Gender Pay Equity and Workplace Fairness

On October 23, 2023, the Government of British Columbia enacted B.C. Reg. 225/2023 under the Pay Transparency Act, with the goal of improving workplace pay transparency and addressing gender pay disparities. Recommended by the Minister of Finance and the Executive Council, this regulation outlines the guidelines for reporting employers regarding the information required in pay transparency reports, methods for data collection, and specific calculations concerning pay differences across gender categories.
The regulation clarifies definitions related to the Act, such as, “bonus pay,” “employee,” “overtime pay,” and “gender category.” Employees are classified as “Man,” “Woman,” “Non-binary,” or “Unknown” based on their identified gender, ensuring that reports accurately reflect pay disparities among these groups. Reporting employers are mandated to collect information on each employee’s gender category, which is crucial for analyzing and reporting pay disparities. The regulation specifies the data points that must be gathered to prepare comprehensive pay transparency reports.
These reports must include several key details: the employer’s name and address, NAICS code, reporting period dates, employee count, gender category breakdowns, and pay differences across gender categories. This structured approach aims to provide a clear overview of pay equity within organizations. Employers are given the flexibility to choose a 12-month reporting period that aligns with either their financial year or the preceding calendar year, accommodating various business practices.
The regulation also outlines detailed methodologies for calculating pay differences between gender categories, focusing on mean and median hourly rates of pay, overtime pay, and bonus pay. Employers must systematically compute these figures to effectively illustrate disparities. For example, to determine the difference in mean hourly pay, employers are required to calculate each employee’s hourly rate, sum the rates by gender category, and compute the percentage difference relative to the reference category.
To protect employee privacy, the regulation imposes specific limitations on reporting. If a gender category has fewer than ten employees, data for that category cannot be reported, and an explanatory note must be included. This ensures individual identities remain confidential while still presenting a broader picture of pay equity.
By establishing clear definitions, reporting requirements, and calculation methods, the regulation aims to hold employers accountable and promote equity in the workplace. The overarching goal is to foster an environment where pay equality is recognized and addressed, benefiting all employees.
British Columbia (225/2023) October 24, 2023