XTM on Ontario’s Bill 149 Working for Workers Four Act

Q&A regarding the new bill and its implications:

Q: Is this bill in effect?
Not yet. Some of the bill’s changes have come into effect, but the updates concerning tips will come into effect on June 21st, 2024. Our team has been in contact with the Ministry of Labour (MOL) and while this bill has been passed, it's important to understand that it is not in effect and therefore does not have any impact on us as your payments provider, or on you, at this time. We are actively working on new features that support the new compliance standards, which will be communicated to you well before June 21st, 2024. 

 XTM is actively involved in ensuring that the results of the Working for Workers Bill meet the needs of restaurant operators as well as their employees. 

Q: Is there anything that we have to do now to remain compliant?
No action is required at this time. While we actively work on adapting our solution to meet the latest compliance standards, please note the following:
• XTM's AnyDay Payments solution, as it is now configured, is compliant with employment standards of giving employees free access to their tip earnings.
• XTM's AnyDay Payments solution meets the mandate of giving employees free access through free, in-network ATMs withdrawals, free to spend on the card, no monthly or annual fees and free peer-to-peer transfers.
• XTM is currently working on an in-app, opt-in feature that enables employees to have the choice between the current daily/instant pay program or the option of bi-weekly gratuities payments via direct deposit to an account of their choosing.  

Q: Do you know what restaurant employees want as compliant payment choices? 
Yes, we do. Through primary and secondary research, including recent surveys from within our 200,000+ member base, we’ve learned that the number one priority for the majority of hospitality employees is the immediacy of their earnings. We also learned that giving employees the control over where their earnings are deposited is equally important. 

Q: What is the position of the majority of your restaurant operator clients?
Restaurant operators are telling us that they cannot bear the burden of yet another material technology cost. Restaurants Canada, the governing voice of the industry, reported just a few weeks ago that while the economy has moved on from the pandemic, the restaurant industry still has a long way to go. Just last month, Restaurants Canada reported a heartbreaking statistic of a 44% uptick in restaurant closures due to bankruptcies, the highest annual figure in a decade.  

‍In that same report, Restaurants Canada noted that 62% of restaurants are currently operating at a loss or just breaking even.

To learn more about how XTM is helping restaurants combat these challenges, click here.

Q: What are the next steps that XTM is taking?
XTM will continually evolve its solution to stay ahead of compliance standards and to continue to innovate to the benefit of both the operators and their employees. 

We are also working with various partners, industry thought leaders and associations to help advocate for restaurant businesses around these complex compliance challenges. We will keep you apprised on any new updates as they become available. We are your partner in payments and will continue to work hard to support your business.

Q: Are there any planned changes that will come into effect, once the bill is enforced? 
There will be an update to our Dispute Transaction feature (aka the claw-back funds functionality). We will be releasing a new feature that ensures full compliance for both operators and their employees. 

And please remember, we’re here for you. If you have any further questions or concerns, feel free to reach out to our team directly at clientservices@paidanyday.com.