An employee works alongside colleagues who do essentially the same job but receives a lower hourly rate because their contract describes them as casual. Until recently, an employer might have assumed the difference could be explained by that label alone. Starting October 20, 2026, new equal treatment requirements under the federal Canada Labour Code change the analysis for federally regulated workplaces. The essential idea is that a difference in employment status should not, by itself, justify a lower rate of wages when workers meet the specific statutory comparison criteria. That doesn't require identical pay for every employee or eliminate legitimate distinctions based on experience and performance. It does mean organizations need to understand and document why comparable workers are paid differently. Who is covered? These rules apply under Part III of the Canada Labour Code to covered federal workplaces, such as qualifying banks, telecommunications businesses and interprovincial transport operations. Provincial employers continue to be governed by their applicable provincial laws.
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