Ontario announces bill to give gig workers $15 minimum wage

The legislation only applies to active hours

A new bill in Ontario would establish employment standards for gig workers, including minimum age and regular pay days.

“No one working in Ontario should ever make less than minimum wage for an hour’s work,” says Monte McNaughton, Minister of Labour Training and Skills Development. “No one working in Ontario should be dismissed without notice, explanation, or recourse. No one should have to travel out of the country to resolve a workplace dispute or sign a contract they do not understand. These core rights are a foundation in our mission to help all workers earn bigger paychecks to take care of their families, not an endpoint.”

The Ontario government is proposing the new law to cover ride share and delivery drivers, as well as others who are offered work assignments through digital platforms.

McNaughton says if passed the law will establish foundational rights for gig workers in a Canadian first, though he expects other provinces will follow Ontario’s lead.

The legislation only applies to active hours however, which means the driver must be making a delivery or transporting a passenger to earn the minimum hourly wage. If they are waiting for their next trip, the minimum wage does not apply.

Digital platforms would also be required to increase pay transparency, ensuring workers receive written information on the following: 

  • How pay is calculated.
  • Factors used to determined whether they are offered assignments.
  • Performance rating system and consequences of poor ratings.
  • How and when tips are collected by the operator. 

According to the province, data shows as many as one in five Canadians work in the gig economy, a number that is predicted to increase. However, these workers often face uncertain working conditions and lack necessary protections, including finding it difficult to predict paycheques or resolve complaints.

“As part of our plan to build a stronger economy that works for everyone, we want all workers to have every opportunity to earn a good living and provide for their families,” says Premier Doug Ford. “It doesn’t matter if you work for a big company, a small business or for a rideshare app. Our government won’t leave any worker behind.”

Gig workers were not included in Ontario government legislation that increased the minimum wage in the province to $15 an hour in January, choosing to also include liquor servers who were previously making 12.55 per hour.

With files from The Canadian Press

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