Canadian Payroll Compliance Legislation Exam Prep 2026 – Complete Practice Test

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Which entity sets minimum wages under provincial labour/employment standards?

Federal government

Employers associations

Provincial governments

Minimum wage rates are set by the jurisdiction that governs the workplace. For workers covered by provincial or territorial rules, provincial governments establish the minimum wage through their employment standards laws. The federal government handles minimum wage only for workplaces under federal jurisdiction (such as banks, interprovincial transportation, and some cross-border services). Municipalities don’t set general minimum wage laws, and employers associations don’t have the authority to establish legal wage floors. So, when it comes to minimum wages under provincial labour/employment standards, the provincial governments are the ones responsible.

Municipal governments

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