Stay Compliant with Bill 149: Changes Every Ontario Business Must Make
Written by: The H2R Team
Published on: Nov 19, 2025 (Last Updated January 12, 2026)
New legislation is being added to the Ontario’s Employment Standards Act (ESA), and by January 2026, each Ontario employer must be following it. If you aren’t prepared, your business could be violating the Act without even realizing it.
It’s important for Ontario businesses to stay up to date with how employment standards are changing and avoid non-compliance penalties. In this article, we’ll be providing an overview of Bill 149 and highlighting the major changes affecting Ontario business owners. Keep reading to learn about the immediate steps businesses need to take to stay compliant with Bill 149.
Bill 149 – Everything An Ontario Business Owner Needs to Know
What is Bill 149?
Bill 149, Working for Workers Four Act, is legislation that received Royal Assent on March 21, 2024. The entirety of the Bill will come into effect by January 2026 and make permanent changes to Ontario Employment Standards Act, 2000 (ESA). Ontario businesses will need to start making changes in order to comply with the new standards by 2026.
Failing to comply with the new standards may result in penalties, fines, and even prosecution against you and your business.
Here are all the relevant changes to the ESA which will take effect in 2026:
New Job Posting Rules Under Bill 149
These requirements will apply to Ontario employers who employ 25 or more employees on the day the publicly-advertised job posting is posted.
Employers must provide salary/compensation information in job postings
Bill 149 mandates all employers to share accurate information about compensation in their publicly-advertised job postings.
Please note that the definition of “publicly-advertised job postings” has not yet been clarified by the Ontario government.
- How It’s Different: Originally, Ontario employers could choose, but were not mandated to share salary or compensation information in their job postings.
- What Ontario Businesses Need to Do to Stay Compliant: Employers must include information about compensation in any open job positions they publicly-advertise starting 2026.
Employers can’t make Canadian work experience a job requirement
The Employment Standards Act will prohibit Ontario employers from adding “Canadian work experience” as a job requirement in their job postings. They also cannot ask for Canadian work experience in any associated job application form.
- How It’s Different: Previously, Ontario employers were allowed to require Canadian work experience in their job postings.
- What Ontario Businesses Need to Do to Stay Compliant: Employers can no longer include “Canadian work experience” of any kind as a job requirement in their job postings starting 2026.
Employers must disclose the use of AI when screening applicants
Bill 149 will mandate every employer who uses artificial intelligence (AI) to screen, assess, or select applicants to include a disclosure in any publicly-advertised job postings.
- How It’s Different: Before, employers were free to use AI-powered applicant screening tools, including resume scanners (ATS) and automated interview analyzers, without having to disclose their use to applicants.
- What Ontario Businesses Need to Do to Stay Compliant: By 2026, employers will need to add a disclosure about the use of AI in any and all applicable job postings. This includes job postings publicly-available on their own website, as well as job postings on third-party websites. Employers who don’t use AI will not need to add this disclosure.
Employers must keep a copy of their job postings and applications for three years
Employers will now need to retain copies of their publicly-advertised job postings and any applications they received from these job postings. They are obligated to keep the copies for three years after the day the job posting is taken down.
- How It’s Different: Previously, the ESA did not impose an explicit obligation to retain job postings and applicant submissions.
- What Ontario Businesses Need to Do to Stay Compliant: Starting 2026, employers must keep copies of their publicly-advertised job postings, as well as any applications they received from these postings, for three years after the job posting was taken down. This also means taking down job postings once filled will be very important moving forward.
Employee Protections and Workplace Changes Under Bill 149
Changes to How Vacation Pay Works
- Before: The ESA required Ontario employers to pay employees their vacation pay in a lump sum before the start of their vacation. The ESA also allowed the employer to provide vacation pay via an alternative method (e.g. their next paycheque) if the employee agreed to it.
- Now: Since June 2024, the ESA still mandates all of the above, but now requires the agreement be in writing if providing vacation pay via an alternative method.
- What Ontario Businesses Need to Do to Stay Compliant: Employers must either 1) provide vacation pay to employees via a lump sum payment before the start of the vacation; or 2) get a written agreement from the employee to provide vacation pay through an alternative method. An alternative method is anything that is not a lump sum payment before the start of their vacation.
Unpaid Trial Shifts are No Longer Permitted
- Before: There was previously an inconsistency in the application of the definition of “employee” for trial shifts, which allowed employers to schedule unpaid trial shifts during training periods.
- Now: As of March 2024, the definition of “employee” has been amended and mandates that “trial shifts” are now considered training, meaning employees must be paid for trial shifts moving forward.
- What Ontario Businesses Need to Do to Stay Compliant: If choosing to make trial shifts a part of employee training, employers must pay employees for the work they do during a trial shift.
Tip Sharing Policies Must be Available in the Workplace
- Before: Tip pool and/or tip sharing policies were not required to be written and posted somewhere visible in the workplace.
- Now: Employers who have a tip pool and/or tip sharing policy must put that policy in writing and have it posted and visible in the workplace.
- What Ontario Businesses Need to Do to Stay Compliant: First, confirm if tip pools and/or tip sharing is applicable to your business. In which case, put your tip pool/sharing policy into writing and post it somewhere easily visible in the workplace. Get help writing an ESA-compliant tip sharing policy!
FAQs about Bill 149 in Ontario
Has Bill 149 passed in Ontario?
Yes, Bill 149 (Working for Workers Four Act, 2024) has passed and received royal assent in Ontario as of March 21, 2024. Some provisions have already taken effect, except for the job posting rules, which are not enforceable until 2026.
What is Bill 149’s effective date?
The entirety of Bill 149 will become effective on January 1, 2026, however, certain provisions have already taken effect:
- New requirements surrounding tip payment, vacation pay, and more took effect on June 21, 2024.
- Requirements regarding salary transparency in job postings will take effect on January 1, 2026.
If you are an employer and have yet to put Bill 149’s 2024 requirements into effect, please reach out to us as soon as possible for compliance help! You could be held legally liable if you continue to overlook current and upcoming Bill 149 requirements.
What is the new transparency law in Ontario?
The new transparency law in Ontario will require salary transparency in publicly-advertised job postings and transparency about AI use in screening. These requirements were proposed within Bill 149 (Working for Workers Four Act, 2024), which was approved and received royal assent in 2024.
Is it required to post salary ranges in Ontario?
Yes, it is now required to post salary ranges in Ontario. Ontario will require employers to post salary ranges in any publicly-advertised job postings by January 1, 2026.
How does Bill 149 affect tip sharing?
Bill 149 has introduced new provisions regarding tip transparency which will affect how tip sharing is managed moving forward. Bill 149 requires employers who have a tip sharing policy to:
- Post a tip sharing policy visibly in the workplace which explains how tips are shared.
- Pay tips directly to employees via specific methods like cash, cheque, or direct deposit.
- Keep a record of past tip sharing policies that are no longer in effect for three years.
The tip sharing rules from Bill 149 are already in effect. Let us customize our proven tip-sharing policy to fit your business.
How does Bill 149 affect vacation pay?
Bill 149 requires employers to have a written agreement with any employee that is receiving vacation pay in a way that goes against standard practice (a lump sum payment before the vacation takes effect). Non-standard vacation pay practices include:
- Paying vacation pay on each paycheque instead of paying it as a lump sum before the vacation begins.
- Paying vacation pay after the vacation period, rather than in advance.
- Paying vacation pay at a fixed time unrelated to the actual vacation (ex: annually, on an anniversary date, or at year-end).
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