The measures, implemented under the Canada Labour Code and overseen by Minister Patty Hajdu, are aimed at strengthening compliance tools available to Employment and Social Development Canada’s (ESDC) Labour Program. Officials say the changes will allow penalties to be levied more frequently and, in some cases, daily, where violations persist.

At the centre of the change is enhanced language in compliance orders issued under section 251.06 of the Code. Going forward, these orders will explicitly warn employers that failure to provide evidence of corrective action may result in a determination – on reasonable grounds – that non-compliance is ongoing. Employers will also be reminded that, under section 278, a separate Administrative Monetary Penalty (AMP) may be imposed for each day a violation continues or reoccurs.

Of particular note is the Labour Program’s emphasis on repeat violations. Employers found misclassifying workers during a follow-up inspection after a previous AMP could now face daily penalties, significantly increasing financial exposure for prolonged non-compliance.

The government also expanded its public naming policy. In addition to employers found to have misclassified workers, the Labour Program will now publish the names of employers who obstruct investigations, broadening the reputational consequences associated with enforcement action.

Another key change gives regulators increased flexibility in escalating enforcement. The Labour Program may now proceed with issuing an AMP without waiting for the completion of a review or appeal of a compliance order or direction. While review and appeal mechanisms remain available, the change allows enforcement action to continue where non-compliance persists, rather than being delayed by procedural timelines.

The announcement follows long-standing concerns raised by the Canadian Trucking Alliance (CTA) and industry stakeholders regarding the application of AMPs, particularly in relation to driver misclassification penalties.