As discussed in our prior articles, the British Columbia Pay Transparency Act (the “PTA”) came into effect on May 11, 2023.
Under the PTA, employers above a certain size are required to complete and post pay transparency reports. This requirement came into effect in stages starting in November 2023.
As of November 1, 2024, all employers with 1,000 employees or more must post pay transparency reports. As this deadline is approaching, employers with 1,000 employees or more will want to ensure they are ready to comply with this reporting requirement. In this article, we provide guidance regarding the information required to be included in these reports.
Reporting Period
A pay transparency report must cover a 12-month period. This period must either be the most recently completed financial year of the employer, or the calendar year immediately preceding the year in which the pay transparency report is prepared.
Required Information
There are two types of information needed to create the pay transparency reports:
- Employee Information, including
a. gender classification;
b. hours worked;
c. ordinary pay;
d. special salary;
e. overtime hours;
f. overtime pay; and
g. bonus pay. - Employer Information, includinga. employer name and address;
b. North American Industry Classification System (NAICS) Code;
c. employee count range;
d. reporting year; and
e. time period.
Pay and Hour Classifications
“Ordinary pay” is defined in the Regulation as:
(a) money paid as salary;
(b) money paid for an employee’s usual hours of work; and
(c) money paid for hours worked in excess of an employee’s usual hours of work, if the money is not overtime pay.
Ordinary pay does not include benefits, allowances, reimbursements, severance pay or termination pay, vacation payouts when not taken as leave, retroactive payments for commitments outside the reporting period, and securities. Statutory pay should be included as part of ordinary pay and the related hours should be included in the number of hours worked.
Ordinary pay includes paid leaves when the employee is paid at 100% of salary and premiums that are not overtime pay or an allowance.
Common earning types that may fall under ordinary pay include regular pay; statutory holiday pay; and vacation pay taken as time (leave).
“Overtime pay” is defined in the Regulation as:
money paid to an employee if
(a) the money is for hours worked in excess of the employee’s usual hours of work, and
(b) 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.
“Bonus pay” includes any additional renumeration as a result of profit sharing, productivity, performance, commissions, referral bonus, or any other incentive. Bonus pay also includes non-monetary bonuses that are vested and paid to employees, including stocks, shares, and any other types of equity compensation. Bonuses are to be reported for the calendar year they are paid to the employee, even if the bonus was earned in a previous calendar year.
“Special salary” is not defined in the Act or Regulation but is outlined in the Guidance document. It is meant to be used only in rare circumstances when an employee is paid a lump sum for work with no set number of hours. Special salary does not include ordinary pay, benefits, allowances, reimbursements, severance pay or termination pay, vacation payouts when not taken as leave, retroactive payments for commitments outside the reporting period, and securities.
If you have questions regarding this article or the Pay Transparency Act reporting requirements, please contact your Harris lawyer.
