Effective October 1, 2020, Ontario’s minimum wage will increase for the first time since January 2018. Under the Making Ontario Open for Business Act, minimum wage is rising by 25 cents per hour. The increase is tied to the Ontario Consumer Price Index for 2020.
Specifically, minimum wage will increase as follows:
- General minimum wage to increase from $14.00 to $14.25 per hour;
- Student minimum wage to increase from $13.15 to $13.40 per hour; and
- Liquor servers’ minimum wage to increase from $13.15 to $13.40 per hour.
Professions such as homeworkers, hunting, fishing and wilderness guides will also see increases to their rates.
While the increase to minimum wage does not require corresponding increases to other employees who are already making a high rate, consideration should be given to whether changes are needed to maintain relative wage rates between employees of different skills, abilities, and service time.
It is presently expected that future increases to minimum wage will occur on an annual basis, on October 1st each year.
Employers, including those with unionized workforces, should ensure they are planning for and compliant with these important changes to minimum employment standards, including all future minimum wage increases.
If you have any questions about this topic or any other questions relating to workplace law, please do not hesitate to contact a Mathews Dinsdale lawyer.