The Government of Ontario has expanded mandatory WSIB coverage in the construction industry. Effective as of January 1, 2013, Bill 119, the Workplace Safety and Insurance Amendment Act, 2008 (the "Act"), requires independent operators, sole proprietors, executive officers in a corporation and partners in partnerships working in construction to register for WSIB coverage. According to the WSIB, the new law will affect an estimated 90,000 independent operators who have never previously been governed by the WSIB. The Government's rationale for the change are to improve health and safety, level the playing field within the industry and help combat the underground economy in the construction sector.
Under the Act, contractors or subcontractors cannot begin construction without valid clearance certificates. The certificates must be obtained by the person retaining the contractors before construction work is permitted. Further, the person who hires a contractor or subcontractor must ensure that the contractor or subcontractor complies with their obligations under the Act. There are exemptions under the Act that may apply.
A failure to abide by these requirements may result in prosecution under the Provincial Offences Act. An individual found guilty of an offence may face a fine of up to $25,000, imprisonment not exceeding six months, or both. Corporations can face a fine of up to $100,000.
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