Newsletter – May 2026

On April 20, 2026, the Ontario government introduced the Protecting Ontario's Workers and Economic Resilience Act, 2026 (POWER Act). The legislation bundles 23 initiatives aimed at protecting workers, streamlining approvals, and supporting labour mobility. Key provisions include harmonizing health and safety training across provinces, shortening construction industry open periods, and expanding worker protections in the face of economic uncertainty driven by US tariffs.

The Ontario government is proposing amendments to the Employment Standards Act, 2000 that would prohibit employers from requiring employees to pay for mandatory uniforms, including employer-branded clothing, logo apparel, and items not reasonably usable outside of work. Employers would also be prohibited from deducting uniform costs from wages. The proposal is especially relevant in retail, hospitality, and food service. Alongside this, the proposed Strengthening Talent Agency Regulation Act (STAR Act) introduces stricter rules for talent agencies, including commission caps and mandatory trust accounts for worker funds.

On April 13, 2026, Ontario proposed the first increase to WSIB Loss-of-Earnings (LOE) benefits in nearly 30 years. If passed as part of the POWER Act, LOE benefits would rise from 85% to 90% of a worker's pre-injury net average earnings. The proposed changes would also eliminate the current age-65 cut-off for LOE benefits. Separately, on April 8, 2026, Ontario proposed expanding mandatory WSIB coverage to approximately 29,000 additional frontline care workers at privately operated residential care facilities, retirement homes, and group homes.

Ontario's general minimum wage will increase from $17.60 to $17.95 per hour, effective October 1, 2026. The increase is tied to the Consumer Price Index. Employers should begin reviewing payroll systems and budgets now. Student and liquor server minimum wages will also increase proportionally.

BC's Labour Statutes Amendment Act (Bill 10) received Royal Assent on April 16, 2026. The Director of Employment Standards now has clearer authority to dismiss frivolous complaints, and employers must deposit owed amounts before appealing a determination. The Act also allows the Employment Standards Branch to direct parties into resolution meetings before launching full investigations.

Under BC's Pay Transparency Act, the mandatory reporting threshold is now 50 employees in 2026 (in 2025, it was employers with 300 employees). Affected employers must complete and publicly post a pay transparency report detailing gender-based pay gaps. Organizations that have not yet completed their report should act immediately to ensure they have the report prepared and posted by November 1st, 2026.

In Castro Mosquera v. North Horizon Immigration Consulting Inc., 2026 BCHRT 61 (March 12, 2026), the BC Human Rights Tribunal found that an employer discriminated against a worker returning from maternity leave, even without discriminatory intent. The Tribunal awarded $21,350.40 in lost wages, $20,000 for injury to dignity, and $3,688 in expenses, totalling more than $45,000. It's a reminder that employers must approach return-from-leave conversations with care, flexibility, and an accommodation mindset.

British Columbia's general minimum wage will rise from $17.85 to $18.25 per hour on June 1, 2026, making BC one of the highest provincial minimum wages in Canada. Employers in hospitality, retail, and service sectors should update their payroll ahead of the June 1 effective date.

In Tudor v. Accurate Screen Ltd., 2026 ABKB 237 (April 16, 2026), the Court of King's Bench of Alberta dismissed a wrongful dismissal claim after finding that the employer had just cause to terminate a VP-level employee who had fabricated his MBA credentials. The court confirmed that employers are entitled to rely on resume representations, particularly for executive roles, and have no duty to independently verify academic qualifications.

Alberta introduced Bill 26 on April 1, 2026, which would establish a registry requiring employers, recruiters, and immigration consultants to register before accessing federal immigration programs. The legislation aims to improve oversight of foreign worker recruitment and reduce exploitation.

Alberta's general minimum wage remains at $15.00 per hour, unchanged since October 2018. No increase has been announced for 2026. Employers should note that federally regulated workers in Alberta are subject to the federal minimum wage of $18.15/hour.

Québec's Bill 9 received Royal Assent on April 2, 2026. The new law replaces the previous 'undue hardship' standard with a lower 'more than minimal hardship' threshold, giving employers more latitude to decline accommodation requests that disrupt operations. Factors such as absence frequency, duration, and impact on the work unit are now explicitly relevant. Employers must update their accommodation policies and train managers on the new standard.

Québec's language law (Bill 96) continues to phase in. Employers with 25 or more employees must now ensure that employment contracts, HR communications, and internal documents are available in French. Employers who have not yet completed their French-language compliance review should do so immediately.

Québec's general minimum wage rises from $16.10 to $16.60 per hour effective May 1, 2026. The tipped employee rate also increases. Employers should update payroll systems before the May 1 effective date.

The New Brunswick government introduced legislation in late March 2026 that would allow employees to take up to 27 weeks of unpaid, job-protected leave within any 52-week period for personal illness or injury recovery. If passed, this would significantly expand existing leave entitlements. Employers should begin reviewing their leave policies and accommodation frameworks in anticipation of this change.

New Brunswick's minimum wage increased to $15.90 per hour effective April 1, 2026. Employers in the province should confirm payroll has been updated to reflect this change.

Nova Scotia adopted the federal government's temporary policy relaxing low-wage Temporary Foreign Worker (TFW) caps in rural areas. Effective April 14, 2026, the cap on low-wage TFWs in rural Nova Scotia rose from 10% to 15% across all sectors.

Nova Scotia's minimum wage increased to $16.75 per hour on April 1, 2026, with a further increase to $17.00 per hour scheduled for October 1, 2026. Employers should plan for both increases in their annual compensation budgeting.

Prince Edward Island's minimum wage increased from $16.50 to $17.00 per hour on April 1, 2026. The province has confirmed a multi-year schedule: $17.30 on October 1, 2026, and $17.60 on April 1, 2027.

The general minimum wage in Newfoundland & Labrador increased to $16.35 per hour effective April 1, 2026.

Manitoba's minimum wage is currently $16.00 per hour, with a scheduled increase to $16.40 per hour on October 1, 2026. Employers should plan payroll updates ahead of the October effective date.

Saskatchewan launched its new Employer Portal Application (EPA) system for the Saskatchewan Immigrant Nominee Program (SINP) on April 23, 2026. Employers who use the SINP to hire foreign nationals must register in the new system. The new portal streamlines applications and improves processing times.

A recent case involving Yukon University is putting a spotlight on how employers handle domestic violence leave,and the legal risks when they get it wrong. The University has admitted discrimination in a case where an employee's contract ended shortly after returning from domestic violence leave. The employee, Melissa Antony, had a history of renewals but was let go days after her return, raising concerns about bias and assumptions tied to protected leave. The case is now before the Yukon Human Rights Board of Adjudicators, with a decision pending.

Why it matters: Employment decisions made around protected leaves — especially sensitive ones like domestic violence — can quickly lead to discrimination claims if not handled carefully and objectively.

The Government of Yukon has announced a minimum wage increase effective April 1, 2026. The rate has risen from $17.94 to $18.51 per hour, reflecting a 3.2% increase tied to inflation. Minimum wage in the Yukon is adjusted annually based on the Consumer Price Index (CPI), ensuring wages keep pace with the cost of living.

Why it matters: Employers should ensure payroll systems and compensation practices are updated to remain compliant, especially for roles tied to minimum wage or government contract rates.

The federal government launched a new Employment Insurance Board of Appeal on April 1, 2026, replacing the previous first-level appeals process. The new Board features regionally based panels that include both employer and worker representatives, with a mandate for faster and more practical decision-making.

The Ontario Court of Appeal confirmed in Foster v. Prado, 2026 ONCA 277, that a trusted office manager stole more than $1.1 million from her employer over more than two years, without his knowledge. The theft was carried out through e-transfers, forged cheques, and charges to a personal Amex card for luxury goods, cosmetic procedures, and business-class flights. The employer only discovered the fraud when a new assistant flagged a suspicious transaction. The court upheld $100,000 in punitive damages, finding the employee's explanations entirely not credible.

On March 22, 2026, the federal government extended three temporary Employment Insurance relief measures until October 10, 2026, in response to economic disruption caused by US tariffs. The measures include: waiving the standard two-week waiting period, suspending separation-payment clawback rules, and adding up to 20 extra weeks of benefits for long-tenured workers.

The federal minimum wage increased to $18.15 per hour effective April 1, 2026. This rate applies to all federally regulated private sector employees, including those in banking, telecommunications, interprovincial transportation, and broadcasting.