WSIB - "who qualifies as an owner-operator"

loaders

Site Supporter
#1
On Tuesday April 21, the NTBA is pleased to host a dinner meeting featuring 2 speakers from WSIB who will address the question of owner operators and how, as a freight broker, you can insure that you are compliant when you use a carrier who employs owner operators. The speakers will also be demonstrating the proper method to secure and maintain clearance certificates using the WSIB on line services.

The meeting will held at the Glenerin Inn 1695 Collegeway, Mississauga L5L 3S7.
Networking and cash bar at 6:00 PM
Dinner at 6:45 PM

There is no cost for NTBA members in good standing. $65.00 for guests and prospective new members.

Further information and a registration form can be found on the association website www.ntba-brokers.com
 
#2
How long before (like the construction industry in Ontario) WSIB becomes mandatory in the industry for all. Too many carriers out there deeming "employees" as contractors in this industry.
 

whatiship

Well-Known Member
#3
It will happen as soon as the WSIB realizes how much business they are losing out on. Give it time, they will be broke soon unless they get some new revenue streams.
 

loaders

Site Supporter
#4
This meeting should be of interest not only to brokers, but carriers as well. As whatiship mentioned, WSIB is always looking for new sources of revenue. If you use "owner operators" in your fleet, are you doing it right in the eyes of WSIB?
 

Freight Broker

Well-Known Member
#5
Make sure your owner-operators have their own WSIB accounts and are able to provide you with clearance certificates. That would solve that problem.
 

loaders

Site Supporter
#6
Hopefully the representatives from WSIB will be able to set the record straight when they speak at this upcoming meeting. The trouble with WSIB that I have found from past dealings, is they like to change their rules whenever the mood strikes them and then go after anyone who wasn't aware of the change. They like to talk about "leveling the playing field", when really what they want to do is "increase the size of the league" to expand their revenue sources. In any event, this meeting should provide an opportunity to ensure your practices are compliant.
 
#7
Quite to the contrary...
As I have posted before, I am a veteran of about 35 WSIB audits in the last 6 years and the song remains the same.
I tell my clients to have the water sprinkler and pest control gal either listed on eWSIB as eligible or forward the independent contractor status form to WSIB to vet. I have worked with BIG trucking software companies to have this integrated in their systems specifically for 3pl's and that is ongoing.
They have hired or reconstituted extra auditors for this purpose. They are all CPA's with a background in forensics and I have seen them unwind company directorship. They are doing this to "even the playing field" because I have seen lots of companies have everyone that works there listed as a sole proprietorship or corporation, from the gal answering the phone to the team drivers operating company owned assets. If the issue persists then you will quite possibly see the mandatory coverage for everyone like construction. I have appealed twice for carriers with sales agents who NEVER leave there house and make 500k, but have no other source of income, so by definition they are employees and subject to coverage. Where the issue lies in my mind is some very large companies get classified as couriers instead of general trucking 570, and there needs to be some work there.
WSIB is an insurance company, therefore needing to mitigate their losses and also insure that all parties involved legally are active in compliance.
The law of big numbers would say that if all paid into the fund tomorrow, 570 rate group would eventually come down in rates as the fund will grow larger.
So yes they want to "draft new players into the league' and if the field was level, you could possibly not miss that load because you were $6.72 per hundred higher.
Just saying
 

whatiship

Well-Known Member
#8
Good point!
In our last audit, the owner operators were fine since we have them all approved by WSIB as Independent Operators. It is a simple form to fill out. Basically, as long as they can prove they own or lease their truck and that they are responsible for all operating costs and that you provide the work and the operating authority they are ok. Go to the WSIB website and look for "determining owner operator status" for trucking and you can take a look.
We did get a stern warning about a commission sales rep who was invoicing us for his commissions on business he secured. His commission was less than $100.00 per month but it did not matter to them. He now gets paid with gift certificates from the Keg............
 

loaders

Site Supporter
#9
One of the questions that we have as brokers would be the following;
I have ABC Transport doing a load me. ABC uses owner ops exclusively in his company. Can I get a clearance certificate for the individual O/O that ABC has assigned to my load? What might happen if ABC has to assign another driver to my load at the last minute? As I'm sure guest 111 can attest, WSIB is quite strict about having clearance certificates on file for every contractor I might do business with. If I don't, I am exposing myself to trouble in the event of an audit.
 

whatiship

Well-Known Member
#10
Technically, that is what you would need to do to fully protect yourself. Most people are satisfied with the carriers WSIB clearance however if an owner operator who was not "deemed" independent gets hurt and does not have his own coverage then who knows what the ramifications would be.
If that is the case, do you need a new one every time a different driver hooks to the load, or one for the dock worker who happens to work for a temp agency? Interesting, the possibilities are endless...................
Way beyond my limited knowledge of the subject, one big reason to attend the NTBA meeting and find out before you learn the hard way!
 
#12
nI'm wondering if this guy would take 500 large in Keg gift certificates.

If you have a clearance certificate on file for ABC transport, and that who is contracted to handle your load, and the cheque payable goes to ABC, you have dome your due diligence and are in the clear with WSIB.
I even had to educate them on factoring companies 5 years ago as they didn't understand how that worked!
Remember now they have access to CVOR info, so they audit you, see you are contracting ABC, you have a valid clearance certificate from ABC staing they are a sole O/O, they shake your hand and say nice day you did good. They go back to their office, punch in ABC and see thay have 14 trucks on their CVOR, but are not registered for WSIB, they go over to ABC and do the scratch and sniff and uncover he has faux owner ops working for him..... ta da cheque please
 

lowmiler88

Site Supporter
#13
guest111 the "tada cheque please" is the way it should work why should these guys be allowed to get away without paying what honest companies pay (even tho we do not agree with it). I feel if ABC company gave me a WSIB Certificate we are good to go.
 

loaders

Site Supporter
#14
I hope that the speakers at the dinner meeting will be able to answer these, and all the other questions that appear to out there on this topic. Whenever you have to deal with a government agency that is starved for cash, being prepared and protected is probably the best strategy.
 
#15
Lowmiler
I meant that ABC would be on the hook for their faux O/O's not me, as I am compliant.
Sorry if my crude attempt humour confused, as it always confuses me
 

loaders

Site Supporter
#17
There are only a few spots still available for next Tuesday's dinner meeting. If you haven't done so already, please register at the NTBA website. If you have any questions regarding owner operator compliance with WSIB, this would be the place to get them answered.
 

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