Feds may out carriers who misclassify drivers, obstruct investigations: CTA

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The Canadian Trucking Alliance (CTA) is welcoming signals from Ottawa that suggest it will further crack down on the misclassification of truck drivers.

Specifically, it says the Employment and Social Development Canada’s (ESDC) Labour Program will see changes that expand penalties for misclassification, accelerate enforcement action and increase public transparency around non-compliant employers.

Language within section 251.06 of the Labour Code is being updated to allow financial penalties against repeat offenders for every day they remain out of compliance.

It will also publish the names of employers who obstruct investigations, CTA said in a release. And the Labour Program will allow for escalating enforcement, allowing penalties to be applied without waiting for the completion of a review or appeal.

“The announcement follows long-standing concerns raised by the CTA and industry stakeholders regarding the application of AMPs, particularly in relation to driver misclassification penalties,” CTA said.

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