On March 21, the Ontario’s Bill 149, Working for Workers Four Act, 2024[1] (“Bill 149”) received Royal Assent. It introduced significant amendments to the Employment Standards Act, 2000 (“ESA”), including a mandate for employers to disclose the use of artificial intelligence (“AI”) in publicly advertised job postings. As of January 1, 2026, employers with twenty-five (25) or more employees must include a statement on job postings if AI is used to screen, assess, or select applicants.

As employers prepare for this change, compliance should align hiring practices with broader legal and ethical standards. Transparency and fairness are important considerations associated with the responsible use of AI, and Ontario’s mandatory disclosure requirements take these into account. By being mindful of transparency and fairness when using AI, employers can reduce the risk of running afoul of disclosure requirements while demonstrating a commitment to ethical hiring practices in an increasingly automated landscape.

AI Disclosure Requirements Under Bill 149

Bill 149 amends the ESA by introducing several new requirements, including requirements with respect to AI, which it defines broadly 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 environment.”[2]

With respect to AI, Bill 149 provides that employers must disclose if AI is used in assessing or selecting candidates in any publicly posted job.

For a detailed summary of the various changes implemented by Bill 149, see our blog post: Ontario’s Working for Workers Four Act receives royal assent | Global law firm | Norton Rose Fulbright.

Scope and Exceptions

These rules apply to external job postings accessible to the public. Notably, Bill 149 exempts:

  • Internal postings (for current employees only).
  • General “help wanted” signs.
  • Recruitment for work performed outside Ontario.

Employers with fewer than twenty-five (25) employees are not currently subject to these obligations.[3]

Legal and Human Rights Considerations

Automated decision-making is increasingly being used by organizations to attract top talent, streamline the hiring process or aid in performance evaluations.[4] However, potential impact of algorithmic bias and the need for transparency generally remain important considerations around the fair and responsible use of AI.

The Ontario Human Rights Commission (OHRC) has flagged AI use in employment as a growing risk, citing the potential for indirect discrimination through algorithmic bias.[5] For example, AI tools trained on historical hiring data could replicate unfair requirements and biased language in job advertisements. This could unintentionally favor certain demographics and exclude others with certain characteristics, thereby potentially infringing rights under the Ontario Human Rights Code (the “Code”).

This means failure to adhere to Bill 149’s AI disclosure requirements may not only trigger ESA enforcement but also human rights complaints under the Code, particularly if AI-driven decisions lead to discriminatory outcomes.

Practical Risk Mitigation Strategies

Although a regulation accompanying Bill 149 was released in late 2024[6] and provides a definition of AI, it does not clarify which specific tools, systems, or processes fall within this definition and would therefore trigger the disclosure requirement for publicly advertised job postings.

The current lack of clarity around what constitutes AI use in job postings under Bill 149 may lead to inconsistent reporting (either underreporting or overreporting) which could inadvertently increase the risk of non-compliance. In the absence of further guidance from the Government of Ontario and given the AI disclosure requirements that are expected to take effect next January, employers should use the intervening months to prepare for compliance and consider taking the following steps:

  • Conduct Algorithmic Impact Assessments: Regular audits can identify biased outputs or data gaps in AI tools. Employers should document AI decision logic and test for discriminatory patterns.
  • Develop Transparent Disclosure Practices: While Bill 149 does not clarify the exact language to meet the AI disclosure requirements, to err on the side of caution, job postings should clearly state how AI is used in the recruitment and onboarding process, and at what stages.
  • Integrate Human Oversight: Employers already using AI should consider a “human-in-the-loop” approach for hiring practices. This helps ensure final hiring decisions are reviewed and contextualized by HR professionals in order to limit overreliance on algorithmic judgment and prevent undesired results (for example, inadvertently excluding certain demographics from the hiring pool due to poor training data relied-upon by AI models). The OHRC also recommends that employers demonstrate a reasonable degree of transparency associated with the AI solutions that are leveraged during the course of the hiring process.
  • Train HR and Legal Teams: Staff should be possessed of a clear understanding of how AI is deployed by their organizations, as well as having a firm grasp of what their associated legal disclosure and privacy obligations are. This includes reviewing and auditing existing practices and policies and conducting gap analyses to prepare for new obligations under Bill 149, such as the adoption of an AI governance framework for the responsible use of AI.
  • Review Vendor Agreements: If an employer is using third-party AI solutions to assist with hiring, it would be advisable to confirm that such solutions will be compliant with Bill 149, and to the extent there are compliance gaps, remediate same by way of contractual amendments.

Key Takeaways

Ontario’s Bill 149 introduces new AI disclosure requirements that reflect the growing role of AI use in hiring practices. As these rules come into effect, businesses should begin assessing how AI is used in their recruitment processes and take steps to align with evolving legal expectations. While the focus is on transparency and fairness, these principles now carry legal weight across employment, human rights, and privacy frameworks. This is particularly important in the context of a gatekeeping function such as the hiring of employees. Employers must remain aware of and make efforts to mitigate against the risks associated with AI systems that may have a material adverse impact on individuals, whether by act or omission. Preparing early can help organizations navigate these changes smoothly and responsibly.

[1] Bill 149, Working for Workers Four Act, 2024.

[2] Section 2(1), Employment Standards Act, Ontario regulation 476/24, 2024.

[3] Section 2(1), Employment Standards Act, Ontario regulation 476/24, 2024.

[4] AI eases the burden of repetitive HR work, but the human touch is still needed, Globe and Mail (2024).

[5] Ontario Human Rights Commission Submission to the Standing Committee on Social Policy Regarding Bill 149, Working for Workers Four Act, 2023.

[6] Section 2(1), Employment Standards Act, Ontario regulation 476/24, 2024.