Employers juggle rising wage floors, longer sick leave and stricter hiring disclosure rules
Higher wage floors, longer sick leave and new disclosure rules on pay and AI are reshaping employer obligations in 2026, Financial Post reports, with direct implications for labour costs and workforce management.
Workers across Canada should see minimum wage increases in 2026.
Nova Scotia is lifting its minimum wage in two stages this year: a 25‑cent increase to $16.75 in April and another 25‑cent rise to $17 an hour in October. Prince Edward Island will also move to $17 an hour in April.
The federal minimum wage is expected to rise to $18.10 in April, said David King, senior managing director at Robert Half Canada Inc., as cited by Financial Post.
Other provinces that index minimum wage to inflation are also expected to raise rates this year.
“A lot of people feel the challenge of keeping up with the cost of living,” King said. “These changes in hourly rates and minimum wages are positive reflections of that.”
Financial Post reports that Alberta now allows workers up to 27 weeks of leave per calendar year, up from 16, aligning with federal standards for long‑term illness and injury leave.
Saskatchewan’s new rules bar employers from asking for a sick note unless an employee has been away due to illness or injury for five consecutive working days, and the province has extended its long‑term sick leave to 27 days.
BC introduced a similar sick note policy in November for the first two instances when an employee is absent for five consecutive days or fewer in a calendar year. Manitoba is expected to introduce legislation in spring 2026 to remove sick notes altogether for most minor illnesses.
Lisa Goodfellow, a partner in the labour and employment group at Miller Thomson LLP, said COVID‑19 put “a magnifying glass” on the issue of people going into the workplace while ill due to financial necessity.
Matthew Badrov, a Toronto‑based labour lawyer at Littler Mendelson P.C., said many of these changes trace back to the Ontario government’s Changing Workplaces Review between 2015 and 2017, and to pressure from the Canadian Medical Association and related provincial bodies over sick notes for short‑term absences.
The return to office is the biggest workplace headline of 2026, said King, as reported by Financial Post.
Starting January 5, Ontario provincial government employees were expected back in the office five days a week, and Alberta’s public sector will also be required in the office full time in February.
Federal public servants currently go into the office at least three days a week.
Badrov told Financial Post he would not be surprised to see requirements for more in‑person days later this year or in 2027.
More provinces are introducing pay transparency legislation that requires employers to post salary information in job ads.
In Ontario, employers with 25 or more staff have had to include the expected pay or pay range in publicly advertised jobs since January 1, and ranges generally cannot exceed $50,000, except for roles paying $200,000 or more.
Badrov said this gives job seekers a little more clarity.
British Columbia’s Pay Transparency Act, introduced in 2023, now requires some employers to prepare annual pay transparency reports, including information on the gender pay gap.
Employers in B.C. with 50 to 299 employees must post their first report by November 1.
Artificial intelligence use in hiring is also drawing regulatory attention.
Ontario became the first jurisdiction on January 1 to require employers to disclose in job postings whether AI is used to screen, assess or select applicants, according to Financial Post.
Goodfellow said this includes using AI to write job descriptions, and noted that the rules likely respond to concerns about potential discrimination or bias in AI‑driven screening.
Badrov said he expects other jurisdictions to follow, and that the federal government could take similar steps.
Quebec’s Law 25 already requires employers to disclose when decisions are made using automated processes, which includes AI.
