Regulation of working time and wages

New UK Coalition Government - Prospects for Employment Law

UK Parliament II.jpgThe outcome of the UK's general election on May 6 was a Conservative/Liberal Democrat coalition government headed by the Conservative Party leader David Cameron (prime minister) and Liberal Democrat leader Nick Clegg (deputy prime minister).

Coalitions are unusual in the UK - the last one being during the Second World War - so there is a real sense of the country entering uncharted political waters. It is too soon to be certain what the new administration's priorities will be in terms of potential employment reforms. However, a few clues can be gleaned from the Coalition's programme for government, outlined below.

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U.S. Health Care Bill Requires Employers to Provide Time and Space for Nursing Mothers to Express Milk

Buried in the Patient Protection and Affordable Care Act, the massive health care overhaul legislation President Obama signed into law last month, is a provision requiring most employers to provide rest breaks and an appropriate space for lactating employees to express breast milk.  This provision amends the Fair Labor Standards Act (FLSA), which until now did not regulate employee rest breaks.

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Ontario Government Moves to Freeze Public Sector Wages

Bill 16 (pdf), Creating the Foundation for Jobs and Growth Act, 2010, has passed second reading in the Ontario legislature.  If passed, the Bill would prohibit increases in wage rates, benefits, perquisites or other payments for employees of the Crown, education boards, universities, colleges and technical institutes, hospitals and boards of health, certain crown corporations, and any not-for-profit authority, board or corporation that received at least one million dollars in funding from the Ontario Government. The proposed freeze would apply retroactively to March 24, 2010 and would expire on March 31, 2012.

The freeze would not apply to unionized or non-unionized employees who bargain collectively with their employers.

Ontario's Minimum Wage Rate Increased

Amendments to regulations under the Employment Standards Act, 2000 have increased the minimum wage rate payable in Ontario.  Effective March 31, 2010, the minimum wage rate has increased as follows:

  • General minimum wage rate from $9.50/hour to $10.25/hour.
  • Students under 18 working less than 28 hours per week from $8.90/hour to $9.60/hour.
  • Liquor servers from $8.25/hour to $8.90/hour.
  • Hunting and fishing guides working less than five consecutive hours from $47.50/day to $51.25/day.
  • Hunting and fishing guide working more than five consecutive hours from $95/day to $102.50/day.
  • Homeworkers from $10.45/hour to $11.28/hour.

Increase in Average Remuneration: No Need to Consult

Companies no longer have to consult the index of increase in average remuneration with the unions. This is the most important consequence of the abrogation of the Act on the Negotiating System for Determining the Increase in Average Remuneration at Companies as of 1 January 2010. Also, the Tripartite Commission (government, unions, employers' organizations) will no longer establish such an index at the national level. For the private sector, this index had no significance anyway.

U.S. Appellate Court Permits Practice of Tip-Pooling

Tip III.jpgIn a decision that will be well-received by hospitality and tourism employers, the U.S. Court of Appeals for the Ninth Circuit has held that employers that do not take a tip credit against the federal minimum wage when paying their employees can lawfully implement tip-pooling arrangements.  In Cumbie v. Woody Woo, Inc. (pdf), No. 08-25718 (Feb. 23, 2010), the appellate court rejected the argument that a restaurant's use of a tip pool that redistributed a portion of its wait staffs' tips to kitchen employees violated the Fair Labor Standards Act (FLSA).  The FLSA requires an employer to pay its employees a certain minimum wage, but recognizes in its definition of "wage" that under certain circumstances, employers of "tipped employees" may include part of such employees' tips as wage payments.  An employer must pay a tipped employee a cash wage of at least $2.13 per hour, but if the cash wage is less than the federal minimum wage (currently $7.25), the employer can make up the difference with the amount an employee receives as tips, often referred to as the "tip credit."

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Court Certifies Class Action Proceeding for Unpaid Overtime

In Fulawka v Bank of Nova Scotia (pdf), the Ontario Superior Court of Justice certified a class action proceeding against the Bank of Nova Scotia ("Scotiabank") alleging that 5,000 personal banking officers, financial advisors, and account managers were routinely required to work unpaid overtime.

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Regulations on Equal Treatment for Agency Workers Finalised

The Agency Workers Regulations 2010, implementing the EC Temporary Agency Workers Directive (2008/104/EC) have been put before the UK Parliament, although they will not come into force until October 2011.  The Regulations provide all employment agency workers with a right to equal treatment in basic working and employment conditions with their directly employed counterparts after 12 weeks in a given job.

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Significant Decisions in Labour, Employment, Human Rights, and Pension Law in 2009

In the last year, Canadian courts have tackled a wide range of legal issues that are relevant to employers.  In the employment law context alone, the courts have considered the obligation of departing employees, the enforceability of non-competition covenants, and the ability of employees to commence a class action to seek damages for unpaid overtime pay. 

To keep employers up to date on developments in the law, Heenan Blaikie's national labour and employment law practice has prepared a paper entitled " Recent Developments in Labour and Employment, Pension & Benefits and OHS/Workers Compensation" (pdf).  The paper provides an overview of developments in the areas of employment, human rights, pensions, benefits, federal and provincial labour, workplace privacy, occupational health and safety, and workers' compensation law in  2009.

Sanctions Against Employers of Illegally Staying Third Country Nationals and the Joint and Several Liability of the Principal in a Subcontracting Situation

On 30 June 2009, Directive 2009/52/EC of the European Parliament and of the Council of 18 June 2009 concerning "sanctions and measures against employers of illegally staying third-country nationals" (the so-called "Sanction Directive") was publicized.

The Directive sets some minimum rules for actions and sanctions against employers of illegal immigrants in order to counter, in general, illegal immigration within the Member States.

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