HR Home Forums Answer for Federal Pay Equity Act

vickyp
Keymaster
    Post count: 4922

    I’m not a pay equity expert, but my personal opinion as a lawyer is that the federal pay equity law does NOT count execs. 3 reasons:
    1. Definitions: As you note, the federal definitions don’t specifically address whether an exec is an employee. But it does use the word “employed.” And at least in the context of employment standards laws, executives aren’t “employed”; they ARE the employer.
    2. Guidance: The Social Development templates for calculating compensation by comparitor group go as high as upper managers and stop there. In other words, there are no templates for calculating executive compensation for comparison purposes. And the reason for that, I believe, is that you’re not supposed to make those comparisons for purposes of the pay equity law.
    https://www.canada.ca/en/employment-social-development/corporate/portfolio/labour/programs/employment-equity/tools-resources/workforce-analysis.html
    3. Legislative Purpose: The objective of pay equity laws is to achieve equality at all levels of the organization from top management down to part-time employees. Executive compensation is a separate issue, one that’s subject to its own regulations, including corporate and benefits laws.
    For all those reasons, I THINK the answer to your question is No. Hope that helps. Glenn