Legislative roundup: Changes in payroll laws and regulations from across Canada

Employment insurance pilot project to continue • Alberta's minimum wage to increase • Saskatchewan's minimum wage going up • Regulatory changes affect deductions for cash advances, payroll errors • QPIP premiums to increase • New Brunswick's wage hike may be delayed • Nova Scotia's minimum wage going up

Canada

Employment insurance pilot project to continue

Human Resources and Skills Development Canada (HRSDC) has started a new Best 14 Weeks employment insurance pilot project to collect more data where the last pilot left off. The original Best 14 Weeks pilot project started in 2005. It allowed employment insurance claimants in 25 regions across the country with higher unemployment to have EI benefits calculated on their highest 14 weeks of earnings over the year before when making a benefits claim. The pilot project ended on June 25, 2011. The new pilot started June 26, 2011, and runs until June 23, 2012. The project will run with the same parameters and in the same economic regions as the previous project. It will allow HRSDC to collect more data to determine its effectiveness. In revising the Employment Insurance Regulations to allow for the new pilot project, it was determined more testing of the Best 14 Weeks was needed. Stimulus measures taken in 2009 and 2010 to deal with the economic downturn may have affected the data collected, HRSDC stated in the July 6 edition of the Canada Gazette. Other employment projects running during this time, including a project that provided increase access to employment and unemployment benefits for new entrants and re-entrants, may have affected the data collected, the Gazette said. Under the new pilot project, employers will need to provide the same payroll information that they did for the pilot that ended in June. For example, they will need to provide 53 weeks of pay period information rather than 27 weeks.

Alberta

Minimum wage to increase

On Sept. 1, 2011, the general minimum wage rate Alberta will rise from $8.80 per hour to $9.40. The province is also implementing a specific minimum wage rate for employees who serve liquor as part of their regular job. Beginning Sept. 1, a minimum wage of $9.05 per hour applies to liquor servers. The minimum wage for many salespersons will increase from $352 per week to $376.

Saskatchewan

Minimum wage going up

The minimum wage rate in Saskatchewan will increase from $9.25 per hour to $9.50 starting Sept. 1, 2011.

Manitoba

Regulatory changes affect deductions for cash advances, payroll errors

Manitoba has revised the provisions in the Employment Standards Regulation covering the way in which employers may deduct amounts from employees’ wages for cash advances and payroll errors. Effective Aug. 1, 2011, the regulation was revised to specify that employers may recoup the amount of a cash advance or a payroll error that benefitted the employee by deducting the greater of the following: the amount of the advance or error from the employee’s wages, provided the employee agrees to the deduction or the amount that would be allowed if the employer had a garnishment order for the payroll error or cash advance under the Garnishment Act. The act exempts 70 per cent of an employee’s wages from garnishment, but in no case shall the amount exempted be less than $250 per month for an employee with no dependents or $350 per month for an employee with dependents. The amount may be prorated if the garnishment period is shorter than one month. The regulation continues to prohibit employers from deducting amounts for interest, service charges, or fees connected to the cash advance or payroll error.

Minimum wage going up

Manitoba’s minimum wage rate will rise from $9.50 per hour to $10 starting Oct. 1.

Quebec

QPIP premiums to increase

The Conseil de gestion (management board) of the Parental Insurance Plan has announced the Quebec Parental Insurance Plan rates for 2012. Effective Jan. 1, 2012, rates will be set at 0.559 per cent for salaried workers, 0.782 per cent for employers and 0.993 per cent for self-employed workers. This special adjustment is aimed at reducing the deficit of the Parental Insurance Fund, according to the province. When the deficit is reduced, premium rates will be rolled back to their equilibrium level to allow collected premiums to ensure annual coverage of the plan’s benefits and costs.

New Brunswick

Wage hike may be delayed

The government is proposing to postpone the forthcoming minimum wage increase — originally scheduled for Sept. 1, 2011 — until April 1, 2012. The minimum wage rose to $9.50 per hour April 1, 2011, from $8 per hour in April 2009. With the proposed amendment, it would reach $10 per hour on April 1, 2012.

Nova Scotia

Minimum wage increase

Nova Scotia’s minimum wage rates will be going up Oct. 1. The general minimum wage rate will increase from $9.65 per hour to $10, while the rate for inexperienced workers (those employed less than three months) will go from $9.15 per hour to $9.50.

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