What are some of the recent changes to Ontario’s Employment Standards Act in 2024?
The following is a list of changes to Ontario’s Employment Standards Act (ESA) in 2024.
1. Temporary Help Agencies Need to be Licensed
As of July 1, temporary help agencies in Ontario must have a licence to operate. This change is intended to ensure agencies follow employment standards and treat workers fairly. If the ministry effectively licenses and monitors these agencies, it could protect workers from non-compliant agencies and improve industry standards.
2. Sharing Tips, Payment of Tips and Direct Deposit
Starting June 21, there were new rules regarding tips and direct deposit:
- Tip Sharing: There are already some existing protections in place, but now, if an employer has a policy about how tips should be shared, it must now be posted clearly in a visible place at the workplace where workers can easily see it.
- Payment of Tips: The rules for how tips are paid have also been clarified. Tips paid in cash or by cheque must be given at the workplace, ensuring workers receive their earnings promptly without any inconvenience.
- Direct Deposit: If wages or tips are paid by direct deposit, there are now protections to ensure these payments are correctly deposited into an account in the worker’s name. Only the worker, or someone they have authorized, should have access to this account.
These changes aim to standardize the process for paying tips and wages, prevent employer abuse, and ensure direct deposits are handled carefully.
3. Job Postings, Expected Compensation and Artificial Intelligence
New requirements for job postings under the ESA may also be coming. Although these potential changes were introduced in March, they have not yet been implemented, and it’s uncertain if or when they will take effect. However, they are worth mentioning:
- Expected Compensation: One proposed change would require publicly advertised job postings to include information about the expected compensation for the position or a range of expected compensation.
- Use of Artificial Intelligence: Another possible change is that job postings must disclose if artificial intelligence (AI) will be used in the selection process. This transparency would allow candidates to know if AI was involved in their selection and challenge any unfair outcomes, especially given concerns about potential biases in AI software.
This article was originally published by The Hamilton Spectator.
