The issue of minimum wages is sometimes a source of confusion, particularly when commissions, incentives or bonus schemes are factored in.
WHAT ARE WAGES, AND WHAT IS MINIMUM WAGE?
The simple definition of wages includes all monies, whether salary, commission or otherwise, paid to an employee in exchange for work. However, the definition of wages in the Employment Standards Act (ESA) also includes incentives or bonuses paid to an employee if they relate to hours of work, production or efficiency.
Those who earn all or part of their employment income though commission on their sales are also entitled to earn at least the equivalent of minimum wage. In the event that an employee’s sales commissions do not total at least the minimum wage for the number of hours worked in a given pay period, the employer is obligated to pay the difference between the commissions earned and the minimum wage. As a result, employees should always receive at least minimum wage for all hours worked in each pay period.
Section 16 of the ESA provides that an employer must pay an employee at least the minimum wage set out in the Regulations to the act. Part 4 of the Regulation sets out the minimum hourly and daily wages.
Effective June 1, 2021, the general minimum wage in British Columbia increased to $15.20 per hour.
The liquor server minimum wage also increased and is now set at the general minimum wage of $15.20 per hour. The lower liquor server minimum wage has been eliminated.
For more information about minimum wages view the Minimum Wage Fact Sheet and the Interpretation Manual – Section 16 – Minimum Wage
For further information on how this applies to your operation, please contact the Employment Standards Branch at 1-800-663-3316.
IS THERE A FIRST JOB/TRAINING WAGE?
No, not anymore. On May 1, 2011, the first job/training wage for employees with less than 500 hours of paid work experience was eliminated. All employees are entitled to be paid at least the minimum wage.
People who are being trained by an employer to work for the employer are entitled to minimum wages. This is because the definition of employee includes “a person being trained by an employer for the employer’s business” and training has been held to be work for the purposes of the ESA, thereby entitling trainees to wages.
Information provided by Ryan Anderson, an employment lawyer with Mathews Dinsdale & Clark LLP. The information provided in this article is necessarily of a general nature and must not be regarded as legal advice. For more information about Mathews Dinsdale & Clark LLP, please visit mathewsdinsdale.com.