Ontario’s Bill 149 Becomes Law, Enacts Key Reforms for Employers

On March 21, 2024, Ontario’s Bill 149, Working for Workers Four Act, 2024 (Bill 149) received royal assent. Summarized below are the key amendments to the Employment Standards Act, 2000 (ESA), Workplace Safety and Insurance Act, 1997 (WSIA), Digital Platform Workers’ Rights Act, 2022 (DPWRA) and Fair Access to Regulated Professions and Compulsory Trades Act, 2006 (FARPCTA) introduced by Bill 149. 

Employment Standards Act, 2000 

Changes introduced by Bill 149 that are now in force:

• Individuals performing work during a trial period for the purpose of training fall under the definition of “employee” under the ESA and accordingly, are entitled to compensation for any trial periods. 
• Employers are not permitted to withhold or deduct from an employee’s wages when a customer of a restaurant, gas station or other establishment leaves the establishment without paying for the goods or services taken from, consumed at, or received at the establishment. 

Changes introduced by Bill 149 that will take effect on June 21, 2024:

• Any alternate pay arrangement with respect to the payment of vacation pay (i.e., other than where an employer pays an employee vacation pay in a lump sum before an employee begins their vacation), must be “set out in an agreement” between the employee and the employer.
• Employers are required to pay tips or gratuities to employees in one of the following prescribed methods: cash, cheque payable only to the employee, direct deposit, or any other prescribed method of payment. If payment is made by cash or cheque, the employer must ensure that the payment is given to the employee at the workplace, or another place agreed to by the employee. 
• If an employer has a tip-sharing policy in place, the employer is required to keep a copy of this policy in at least one conspicuous place in the employer’s establishment. The employer must also retain a copy of this policy for at least three years after the policy ceases to be in effect. 

Changes introduced by Bill 149 that will take effect on a future date to be named by proclamation:

• Employers must include the expected compensation for a position, or the range of expected compensation for a position, in any publicly advertised job posting. 
• Employers must disclose the use of artificial intelligence in screening, assessing, or selecting applicants for a position in any publicly advertised job posting. 
• Employers are prohibited from including any requirements related to Canadian experience in any publicly advertised job posting or associated application form. 
• Employers must retain copies of every publicly advertised job posting for three years after the posting is taken down.

Workplace Safety and Insurance Act, 1997 

Changes introduced by Bill 149 that will take effect on a future date to be named by proclamation:

• The WSIA is amended to enable “super indexing” increases to WSIB benefits above the annual inflation rate. 
• Firefighters and fire investigators are entitled to receive Workplace Safety and Insurance (WSIB) benefits for primary-site esophageal cancer after 15 years of employment, rather than 25 years. 

Digital Platform Workers’ Rights Act, 2022 

Changes introduced by Bill 149 that will take effect when the minimum wage provisions of the DPWRA come into force: 

• The DPWRA now provides that certain limits on recurring pay periods and paydays may be prescribed by regulation. 
• Rules for determining compliance with the minimum wage requirements for digital platform workers of the DPWRA may be prescribed by regulation.

Note that no corresponding regulation has been introduced as of the date of this bulletin. 

Fair Access to Regulated Professions and Compulsory Trades Act, 2006 

Change introduced by Bill 149 that will take effect on a future date to be named by proclamation:

• Prescribed requirements must be met to ensure a regulated profession assesses qualifications in a transparent, objective, impartial and fair way. These requirements apply equally to any third party who performs the assessments.

We will continue to monitor the roll-out of Bill 149 for further updates. 

For more information, please contact any member of our Employment & Labour group.