Profit Clue – WSIB Legislation Update

Posted on January 18, 2012 by admin | Posted in Highlights

WSIB Legislation Update

As discussed in prior editions of Profit Clue, Bill 119, has now received ministerial proclamation. This legislation will require independent operators, sole proprietors, some partners in a partnership and some executive officers who work in construction to have coverage under WSIB effective January 1, 2013.

Until now, exemptions in the Act have provided coverage for approximately two-thirds of Ontario’s construction industry. This had created a competitive issue for the industry as well as a coverage issue with many injured workers not qualifying for WSIB benefits. The intention of Bill 119 is to address these issues and expand services such as health and safety to the entire industry.

There are two exemptions to the mandatory coverage included in the Bill. The first exemption relates to home renovators who work exclusively in home renovation and are contracted by the person occupying the residence, while the second exemption applies to executive officers and partners. Businesses can select one executive officer or partner to be exempt from mandatory coverage provided that individual does not perform any construction work on any building site, which includes on-site supervision. In addition, executive officers who do not work “on the tools” will be included in a separate (lower) rate class. The WSIB is in the process of finalizing the policies that pertain to the mandatory coverage for this class and are expected to be released in 2012.

Individuals who operate a business and who do not have any workers will have the opportunity to pre-register for coverage starting December 19, 2011 and will not be forced to pay premiums until 2013. The WSIB will notify those who pre-register of when their coverage begins.

We will continue to monitor communications relating to Bill 119 and its regulations and provide relevant updates in future editions of Profit Clue and on our website at
www.djb.com/specialties/construction

Contact your DJB professional to discuss alternative compensation structures that can help minimize the effect of this change on your business.