The Employment Standards Code Amendment Act (Minimum Wage)

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S.M. 2022, c. 31

Bill 44, 4th Session, 42nd Legislature

The Employment Standards Code Amendment Act (Minimum Wage)

Explanatory Note

This note was written as a reader's aid to the Bill and is not part of the law.

This Bill amends The Employment Standards Code to enable the minimum wage to be increased by an additional amount set out in a regulation. Such a regulation

may be made only in a year in which the inflation rate in Manitoba exceeds 5% (as measured in the first three months of that year); and

must be made 30 days before it takes effect and that effective date must be within the period of October 1 to December 31 of the applicable year.

If an additional amount is provided for by regulation, the Lieutenant Governor in Council may determine that no further adjustment to the minimum wage be made in the next year.

(Assented to June 1, 2022)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. E110 amended

1

The Employment Standards Code is amended by this Act.

2

Clause 6(2)(a) is amended by adding ", plus the additional amount prescribed under section 7.1, if any" at the end.

3

The following is added after section 7:

Minimum wage — additional amount

7.1(1)

The minister may recommend to the Lieutenant Governor in Council that a regulation be made to increase the minimum wage by the prescribed additional amount if the minister is satisfied that the change in the inflation rate in Manitoba exceeds 5% as determined in accordance with the following formula:

inflation rate change = CPI A / CPI B

In this formula,

"CPI A" is the Consumer Price Index for the first quarter of the current calendar year;

"CPI B" is the Consumer Price Index for the first quarter of the previous calendar year.

Definition of "Consumer Price Index for the first quarter"

7.1(2)

In this section, "Consumer Price Index for the first quarter" means the average of the monthly Consumer Price Index for Manitoba (All-items) for the first three months of a calendar year, as published by Statistics Canada under the Statistics Act (Canada).

Regulation — additional amount

7.1(3)

On recommendation of the minister under subsection (1), the Lieutenant Governor in Council may make a regulation increasing the minimum wage by a prescribed additional amount in accordance with this section.

Regulation must be made in advance

7.1(4)

The regulation must be made at least 30 days before the regulation comes into force.

Effective date of regulation

7.1(5)

The regulation may come into force only on the date set out in the regulation. That date must be in the period beginning on or after October 1 and ending on or before December 31 of the year in which the minister makes the recommendation.

Consultation requirement applies

7.1(6)

Subsection 144(4) (consultations re proposed regulation) applies to a proposed regulation under this section.

Publication of total amount

7.1(7)

An additional amount prescribed under this section is not required to be published under subsection 7(4), but the minister must publish the total amount of the minimum wage, as calculated under clause 6(2)(a), on a government website as soon as practicable after a regulation under this section is made.

4

Subsection 8(2) is replaced with the following:

Considerations for determining no increase

8(2)

A regulation may be made under subsection (1) only if the minister recommends to the Lieutenant Governor in Council that

(a) economic indicators, such as a recession or a forecasted recession of Manitoba's economy warrant that no adjustment be made; or

(b) an adjustment is not warranted given the additional amount prescribed in the preceding calendar year under section 7.1.

Coming into force

5

This Act comes into force on the day it receives royal assent.