Human Resources Legislative Update

Ontario Proposes Establishment of Pay Rate Minimums for Certain Government Contractors

Human Resources Legislative Update

Ontario Proposes Establishment of Pay Rate Minimums for Certain Government Contractors

Date: April 25, 2018

On April 17, 2018, the Ontario government introduced Bill 53, the Government Contract Wages Act, 2018, legislation that would, if passed, permit minimum pay rates to be established for certain private sector construction sectors (roads; heavy engineering; sewers and water mains; and industrial, commercial and institutional), and building security or cleaning services in government owned and occupied buildings.

The legislation would require contractors and subcontractors working on contracts with all government ministries, and with specified government agencies and Crown corporations, to pay workers in accordance with the established rates as part of the government’s updated “Fair Wage Policy.”

Among other things, the proposed legislation would permit the appointment of a Director of Government Contract Wages, and provide for an enforcement process analogous to the enforcement process under the Employment Standards Act, 2000.

The Act is currently at Second Reading and would come into force on Royal Assent. For more information about how Bill 53 might impact your organization, contact Scott Thompson at 416.864.7283 or David Bannon at 416.864.7023.

Editor’s Note: Bill 53 received Royal Assent on May 8, 2018 and is now in force.