Federal labor officials are expanding their crackdown on worker misclassification in the trucking industry, launching a new inspection blitz in the Montreal area following a major enforcement campaign in Ontario last year.
According to the Canadian Trucking Alliance (CTA), Employment and Social Development Canada (ESDC) will begin inspections in the coming weeks targeting trucking and transportation companies operating under federal jurisdiction.
The inspections will focus on identifying cases where drivers may have been improperly classified as independent contractors rather than employees under the controversial “Driver Inc.” model, which regulators say can be used to avoid payroll taxes and labor standards obligations.
The effort follows a large-scale enforcement campaign launched in Ontario in December 2025, during which federal labor inspectors conducted 188 inspections at trucking and transportation companies.
Under the Canada Labour Code, inspectors can issue corrective orders or administrative monetary penalties when misclassification is confirmed.
Officials say information gathered during the Montreal inspections may also be shared with the Canada Revenue Agency to support enforcement related to tax compliance and employment status.
Worker misclassification has become a growing concern within the trucking sector because it can limit drivers’ access to labor protections such as minimum standards, leave entitlements, and employer contributions to social programs.
CTA said the expanded inspections signal that federal enforcement efforts are moving beyond Ontario as authorities increase scrutiny of the practice across Canada’s federally regulated transportation sector.
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