Special thanks to authors Arlan Gates and Justine Johnston.
The Canadian Competition Act was recently amended to, among other things, criminalize wage-fixing and no-poach agreements between unaffiliated employers1. Following a one-year grace period that permitted Canadian employers to ensure they are in compliance, the criminal prohibition will come into effect on June 23, 2023.
Introducing a criminal prohibition against wage-fixing and no-poach agreements between employers brings Canadian competition law in line with other jurisdictions, including the United States, that already prohibit certain labor related agreements2. However, the Canadian prohibition as well as the Competition Bureau’s approach to enforcement, which all businesses operating in Canada should be aware of.
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