VICTORIA — British Columbia’s minimum-wage increase from $17.40 to $17.85 per hour came into effect on June 1. The 2.6-per-cent increase announced by the Labour Minister in late February follows the B.C. minimum wage CPI indexation formula which was enshrined in the B.C. Employment Standards Act in 2024.
Additionally, for more than a year, both BCRFA and Restaurants Canada have been meeting with WorkSafe BC, Labour Ministry staff, and multiple ministers asking that WorkSafe BC pause their controversial gratuity policy directive to treat all verifiable tips as assessed payroll which forces restaurants to choose whether they comply with Canada Revenue Agency (CRA) direct tipping policy which considers credit card tips that are paid out after every shift to be direct tips that should not be reflected on company payroll records or comply with WorkSafe BC’s policy treating all POS credit card gratuities as controlled gratuities that need to be recorded and included as assessed payroll.
Despite numerous assurances that WorkSafe BC would be pausing their gratuity policy directive and implementing an industry consultation on the policy before proceeding with additional gratuity audits, we learned of recent cases where WorkSafe BC inspectors continue to audit and surcharge B.C. restaurants using the confusing contradictory gratuity policy directive. As there was no consultation or notice given to industry before implementing their gratuity policy, restaurants audited by WorkSafe BC were surprised and to learn about the contradictory policy and upset with the unfair fines and additional assessed payroll costs resulting from the WorkSafe BC gratuity audits.
After the most recent meetings with WorkSafe BC, both BCRFA and Restaurants Canada where frustrated by the lack of progress and follow through from WorkSafe BC on the issue and decided to raise the issue publicly. On May 22, BCRFA and Restaurants Canada issued a press release urging WorkSafe BC to pause and re-assess their gratuity policy which has cost confused audited B.C. members thousands of dollars in fines and additional re-assessed WorkSafe BC payroll costs.
WorkSafe BC is finalizing plans for a formal industry consultation on the issue which will likely be initiated this month. Members are encouraged to participate in the consultation and make their views known on WorkSafe BC’s costly confusing gratuity policy directive when the formal consultation is announced. In the meantime, Restaurants Canada and BCRFA continue to work together offering alternative WorkSafe BC gratuity policy solutions.
Furthermore, in late April the B.C. government introduced Bill 11 The Employement Standards Amendment Act, which if passed and implemented, will restrict employers from requiring employees to provide a sick note from a physician, nurse practitioner or registered nurse for a short-term absence from work. The objective is to restrict sick notes to alleviate some strain on the healthcare system by reducing the administrative burden on certain healthcare professionals, thereby providing them with more time to care for patients who need medical care.
While Bill 11 provides the basis for restricting employers’ ability to request sick notes, some details of the restriction will be set out in regulations to be developed before fall 2025. The Ministry of Labour is seeking input from key stakeholders including Restaurants Canada and its members to inform the development of these regulations and has prepared an engagement paper as a guide for feedback by June 20th.
