Human Resources Legislative Update

Ontario Introduces Legislation Tying Minimum Wage to CPI

Human Resources Legislative Update

Ontario Introduces Legislation Tying Minimum Wage to CPI

Date: February 26, 2014

Further to the Ontario government’s previously reported commitment to tie future minimum wage increases to the province’s Consumer Price Index, Bill 165, the Fair Minimum Wage Act, 2014 was introduced on February 26, 2014.

Bill 165 would amend the Employment Standards Act, 2000 and create a new section 23.1, setting out a framework for the determination of minimum wage. If passed, minimum wage adjustments occurring after October 1, 2015 are to be tied to Ontario’s Consumer Price Index (“CPI”). Increases to the general minimum wage and all special categories would be announced by April 1 of every year, and would apply starting on October 1 of that year.