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Cracking Down on Trucking Misclassification

The trucking industry is at a pivotal moment, grappling with widespread tax evasion and the misclassification of labor. In a significant move, the Employment and Social Development Canada (ESDC) has acknowledged the gravity of the situation by establishing a specialized enforcement unit dedicated to the road transportation sector.

This dedicated national team has already made notable strides, conducting over 300 inspections and outreach initiatives to address misclassification. With a range of enforcement actions at its disposal, the Labour Program has the authority to impose fines up to $250,000. Remarkably, in just the last six months, the unit has issued payment orders amounting to more than $600,000 to employers in the sector, accounting for 80% of the total payment orders issued.

The commitment to eradicate illegal labor misclassification is unwavering, with plans to further amplify the scale and intensity of these efforts across the country. By leveraging a mix of educational campaigns and targeted inspections, the Labour Program aims to ensure that employers are fully aware of and comply with their responsibilities under the labor laws.

Misclassified workers, ESDC emphasizes, are deprived of crucial rights and benefits afforded to regular employees, such as overtime compensation, holiday pay, annual leave, and various protected leaves, including paid medical leave. The Labour Program’s enforcement strategy includes a combination of payment orders, escalating fines, and public exposure to uphold these rights.

Stephen Laskowski, President of the Canadian Trucking Alliance (CTA), voiced his support for the initiative, highlighting the detrimental impact of the Driver Inc. scheme on the industry. He advocates for full compensation for drivers denied their rights and insists on strict penalties for offending carriers.

The CTA is actively engaging with government and opposition parties to garner support for this enhanced enforcement regime and is urging all political factions to commit to ending the practice of employee misclassification once and for all.

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2024 Canadian trucking; Semi Truck loans
2024 Canadian trucking; Semi Truck loans

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