Employment lawyer highlights perils, best practices for employers as inspection blitz scrutinizes use of independent contractors
When the federal government launches an inspection blitz to crack down on driver misclassification in the trucking industry in the Hamilton and Greater Toronto Areas, it isn’t just a headache for transport companies there – it’s a warning shot for every employer leaning on contractor models as part of their business strategy, according to one expert.
In a news release announcing the inspection blitz, Employment and Social Development Canada said it was “cracking down on misclassification in the federally regulated road transportation sector” in the Golden Horseshoe region of Ontario. This follows the federal government’s investment in measures to fight employee misclassification over the past few years, including hundreds of inspections and educational sessions across Canada.
Ottawa also strengthened prohibitions against employee misclassification under the Canada Labour Code in 2024 and the most recent federal budget in November 2025 pledged $77 million over four years for a program addressing non-compliance related to personal services businesses.
Employment lawyer Ben Tarnow of Taylor & Blair LLP in Vancouver has seen misclassification up close, including a recent BC Supreme Court case in which he represented a driver in a dispute over the driver’s contractor status.
From his vantage point,...
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