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The government of Ontario continues to advance a series of workplace reforms that will impact employers across multiple sectors. Recent announcements include proposed amendments to the Employment Standards Act, 2000 to prohibit employee-paid uniforms, the introduction of the proposed Strengthening Talent Agency Regulation Act (“STAR Act”), and a schedule increase to the province’s general minimum wage effective October 1, 2026.
Minimum Wage Increase Coming October 2026
Effective October 1, 2026, Ontario’s general minimum wage is set to rise from $17.60 to $17.95 per hour. This increase is tied to the Consumer Price Index at 1.9 percent and will benefit more than 700,000 workers across the province, helping to ensure wages continue to reflect economic conditions while protecting workers and providing businesses with greater stability.
For a full-time employee who works 40 hours per week, this increase translates to an annual pay increase of approximately $728. This increase is part of a structured approach under the Employment Standards Act, 2000 which mandates annual wage reviews based on inflation.
Industries such as retail, hospitality and food services where minimum wage positions are the most prominent will likely feel the greatest impact. Employers within these sectors should plan ahead for payroll adjustments and consider how wage increase may impact overall operation costs.
Eliminating Mandatory Uniform Costs
In addition to wage increases, the government is proposing amendments to the Employment Standards Act, 2000 that would prohibit employers from requiring workers to pay for mandatory uniforms. This includes branded or employer-specific clothing that cannot reasonably be worn outside of work.
This change is intended to address a common but often overlooked expense, especially for entry level workers in a sector that employs over 383,000 Ontarians. Uniform costs can exceed $50, placing an additional financial burden on employees who are already earning a lower wage. If passed, the legislation would also prevent employers from deducting uniform costs from wages, except in limited situations. Employers should begin reviewing their current policies now to prepare for compliance.
New Rules for Talent Agencies
The proposed STAR Act introduces increased oversight of talent agencies operating in Ontario’s entertainment sector. With nearly 178,000 people employed in arts, entertainment and recreation across the province, these reforms are expected to have a meaningful impact.
Key provisions with the STAR Act include:
- Limits on commission rates charged by talent agencies
- A ban on unauthorized fees
- Requirements for timely payment to performers
- Mandatory use of separate trust accounts for client funds
These measures are aimed at protecting performers’ earnings and ensure greater transparency in how agencies manage payments. For businesses operating in or alongside the entertainment industry, compliance with these proposed new rules will be essential.
What Employers Should Do Now
With multiple changes on the horizon, employers should take a proactive approach to compliance. Key steps should include:
- Reviewing payroll systems to account for the upcoming minimum wage increase
- Updating employment contracts and policies regarding uniforms
- Assessing relationships with third party agencies for compliance with anticipated regulations
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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