New equal pay rules for federally regulated workers take effect October 2026

New Equal Pay Rules for Federally Regulated Workers Take Effect October 2026

What this means for you: If you work for a federally regulated employer—like a bank, airline, railway, telecom company, or interprovincial trucking firm—you will soon have the right to equal pay for substantially similar work, no matter if you are full-time, part-time, temporary, or permanent. These new rules take effect on October 20, 2026.

What’s changing?

The new regulations under the Canada Labour Code require employers to pay employees equally for work that is substantially similar in duties, skills, effort, and working conditions—regardless of their employment status. This means a part-time worker doing the same job as a full-time colleague must receive the same pay.

Unlike previous pay equity rules that compared broad job classes, these new rules require a person-to-person analysis. Employers must look at actual duties, not just job titles. They cannot reduce anyone’s wages to comply. Instead, they must raise pay for those who are underpaid.

Labour affairs officers will enforce the rules. Non-compliance can result in fines.

Who is affected?

• You are affected if you work for a federally regulated employer, including:

  • Banks
  • Airlines
  • Railways
  • Telecom companies (e.g., phone, internet)
  • Interprovincial trucking firms
  • Other federally regulated industries (e.g., broadcasting, ports, nuclear energy)

• You are NOT affected if you work for:

  • The federal public service (government workers)
  • Provincially regulated employers (most retail, restaurants, construction, etc.)

What you should do

1. Review your pay – Compare your hourly or salary rate with colleagues doing substantially similar work, especially those with a different employment status (e.g., part-time vs. full-time).
2. Document your duties – Write down your job responsibilities, skills required, effort, and working conditions. This will help if you need to make a case.
3. Talk to your employer – If you suspect a pay gap, raise it with your manager or HR department. Employers are expected to start preparing now.
4. Contact the Labour Program – If your employer does not address your concern, you can file a complaint with the federal Labour Program after the rules take effect.
5. Stay informed – Watch for updates from your employer about how they plan to comply. They must communicate changes by October 2026.

Bottom line

Starting October 20, 2026, federally regulated employers must pay you equally for work that is substantially similar to that of colleagues in different employment statuses. This closes wage gaps based on whether you work full-time, part-time, temporarily, or permanently. If you suspect unequal pay, review your situation now and be ready to act. The rules do not apply to federal public service workers.