Canadian Payroll Reporter

4 Canadian HR Reporter, a Thomson Reuters business 2017 News in Brief A look at news, facts and figures shaping the world of payroll professionals WSIB board approves new rate-setting framework › TORONTO — The Workplace Safety and Insur- ance Board's (WSIB's) board of directors re- cently approved a new framework for classifying employers and setting employer premium rates, with expectations it is implemented in 2019. The new framework would replace the WSIB's current system for classifying employers with one based on a North American Industry Classification System (NAICS). The WSIB says NAICS, which was developed by statistical agencies in North America, will be simpler to use and easier to understand since it groups businesses based on type of economic activity and is updated more frequently than the current system. During consultations over the last two years, the WSIB said it would utilize NAICS to group employers into 22 classes instead of the current 155 rate groups and 840 classification units. Building on the new classification system, the board would also implement a new two-step process for setting employer premium rates each year. In the first step, the WSIB would set a projected class-level premium rate that would be based on factors such as the collective experience of all employers in a class, taking into account liabilities for the costs of new injury and illness claims, past claims costs and administrative costs. In the second step, the WSIB would use the class-projected premium rates as a starting point for setting individual employer premium rates. In determining them, it would also take into account factors such as the employer's insurable earnings, the number of claims it has, actual claim costs and how much the board can rely on the employer's past claims to predict future ones. Since the new rate-setting approach would use an employer's own claims experience to set its premium rate, the WSIB proposes to eliminate its current experience rating programs, which provide rebates or impose surcharges retrospectively. However, the WSIB has said it is considering including a surcharge mechanism for employers with repeatedly high claims costs. During 2017, the WSIB board will carry out education and outreach initiatives to help stakeholders understand the new framework. For more detailed information on the framework, go to the WSIB's website at www.wsib.on.ca. Ontario sets up gender wage gap advisory panel › TORONTO — The Ontario government has set up a working group to help guide its efforts to close a gap that exists between men's and wom- en's wages in the province. Using Statistics Canada data, the government says the wage gap ranges from 14 to 26 per cent, with the gap more pronounced for Indigenous and racialized women and those with disabilities. Labour Minister Kevin Flynn says the panel will include representatives from business, labour, human resources and women's advocacy groups, including the Human Resources Professionals Association, the Ontario Federation of Labour, the Ontario Chamber of Commerce and the Women's Executive Network. It will provide advice and feedback on how the government can address specific issues and initiatives that a steering committee identified last year after holding consultations on the topic. In its final report, the committee made 20 recommendations, including calling for the government to review its pay equity legislation and for it to replace the current pregnancy and parental leaves allowed under the Employment Standards Act, 2000 with a new job-protected parental shared leave. Judge issues injunction against new U.S. overtime rules › SHERMAN, TX — A federal judge in Texas has put on hold a new overtime requirement in the United States that would make more workers eligible for overtime pay. Last May, the U.S. Department of Labor released revised overtime regulations that would increase exemption thresholds that apply for paying overtime to workers in white-collar jobs. The regulations were set to come into force on Dec. 1, 2016. However, in late November, U.S. District Judge Amos L. Mazzant granted a nationwide injunction against the regulatory change. His ruling came at the request of 21 states that have launched a lawsuit against the new requirement, arguing that it is unconstitutional. A coalition of over 50 business organizations is also taking part in the case. Under the federal Fair Labor Standards Act, workers in the United States are entitled to overtime pay of at least 1.5 times their regular rate if they work more than 40 hours a week unless regulations under the act exempt them. Current regulations exempt salaried white- collar workers from overtime pay requirements if they earn at least $455 per week ($23,660 a year) and their job duties primarily involve executive, administrative or professional duties defined in the regulations. The Labor Department's amendment would increase the exemption threshold to $921 per week ($47,892 annually). The revised regulations would also implement an automatic updating mechanism every three years, beginning Jan. 1, 2020. The injunction will remain in effect until the court rules on the lawsuit, unless overturned on appeal. The Labor Department has not yet said whether it plans to appeal the ruling. Average weekly earnings virtually unchanged in September: StatsCan › OTTAWA — Average weekly earnings of non- farm payroll employees were $957 in Sep- tember, virtually unchanged from $958.20 in August, Statistics Canada reports. Statistics Canada revised the August numbers from the previously reported $960. On a year-over-year basis, weekly earnings increased 0.4 per cent in September. The change in weekly earnings during the 12 months to September reflected a number of factors, including wage growth, changes in the composition of employment by industry, occupation and level of job experience, as well as average hours worked per week. Non-farm payroll employees worked an average of 32.7 hours a week in September, unchanged from the previous month and down from 33 hours in September 2015. Year-over-year earnings of non-farm payroll employees increased in September in seven provinces, with Prince Edward Island in the lead, followed by New Brunswick. Earnings declined in Alberta and were virtually unchanged in Newfoundland and Labrador and Saskatchewan. Unemployment rate down to 6.8 per cent in November: StatsCan › OTTAWA — Statistics Canada says there was little change in the number of people working in Canada from October to November, but the coun- try's unemployment rate fell from 7.0 per cent to 6.8 per cent due to fewer people looking for work. The agency reports that employment went up by about 11,000 in November, which was a 0.1 per cent increase from October. In November, employment rose for men in the 25 to 54 age group and for men 55 and older, but it declined for women 55 and up. There was little change among other demographic groups. Industries where employment increased included finance, real estate and leasing; information, culture and recreation; other services; and agriculture. Employment was down in construction, manufacturing and in transportation and warehousing. On a provincial basis, Newfoundland and Labrador continued to have the highest unemployment rate at 14.3 per cent, although it was down from 14.9 per cent in October. British Columbia had the lowest unemployment rate at 6.1 per cent, followed by Quebec and Manitoba (6.2 per cent). The rate in Ontario was 6.3 per cent, down slightly from 6.4 per cent in the previous month. In Alberta, the unemployment rate rose from 8.5 per cent to 9.0 per cent.

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