Emerging Employment Trends in 2024

In the fast-evolving landscape of employment law, staying abreast of emerging trends is crucial for Canadian businesses to thrive while remaining compliant. As we come up to the midway point of 2024, several noteworthy developments have surfaced, each bearing significant implications for employers across the nation. Let’s explore these trends in detail.

Ban on Non-Compete Clauses

Across the border, our American counterparts are witnessing a pivotal shift in employment regulations with the Federal Trade Commission (FTC) banning non-compete clauses. These clauses—once commonplace in employment contracts, though often found unenforceable by Canadian courts—restrict employees from working for competitors or launching rival ventures post-employment.

However, the FTC’s ban aims to foster competition and innovation by dismantling barriers that stifle employee mobility. Canadian businesses with operations or partnerships in the US must recalibrate their contractual frameworks to align with these regulatory changes and ensure compliance on both sides of the border.

The FTC’s action – which would be effective within a few months – is an unprecedented move and has motivated large business associations to commence legal action in response. Most observers expect these lawsuits to at least delay the effective date of the ban and potentially defeat it entirely.

However, if the ban does actually become law, it would exceed even the legislative measures taken in Ontario – which severely restricted the use of non-competes in 2021. The Ontario legislation only impacted non-competes on a go-forward basis, and contains certain exceptions to the ban, whereas the FTC’s ruling would apply retroactively and purports to be all-encompassing. Given the stakes, it will be a development worth monitoring for all employers, whether they operate in the U.S. or not.

Canada’s Bill S-211

Closer to home, Bill S-211 has emerged as a significant legislation change, particularly given the modern integration of global supply chains. This Act represents a concerted effort by the Canadian Government to address the issue of forced labor and child labor in global supply chains and aims to make Canadian businesses accountable for their supply chain practices, specifically ensuring they do not contribute to human rights abuses.

On May 31, 2024, affected businesses are required to issue their first annual report detailing due diligence measures, risk assessments, and actions taken by the business to address any identified issues in their supply chain. Furthermore, the Act proposes amendments to the Customs Tariff to empower Canadian authorities to prohibit the importation of goods produced through forced labor or child labor.

To date, there’s still confusion among businesses about what exactly this report should look like and what business are affected, despite some guidance from the federal government.

Workers’ Compensation Law Changes in British Columbia  

In British Columbia, amendments to workers’ compensation law have recently been implemented, requiring employers to maintain the employment of injured workers in most circumstances. This change dovetails with existing obligations under human rights’ law and will likely not create significant process change for most BC employers. However, it does create an additional legal recourse for injured employees in the event their employment is terminated.

Ontario Continues to Overhaul… Everything

On May 6, 2024, the Government of Ontario tabled Bill 190, Working for Workers Five Act, its proposed fifth installment to a series of legislative changes affecting employers. The latest legislation would prohibit the requirement for sick notes in certain circumstances, obligate employers to disclose additional information in job postings, mandate employer communication with unsuccessful job candidates, increase penalties for breach of employment standards, and raise minimum wage.

This is in addition to the plethora of changes introduced in the earlier waves – all of which create additional obligations for employers. However, while everything else in Ontario appears in complete flux, at least there is one reliable constant.

Minimum Employment Standards for App-Based Gig Workers in British Columbia

The rise of the gig economy has spurred legislative action aimed at safeguarding the rights of app-based workers in British Columbia. Recognizing the unique challenges faced by this segment of the workforce, regulators have introduced minimum employment standards to ensure fair compensation, access to benefits, and protection from exploitation. Employers operating within the gig economy must prioritize compliance with these standards, fostering a balance between flexibility and worker rights while navigating the intricacies of evolving regulatory frameworks.

Heading to Litigation

Another emerging trend in 2024 is an increase in employment matters heading to litigation. While often times, employment disputes are resolved via arbitration or an administrative tribunal, our team has seen an increase in contractual and intellectual property disputes (including patents, copyright, and trademarks) resulting from a rift in the employment relationship. These disputes are often unique and very circumstance-specific, but nonetheless they are ending up in the courts more frequently.

Common issues that arise when employment relationships break down include protection of confidential information, solicitation of clients, and competition through new business ventures, whether as an employee of a competitor or the founding of a new company. Further, reputational issues (including defamation) can result when the parties resort to social media or other public forums to air their grievances.

In conclusion, the legal employment landscape of 2024 presents both challenges and opportunities for Canadian employers. By remaining vigilant, adaptable, and working proactively with their trusted legal partner, businesses can navigate regulatory complexities with confidence while fostering environments conducive to employee well-being, growth, and success.

For more information or advice about employment contracts in BC or Ontario, please contact Matthew E. McCarthy of Boughton Law’s Employment Group. For information or advice on litigation matters, please contact Jimmy Burg.