THE EMPLOYERS' EDGE
Mandatory WSIB Coverage for Independent Operators in Construction Industry
In 2008 the Ontario government introduced legislation (Bill 119, Workplace Safety and Insurance Amendment Act, 2008) that would require all independent operators in the construction industry to have mandatory WSIB coverage. Prior to Bill 119, WSIB coverage was optional for independent operators. The legislation was to become effective not earlier than January 1, 2012. The Government has recently announced that it will use 2012 as an “education campaign” and that by January 1, 2013 all independent operators, sole proprietors, partners in partnership and executive officers in the construction industry will be required to have WSIB coverage.
All independent operators, executive officers and partners in a partnership working in construction who have no workers will need to have WSIB coverage. There will be an exemption for home renovators who are contracted directly with the person occupying the residence and work exclusively in home renovations. As well, businesses are also allowed to select one executive officer or partner to apply for an exemption from coverage, however, the individual exempted cannot perform any construction work on any building site, which includes an on-site supervisory role.
There are also new obligations for anyone who directly retains an independent operator (or anyone now required to have mandatory WSIB coverage). Those retaining independent operators in the construction industry must obtain a clearance certificate from the WSIB showing that the operator has registered with the WSIB and is compliance with their obligations. In addition, those who retain independent operators are required to ensure that the operator complies with their premium payment obligations and can become liable for those payments in the event of non-compliance by the independent operator.
In 2012 the WSIB will also be creating new policies to deal with this new mandatory coverage and will encourage independent operators to “pre-register” in 2012 with premiums being charged effective January 1,2013.
Anyone who has independent contractors retained in the construction industry should be reviewing the terms of those engagements to ensure compliance with Bill 119.
The lawyers at CCP can assist with any questions relating to this new mandatory coverage obligation, or any issues relating to workplace safety and insurance obligations.
Please Note: This blog has been prepared as an informational service for our clients and other interested parties. It is not intended to constitute legal advice, a complete statement of the law or opinion on any subject. Although we endeavour to ensure the accuracy of the content, no one should act upon the information provided without a thorough examination of the law after the facts of a specific situation are fully considered.