The federal Pay Equity Act came into force August 31, 2021. It applies to every federally regulated employer — public and private sector alike — with 10 or more employees.

It works differently from a human-rights complaint process. Rather than waiting for an employee to raise a pay-discrimination complaint, the Act puts the burden on the employer: identify predominantly female and predominantly male job classes doing work of equal value, compare their compensation, and correct any gap that reflects gender rather than the value of the work. It’s a proactive regime, not a reactive one.

This is a different statute from the Ontario Pay Equity Act, with different mechanics, different deadlines, and its own administrator. A federally regulated employer follows the federal Act instead of Ontario’s — see Federal vs. Ontario Jurisdiction: The “Instead Of” Rule. What the Act actually requires an employer to do — the plan, the posting, the committee — is covered in Pay Equity Plan: Posting Deadline, Extensions and Committee.

This is general information, not legal advice; confirm current applicability at the Canadian Human Rights Commission’s Pay Equity Act materials before relying on it.

Related notes

Pay Equity Plan: Posting Deadline, Extensions and Committee — Covered federal employers had to post a final pay equity plan within three years of becoming subject to the Act — September 3, 2024 for most — after a 60-day draft comment period, with a pay equity committee required for unionized or 100-or-more-employee workplaces.

Pay Equity: Annual Statement, Maintenance Cycle and the Pay Equity Commissioner — Once a pay equity plan is posted, the ongoing duties are an annual statement to the Pay Equity Commissioner due each June 30 and a full maintenance update at least every five years, administered by the Commissioner's office inside the Canadian Human Rights Commission.

Federal vs. Ontario Jurisdiction: The Employment-Law "Instead Of" Rule — A federally regulated employer follows the Canada Labour Code and related federal statutes in place of Ontario employment law, not on top of it — the federal regime replaces the ESA, OHSA, Human Rights Code, AODA and Pay Equity Act rather than adding to them.

Canadian Human Rights Act: Prohibited Grounds and the Duty to Accommodate — Federally regulated employers follow the Canadian Human Rights Act instead of the Ontario Human Rights Code — it lists its own prohibited grounds of discrimination and carries the same duty to accommodate to the point of undue hardship.

Employment Equity Act: The 100-Employee Threshold and Annual Report — Federally regulated private-sector employers and Crown corporations with 100 or more employees must analyze their workforce against four designated groups, maintain an employment equity plan, and file an annual report by June 1 — an obligation that doesn't apply at all below 100 employees.