From co-op placements to minimum wage, Ontario's ESA applies more broadly to student workers than many employers realize
Hiring interns, co-op students, and other student workers is a common practice among small and medium-sized enterprises (SME) in Ontario. Students can bring energy, fresh perspectives, and emerging technical skills to the workplace, often at a time when employers are looking to manage labour costs and develop future talent. However, student placements also carry significant legal risks if they are not properly structured.
Many Ontario employers mistakenly assume that interns and students are exempt from employment standards legislation, particularly where placements are short-term, unpaid, or connected to an educational institution. In reality, the Employment Standards Act (ESA) applies broadly, and the categories of students who may lawfully work without pay are narrow and strictly defined. Misclassifying a student worker can expose an employer to liability for unpaid wages, vacation pay, public holiday pay, penalties, and Ministry of Labour enforcement proceedings.
The ESA sets minimum employment standards for most workers in Ontario, regardless of age, experience, or educational status. The legislation does not carve out a general exemption for interns or students. Instead, it applies to “employees,” a definition that is intentionally broad and captures many individuals who might not fit traditional...
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