Ontario ESA: disclosing AI use in job postings

What it is

The Working for Workers Four Act, 2024 (Bill 149, assented to on 21 March 2024) added Part III.1, "Job Postings", to Ontario’s Employment Standards Act, 2000 (ESA). Section 8.4 of that Part is the artificial intelligence rule:

Every employer who advertises a publicly advertised job posting and who uses artificial intelligence to screen, assess or select applicants for the position shall include in the posting a statement disclosing the use of the artificial intelligence.

The statute leaves its key terms to regulation. O. Reg. 476/24, "Rules and Exemptions re Job Postings", filed on 29 November 2024, supplies the definitions and the exemptions. Both took effect on 1 January 2026.

This is a disclosure rule. It does not regulate how the tool works, require a bias audit, or give candidates a right to an explanation. Its reach can still be wide, because many applicant-tracking systems now include features that may count.

Who is on the hook

The duty falls on the employer, and Part III.1 defines employer to include a prospective employer (ESA s. 8.1). The Ministry of Labour’s guide says the requirement applies equally where the employer engages a third party, such as a recruiting firm, to screen, assess or select applicants on its behalf. The employer is responsible for the statement appearing in the posting, including when a third party advertises it or it runs on a job board.

The rule is narrower than it first looks:

• Size threshold. Part III.1 does not apply to an employer with fewer than 25 employees on the day the posting is posted (O. Reg. 476/24, s. 1). The Ministry counts individual employees, not full-time equivalents, and counts all Ontario locations together.
• Publicly advertised postings only. A "publicly advertised job posting" is an external posting that an employer, or a person acting on its behalf, advertises to the general public in any manner. It excludes a general recruitment campaign or a general help-wanted sign that does not advertise a specific position, and a posting restricted to existing employees (O. Reg. 476/24, s. 2(1)).
• Work in Ontario. It also excludes a posting for work performed outside Ontario, or performed both outside and in Ontario where the work outside Ontario is not a continuation of work performed in Ontario (O. Reg. 476/24, s. 2(1)).
• The Crown. The Ministry’s guide says none of the posting requirements apply to the Crown, Crown agencies, or authorities, boards, commissions or corporations whose members are all appointed by the Crown.

What the employer must do

If AI screens, assesses or selects applicants for the position, the posting must say so (ESA s. 8.4). The Ministry’s guide is explicit on how much detail that takes: it is not necessary to describe the system or how the employer uses it, and "it is enough for the employer to state that artificial intelligence is used to screen, assess or select applicants." An employer that does not use AI for any of those purposes has nothing to disclose under section 8.4.

The same Part brought in other posting duties on the same date, and the AI statement sits alongside them:

• Expected compensation or a range (s. 8.2), unless the expected pay, or the top of the range, is more than $200,000 a year. A range may not be wider than $50,000 (O. Reg. 476/24, ss. 3–4).
• No Canadian experience requirements in the posting or any associated application form (s. 8.3).
• A statement of whether the posting is for an existing vacancy (s. 8.5).
• Telling interviewed applicants whether a hiring decision has been made, within 45 days of the interview or of the last interview (s. 8.6; O. Reg. 476/24, s. 5).

Employers must keep a copy of every publicly advertised job posting, and any associated application form, for three years after the general public’s access to the posting is removed (ESA s. 15(7.1)).

What counts as artificial intelligence

O. Reg. 476/24 defines artificial intelligence as "a machine-based system that, for explicit or implicit objectives, infers from the input it receives in order to generate outputs such as predictions, content, recommendations or decisions that can influence physical or virtual environments." The Ministry says this captures systems "ranging from simple to complex", and that whether a particular system is covered "will depend on the specific facts of each case." The guide does not define "screen", "assess" or "select".

Penalties

Contravening the ESA or its regulations is an offence (ESA s. 132). On conviction:

• an individual can be fined up to $100,000, imprisoned for up to 12 months, or both;
• a corporation can be fined up to $100,000, rising to $250,000 with one previous conviction under the Act and $500,000 with more than one.

In practice the risk is less the fine than the visibility: a posting without the statement sits in public view, for candidates and employment standards officers alike.

Timeline

The Working for Workers Four Act, 2024 received Royal Assent on 21 March 2024. O. Reg. 476/24 was filed on 29 November 2024. Section 8.4 and the three-year retention rule came into force on 1 January 2026. The Ministry’s guide says the posting rules generally apply to postings posted on or after that date.

What this means in practice

Writing the statement takes one sentence. Knowing whether you need it is the hard part. The question is factual: at any step between application and shortlist, does a system that fits the definition screen, assess or select applicants for this position? That includes features inside your applicant-tracking system, a sourcing or matching tool that ranks applicants, an assessment vendor’s scoring, and whatever your recruiting firm uses for you. Most employers cannot answer it for every posting without an inventory of what each tool actually does.

Ontario asks for less than the other regimes on this map. Quebec already requires an explanation on request when a decision is based exclusively on automated processing. From 1 January 2027, Colorado requires notice before use and an explanation after an adverse outcome, and from 2 December 2027 the EU AI Act requires deployers to tell candidates they are subject to a high-risk system. An employer hiring across Canada and the EU will usually need the Ontario sentence and more.

The deployer-side file Casework builds starts with a description of the system and of every point where its output reaches a hiring decision. That is the record a section 8.4 statement depends on, and the one you would reach for if the Ministry asked why a posting does or does not carry it.

Frequently asked questions

What does Ontario's AI job posting rule require?

Section 8.4 of the Employment Standards Act, 2000, added by the Working for Workers Four Act, 2024, requires every employer that advertises a publicly advertised job posting and uses artificial intelligence to screen, assess or select applicants for the position to include in the posting a statement disclosing that use.

When did Ontario's AI disclosure requirement take effect?

On 1 January 2026, together with O. Reg. 476/24, the regulation that defines its terms and sets its exemptions. The Ministry of Labour's guide says the posting rules generally apply to postings posted on or after that date.

Which employers does the Ontario AI disclosure rule apply to?

Employers with 25 or more employees on the day the posting is posted. The Ministry counts individual employees, not full-time equivalents, and counts every Ontario location together. The rule covers only external postings advertised to the general public, so it does not reach a general recruitment campaign or help-wanted sign that advertises no specific position, a posting open only to existing employees, or a posting for work performed outside Ontario. It does not apply to the Crown or Crown agencies.

What must the AI statement in an Ontario job posting say?

The statute asks only for a statement disclosing the use of artificial intelligence. The Ministry's guide says no detailed description of the system or of how it is used is needed: it is enough to state that artificial intelligence is used to screen, assess or select applicants. The duty applies only to an employer that uses AI for one of those purposes.

Does the Ontario rule apply if a recruiter or vendor runs the AI?

Yes. The Ministry's guide says the requirement applies equally where the employer engages a third party, such as a recruiting firm, to screen, assess or select applicants on its behalf, and that the employer is responsible for making sure the posting contains the statement.

What counts as artificial intelligence under Ontario's rule?

O. Reg. 476/24 defines it as a machine-based system that, for explicit or implicit objectives, infers from the input it receives in order to generate outputs such as predictions, content, recommendations or decisions that can influence physical or virtual environments. The Ministry says the definition captures systems ranging from simple to complex, and that whether a particular system is covered depends on the facts of each case.

What are the penalties for breaching Ontario's job posting rules?

Contravening the Employment Standards Act is an offence (section 132). On conviction, an individual can be fined up to C$100,000, imprisoned for up to 12 months, or both. A corporation can be fined up to C$100,000, rising to C$250,000 with one previous conviction and C$500,000 with more than one.

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