Ontario minimum wage increase could pose unique challenges for local businesses

Downtown Orillia, Ont., on Sunday, Jan. 2, 2021 (Steve Mansbridge/CTV News)

The start of a new year brought a minimum wage increase for workers across Ontario.

The minimum wage rose to $15, up from $14.35 as of Jan. 1.

Allan Lafontaine, executive director from the Orillia District Chamber of Commerce, says that the increase could pose some challenges for businesses that are already struggling due to the pandemic.

"It's fine if we're at a higher wage," Lafontaine says. "But we have to, as consumers, all buy local, make sure to buy made in Canada. And then those wages aren't such a problem," he says.

Lafontaine believes that the restaurant industry, in particular, could face difficulties with servers receiving a 20 per cent wage increase.

Liquor servers will now have wages bumped to $15, who were capped at $12.55 previously.

Additionally, a wage increase also applies to the following:

•Students under the age of 18 who work 28 hours a week or less when school is in session or work during a school break or summer holidays would see an increase from $13.50 to $14.10 an hour.

•Homeworkers (those who do paid work out of their own homes for employers) would see an increase from $15.80 an hour to $16.50 an hour.

•Hunting and fishing guides had a minimum rate of $71.75 for working less than five consecutive hours in a day, and $143.55 for working five or more hours in a day. Their new proposed rate would be $75.00 for working less than five consecutive hours in a day and $150.05 for working five or more hours in a day.