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Pay Transparency Is Finally Coming to Ontario but Is It Enough?

Taslima Jamal

Starting this Thursday, job seekers in Ontario will walk into the hiring process with something they’ve rarely had before: clarity.

Starting this Thursday, job seekers in Ontario will walk into the hiring process with something they’ve rarely had before: clarity. Thanks to new job posting rules taking effect on January 1, 2026, many employers will now be required to disclose salary information upfront. It’s a long-awaited shift and while it’s welcome, it’s also far from perfect.

For years, job hunting has felt like a guessing game. Applicants spend hours tailoring résumés, writing cover letters, and preparing for interviews, often without knowing whether the role even comes close to meeting their financial needs. The new rules aim to reduce that uncertainty by requiring employers with 25 or more employees to include either a specific salary or a pay range in publicly advertised jobs.

On the surface, this feels like a win for fairness. As employment lawyer Jon Pinkus points out, it’s unusual and refreshing to see the Employment Standards Act extend protections to people who aren’t yet employed. In that sense, Ontario is acknowledging a simple truth: job seekers’ time and energy matter too.

Salary transparency can immediately change how people search for work. Knowing the expected pay allows candidates to focus on opportunities that actually align with their expectations, rather than wasting time on roles that may underpay them. From an employer’s perspective, it can also signal a culture of openness. As recruiter Deb Bottineau notes, transparency isn’t just practical it’s branding. It tells candidates something about the organization before the first interview even happens.

Still, the policy has its limitations. Employers are allowed to post pay ranges up to $50,000 wide, which can still leave candidates guessing. A range of $60,000 to $110,000 might technically be transparent, but it doesn’t necessarily help someone decide whether the role is realistically within reach. As Pinkus argues, wide ranges may discourage applicants or create more confusion, not less.

Another positive change is the attempt to address “ghosting” in hiring. Under the new rules, candidates who make it to an interview must be informed of a decision within 45 days of their final interview. For anyone who has waited weeks or months in silence after an interview, this is a meaningful step toward basic professional courtesy. Closure, even when the answer is no, helps people move forward.

However, businesses aren’t celebrating across the board. While most small businesses are exempt due to the 25-employee threshold, those that fall under the rules will face new administrative demands. The Canadian Federation of Independent Business has raised concerns about the added workload, particularly around notifying applicants and managing compliance. For employers already stretched thin, these requirements may feel burdensome.

The legislation also touches on modern hiring realities by requiring transparency around the use of artificial intelligence and providing ways to report fraudulent job postings. These additions acknowledge how technology has reshaped recruitment sometimes to the detriment of applicants. Knowing whether AI is screening your résumé or whether a job posting is legitimate shouldn’t be a mystery in 2026.

And yet, there’s room to go further. As Bottineau points out, if companies are already using AI and automation, why stop communication at the interview stage? Even a simple automated update for applicants who aren’t shortlisted could significantly improve the job search experience. Right now, many candidates still submit dozens of applications and never hear a word back.

Ontario’s new pay transparency rules are, as Pinkus describes them, a “baby step.” But baby steps still move things forward. This legislation won’t fix every problem in the job market, and it won’t eliminate power imbalances overnight. What it does do is set a baseline expectation: job seekers deserve honesty about pay, clarity about process, and respect for their time.

That may not be revolutionary but in a hiring culture long defined by silence and secrecy, it’s progress worth acknowledging.

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