BC's minimum wage is an increasingly relevant topic in 2024. Employees wish to make a living wage when working their full-time job so knowing the minimum amount of legal pay that employees can earn is vital information, especially with the hourly wage increase set to occur on June 1, 2024. What some are unaware of however are the laws surrounding minimum wage and the specifics of how those laws work.
The Basics
Minimum wage is enforced by employment laws which were created to provide a living wage to employees and to stop their exploitation. In 2023, BC increased its minimum wage to 16.75, and in 2024, it is set to increase to 17.40 to counteract BC’s inflation. This law applies to employees who are contracted to be employed for wages or salary and not those temporarily working for an employer.
Minimum wage is the amount you are to be paid per hour of work. The maximum working time in British Columbia should be 8 hours a day and 40 hours a week for a full-time job. If an employer asks you to work extra hours beyond that then they must pay you a higher rate. This is called overtime pay which is 1.5 times higher than your usual hourly pay.
Who does Minimum Wage Not Apply to?
However, these laws do not apply to federally regulated employees and gig workers. Federal-regulated employees are those who work for services that extend beyond just the province of BC such as airlines, banks, federal civil service, post offices, and inter-provincial transportation. Federal-regulated employees are under the federal minimum wage laws within Canada, currently standing at $16.65 per hour as of 2023 but set to increase on April 1, 2024, to $17.30 per hour.
Unlike federally regulated employees, gig workers currently do not benefit from minimum wage. Gig workers do temporary or contractual work, so they are not legally recognized as employees. Examples of these include independent contractors, online platform workers, contract firm workers, on-call workers, and temporary workers, all of whom are outside of BC’s provincial minimum wage law protection. However, in BC, legislation is currently being formed around this issue with a set minimum wage of $20.10 that would apply to a gig worker's ‘engaged time,’ beginning when they accept an assignment to the time of its completion.
Important Facts to Note
If an employer asks you to come in to work and you report for work, they must pay you for at least 2 hours. Employers are unable to pay you for less than 2 hours of work, regardless of your actual working time. All workers are also entitled to at least 2 weeks of paid vacation after working for 1 full year, if you started your job on January 23, 2023, then you will be entitled to these benefits by January 23, 2024. If you leave your job before you take your vacation, your employer must give you your vacation pay which is 4% of your earnings. After 5 years with the same job, it should increase to 3 weeks of vacation and 6% vacation pay.
Another important fact to note is that if you are a salaried employee then you do not get paid for your overtime work. Salaried employees are compensated through a fixed amount as stated by their signed contract regardless of the amount of actual time worked, if you worked less than or more than the number of hours stated on your contract your pay will remain the same unlike with those who are paid according to the number of hours that they work.
Know your Rights!
It is important to know your workers’ rights and to carefully read the contract that you sign when applying for a job. Knowing what is on your contract and your rights is the best way to avoid being tricked and to ensure that you are fairly compensated for your work according to BC’s employment laws. This is why Ashton College offers its British Columbia Employment Law course. To help employees and law professionals gain a holistic understanding of BC employment law, the Employment Standards Act of British Columbia, and how you can protect yourself and ensure you aren’t being paid less than minimum wage in 2024.
If you are interested in staying informed and empowering yourself with the knowledge to make informed decisions regarding employee contracts and compensation, then register for our course today!
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