Starting October 1, 2024, Ontario’s general minimum wage will increase from $16.55 to $17.20 per hour.
Lindsay Koruna
Are you ready?
This 3.9% increase is part of the government’s Working for Workers Four Act, 2024, which aims to strengthen protections for workers across the province. Ontario’s new minimum wage is now the second highest in Canada, just behind British Columbia.
What Employers Need to Do to Comply with the Ontario Minimum Wage Increase:
1. Update Employee Compensation
Ensure all non-exempt employees, regardless of their role, are paid at least the new minimum wage. Review your payroll systems and adjust compensation rates accordingly to avoid non-compliance.
2. Communicate the Changes to Employees
Transparency is key. Inform your employees about the wage increase—clear communication fosters trust and boosts team morale.
3. Review Employment Contracts
If your employment agreements specify wages, update them to reflect the new minimum. Employment contract changes can be complex—consult a legal professional to ensure compliance.
Why Compliance with Ontario Wage Laws is Critical for Employers
Fines and Penalties for Non-Compliance
Non-compliance could result in substantial fines, including back pay, interest, and other financial penalties imposed by the Ministry of Labour.
Employee Legal Action
Employees can file complaints under the Employment Standards Act, 2000, which could lead to costly lawsuits.
Reputation and Increased Scrutiny
Non-compliance can harm your company’s reputation, making it harder to attract top talent. It could also trigger audits and further regulatory scrutiny, creating administrative challenges for your HR team.
Have Questions About Compliance?
If you need guidance on ensuring your workplace meets Ontario’s legal standards, contact Greenwood Law for expert advice.
