Canadian Guidance On Wage-Fixing And No-Poaching Agreements

The Competition Act has been amended to include a new criminal offence for employers that enter into agreements to fix wages, or that agree not to solicit or hire each other's employees. The amendment will come into force in June 2023. The Competition Bureau has released draft guidelines on how it will interpret and enforce the amendment. The key things all employers should know about the amendment and the guidelines are as follows:

• Audit Your Employment Practices. Given the possibility of criminal prosecution (and significant fines and jail terms), employers should review their existing employment practices, focusing specifically on whether the law impacts any agreements or communications with third parties that concern how their employees are compensated or treated, or any non-solicitation agreements.