Toronto Star

Legislatio­n could be watershed moment

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Now, at least a million California­n workers in these fields could become employees with the right to minimum wage, unemployme­nt and disability insurance, paid sick days and family leave.

Lawmakers wrote the impetus for the new protection­s into the bill’s text.

“The misclassif­ication of workers as independen­t contractor­s,” the legislatio­n reads, “has been a significan­t factor in the erosion of the middle class and the rise in income inequality.”

David Doorey, associate professor of work law at York University, calls the bill “potentiall­y a watershed moment.”

“For ‘gig’ companies, it will require a fundamenta­l rethinking of how their businesses operate. The bill rejects entirely their operating premise, which is that they are just technology companies that link service providers to customers. The bill places gig companies in the position of an employer and all that entails in terms of legal compliance and human resources practices,” he said.

Ride-hailing companies like Uber and Lyft and Door-Dash, a food delivery firm, have opposed the measures arguing that they would compromise worker flexibilit­y and inflate operating expenses.

In 2017, an extensive report by two independen­t experts to the Ontario ministry of labour described misclassif­ication as having a “significan­t adverse impact” on workers here, too, and recommende­d the problem become “a priority enforcemen­t issue” for government.

An estimated 12 per cent of Ontario’s 5.25 million workers are independen­t contractor­s with no paid employees of their own.

The report said a portion of those workers “are misclassif­ied as they are actually employees,” based on the ministry of labour’s experience and “significan­t anecdotal evidence.”

That’s because misclassif­ied workers, especially those in vulnerable or low-wage jobs, often don’t know that their job doesn’t meet the test of an independen­t contractor. True independen­t contractor­s are defined under the law as people who are in business for themselves, stand to make a profit or loss as a result of their work, control the terms and conditions of their work, and have the power to subcontrac­t out some of the work to others.

Employee misclassif­ication is illegal in Ontario, but right now, it’s up to workers to prove their case by filing complaints to the ministry of labour. California’s bill is radical because it flips that obligation and assumes all workers are employees, unless businesses can prove otherwise.

In response to the 2017 report, the previous Liberal government passed legislatio­n that required employers to prove they hadn’t misclassif­ied a worker when complaints were filed — a significan­tly paler version of California’s new legislatio­n. Premier Doug Ford’s Progressiv­e Conservati­ve government has since reversed the measure.

Given that, Doorey said he doesn’t anticipate California’s legislatio­n will create “any immediate spillover effects” closer to home. But the bill is still a significan­t bellwether, he said.

“We are witnessing early tremors in a coming seismic shift in law that will eventually refocus social protection­s on economic vulnerabil­ity and precarity,” he said. There are other testing grounds for the gig economy, too, although none so sweeping as California’s legislatio­n. In Toronto, for example, Foodora couriers are challengin­g their employment status through a union drive. The Ontario Labour Relations Board is currently deciding whether the workers are independen­t contractor­s with no right to unionize, as Foodora contends, or not.

With a federal election underway, Gellatly hopes political leaders will commit to replicatin­g California’s legislatio­n federally. Although most workers in Canada are governed by provincial labour laws, some sectors like trucking — where misclassif­ication is common — are regulated by Ottawa.

“Work is work,” she said. “And people should have basic protection­s.”

 ?? CHRISTIE HEMM KLOK THE NEW YORK TIMES FILE PHOTO ?? California legislator­s approved a landmark bill this week that requires companies like Uber and Lyft to treat contract workers as employees, a move that could reshape the gig economy.
CHRISTIE HEMM KLOK THE NEW YORK TIMES FILE PHOTO California legislator­s approved a landmark bill this week that requires companies like Uber and Lyft to treat contract workers as employees, a move that could reshape the gig economy.

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