copyrighted by Hicks Morley Hamilton Stewart Storie LLP and may not be photocopied or reproduced in any form, in whole or in part, without the express permission of Hicks Morley Hamilton Stewart Storie LLP. ©
