Coverage for Contract Workers

If your contractors do not have their own WCB coverage, the WCB will decide if you are required to provide workers compensation coverage for them. A contractor for whom you must provide coverage is called your “deemed worker.”

In industries where contract labour is common, such as construction, trucking, logging, janitorial services, oil and gas wells and towing, you should expect that most of your contract labour will be deemed workers. If your contractors do not have personal coverage, you must provide WCB coverage for them and include their labour costs in your annual payroll reporting. We understand that contracts often include labour costs as well as materials and/or equipment in a fixed price. See our Assessment Schedule for Contract Labour FAQ for standard percentages to calculate the cost of labour in these types of contracts.

In industries that do not commonly use contract labour, only contractors that do not qualify as an independent business will be deemed your workers. The Assessment Services Department will apply our independent business test to your contractors to decide their status. If your contractor is an independent business and operates in an industry with mandatory WCB coverage, you should make sure they are in good standing with the WCB.

We use the “independent business test” to determine if a contractor is an independent business and eligible for WCB coverage.

A contractor may be considered an independent business if they:

• employ other workers and meet a minimum payroll threshold
• work primarily within their own business establishment
• have multiple customers
• own or lease a major piece of equipment
• control their work and payment schedule.

Any contractor that meets the independent business test may apply for coverage.