The federal government will conduct an inspection blitz in Hamilton and the Greater Toronto Area in the coming weeks to identify trucking companies misclassifying drivers as independent contractors.
The Labour Program will focus on federally regulated road transportation companies that may be violating the Canada Labour Code by incorrectly classifying employees as contractors. When misclassification is suspected, officials will launch full investigations and issue penalties for violations.
Worker misclassification strips employees of rights to minimum wage, paid leaves, and occupational health and safety protections under federal law. Misclassified workers also lose access to Employment Insurance and the Canada Pension Plan.
Coordinated enforcement effort
Information gathered during the blitz will be shared with the Canada Revenue Agency to support coordinated enforcement. The Labour Program already works with the CRA and provincial partners on joint operations, inspections and outreach in the road transportation sector.
“Misclassification is not only exploitation, but also illegal—plain and simple,” said Patty Hajdu, Minister of Jobs and Families. “This inspection blitz is about finding employers who are breaking the law and holding them accountable so every truck driver in Canada is treated fairly.”
John Zerucelli, Secretary of State for Labour, said the blitz sends a message that violating federal labour laws will have consequences.
Ongoing compliance efforts
In 2023, the government invested $26.3 million over five years to combat employee misclassification in federally regulated road transportation. Since then, the Labour Program’s Misclassification Team has conducted more than 670 inspections and 420 educational sessions across Canada.
Budget 2024 strengthened prohibitions against employee misclassification under the Canada Labour Code. Those changes came into force on June 21, 2024, through the Budget Implementation Act, 2024, No. 1.
Budget 2025 proposes additional information sharing between the CRA and Labour Program, along with other measures to strengthen compliance from a tax perspective.
The Labour Program and Temporary Foreign Worker Program have also increased collaboration to identify high-risk employers and better target enforcement activities in road transportation.
