Question

In: Economics

Minimum wage laws are a good thing. Make as per Canadian Standards. Thanks. No Plagiarism. 10...

Minimum wage laws are a good thing.

Make as per Canadian Standards. Thanks. No Plagiarism. 10 marks.

Solutions

Expert Solution

The first minimum wage legislation in Canada was passed in 1918 by both British Columbia and Manitoba. Two years later, Ontario, Quebec, Nova Scotia, and Saskatchewan followed suit. Interestingly, these early wage laws applied only to women and only to some kinds of employment. According to a labour law analysis by Human Resources Development Canada, the thinking at the time was that labour unions (which represented male workers) could do a better job of ensuring that men earned a living wage by bargaining on their behalf.

A minimum wage is the basic labour standard that sets the lowest wage rate an employer can pay to employees who are covered by the legislation. Today one of its main purposes is to protect non-unionized workers in unskilled jobs. It is also designed to stop these workers from trying to undercut each other by agreeing to work for less than someone else.

Employment legislation in Canada makes it an offence for employers to pay covered workers less than the minimum wage. It is also an offence for workers, in collusion with their employer,

Assuming a typical 40-hour work week for 4.34 weeks a month, the monthly gross incomes of individuals earning the lowest and highest minimum wages in Canada are $1,345 and $1,519, respectively.

Millions of Canadian workers are not covered by minimum wage laws. Self-employed workers, independent contractors, students in training programs, and salespeople paid exclusively by commission are usually not covered in any province or territory.

Most provinces also have their own rules that either exclude some kinds of workers from minimum wage coverage or allow lower minimum rates for some kinds of workers.

Some provinces, for instance, allow employers to pay less to workers who serve alcohol or otherwise accept tips. Ontario is the only province that still allows young workers to be paid less than adults. New Brunswick says domestic workers and live-in care workers aren't covered by minimum wage laws.


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