As of January 1, 2026, Ontario’s nonprofit sector will face new recruitment laws under the Working for Workers Four Act, 2024 (Bill 149). These changes, designed to promote equity and transparency, demand a shift in hiring practices for organizations with 25 or more employees— including nonprofits.
While these laws aim to strengthen fairness in the workplace, they also represent a wake-up call for nonprofits to practice what they preach. For a sector that prides itself on improving the world, it is also true that many nonprofits still fail to meet basic standards of equity by not sharing salary ranges in job postings. This absence perpetuates systemic inequities, especially for women and people of color, who make up so much of the nonprofit workforce.
Let’s break down the key changes and why they matter.
What’s changing in Ontario?
Starting in 2026, employers in Ontario with more than 25 employees must adhere to the following recruitment requirements:
Pay Transparency: Public job postings must include a compensation range. This ensures candidates know what to expect and eliminates disparities caused by unequal salary negotiations.
No Canadian Work Experience Requirements: Employers can no longer require “Canadian work experience” in job postings, removing a significant barrier for newcomers to the workforce.
AI Usage Disclosure: If artificial intelligence is used to screen, assess, or select candidates, employers must disclose this in the job posting.
Hiring Decision Notification: Employers must notify applicants of hiring decisions within 45 days of an interview.
Recordkeeping: Employers must retain copies of job postings and related application forms for three years after the posting is removed.
Why pay transparency is crucial for equity
Pay transparency should not just be a legal requirement, it should be a moral imperative. Research consistently shows that women and people of color are less likely to negotiate salaries and are often offered less than their white male counterparts. In a sector dominated by women and driven by a mission to improve society, this is unacceptable.
Fortunately, some organizations in the nonprofit sector have already taken steps to address this issue. Since mid-2021, both the Canadian Association of Gift Planners (CAGP) and AFP Toronto, which operates one of the busiest nonprofit job boards in Canada, have required salary ranges to be included in all job postings on their platforms. These initiatives were part of a broader commitment to advancing equity in the sector and ensuring fairer hiring practices. At CAGP, this policy has been embraced by the vast majority of organizations, with only four employers declining to share salary information on the CAGP job board since its implementation. These efforts demonstrate that pay transparency is not only achievable but also essential to fostering trust and equity in the workplace.
These new laws are designed to empower prospective employees by ensuring greater transparency and fairness in the hiring process. Requirements such as disclosing the use of AI in recruitment and notifying candidates of a hiring decision within 45 days reflect basic human decency. Unfortunately, the fact that many employers have failed to adopt these practices voluntarily has made it necessary to enforce them through legislation.
How does Ontario compare to other provinces?
Ontario is not alone in implementing pay transparency laws. Here is how other provinces are leading the way:
British Columbia: Since November 2023, employers must include salary ranges in public job postings and are prohibited from asking about pay history. They also submit annual pay transparency reports to the Government.
Prince Edward Island: Since June 2022, public job postings must include pay ranges. Employers cannot ask about pay history or penalize employees for discussing wages.
Nova Scotia: Employers cannot ask for wage history, or prohibit employees from discussing pay, though salary ranges in postings are not yet mandatory.
Newfoundland and Labrador: Legislation has been passed but is not yet in effect. When active, it will require salary ranges and ban pay history questions.
As you can see, much of Canada still has a long way to go.
Time to lead
The nonprofit sector exists to create a better world. Yet, how can we claim to do so when our hiring practices fail to reflect the values we promote? Pay transparency and equitable hiring practices should not be seen as burdens. They should be seen as opportunities to lead with integrity.
As 2026 approaches, nonprofits in Ontario must prepare to meet these new requirements. However, all nonprofits across Canada are encouraged to embrace the spirit of these laws by committing to equity, transparency, and fairness in their recruitment practices. Organizations like CAGP and AFP have already shown that it is possible to prioritize pay transparency and equity without waiting for legislative mandates. For the rest of the sector, it is time to catch up.
Because in a sector built on doing good, there is no excuse for doing less.
Clare Levy is an ambassador for diversity, equity, and inclusion in the nonprofit sector. Contact her.
