The federal government’s new initiative aims to crack down on trucker misclassification—a practice costing drivers proper wages and benefits while allowing companies to skirt employment responsibilities.
For Gurpreet Singh, a long-haul driver based in Brampton, Ontario, the news couldn’t come soon enough. “I’ve worked six years as an ‘independent contractor’ but couldn’t refuse loads or set my own schedule,” he told me during our interview at a highway rest stop. “My taxes, truck payments, insurance—all on me, but I had no real independence.”
Singh represents thousands of Canadian truckers caught in legal limbo. Companies classify them as independent contractors while treating them like employees, minus the benefits. This widespread practice has finally caught Ottawa’s attention.
Employment and Social Development Canada announced last week it will dedicate $10 million to investigate and penalize companies that misclassify drivers. The initiative follows a scathing report from the Canadian Centre for Policy Alternatives documenting that nearly 25% of Canada’s 181,000 truck drivers may be improperly classified.
“This isn’t about paperwork—it’s about fundamental worker rights,” explained Ellen Crawford, labor rights attorney with Transport Justice Coalition. “Companies save approximately $8,000-$12,000 annually per misclassified driver through avoided CPP contributions, workers’ compensation, and employment insurance.”
I reviewed court filings from three recent class-action lawsuits against major Canadian carriers. The pattern is consistent: drivers sign contractor agreements but face employee-like controls—assigned schedules, company-mandated equipment, and restricted ability to work for competitors.
The federal effort mirrors similar provincial actions. In Ontario, Bill 88 strengthened penalties against misclassification, while British Columbia’s Employment Standards Branch has conducted targeted audits of trucking firms since 2022, resulting in $4.2 million in back wages ordered paid to drivers.
“What makes trucking unique is how companies structure their business models around misclassification,” noted Dr. Sylvain Charlebois, supply chain expert at Dalhousie University. “It’s not occasional—it’s systematic.”
Industry groups have mixed reactions. The Canadian Trucking Alliance publicly supports proper classification but warns against “overly broad enforcement” that might disrupt legitimate independent operators.
“There’s a place for true owner-operators,” said Marcus Singh (no relation to Gurpreet), president of the Ontario Trucking Association. “But we need to distinguish between actual entrepreneurs and workers being denied their rights.”
For enforcement to succeed, investigators must navigate complex business arrangements. Companies often create elaborate structures—requiring drivers to incorporate, lease equipment from company-affiliated entities, or sign contracts with multiple clauses restricting independence.
“The genius of misclassification is that it shifts all risk to the worker while maintaining company control,” explained Avery Goldman, economist specializing in transportation labor markets. “When freight volumes drop, companies simply assign fewer loads to ‘contractors’ who then bear the financial burden.”
The crackdown includes cross-agency collaboration between the Canada Revenue Agency, provincial labor ministries, and federal transportation regulators. Companies found violating classification rules face potential penalties including back taxes, wage claims, and administrative fines.
Drivers seeking reclassification can now access a streamlined complaint system through Employment and Social Development Canada’s dedicated portal. Previously, many truckers reported frustration with fragmented enforcement across multiple agencies.
The initiative arrives amid broader changes in Canada’s trucking industry, which faces severe driver shortages estimated at 23,000 unfilled positions nationally. Industry observers suggest proper classification could actually help address recruitment challenges.
“When drivers receive fair compensation and benefits, retention improves dramatically,” said Jaspreet Kaur, organizing director with Teamsters Canada. “The industry’s labor shortage is partly self-inflicted through poor treatment of workers.”
For Gurpreet Singh, the announcement brings cautious optimism. “I’ll believe it when I see enforcement,” he told me as he prepared to continue his cross-country journey. “But knowing the government is finally paying attention? That’s a start.”
The crackdown goes beyond trucking. Similar misclassification issues affect construction, home care, and app-based delivery services. Legal experts view the trucking initiative as a potential blueprint for broader worker classification reform.
With implementation beginning next month, both drivers and carriers are watching closely. One thing seems certain—the days of consequence-free misclassification in Canada’s trucking industry may finally be numbered.
