Legislative Update

Ontario has introduced two major legislative updates through Bill 149: Working for Workers Four Act, 2024, and Bill 190: Working for Workers Five Act, 2024. These changes impact employment standards, health and safety, and hiring practices. Below, we highlight the most relevant changes to help business owners and HR professionals stay compliant with the new laws.

Bill 149: Working for Workers Four Act, 2024

Effective March 21, 2024 (unless otherwise specified)

1. Expanded Definition of “Employee” in the Employment Standards Act (ESA)
   Bill 149 broadens the ESA’s definition of “employee” to include individuals working during a trial or training period. This ensures that anyone working on a trial basis is entitled to core ESA protections, including minimum wage, overtime pay, and statutory benefits. For employers, this change emphasizes that all work arrangements, including training roles, must comply with the ESA’s standards.
2. Prohibition on Wage Deductions for Unpaid Customer Bills
   Employers in customer-service industries, such as restaurants and gas stations, are now prohibited from deducting an employee’s wages if a customer leaves without paying. This protects employees from financial repercussions tied to customer actions beyond their control.
3. Tipping and Gratuities (Effective June 21, 2024)
   Employers must now pay tips and gratuities through designated methods—cash, cheque, or direct deposit—and must post any tip-sharing policies in a visible location. Employers are also required to keep these policies on file for three years after they cease to be in effect. These provisions, particularly relevant for hospitality and service industries, promote fair and transparent tipping practices.
4. Vacation Pay Agreements (Effective June 21, 2024)
   Employers must establish a written agreement with employees if vacation pay will be issued through any method other than a lump sum before vacation. This ensures clarity between employers and employees on vacation pay distribution and helps prevent potential disputes.
5. Job Posting Requirements (Effective Date to Be Proclaimed)
   Bill 149 introduces new standards for publicly advertised job postings. Employers will be required to:
   • Include a compensation range for each role,
   • Disclose any use of artificial intelligence (AI) in the screening process, and
   • Avoid requiring “Canadian experience” for job qualifications.

   Additionally, employers must retain job postings and related forms for three years after the posting’s removal from public view. These changes aim to promote transparency, reduce hiring barriers, and enhance fairness for applicants, particularly those new to Canada.

6. Changes to Digital Platform Workers’ Rights
   The Digital Platform Workers’ Rights Act, 2022 is amended to include new regulations on pay periods and compliance with minimum wage requirements. Digital platform workers, such as gig economy employees, will benefit from greater protections, ensuring fair and timely payment practices within Ontario’s digital economy.

Bill 190: Working for Workers Five Act, 2024

Effective October 28, 2024 (unless otherwise specified)

1. Streamlined Sick Leave Process in the Employment Standards Act (ESA)
   Employers are no longer permitted to require a medical certificate as proof for ESA sick leave entitlement. While employers may still request reasonable evidence, this change simplifies the sick leave process and reduces barriers for employees needing time off due to illness. Employers are encouraged to adopt supportive approaches in managing health-related absences.
2. Increased Fines for ESA Violations
   The maximum fine for individuals convicted under the ESA has increased from $50,000 to $100,000, reflecting a tougher stance on non-compliance. This change underscores the importance of adhering to ESA standards and encourages employers to prioritize compliance to avoid costly penalties.
3. Health and Safety Protections for Remote and Hybrid Workers
   Bill 190 extends Occupational Health and Safety Act (OHSA)protections to cover telework in private residences. This means that remote workers are now entitled to the same health and safety rights as on-site employees, and employers must ensure that work-from-home arrangements meet safety standards. The definition of workplace harassment has also been expanded to include virtual harassment, addressing the realities of remote work and online communication.
4. Electronic Posting of Health and Safety Information
   Employers are now permitted to post health and safety materials, committee names, and OHSA policies electronically, making it easier to provide this information to remote or hybrid teams. This modernizes compliance practices, ensuring accessibility for all employees regardless of their work location.
5. Enhanced Hygiene Standards for On-Site Washroom Facilities (Effective Date to Be Proclaimed)
   Under the updated OHSA, both constructors and employers must maintain clean and sanitary washroom facilities for workers and keep records of cleaning schedules. This heightened focus on workplace hygiene reflects a growing emphasis on wellness and sanitation in the workplace.
6. Additional Transparency in Hiring Processes (Effective Date to Be Proclaimed)
   Bill 190 introduces further transparency in hiring. Employers will need to:
   • Indicate whether a job posting is for an existing vacancy, and
   • Provide specific information to candidates after interviews within a set timeframe.

   These requirements aim to enhance transparency in recruitment, supporting fairness for all job applicants by ensuring they are well-informed throughout the hiring process.

7. New Coverage for Firefighters and Related Roles under the Workplace Safety and Insurance Act (WSIA)
   Bill 190 amends the WSIA to presumptively cover post-traumatic stress disorder for wildland firefighters and fire investigators, acknowledging the high-stress nature of these roles. Additionally, primary-site skin cancer is now presumptively covered for full-time, part-time, and volunteer firefighters who have served at least 10 years, recognizing the occupational health risks faced by individuals in these demanding professions.

These legislative updates bring significant changes for Ontario employers, especially in the areas of employee rights, workplace safety, and hiring transparency. We recommend reviewing and updating your workplace policies to align with these new standards. Our team is here to provide tailored guidance to help your business navigate these changes and maintain compliance.