Pay transparency reporting is a cornerstone of British Columbia’s efforts to advance workplace equity and close gender-based pay gaps. Under the Pay Transparency Act, SBC 2023, c 18 (the Act) and its accompanying regulations, employers must publicly report compensation data in a structured and accessible way. This initiative is designed to foster accountability, promote fair pay practices, and provide employees with greater insight into compensation trends within their organizations.
The reporting framework is being introduced through a phased rollout, giving employers time to prepare for compliance. While the deadlines vary based on organization size, all covered employers will eventually be required to publish annual pay transparency reports.
This blog post is designed to provide a high-level overview of the reporting requirements and practical steps toward compliance.
Who Must Report and When
The obligation to publish a pay transparency report applies to provincially regulated employers in B.C. that meet specific employee thresholds. To ensure a smooth transition, the government has introduced a phased rollout:
- By November 1, 2023: The BC government and six major Crown corporations (including BC Hydro, ICBC, and WorkSafeBC).
- By November 1, 2024: Employers with 1,000 or more employees in B.C.
- By November 1, 2025: Employers with 300 or more employees in B.C.
- By November 1, 2026: Employers with 50 or more employees in B.C.
When determining whether your organization is required to report, use the number of employees working in the province as of January 1 of the reporting year. This includes all BC-based employees, whether they work on-site or remotely.
Preparing for Compliance
Employers should begin preparing well in advance of their reporting deadline. Key steps include:
- Confirm your reporting obligation: Determine whether your organization meets the size threshold for the current reporting year. The count is based on BC-based employees as of January 1 of the reporting year, including remote workers based in the province.
- Set up access to the reporting tool: If you plan to use the Pay Transparency Reporting Tool, you must obtain a Business BCeID account. This secure login allows organizations to access government services online. Registration is straightforward, but early setup is recommended.
- Collect gender information: Employers must gather gender data from employees to prepare the report. When doing so:
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- Inform employees that the information is collected solely for pay transparency reporting.
- Participation is voluntary, and employees may choose not to disclose their gender.
- Use BC’s Gender and Sex Data Standard for consistency and inclusivity. Common codes include:
- M = Man
- W/F = Woman
- X = Non-Binary
- U = Unknown or prefer not to say
In collecting and storing this data, it is important that employers ensure compliance with privacy laws such as the Freedom of Information and Protection of Privacy Act, RSBC 1996, c 165 or the Personal Information Protection Act, SBC 2003, c 63.
What Data Must be Collected?
Once you’ve confirmed your reporting obligation and collected gender information, the reporting process requires two primary categories of information: employer-level information and employee-level compensation data.
Employer Information
Reports must include:
- Organization name and mailing address
- Applicable North American Industry Classification System (NAICS) code
- The start and end dates of the 12-month reporting period (the most recent fiscal year or calendar year).
- Employee count as of January 1 of the reporting year, categorized as:
- 50-299 employees
- 300-999 employees
- 1,000 or more employees
Employee-Level Data
For each employee paid during the reporting period (full-time, part-time, seasonal, temporary, etc.), employers must collect:
- Gender classification (using the codes collected earlier)
- Hours worked
- Ordinary pay (salary)
- Special salary (if applicable)
- Overtime hours and overtime pay
- Bonus pay (including monetary and vested non-monetary bonuses such as shares or equity)
Privacy and Data Integrity
To protect confidentiality, data for any gender category with fewer than 10 individuals must be suppressed. If using the Pay Transparency Reporting Tool, this suppression occurs automatically. As noted above, employers should also ensure compliance with privacy legislation when handling personal information.
Calculating Pay Gaps
Required Metrics
A core element of pay transparency reporting is the calculation of pay gaps between gender categories. These gaps are expressed as a percentage difference between employees identified as men and those in other gender categories (women, non-binary, and unknown/prefer not to say).
Employers must calculate and report the following for each gender category:
- Mean and median hourly rate of pay;
- Mean and median overtime pay;
- Mean and median number of overtime hours; and
- Mean and median bonus pay.
These calculations must be based on the data collected for the 12-month reporting period and follow the methods outlined in the Pay Transparency Regulation, BC Reg 225/2023. For example:
- Ordinary pay includes salary and paid leave at 100% pay, but excludes benefits, allowances, and severance.
- Overtime pay should reflect amounts paid during the reporting period, not when the overtime was worked.
- Bonus pay includes monetary bonuses and vested non-monetary incentives such as shares or equity.
This list is not exhaustive, and employers should review the Regulation carefully when determining what to include or exclude.
Using the Province’s Reporting Tool
The Pay Transparency Reporting Tool is an optional resource provided by the BC government to help employers prepare their reports efficiently. While you are not required to use the tool, it can simplify the process by guiding you through data entry and automatically applying privacy safeguards.
Key features include:
- Secure login via Business BCeID
- CSV upload capability for employee data
- Draft report generation to check for errors and validate your data before finalizing
- Automatic privacy controls for gender categories with fewer than 10 individuals
Using the tool can save time and reduce errors, but it’s essential to follow the official steps for posting your report to remain compliant.
Publishing the Report
Finalizing a report in the tool does not fulfill your legal obligation under the Act. Employers must also publish the report using one of the following methods:
- Public website: Post the report on a publicly accessible website (internal portals or password-protected pages do not comply.)
- No website? Display the report in a visible location at each workplace and provide copies upon request.
The report must remain accessible until the following year’s report is posted. This ensures ongoing transparency and allows stakeholders to track progress over time.
Conclusion
Pay transparency reporting is more than a compliance requirement. It is a meaningful step towards fairness, accountability, and equity in the workplace. By preparing early, implementing thoughtful data collection processes, and reviewing calculations carefully, employers can reduce compliance risks and position their organizations as leaders in equitable workplace practices.
If you are an employer navigating your reporting obligations, contact Bridget Shebib or any of the lawyers on the Ascent team – we’re here to help!
