Canada’s Jobs Minister Targets Driver Inc. Misclassification with Stronger Enforcement Actions

Source: Ontario Trucking Association

Employment Minister Patty Hajdu has announced a new set of federal measures to intensify enforcement against Driver Inc., a widespread misclassification practice in the trucking industry where drivers are improperly treated as independent contractors.

The move builds on the government’s recent lifting of the T4A penalty moratorium, signaling a firmer stance on tax and labour noncompliance within trucking.

“Misclassification is exploitation—it strips workers of their rights and creates an uneven playing field for honest companies,” Minister Hajdu told the House of Commons Standing Committee on Transport, Infrastructure and Communities (TRAN).

The measures include an upcoming enforcement blitz across the Greater Toronto and Hamilton Area (GTHA), faster investigation processing, and more rapid issuance of penalties when violations are found. Employment and Social Development Canada (ESDC) will also review its Administrative Monetary Penalties (AMPs) framework to raise fines and publicly name violators.

Since April 2024, ESDC has issued over 700 payment orders totaling $4.1 million related to wage theft and Labour Code violations.

The federal budget will also propose amendments to the Income Tax Act and Excise Tax Actallowing two-way information sharing between the Canada Revenue Agency (CRA) and ESDC, enhancing the ability to identify noncompliant carriers.

A new information-sharing agreement between the Temporary Foreign Worker Program (TFWP) and the Labour Program has also been finalized to coordinate enforcement when violations involve temporary foreign workers.

“Driver Inc. has been one of the most persistent and damaging issues facing our industry,” said Stephen Laskowski, President and CEO of the Canadian Trucking Alliance (CTA). “It’s encouraging to see meaningful government action to finally level the playing field.”