BILL NO. 256

(as passed, with corrections)

1st Session, 65th General Assembly
Nova Scotia
5 Charles III, 2026

 

Government Bill

 

Labour Standards Code
(amended)

 

CHAPTER 17 OF THE ACTS OF 2026

 

The Honourable Nolan Young
Minister of Labour, Skills and Immigration

 

First Reading: September 8, 2026 (LINK TO BILL AS INTRODUCED)

Second Reading: September 11, 2026

Third Reading: September 17, 2026

Royal Assent: September 18, 2026

An Act to Amend Chapter 246
of the Revised Statutes, 1989,
the Labour Standards Code

Be it enacted by the Governor and Assembly as follows:

1 Section 2 of Chapter 246 of the Revised Statutes, 1989, the Labour Standards Code, as amended by Chapter 14 of the Acts of 1991, Chapter 7 of the Acts of 2003 (Second Session), Chapter 10 of the Acts of 2006, Chapter 37 of the Acts of 2010, Chapter 19 of the Acts of 2011, Chapter 11 of the Acts of 2016, Schedule A of Chapter 1 of the Acts of 2018 and Chapter 36 of the Acts of 2018, is further amended by

(a) striking out clause (n) and substituting the following clause:

(n) "pay" means
(i) wages due or paid to an employee,

(ii) compensation due or paid to an employee under Sections 32, 33 and 34, and

(iii) a tip or gratuity due or paid to an employee under Section 80A,

but does not include deductions from wages, tips or gratuities that may be lawfully made by an employer;

(b) adding immediately after clause (r) the following clause:

(s) "tip or gratuity" means
(i) a payment voluntarily made to or left for an employee by a customer of the employee's employer in such circumstances that a reasonable person would be likely to infer that the customer intended or assumed that the payment would be kept by the employee or shared by the employee with other employees,

(ii) a payment voluntarily made to an employer by a customer in such circumstances that a reasonable person would be likely to infer that the customer intended or assumed that the payment would be redistributed to an employee or employees,

(iii) a payment of a service charge or similar charge imposed by an employer on a customer in such circumstances that a reasonable person would be likely to infer that the customer intended or assumed that the payment would be redistributed to an employee or employees, and

(iv) such other payments as may be prescribed by the regulations,

but does not include,

(v) the portion of a service charge or similar charge attributable to a tip or gratuity imposed by a third party on an employer for processing a credit card or debit payment made by a customer to the employer, unless such a charge is prescribed under subclause (iv), or

(vi) such payments as may be prescribed by the regulations;

(c) striking out clause (t) and substituting the following clause:

(t) "unpaid pay" means
(i) any vacation or pay in lieu of vacation that has not been paid in accordance with Sections 32, 33 and 34,

(ii) wages that have not been paid in accordance with Sections 79 and 80, and

(iii) tips or gratuities that have not been paid in accordance with Section 80A;

and

(d) adding "tips or" immediately before "gratuities" in clause (u).

2 Section 7 of Chapter 246, as amended by Chapter 14 of the Acts of 1991, Chapter 4 of the Acts of 2003 (Second Session), Chapters 10 and 13 of the Acts of 2006, Chapter 18 of the Acts of 2009, Chapter 37 of the Acts of 2010, Chapter 19 of the Acts of 2011, Chapter 11 of the Acts of 2013, Chapter 11 of the Acts of 2016, Chapters 13 and 36 of the Acts of 2018, Chapters 13 and 14 of the Acts of 2020, Chapter 41 of the Acts of 2022 and Chapter 10 of the Acts of 2024, is further amended by

(a) relettering clauses (aa) and (ab) as (ab) and (ac); and

(b) adding immediately after clause (a) the following clause:

(aa) prescribing payments that are or are not a tip or gratuity;

3 Chapter 246 is further amended by adding immediately after Section 7A the following Section:

7B The Governor in Council may make regulations for the purpose of making directors liable for unpaid pay, including regulations

(a) respecting the circumstances under which a director shall be held liable for unpaid pay;

(b) designating specified employers or classes of employers the directors of which are subject to liability under this Section and the regulations;

(c) designating specified employers or classes of employers the directors of which are exempt from liability under this Section and the regulations;

(d) defining "director" and further defining or redefining "unpaid pay" for the purpose of this Section;

(e) prescribing the maximum amount of unpaid pay for which a director may be held liable;

(f) prescribing the process and procedures required to be followed for complaints involving the liability of a director under this Section;

(g) respecting any matter or thing the Governor in Council considers necessary or advisable to effectively carry out the intent and purpose of this Section.

4 Subsection 40(4) of Chapter 246, as enacted by Chapter 7 of the Acts of 2003 (Second Session), is amended by

(a) adding "or permitted" immediately after "required"; and

(b) striking out "forty-eight" wherever it appears and substituting "forty-four" in each case.

5 Chapter 246 is further amended by adding immediately after Section 80 the following Section:

80A (1) Subject to subsection (3), a tip or gratuity is the property of the employee to whom or for whom it is given.

(2) Sections 79 to 80 apply with necessary changes to the payment of tips or gratuities.

(3) Notwithstanding subsections (1) and (2), an employer may withhold or make a deduction from an employee's tips or gratuities or cause the employee to return or give them to the employer if the employer collects and redistributes tips or gratuities among some or all of the employer's employees through a pooling arrangement.

(4) Subject to subsections (5) and (6), an employer or a director or shareholder of an employer may not share in tips or gratuities redistributed under subsection (3).

(5) An employer who is a sole proprietor or a partner in a partnership may share in tips or gratuities redistributed under subsection (3) if the employer regularly performs to a substantial degree the same work performed by

(a) some or all of the employees who share in the redistribution; or

(b) employees of other employers in the same industry who commonly receive or share tips or gratuities.

(6) A director or shareholder of an employer may share in tips or gratuities redistributed under subsection (3) if the director or shareholder regularly performs to a substantial degree the same work performed by

(a) some or all of the employees who share in the redistribution; or

(b) employees of other employers in the same industry who commonly receive or share tips or gratuities.

(7) Where an employer has a pooling arrangement in place with respect to the collection and redistribution of tips or gratuities under subsection (3), the employer shall post and keep posted the details of the pooling arrangement in a conspicuous place where the employees engaged in their duties may readily see and read it.

6 Clause 81(a) of Chapter 246, as amended by Chapter 14 of the Acts of 1991 and Chapter 38 of the Acts of 2005, is further amended by

(a) striking out "60D,"; and

(b) striking out "and 80" and substituting ", 80 and 80A".

7 (1) This Act, except Section 3, has effect on and after April 1, 2027.

(2) Section 3 has effect on such day as the Governor in Council orders and declares by proclamation.

 

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