September 30, 2022 by Israel Foulon Wong LLP
Summary
Pursuant to legislative updates to the Employment Standards Act, 2000, S.O. 2000, c. 41 (the “ESA”) that came into effect in April of this year, Ontario employers are required to implement an electronic monitoring policy (“Policy”) by October 11, 2022. We previously covered the requirement to implement this Policy in our E-Bulletin of April 18, 2022.
As well, from October 1, 2022 onwards, the general hourly minimum wage in the province has increased to $15.50 from $15.00.
Electronic Monitoring Policy – A Brief Refresher
All Ontario employers who employed twenty-five (25) or more employees as of January 1, 2022 are statutorily required to develop and implement the Policy. The written Policy must indicate whether the employer electronically monitors employees, and if so, the Policy must also indicate:
- A description of how and in what circumstances the employer may electronically monitor employees;
- The purposes for which the information obtained through electronic monitoring may be used;
- The date the Policy was prepared and the date any changes were made to the Policy.
Employers required to implement this Policy must do so by October 11, 2022. From 2023 onwards, employers that employ twenty-five (25) or more employees on January 1 of any year must have a Policy in place by March 1 of the same year.
Hourly Minimum Wage Increases to $15.50
The general minimum wage will increase to $15.50 (from $15.00) and the student minimum wage will increase to $14.60 (from $14.10) in Ontario as of October 1, 2022. Homeworkers’ minimum wage will also increase to $17.05 (from $16.50).
Employers should note that minimum wage rates also apply to employees who do not work on an hourly basis, as well as to employees whose wages are either entirely or partly commission-based. The increase in the minimum wage rate may require some employers to recalculate compensation rates for employees whose current compensation falls below the increased minimum wage rate of $15.50.
Takeaways for Employers
Employers who have not implemented an electronic monitoring policy are strongly advised to contact us to consult on same or to develop a policy tailored to the business’ specific needs and concerns.
Employers may also choose to consult us on how to implement a new compensation structure or rate for employees due to the increase to the provincial hourly minimum wage.