Federally regulated employer

A federally regulated employer, such as a bank, airline or interprovincial trucker, follows the Canada Labour Code instead of provincial rules.

Also called: federally regulated business, federal jurisdiction employer, Canada Labour Code employer, federal undertaking

What federally regulated employer means

A federally regulated employer is a business whose employment rules come from federal law instead of the province where it operates. Employers in federally regulated industries, for example banks, airlines, interprovincial trucking and telecommunications, follow the Canada Labour Code for employment standards instead of a provincial employment standards act.

Most small businesses in Canada are provincially regulated. A restaurant, shop, farm, construction company or clinic follows the employment standards of the province or territory where the work is done. The question matters because the minimum wage, overtime, holidays, notice and human rights body are different for a federally regulated employer.

Whether your business is federally regulated depends on what it does, so check the industry list for federally regulated workplaces. If you are not sure, ask the federal Labour Program before relying on either set of rules.

How it works

Minimum standards under the Canada Labour Code, as checked on 7 October 2026: the federal minimum wage is $18.15 an hour since 1 April 2026, and if the provincial or territorial rate where the work is done is higher, the higher rate applies. Overtime is owed over 8 hours a day or 40 hours a week, at 1.5 times regular pay. There are 10 paid holidays. Vacation is 2 weeks (4%), 3 weeks (6%) after 5 years, and 4 weeks (8%) after 10 years.

Ending employment: written notice or pay in lieu is owed once an employee has worked 3 months. The minimum is 2 weeks, and from 3 years of service it increases by 1 week for each completed year, to a maximum of 8 weeks. Severance pay may also be owed after 12 months. Amounts owed on termination are due within 30 days, and vacation pay within 30 days of the last day worked.

Human rights: federally regulated employers are covered by the Canadian Human Rights Act, not a provincial code. Its grounds include race, national or ethnic origin, colour, religion, age, sex, sexual orientation, gender identity or expression, marital status, family status, genetic characteristics, disability, and a pardoned conviction or suspended record. Complaints go to the Canadian Human Rights Commission.

Some things are the same as for any employer: you still issue Records of Employment through Service Canada, deduct CPP, EI and income tax, and follow federal rules if you hire temporary foreign workers. Watch for new federal rules too: Bill C-31, before Parliament in 2026, would ban non-compete clauses for federally regulated employers from a date set by the federal cabinet.

Is it the same in every province?

The Canada Labour Code applies the same way to federally regulated employers in every province and territory, though the federal minimum wage gives way to a higher provincial or territorial rate where the work is done. Provincial rules still apply to most other businesses, so check which category you are in.

Example: A trucking company checks its rules

Dev runs a 9-person trucking company in Moncton, New Brunswick, that hauls freight to Nova Scotia and Quebec every week. Interprovincial trucking is one of the federally regulated industries, so he looks at the federal rules first.

Dev uses the Canada Labour Code standards, not New Brunswick's: the $18.15 federal minimum wage rather than New Brunswick's $15.90, overtime after 8 hours a day or 40 a week, and 10 paid holidays. He confirms his status with the federal Labour Program before updating his offer letters.

Employment standards by province

Staffkin's free employment standards page lists the federal (Canada Labour Code) rules next to each province's, so you can compare them.

See the rules by province

Free tools and guides for this

Questions about federally regulated employer

How do I know if my business is federally regulated?

It depends on what your business does. Banks, airlines, interprovincial trucking and telecommunications are examples. Most local businesses are provincially regulated; if unsure, ask the federal Labour Program.

What is the federal minimum wage in Canada?

$18.15 an hour since 1 April 2026. If the provincial or territorial rate where the work is done is higher, the higher rate applies.

Which human rights law applies to a federally regulated employer?

The Canadian Human Rights Act, with complaints made to the Canadian Human Rights Commission.

When is notice owed under the Canada Labour Code?

Once an employee has worked 3 months. The minimum is 2 weeks, increasing from 3 years of service by 1 week per completed year, to a maximum of 8 weeks.

Official sources

General information for Canadian employers, not legal advice. Rules differ by province and territory and change over time, so check with your provincial employment standards office (or the federal Labour Program if you are federally regulated) before you rely on it. See employment standards by province.

Checked against official sources on 4 November 2026.