Artificial intelligence is now embedded in the hiring process at organizations of every size, from resume screening to interview scheduling. But as of January 1, 2026, Ontario employers with 25 or more employees face strict new disclosure rules under the Employment Standards Act (ESA).
The New Disclosure Requirement
Under the new rules, employers of that size in Ontario must explicitly disclose in publicly advertised job postings if they use AI to “screen, assess, or select” applicants. This requirement aims to increase transparency and address concerns about algorithmic bias in the recruitment process.
While the Ministry of Labour has not yet provided exhaustive definitions of “screen, assess, or select,” the consensus among legal experts is that the rule applies broadly. If an AI tool filters resumes, ranks candidates, scores assessments, or otherwise influences how an applicant progresses through the hiring funnel, disclosure is required, even if a human makes the final hiring decision.
What Employers Need to Do
The ESA does not prescribe the exact wording or level of detail required for the disclosure. A simple statement such as “This organization uses artificial intelligence to assist in the screening and assessment of applicants” may suffice. However, employers must ensure this disclosure is present on all public job postings.
Failure to comply can result in significant penalties, including fines of up to $100,000 for corporations, alongside potential reputational damage that could deter top talent.
Employer Takeaway: Audit your hiring tools to determine if AI is being used to screen or assess candidates. If you are in Ontario and have 25+ staff, implement a standard AI disclosure statement on all public job postings immediately. Ensure third-party recruiters and platforms you use are also compliant.
Also read: AI Risk Management Guide: Canadian SMEs & Nonprofits – HR Covered
