Minimum Wage and the Labour Standards Code

NOTE TO EDITORS: The following article is designed to inform and educate Nova Scotia employees and employers on the application of the Labour Standards Code.

On Oct. 1, 1999, the minimum wage in Nova Scotia will increase by 10 cents an hour, for a rate of $5.60 an hour. Inexperienced workers, those who have done a kind of work for less than three months, will also receive a 10-cent hourly increase, for a rate of $5.15 an hour.

Additional 10-cent hourly increases are scheduled for Oct. 1, 2000, and Oct. 1, 2001.

The changes affect about 21,000 Nova Scotians. Who are these employees/employers? If you are an employee under the Labour Standards Code -- that is, if you are not a member of a labour union -- or if you are an employer with employees who have no union, then the General Minimum Wage Order is important to you.

A wage rate is the amount of money an employer pays an employee for each hour of work. The General Minimum Wage Order sets the minimum wage rate, which is the least amount of money an employer must pay an employee for each hour of work. The minimum wage rate applies to a work week of less than 48 hours.

The General Minimum Wage Order also sets employment standards for:

• overtime
• partial hours
• being called into work at times other than scheduled working hours
• waiting for work on the owner's premises
• piecework
• the cost of uniforms
• the cost of board, lodging and meals

OVERTIME
Any time an employee works more than 48 hours in one week is overtime. If an employee must work overtime, the employer must pay that employee at least one and a half times the minimum wage. For experienced employees, this is $8.40 for each hour of overtime.

For an example, if an employee works at $5.60 per hour for 50 hours one week, the employer must pay that employee for 48 hours of regular pay (at $5.60 for each hour) plus two hours of overtime (at $8.40 for each hour).

It is important to note that should an employee's hourly rate be more than the minimum wage, but less than $8.40 per hour, the employee must still earn at least $8.40 per hour of overtime. If an employee's hourly rate is more than $8.40 per hour, the employee must be paid at least their hourly rate for overtime.

If an employee is paid $9 for each hour under 48 that she works, she is to be paid at least $9 for each hour of overtime. The Labour Standards Code does not provide for time and a half overtime when an employee earns more than minimum wage.

PARTIAL HOURS
An employer who pays minimum wage and who pays employees by the hour, must also pay employees for part of hours worked after the first 15 minutes. The rate of pay for this time is also minimum wage. If an employee works for between 15 and 30 minutes, the employer must pay for one-half hour. Should the employee work between 30 and 60 minutes, the employer must pay the employee for one full hour.

For example:

• an employee who works for seven hours and 10 minutes must be paid for at least seven hours
• an employee who works for seven hours and 20 minutes must be paid for seven and a half hours
• an employee who works for seven hours and 40 minutes must be paid for eight hours

Even if the employee is paid more than minimum wage, the amount paid for partial hours cannot be less than the amount that would have been paid for the day at minimum wage.

For an employee called into work outside his regular work hours, the employer must pay the employee for at least three hours of work at the minimum wage rate, that is, at least $16.80. This applies even if the employee works only one or two hours. An employee making $9 per hour, for example, is called in for an hour's work, the employer must pay at least $16.80.

When an employer asks or tells an employee to wait at the place of work, this must be considered as work time. This means the employer must pay the employee at least the minimum wage for all hours, including waiting time.

PIECEWORK
Many employers in Nova Scotia pay employees by the amount they produce and not by the hour. This arrangement is called piecework. An employer cannot pay an employee less for piecework than the employee would have earned at minimum wage for the number of hours worked. This does not apply to employees employed on a farm whose work is directly related to harvesting fruit, vegetables and tobacco.

NOT COVERED BY MINIMUM WAGE ORDER Employees not covered by the General Minimum Wage Order include:

• certain farm workers
• apprentices employed under the terms of an apprenticeship agreement under the Apprenticeship and Trades Qualifications Act
• anyone receiving training under government-sponsored and government-approved plans
• anyone employed at a non-profit playground or summer camp
• real estate and car salespeople
• certain commissioned salespeople who work outside the employer's premises, but not those on established routes
• insurance agents licensed under the Insurance Act
• anyone working on a fishing boat
• anyone who comes under the General Minimum Wage Order concerning logging and forest operations, and road building and heavy construction industry
• people employed in a private home by the householder to provide domestic service for a member of the employee's immediate family or for 24 hours or less per week

FILING A COMPLAINT
There are other areas, such as deductions for uniforms and board and lodging, that are covered by the Labour Standards Code. This information is available by contacting the Labor Standards Division of the Department of Labour.

An employee or employer who feels that a violation of the Labour Standards Code or their rights has occurred can file a complaint with the Labour Standards Division. This must be done within six months of the alleged violation.

Those wishing additional information can call the Labour Standards Division at: 1-888-315-0110 902-424-4311 in Halifax 902-563-2181 in Sydney