HR Insights 2024 | Winter

HR INSIGHTS

2024 Winter Issue

SARC’s Human Resources and Labour Relations Newsletter

#24 BEYOND COMPENSATION

In this issue, consultants from SARC and MLT Aikins discuss topics of incentives in the workplace beyond compensation.

Contents Overtime Rules in Saskatchewan: Overview, Exemptions and Common Mistakes

Shane Buchanan & Amy Gibson

Understanding Meaningful Incentives and Employee Benefits Beyond Salary

Bobbi Janzen

Bargaining “Incentives” in a Collective Agreement

Scott Mostoway

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Article Contributors About Bobbi Janzen Bobbi identifies and fosters strategic partnerships with education, labour, other workforce organizations, and community partners to address Disability Service sector workforce needs and assists with talent supply and demand.

She also leads workforce promotion strategies to connect job seekers to the Disability Service sector. Bobbi applies her background in talent acquisition, recruiting, and disability sector advocacy to this role and connects with our Members to learn more about the sector’s workforce needs. Bobbi is available to consult with SARC’s Regular and Associate Members on their workforce development inquiries, including recruitment and retention strategies, job descriptions, HR policies and procedures, compensation/total rewards, and succession planning.

Bobbi Janzen SARC Workforce Development Coordinator

About Scott Mostoway

Scott Mostoway SARC Senior Labour Relations Consultant

Scott can assist SARC’s Regular and Associate Members with a variety of LR/HR issues, including progressive discipline, performance management, and duty to accommodate for unionized and non-unionized organizations.

He can also provide specific support in collective bargaining for unionized organizations. Accessing this service is free of charge and can minimize organizational risk. Having a quick check-in or a review done before decisions are made can save you time and money in the end.

About Shane Buchanan With a background in human resources, Shane provides an understanding of the issues faced by human resources professionals and provides practical solutions to all areas of labour and employment law. Shane is a graduate of the University of Saskatchewan College of Law. During law school, he was a team captain of the Huskies Football team and vice-president of the Huskies Athletics Committee. He previously worked as a law student for a worldleading potash company where he focused on labour and employment law and assisted in a merger between two agriculture companies that resulted in the creation of the world’s largest provider of crop inputs and services. He also has experience working for one of the world’s largest uranium producers.

Shane Buchanan Lawyer, MLT Aikins

About Amy Gibson

Amy Gibson Lawyer, MLT Aikins

Amy Gibson carries on a general labour and employment law practice. She advises employers on a variety of labour issues, including union certification drives, collective agreement interpretation, labour disputes, workplace policies, discipline and discharge, employment contracts, OH&S, workers’ compensation, labour standards and human rights. She has experience with a variety of court and administrative proceedings as well as representing clients before the Saskatchewan Labour Relations Board and in Canada Labour Code unjust dismissal adjudications.

OVERTIME RULES IN SASKATCHEWAN: OVERVIEW, EXEMPTIONS AND COMMON MISTAKES Shane Buchanan & Amy Gibson Lawyers, MLT Aikins LLP

Overtime pay can often be a complex concept, especially in workplaces that operate on a 24/7 schedule, such as supported homes for people experiencing disability. This article provides an overview of overtime rules, overtime exemptions, common overtime mistakes made by employers, and strategies for reducing overtime costs for Saskatchewan employers.

General Overtime Requirements Overtime is governed by The Saskatchewan Employment Act (the “Act”).1 In most circumstances, an employee is to receive overtime pay when they work more than eight hours in a day or more than 40 hours in a week (whichever is greater to the employee). The weekly overtime threshold reduces to 32 hours in a week with a statutory holiday.

Employers have some flexibility in setting the standard 40-hour work week. They may choose the standard 8-hour day, 5 days per week, or a 10hour day, 4 days per week. If an employer chooses the latter schedule, overtime will be payable after 10 hours in a day or 40 hours in a week. Employers are required to pay employees who are eligible for overtime 1.5 times their hourly wage if they require or permit an employee to work overtime.

Employers can also agree to additional overtime rules through an employment contract. This also applies in the unionized context where the parties have agreed to overtime provisions within a collective bargaining agreement.

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Common Overtime Exemptions There are a number of statutory exemptions whereby certain employees are not entitled to overtime pay, including but not limited to: 1. Managerial Exception If an employee performs services of a “managerial character”, they may be exempt from overtime pay. There is no definition of managerial character under the Act, but the Saskatchewan Court of King’s Bench has explicitly stated that it must be determined on a case-by-case basis. One of the most important factors is the individual’s capacity to exercise direction and control over subordinates.2 This exemption does not mean that holding the title of “manager” will automatically exempt an employee from overtime. Rather it depends on the duties actually performed.

2. Professional Exceptions Professional employees can also be exempted from Saskatchewan’s overtime regime. The Act defines these employees as those “who are professional practitioners registered or licensed in accordance with any Act or who, while learning their profession, are interns, students-at-law, students in accountancy or other trainees or students.” Common examples are lawyers, accountants, engineers, dentists, architects, pharmacists and veterinarians.

The Saskatchewan Employment Act, SS 2013, c S-15.1, ss 2-17 & 2-18. [the Act].

Balzer v Federated Co-operatives Limited, 2014 SKQB 32 at para 80.

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3. Other Exceptions in Saskatchewan Saskatchewan also has a number of additional overtime exceptions, including: care providers (come-in care providers working in private homes), travelling salespeople; motor vehicle salespeople, logging industry employees, employees of a rural municipality engaged in road work, employees working for outfitters, fishers, or trappers, and employees engaged in mineral exploration.

With regard to overtime exemptions for “comein care providers”, this exemption applies to care providers hired primarily for the care and supervision of an immediate family member in either the home of the employer or the home of the family member requiring care.

Direct Support Workers or Group Home Workers are also exempt from overtime when working a 24-hour group home operator shift.

This exemption only applies to one employee scheduled per group home. This exemption also requires that an agency be registered as a residential-service facility pursuant to The Residential Services Act and the corresponding regulations before the exemption will be found to apply. 3 It is important to note, however, that an exempt 24-hour group home operator shift may still result in overtime pay for an employee for shifts that the employee is scheduled for later that week. The hours worked by an employee during that 24-hour shift are still factored into an overall calculation of the maximum 40-hour work week, after which overtime is payable.

2. Calculating Overtime Based on the Employee’s Hourly Rate Only An employee’s overtime pay is based on an employee’s wage and not just their hourly rate. “Wages” are defined in the Act to include salary, commission and any other monetary compensation for work or services or for being at the disposal of an employer.4 This includes overtime, public holiday pay, vacation pay and pay instead of notice.

3. Allowing Employees to Work Off the Clock An employer is responsible for paying the employee for all hours worked or hours where the employee is at the employer’s disposal.

This includes time worked that is “off the clock” or was not requested by the employer. If the employer allowed the work or failed to prevent it, an employer may still be held responsible for payment of the work performed.

Minimizing Overtime Costs: Modified Work Arrangements The Act permits employers and full-time nonunionized employees to enter into a Modified Work Arrangement (“MWA”) which allows for more flexibility on when overtime hours occur. Pursuant to the Act, upon the proper execution of an MWA, an employee’s hours of work can be averaged over a period of up to four weeks, as follows: •

40 hours over one week;

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80 hours over two weeks;

Common Overtime Mistakes

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120 hours over three weeks; or

There are a number of common misconceptions and errors regarding overtime pay that can result in an employer being offside their overtime obligations. Some common mistakes to be aware of include:

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160 hours over four weeks.

1. Assuming Salaried Employees are Exempt It is a common misconception that salaried employees are exempt from overtime pay.

Unless a salaried employee falls under one of the previously mentioned exemptions, they are still entitled to overtime pay, regardless of whether they are paid based on an annual salary or hourly rate.

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For example, if an MWA averaging 80 hours over two weeks has been agreed to, employees would only receive overtime pay for hours worked in excess of 80 hours over that two-week period, regardless of what days are worked. Overtime is also payable for any hours worked in excess of 12 hours in a given day.

These agreements help to increase workplace flexibility by allowing employees and employers to compress work time in return for more time off for employees. However, employees working less than 30 hours per week cannot be part of an

The Employment Standards Regulations, RRS c S-15.1 Reg 5, s 15.

The Act, s 2-1(v).

MWA. Additionally, any MWA that is entered into will expire after 2 years.

Unionized operations may bargain for different overtime arrangements within their collective bargaining agreements. Similarly, if an employer wishes to average hours of work over a longer period than 4 weeks, it may apply to Employment Standards for an Averaging of Hours Permit.

Conclusion Overtime can be a complicated matter for employers to deal with. Incorrectly paying overtime can occur for a variety of reasons. If you believe there may be errors in your overtime pay structure, it is recommended that you contact your legal counsel to develop a strategy to correct it.

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UNDERSTANDING MEANINGFUL INCENTIVES AND EMPLOYEE BENEFITS BEYOND SALARY Bobbi Janzen SARC Workforce Development Coordinator In the Disability Service sector, benefits such as personal days, earned days off (EDOs), employee assistance programs (EAP), and wellness initiatives are very important parts of total compensation.

While salary is a key part of what employees earn, these additional benefits help them handle the challenges of their jobs and boost their overall job satisfaction. These benefits don’t replace regular pay or overtime for extra work; instead, they enhance the overall compensation package and provide a more complete picture of employee support.

The Role Of Personal Days What Are Personal Days?

Personal days are paid time off that employees can use for personal matters that are not related to illness. This benefit provides flexibility. They allow employees to: •

Attend personal appointments or family events.

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Take mental health breaks to recharge.

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Handle unexpected family responsibilities, such as emergencies.

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Supporting Work-Life Balance: By allowing time off for personal matters, these days help employees maintain a healthy balance, which is crucial for long-term job satisfaction and retention.

Earned Days Off And Employee Wellness Initiatives Earned Days Off (EDOs) EDOs are additional time off that employees can earn based on their length of service or performance, encouraging long-term commitment and contributing to overall employee satisfaction.

An Earned Day Off (EDO) can be structured as a benefit in different ways. Typically, EDOs are paid time off, where employees continue to receive their regular salary for the day off. Employees might earn an EDO as a reward for meeting specific performance targets or after a specific length of employment. This approach incentivizes high performance while helping employers manage salary-related costs. It's important to ensure that the structure of EDO’s complies with The Saskatchewan Employment Act and any applicable collective agreements.

Why Are Personal Days Important?

Employee Wellness Initiatives

Personal days serve several important functions:

Wellness initiatives are programs designed to support physical and mental health. These can include:

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Preventing Burnout: They provide necessary breaks, helping employees stay engaged and avoid feeling overwhelmed.

Providing Flexibility: Personal days give employees the freedom to manage their personal needs without the added stress of work.

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Access to fitness/wellness programs, initiatives, apps, or gym memberships.

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Workshops on stress management and resilience.

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Nutritional or health resources, or counselling.

Together, EDOs and wellness initiatives create a holistic approach to employee health, addressing both physical and mental well-being as essential parts of total compensation.

can help attract skilled candidates. Many job seekers are looking for more than just a pay cheque; they want a workplace that supports their overall well-being and values them as a person.

Training And Development Initiatives

Enhancing Attraction And Retention In addition to personal days and wellness programs, training and development opportunities The presence of meaningful non-salaried benefits are vital for employee support: significantly improves an organization’s ability to attract and retain talent. When potential • Skill Enhancement: Ongoing training helps employees see a comprehensive benefits package, employees stay up-to-date with best practices, they recognize that the organization values their boosting their confidence and the quality of overall well-being, not just their productivity. care they provide. This often coincides with an employee’s career plan.

• Attracting Talent: In a competitive job market, candidates are increasingly prioritizing • Career Growth: Development opportunities workplaces that offer robust support systems. pave the way for career advancement, further Highlighting benefits such as personal increasing job satisfaction and encouraging days, EDOs, and wellness programs during retention. recruitment can differentiate an organization from others that may offer higher salaries but • Stress Management: Many training programs fewer supportive benefits. available today include or offer stress management strategies, helping employees cope better with the demands of work and life.

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Improved Job Performance: Employees who receive proper training tend to perform better, leading to less job-related stress and a more positive work experience.

Meaningful Benefits Within Budget While both salaried and non-salaried benefits are crucial, they need to fit within the organization's budget. Employers should focus on offering benefits that truly add value for employees.

Meaningful incentives, such as personal days, EDOs, and wellness initiatives, can boost employee satisfaction without placing a heavy burden on budgets. Here are a few considerations: •

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Increasing Retention: Employees who feel supported through meaningful benefits are more likely to remain with the organization long-term. Personal days and wellness initiatives contribute to higher job satisfaction, reducing turnover rates and the associated costs of hiring and training new employees.

Why These Benefits Are Often Overlooked Despite their significant impact, these benefits are often seen as "hidden gems" and can be overlooked for several reasons: •

Assessing Value: Employers should find out which benefits are most appreciated by employees and align these with organizational goals and budgets. Investing in impactful benefits can lead to better recruitment and retention. Finding out what employees value most can be done through methods such as surveys.

Lack of Awareness: Many employees may not fully understand the value or availability of these benefits, or how to incorporate new initiatives that support the organization’s objectives. Often, organizations fail to effectively communicate the existence and importance of these non-salaried benefits.

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Prioritizing Flexibility: Benefits like personal days and EDOs can be structured to allow flexibility, benefiting both employees and the organization as long as staffing needs are met.

Focus on Salary: In discussions about compensation, there is often an overwhelming focus on salary. Employees and employers alike may prioritize financial compensation over non-salaried benefits, not recognizing their importance in overall job satisfaction.

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Limited Promotion: Some organizations may not actively promote these benefits, leading to a lack of visibility. If they are not highlighted during recruitment or internal communications, employees may not perceive their full value.

Integrating Perks in Recruitment: Showcasing these meaningful benefits during recruitment

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Misconceptions About Cost: Employers may believe that enhancing or promoting non-salaried benefits will significantly increase operational costs. However, when implemented thoughtfully, these benefits can be cost-effective ways to improve employee satisfaction and retention.

Conclusion In the Disability Service sector, meaningful benefits and incentives—such as personal days, EDOs, training initiatives, and wellness programs— play a vital role in supporting employees as part of a comprehensive compensation strategy. These benefits help improve work-life balance, prevent burnout, and promote career growth. Whether salaried or non-salaried, these incentives enhance overall job satisfaction and contribute to long-term employee retention.

By aligning benefits with organizational budgets and clearly communicating their value during recruitment, employers can create a supportive workplace that attracts and retains skilled workers. Recognizing and promoting these benefits, often considered "hidden gems," is essential for fostering a more engaged and committed workforce, ultimately contributing to the organization's success.

If you have questions about incorporating meaningful incentives beyond salary into your compensation package, please contact SARC's Workforce Development Coordinator, Bobbi Janzen.

BARGAINING “INCENTIVES” IN A COLLECTIVE AGREEMENT Scott Mostoway SARC Senior Labour Relations Consultant

We hear it all the time, “Our compensation is so much more than just a salary.” What does that mean, exactly? Commonly, this is referred to as Total Compensation or a Compensation Package, wherein the calculation of an employee’s base wage is in addition to any other compensation they receive. This could include insurance benefits such as medical, dental, or disability, wage premiums, vacation, time off, paid sick days, etc.

What Do We Mean By Meaningful Incentives?

How do we as employers balance the need for “perks” in our total compensation offering to our unionized employees? How do we stay competitive in the marketplace all the while ensuring those incentives are meaningful and mindful of cost, administrative functions, and operational flexibility?

As an example, let’s say your organization is having a difficult time filling a particular shift during the weekends. You as the employer institute a shift premium of $0.10-$0.25 per hour to entice more employees to take the shift.

Assuming in your labour market that $0.25 per hour is not fair market value for a shift premium, employees no longer base their decision to work that shift on your offer of a premium.

What We Should Expect In Bargaining Traditionally, unions are expected to propose language in a collective agreement that deals with items that are monetary in nature as well as nonmonetary. When we think of monetary items, we generally assume wages or wage grid, but this also includes several other items that have a monetary impact that aren't directly tied to wages.

It is not uncommon for unions to propose language associated with increased vacation, sick time, shift premiums, and other various proposals.

It goes without saying that some of these items would be great to integrate into our organizations.

That said, if we're going to introduce some of this language, we must ensure that we do it in a meaningful way while being conscious of cost, administration, and operational flexibility.

Something that is meaningful is something that has a serious, important, or useful quality or purpose. Meaningful incentives are essential for employee wellbeing, job satisfaction, recruitment, and retention. It is often viewed that a benefit/ incentive that is not of meaningful value is in turn viewed as a disincentive.

This has a direct impact on your organization where the number of people electing to work the hard-to-fill shift remains unchanged and you as the employer are still introducing a cost and administrative function onto the organization.

Now of course, we understand that not all employers have limitless resources and capacity to ensure every element of their compensation strategy can be meaningful. This is where we as employers must find the appropriate balance when evaluating incentives during the bargaining process.

If you are not able to invest in offering a shift premium that is substantive enough to achieve your goal, it may be best to focus those dollars elsewhere. Striking balance of appropriate incentives for our human resource strategy and cost, administration, and flexibility are key.

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Striking The Right Balance Striking the right balance between incentives and operational costs, administration, and flexibility is required by an organization to be sustainable.

While incentives such as increased vacation, premiums, and paid time off are an important element to an overall compensation strategy, they must be balanced with keeping your organization’s financial constraints and objectives in mind. All employers have their differences. Our missions, visions, and values vary from workplace to workplace.

There is not a “one size fits all” approach to crafting benefits and incentives into your individual collective agreements. Our focus of aligning meaningful incentives with practical budgeting and efficient management can maintain a motivated workforce without compromising operational sustainability.

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Only management employees of SARC member agencies or their representatives may attend. We reserve the right Speakers: • Anna Sigurdson, Moderator Cost: Registration Fee ($250) + GST & PST ($27.50) = to decline registrants.

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