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Pay Equity Act (S.C. 2018, c. 27, s. 416)

Full Document:  

Act current to 2020-11-02

PART 2Process for Establishment of Pay Equity Plan (continued)

Comparison of Compensation (continued)

The following provision is not in force.

Marginal note:Equal average method

  •  (1) An employer or pay equity committee, as the case may be, that uses the equal average method of comparison of compensation must apply the following rules:

    • (a) the average compensation associated with the predominantly female job classes within a band — or, if there is only one such job class within a band, the compensation associated with that job class — is to be compared to

      • (i) if there is more than one predominantly male job class within the band, the average compensation associated with the predominantly male job classes within the band,

      • (ii) if there is only one predominantly male job class within the band, the compensation associated with that job class, or

      • (iii) if there are no predominantly male job classes within the band, the compensation calculated under paragraph (b);

    • (b) the compensation for the purpose of subparagraph (a)(iii) is the following:

      • (i) the amount determined by the formula

        (A × B)/C

        where

        A
        is the average compensation associated with the predominantly male job classes — or if there is only one such job class, the compensation associated with that job class — that are within the band that is closest to the band within which the predominantly female job class or classes are located,
        B
        is the average value of the work performed in the predominantly female job classes within the band or, if there is only one such job class, the value of the work performed in that job class, and
        C
        is the average value of the work performed in the predominantly male job classes within the band referred to in the description of A or, if there is only one such job class, the value of the work performed in that job class, or
      • (ii) despite subparagraph (i), if there is at least one predominantly male job class within each of two bands that are equidistant from the band within which the predominantly female job class or classes are located, and there is no other band containing at least one predominantly male job class that is closer to that band, the amount determined by the formula

        (A + B)/2

        where

        A
        is the average compensation associated with the predominantly male job classes within one of the two bands or, if there is only one such job class, the compensation associated with that job class, and
        B
        is the average compensation associated with the predominantly male job classes within the other band or, if there is only one such job class, the compensation associated with that job class;
    • (c) the compensation associated with a predominantly female job class within a band is to be increased only if

      • (i) that compensation is lower than the compensation or average compensation referred to subparagraph (a)(i), (ii) or (iii), as the case may be, and

      • (ii) the average compensation associated with the predominantly female job classes within the band — or, if there is only one such job class, the compensation associated with that job class — is lower than the compensation or average compensation referred to subparagraph (a)(i), (ii) or (iii), as the case may be;

    • (d) if the compensation associated with a predominantly female job class within a band is to be increased, the increase is to be determined by multiplying the factor calculated in accordance with the regulations by an amount equal to the difference between the compensation associated with the job class and the compensation or average compensation referred to subparagraph (a)(i), (ii) or (iii), as the case may be; and

    • (e) an increase in compensation associated with the predominantly female job class or classes within a band is to be made in such a way that, after the increase, the average compensation associated with the predominantly female job classes within the band — or, if there is only one such job class, the compensation associated with that job class — is equal to the compensation or average compensation referred to subparagraph (a)(i), (ii) or (iii), as the case may be.

  • Marginal note:Definition of band

    (2) In this section, band means a range, as determined by an employer or pay equity committee, as the case may be, of values of work that the employer or committee considers comparable.

The following provision is not in force.

Marginal note:Equal line method

  •  (1) An employer or pay equity committee, as the case may be, that uses the equal line method of comparison of compensation must apply the following rules:

    • (a) a female regression line must be established for the predominantly female job classes and a male regression line must be established for the predominantly male job classes;

    • (b) the compensation associated with a predominantly female job class is to be increased only if

      • (i) the female regression line is entirely below the male regression line, and

      • (ii) the predominantly female job class is located below the male regression line;

    • (c) if the compensation associated with a predominantly female job class is to be increased, the increase is to be determined by multiplying the factor calculated in accordance with the regulations by an amount equal to the difference between the compensation associated with the predominantly female job class and the compensation associated with a predominantly male job class, were such a job class located on the male regression line, in which the value of the work performed is equal to that of the predominantly female job class; and

    • (d) an increase in compensation associated with the predominantly female job classes is to be made in such a way that, after the increase, the female regression line coincides with the male regression line.

  • Marginal note:Crossed regression lines

    (2) Despite paragraphs (1)(b) to (d), if the female regression line crosses the male regression line, an employer or pay equity committee, as the case may be, must apply the rules for the comparison of compensation that are prescribed by regulation.

Contents and Posting

The following provision is not in force.

Marginal note:Contents of plan

 A pay equity plan must

  • (a) indicate the number of pay equity plans required to be established in respect of the employer’s employees or, if the employer is in a group of employers, in respect of the employees of the employers in the group;

  • (b) indicate the number of employees that the employer — or, in the case of a group of employers, each employer in the group — was considered to have for the purpose of determining whether a pay equity committee was required to be established in respect of the pay equity plan;

  • (c) indicate whether a pay equity committee has been established and, if so, whether it meets the requirements set out in subsection 19(1) or, if not, whether the employer or group of employers, as the case may be, obtained the authorization of the Pay Equity Commissioner to establish a pay equity committee with different requirements;

  • (d) set out a list of the job classes that have been identified to be job classes of positions occupied or that may be occupied by employees to whom the pay equity plan relates;

  • (e) indicate whether any job classes referred to in paragraph (d) were determined to be predominantly female job classes and, if so, set out a list of those job classes;

  • (f) indicate whether any job classes referred to in paragraph (d) were determined to be predominantly male job classes and, if so, set out a list of those job classes;

  • (g) indicate whether a group of job classes has been treated as a single predominantly female job class and, if so, set out a list of the job classes referred to in paragraph (d) that are included in the group of job classes and identify the individual predominantly female job class within the group that was used for the purpose of subsections 41(3) and 44(2);

  • (h) if there was a determination of the value of work performed in certain job classes, then, for each of those job classes, describe the method of valuation that was used and set out the results of the valuation;

  • (i) indicate any job classes in which differences in compensation have been excluded from the calculation of compensation under section 46 and give the reasons why;

  • (j) if a comparison of compensation was made, indicate which of the methods referred to in subsection 48(1) was used to make the comparison — or, if neither was used, explain why not and describe the method that was used — and set out the results of the comparison;

  • (k) identify each predominantly female job class that requires an increase in compensation under this Act and describe how the employer — or, in the case of a group of employers, each employer in the group — will increase the compensation in that job class and the amount, in dollars per hour, of the increase;

  • (l) set out the date on which the increase in compensation, or the first increase, as the case may be, is payable under this Act; and

  • (m) provide information on the dispute resolution procedures that are available under Part 8 to employees to whom the pay equity plan relates, including any timelines.

The following provision is not in force.

Marginal note:Draft pay equity plan and notice

 Once an employer — or, if a pay equity committee has been established, that committee — has prepared a draft of the pay equity plan, the employer must post the draft as well as a notice informing employees to whom it relates of their right to provide the employer or committee, as the case may be, with comments on the draft and the time within which and the manner in which they may exercise that right.

 
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