Under the Hood

Cracking Down on Driver Misclassification- Roadside Enforcement Begins May 13

May 6, 2025 | 0 comments

A shift is underway in Canada’s trucking industry. Governments are stepping up enforcement against companies that misclassify drivers under the illegal Driver Inc. model. This practice treats drivers as incorporated contractors instead of employees, even though they often work full-time for a single carrier, operate company-owned trucks, and follow company schedules. It allows carriers to avoid paying income tax withholdings, Employment Insurance, Canada Pension Plan contributions, workers’ compensation premiums, and other legal obligations. British Columbia is now taking action to stop this growing underground labour practice.

Starting May 13 in Kamloops, provincial and federal agencies, including Commercial Vehicle Safety and Enforcement (CVSE), Insurance Corporation of British Columbia (ICBC), WorkSafeBC, and Employment and Social Development Canada (ESDC), will begin a coordinated roadside campaign. The focus will be on vehicle compliance and identifying labour violations in the commercial transport sector. 

This initiative builds on recent actions in Ontario, where federal and provincial agencies have worked together to audit non-compliant carriers and inform drivers of their rights. In British Columbia, it sends a clear message. Companies operating outside the law are now under scrutiny. Authorities are increasing their presence, and enforcement teams are sharing information across jurisdictions more than ever before. 

With support from the Canadian Trucking Alliance (CTA), these efforts target companies that avoid taxes, deny workers their rights, and place unfair pressure on businesses that follow the rules. To streamline enforcement, the Canada Revenue Agency (CRA) and ESDC have signed a new information-sharing agreement and established a federal misclassification team that is already active during roadside inspections. 

Kamloops is only the first stop. Additional enforcement dates and locations will follow. 

At BCTA, we have long supported fairness and accountability in the trucking industry. Our members comply with the law, meet their tax obligations, and invest in their people. Companies that exploit drivers and ignore their responsibilities do more than harm workers- they erode the foundation of a safe and competitive industry. 

Stay tuned. This is only the beginning. 

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