Canadian Payroll Reporter

July 2014

Focuses on issues of importance to payroll professionals across Canada. It contains news, case studies, profiles and tracks payroll-related legislation to help employers comply with all the rules and regulations governing their organizations.

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5 Canadian HR Reporter, a Thomson Reuters business 2014 Legislative Roundup CPR | July 2014 in provincial regulations will rise from $397 per week to $406. Specified salespersons include those selling automobiles, trucks and buses; farm machinery; heavy duty construction equipment or road construction equipment; mobile homes; and residential homes if the salesperson works for the homebuilder. This also includes salespersons working for a commercial agent licensed under the Licensing of Trades and Businesses Act, as well as commission-based salespersons (excluding route salespersons) who generally work outside of their employer's place of business to sell orders that will be delivered later. If an employer provides board and lodging to employees, the employer may reduce the employees' wages below the minimum wage by a maximum of $4.41 per day for room and $3.35 per meal as of Sept. 1. Manitoba Province moving to implement budget proposals The provincial government has tabled legislation to implement measures proposed in its 2014 budget that would enhance tax credits for businesses that hire apprentices. Bill 73, The Budget Implementation and Tax Statutes Amend- ment Act, 2014, would: • increase the maximum tax credit for level 1 and 2 apprentices to $5,000 from $3,000 for apprentices in Winnipeg and $4,000 for those outside of the city • raise the tax credit for level 3, 4 and 5 apprentices and for newly certified journeypersons from 10 per cent of salary and wages to 15 per cent • change the way the tax credit is calculated so it is based on salary and wages paid in the tax year instead of on salary and wages paid for a level of apprenticeship or a 12-month period of employment ending in that year • eliminate the requirement for a proof-of-credit certificate. Bill 73 received first reading in the Manitoba Legislative Assem- bly on June 3. At press time, the legislature had not yet passed the bill. Employment Standards creates guide for agriculture industry Manitoba Employment Standards has created a guide to explain how the province's Employment Standards Code applies to em- ployers and employees in the agriculture industry. A Guide to Employment Standards in Agriculture provides an overview of the provisions that apply to the various sectors of the industry. The guide is available on the Department of Labour and Immigration's website at www.gov.mb.ca/labour/standards/ doc,guide-agriculture,factsheet.html. Yukon WCHSB implements new policy for out-of-territory work The Yukon Workers' Compensation Health and Safety Board (WCHSB) has implemented a new policy covering work outside of the territory. The policy, EA-14, Coverage for Workers Outside Yukon, took effect July 1. It lists the conditions that must apply for the Workers' Compensation Act to cover employees temporarily working out- side the territory, including the following: • Employers must apply for coverage for the workers before they leave the Yukon and allow enough time for the board to process their application. If workers leave before the WCHSB informs the employer of its decision, the board will not cover the workers. • Coverage will only apply for workers who will be gone for no more than 12 months (although the act allows employers to ap- ply for an extension). • Employers will have to prove the workers are Yukon residents and that they usually work in the territory. • Employers will also have to prove the employees have worked for them for at least as long as they will work outside the territory and that the work they will do outside the Yukon will be a con- tinuation of their work in the territory. The policy is on the board's website at www.wcb.yk.ca/Ques- tionResults/WCA-Policies/Q0063.aspx. United States Seattle approves minimum wage hike to US$15 per hour Businesses with workers in Seattle, Wash., will have to adjust to minimum wage changes in the city, beginning next April. The city's government has approved a $15-per-hour minimum wage (all figures U.S.) for workers there. The government will phase in the rate hike over the next three to seven years, depending on the number of workers an organization employs. Currently, the mini- mum wage rate is $9.32 per hour, set by the State of Washington. Employers in Seattle with 500 or more employees in the U.S. will have to pay a minimum wage of at least $11 per hour as of April 1, 2015, $13 as of Jan. 1, 2016, and $15 as of Jan. 1, 2017. Beginning Jan. 1, 2018, the minimum wage will be indexed to inflation. Employers with at least 500 employees that provide medical benefits will have an extra year to meet the $15 minimum. As a re- sult, they will have to pay a minimum wage of at least $11 per hour by April 1, 2015, $12.50 by Jan. 1, 2016, $13.50 by Jan. 1, 2017, and $15 by Jan. 1, 2018. For employers with fewer than 500 workers, the government will phase in the wage changes more gradually. The minimum wage will increase to $10 on April 1, 2015, and go up by 50 cents each year until it reaches $15 in 2021. The ordinance passed by city council provides for further increases after that time. A slight- ly shorter timeframe applies for employers that pay tips and other compensation. In related news, the state of Michigan has announced that it will raise its minimum wage from $7.40 an hour to $9.25 by 2018. Be- ginning in 2019, the rate will be adjusted by the inflation rate or by 3.5 per cent, whichever is lower. The rate for employees who receive tips will be 38 per cent of the minimum wage or about $3.51 per hour. from lEGISlATIVE ROUNdUp on page 1 Mayor Ed Murray celebrates after Seattle City Council voted on raising the minimum wage to US$15 per hour in Seattle, Wash., June 2, 2014. It marks the first time a major U.S. city has committed to such a high base level of pay. Credit: David Ryder (Reuters)

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