Ontario Passes Working for Workers Four Act

On March 21, 2024, the Government of Ontario passed the Working for Workers Four Act (“Act”), which brings further changes to workplace legislation. This is the fourth consecutive year the Government of Ontario has implemented changes to workplace legislation – as employers responded to new rules and requirements in 2023 via the Working for Workers Act, 2023, in 2022 via the Working for Workers Act, 2022, and in 2021 via the Working for Workers Act, 2021.

This bulletin provides a summary for employers of some of the noteworthy changes:

Obligations and Prohibitions Relating to Publicly Advertised Job Postings

The Act establishes a new section of the Employment Standards Act, 2000 (“ESA”), that sets out the following obligations and prohibitions relating to publicly advertised job postings:

• Publicly advertised job postings must include the expected compensation, or range of expected compensation for the position.
• If an employer publicly advertises a job posting and uses artificial intelligence (“AI”) to screen, assess or select applicants for the position, the employer is required to include a statement in the job posting disclosing the use of AI.
• Employers are prohibited from requiring Canadian experience in a publicly advertised job posting or any associated application form.
• Employers must retain copies of every publicly advertised job posting and any associated application form for three years after access to the posting by the public is removed.

These changes are not currently in force and will become effective on a date to be proclaimed by the Lieutenant Governor.

Strengthened Wage Protections for Restaurant, Hospitality and Service Workers

Several changes to the ESA have been implemented to strengthen wage protections for restaurant, hospitality and service workers, including:

• Clarifying that employers cannot deduct or withhold an employee’s wages in the event of a “dine and dash,” “gas and dash” or any other theft by a customer of property or services.
• If the employer (or a director or shareholder of the employer) shares in the pooling of tips or gratuities (something that is only permitted if they perform the same work as their staff), the employer must post a copy of the tips sharing policy in the workplace and retain a copy of the policy for three years after it ceases to be in effect.   
• Employers must pay employee tips or gratuities only by cash, cheque payable to the employee, or by direct deposit to the employee.
  

The changes relating to tips and gratuities will come into force on June 21, 2024. The change clarifying the prohibition on the deduction or withholding of an employee’s wages is now in force and effective immediately.

Additional Changes to the ESA Regarding Vacation Pay and Unpaid Trial Shifts

• Effective June 21, 2024, a written agreement is required if an employer intends to pay vacation pay by any method other than in a lump sum before the employee commences their vacation.
• Effective immediately, unpaid trial shifts are banned, as the definition of “employee” has been amended to define “training” as including work performed during a trial period.

Amendments to the Workplace Safety and Insurance Act, 1997 (“WSIA”)

The Act has also implemented amendments to the WSIA aimed at supporting injured workers, which include:

• Enabling additional “super indexing” increases to Workplace Safety and Insurance Board benefits above the annual rate of inflation.
• Establishing that where firefighters and fire investigators are afflicted by primary-site esophageal cancer, the disease is presumed to be an occupational disease unless the contrary is shown.

These changes are not currently in force and will become effective on a date to be proclaimed by the Lieutenant Governor.

Additional Changes

The Fair Access to Regulated Professions and Compulsory Trades Act, 2006, has been amended to provide that prescribed requirements must be met to determine whether a regulated profession assesses qualifications in a way that is transparent, objective, impartial and fair.

There are also minor amendments to the Digital Platform Workers’ Rights Act, 2022.

Next Steps for Employers

Employers should review their hiring and onboarding practices immediately given the changes to job advertisements noted above. Additionally, those employers in the restaurant, hospitality and service industry should ensure that their payroll practice has been updated to reflect the new protections on wages. Finally, employers who pay employees vacation pay by any method other than in a lump sum before the employee commences their vacation should ensure that they have written agreements to do so before June 21, 2024.

If you have any questions or require more information about any of the above-noted changes, please contact any member of our Labour & Employment Group.