Effective September 3, 2024, app-based ride-hailing and delivery workers, commonly known as gig workers will be covered under the new Online Platform Workers Regulation and amendments to the Employment Standards Regulation.
The changes include the following:
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Minimum Wage, Expenses, and Tips
Online platform workers will be entitled to a minimum wage for "engaged time," which starts when an assignment is accepted and continues until it is completed or canceled. The new minimum wage is set at $20.88 per hour, 20% higher than the provincial minimum wage, to account for periods when workers are not engaged.
Platform operators must ensure earnings meet or exceed this minimum wage for engaged time each pay period. Tips are excluded from earnings calculations, and operators are prohibited from withholding or deducting from tips.
Workers using personal vehicles for assignments will receive a distance expense allowance:
- $0.35 per kilometer for delivery assignments, including e-bikes and scooters.
- $0.45 per kilometer for ride-hailing assignments.
This allowance is separate from the minimum wage and must be paid semi-monthly within eight days of each pay period's end.
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Assignment and Destination Transparency
Platform operators are required to provide detailed information for each assignment, including all pick-up and drop-off locations and estimated earnings. They must also issue detailed wage statements each pay period, including:
- Total hours of engaged time
- Total kilometers traveled and distance expense allowance
- Total amount paid for assignments, including any top-up payments
- Total gratuities paid by customers
- Itemized deductions
- Net amount payable for the pay period
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Suspensions and Termination
The regulations also address suspension and permanent removal of workers. Platform operators must give 72 hours' written notice before suspending a worker, stating the reason and allowing the worker to respond or request reconsideration. Suspensions cannot be indefinite, and workers must be reinstated within 14 days unless they fail to provide requested information.
For permanent removal, operators must provide written reasons. If the removal is without cause, workers are entitled to written notice or pay in lieu of notice, in line with section 63 of the ESA.
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Workers’ Compensation Coverage
Workers' compensation coverage from WorkSafeBC will extend to online platform workers, including vocational rehabilitation services for work-related injuries. Platform operators must register with WorkSafeBC, pay premiums, comply with reporting requirements, and investigate significant incidents.
Exemptions from Employment Standards
Online platform workers will not be entitled to all employment standards applicable to other workers. The regulations specify that overtime, statutory holiday, and vacation provisions of the ESA do not apply to these workers.
Key Takeaways for Employers:
Companies offering delivery and ride-hailing services via online platforms must take steps to comply with these new regulations by September 3, 2024 and ensure compliance with:
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The minimum wage requirement
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The transparency in assignments and wage statements
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The suspension and termination rules
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The workers' compensation coverage.