Q1: If an employee leaves a position or job class but stays with the company and the job class she previously occupied requires pay equity adjustments, does the pay equity adjustment stay with the job class or is it paid to the employee?

A1: Pay equity adjustments are attached to a job class and have the effect of increasing the job rate of the job class until the job rate reaches the job rate of the comparable male job class. If an employee leaves a female job class that is in the process of achieving pay equity, the employee will only be entitled to any retroactive payments that may be owing but will not be entitled to the benefit of ongoing pay equity adjustments that relate to the female job class the employee is leaving.

Q2: Is it necessary to show the pay equity portion separately on employees’ pay stubs?

A2: Only wage adjustments that are designated as pay equity are considered to be pay equity adjustments. General wage increases or cost of living allowances cannot be considered as pay equity adjustments. Employers should have proof that wage increases were pay equity adjustments; this could be done by recording the amount separately on employee pay stubs or attaching a letter to properly identify it as a pay equity adjustment.

Q3: Are employers required to pay interest on overdue pay equity adjustments?

A3: A Review Officer or the Pay Equity Hearings Tribunal has the authority to order employers to pay interest on retroactive payments.