Canada’s trucking industry is facing growing scrutiny over driver training, worker exploitation, unfair competition and highway safety. With billions of dollars in goods travelling across Canadian highways, new federal enforcement measures and Ontario’s proposed training reforms could significantly change how trucking companies operate.
Every day, thousands of commercial trucks move food, fuel, construction materials, manufactured goods and essential supplies across Canada. From the busy Highway 401 corridor in Southern Ontario to the remote stretches of the Trans-Canada Highway, professional truck drivers keep the country’s economy moving.
But behind that essential service, concerns have been growing about how some trucking businesses recruit, train, classify and compensate their drivers.
Allegations of unpaid wages, questionable independent-contractor arrangements, inadequate driver training and inconsistent safety enforcement have prompted renewed attention from governments, trucking associations and labour advocates.
At the centre of the controversy is a practice commonly called Driver Inc., in which drivers who function as employees are instead paid through their own incorporated businesses.
The issue goes far beyond taxation. It raises questions about workplace protection, fair competition, highway safety and the future of professional trucking in Canada.
What Is Driver Inc., and Why Is It Controversial?
Under a legitimate owner-operator arrangement, a truck driver operates an independent business, typically owning or leasing a commercial vehicle, paying operating expenses, securing contracts and assuming business risks.
There is nothing inherently illegal about an independent truck driver owning a corporation.
The problem arises when a company treats someone as an independent contractor on paper, even though the actual working relationship is that of an employee.
For example, consider a trucking company that:
- Owns the trucks and trailers.
- Controls the driver’s routes and assignments.
- Determines when the driver must work.
- Pays the driver through a corporation rather than payroll.
- Requires the driver to work primarily or exclusively for that company.
These circumstances can indicate an employer-employee relationship, regardless of whether invoices are issued through a corporation.
Improper classification can enable a company to avoid obligations associated with employment, including employer Canada Pension Plan contributions, Employment Insurance premiums, applicable vacation pay, statutory holiday entitlements and overtime compensation.
It can also create complications involving workers’ compensation coverage.
In Ontario, the Workplace Safety and Insurance Board (WSIB) specifically states that incorporating a business does not automatically make a truck driver an independent operator.
A contract driver using a truck owned by the hiring company may still be considered a worker for WSIB purposes.
The central distinction is not whether a driver has incorporated. It is whether the driver is genuinely operating an independent business.
The federal misclassification policy under the Canada Labour Code explains how employment status is assessed.
Wage Theft: The Hidden Cost of Moving Canada’s Freight
Wage theft has become one of the most serious labour concerns surrounding the trucking industry.
It can take several forms, including unpaid working hours, unlawful deductions, withheld earnings and failure to provide statutory employment entitlements.
In February 2026, federal government briefing material reported that approximately 50% of monetary complaints received by Canada’s federal Labour Program originated in the road transportation sector.
The same briefing reported that between April 1, 2024, and February 9, 2026, the Labour Program had issued more than 983 payment orders involving over $5.9 million in unpaid wages and related amounts.
Those figures demonstrate the scale of federal wage-enforcement activity, although they should not be interpreted as establishing the total amount of wage theft throughout the trucking industry.
Another troubling finding emerged from a 2025 survey of more than 400 truck drivers, released publicly in February 2026.
According to findings highlighted by the Canadian Trucking Alliance, nearly 70% of surveyed long-haul drivers reported experiencing wage theft, with an average of approximately $10,000 in unpaid earnings among affected respondents.
Because the survey was not a statistically representative census of all Canadian truck drivers, its results should not automatically be applied to the entire industry. Nevertheless, the findings provide substantial insight into the experiences of the drivers surveyed.
What about overtime?
The rules are more complicated than many Canadians realize.
For federally regulated highway truck drivers transporting goods and mail, overtime generally begins after 60 hours in a week, rather than the more familiar 40-hour threshold applicable to many other employees.
Federally regulated city motor vehicle operators generally have a 45-hour weekly overtime threshold and a nine-hour daily threshold.
Employment classification matters because an employee improperly treated as an independent contractor may not receive applicable statutory entitlements.
Drivers should also remember that hours-of-service regulations and overtime-pay requirements serve different purposes.
A driver can comply with driving-hour limits while still having a dispute over whether all compensable working time was properly recorded and paid.
Official reference: Federal hours-of-work requirements.
The Federal Government Is Increasing Enforcement
For years, trucking associations and worker advocates have argued that inadequate enforcement allowed non-compliant businesses to gain a financial advantage over carriers following employment and tax laws.
That concern has increasingly translated into federal action.
The CRA’s Driver Inc. crackdown
On December 4, 2025, the Canada Revenue Agency announced that it had lifted a long-standing moratorium on penalties associated with reporting certain trucking-industry payments for services.
Beginning with the 2025 tax year, qualifying trucking businesses can face penalties for failing to report more than $500 in annual payments for services made to Canadian-controlled private corporations operating in the trucking sector.
Those payments must be reported in box 048 of the T4A slip.
This measure improves the CRA’s ability to identify payments flowing between trucking companies and incorporated service providers.
It does not automatically make every incorporated driver an employee. Instead, it provides greater financial transparency and supports compliance investigations.
New federal funding
The federal government also announced $77 million over four years, beginning in 2026–27, with continuing annual funding of $19.2 million, to address tax non-compliance related to personal services businesses and service-fee reporting.
Canada’s Labour Program has also expanded enforcement activities.
According to February 2026 federal briefing material, enforcement included:
- More than 890 employers inspected over the preceding two years.
- More than 590 outreach and education sessions.
- 30 administrative monetary penalties related to misclassification.
- 38 compliance orders.
- Public identification of three non-compliant employers.
These measures are intended to improve compliance while protecting businesses that already meet their obligations.
Sources: CRA trucking compliance requirements and Department of Finance Driver Inc. announcement.
Bill C-39: What Could Change Next?
The federal government’s Building Canada Strong Act, known as Bill C-39, includes proposed changes to federally regulated labour relations and worker protections.
The broader package covers collective bargaining, workplace protections, dispute resolution and labour standards.
Federal background material accompanying the bill also identifies additional enforcement support and digital tools intended to address wage theft and worker misclassification, with particular attention to trucking.
Importantly, not every announced Driver Inc. enforcement initiative is a specific legislative amendment contained in Bill C-39. Some measures are administrative initiatives or complementary government investments.
As of November 3, 2026, Bill C-39 remains under parliamentary consideration and has not completed the legislative process.
It should therefore not be described as an enacted law.
The practical question for trucking companies and drivers is how additional enforcement, information sharing and future legislative measures will affect compliance.
Sources: Bill C-39 parliamentary status and Government of Canada’s Bill C-39 backgrounder.
Temporary Foreign Workers: Labour Shortages and Vulnerability
Canada’s trucking industry has also increasingly relied on the Temporary Foreign Worker Program to address recruitment challenges.
Federal figures show a substantial rise in approved Labour Market Impact Assessment (LMIA) positions for transport truck drivers.
| Year | Approved truck-driver positions |
|---|---|
| 2018 | 1,584 |
| 2023 | 7,297 |
| 2024 | 8,101 |
The increase between 2018 and 2024 represents approximately 411%, meaning the number of approved positions became more than five times as large.
A federal briefing also reported 3,526 approved positions from January through September 2025, although that partial-year figure cannot be directly compared with a full calendar year.
One important distinction must be made: an approved LMIA position does not necessarily mean a foreign worker entered Canada or ultimately filled the position.
The vulnerability of employer-specific work permits
Temporary foreign workers can face additional pressures because their legal authorization to work may be tied to a specific employer.
This dependency can make some workers reluctant to report unsafe conditions, unpaid wages or mistreatment.
Labour advocates have raised concerns that vulnerable newcomers may accept working arrangements that more established employees would challenge.
However, it is important not to confuse worker vulnerability with worker responsibility.
Foreign drivers are subject to Canadian highway-safety rules and have workplace protections under applicable Canadian laws.
Furthermore, federal guidance states that a temporary foreign worker hired under the TFW Program cannot simply incorporate and become a self-employed owner-operator for the employer that obtained the LMIA. Doing so would contravene the program’s conditions.
What does this mean for Canadian drivers?
The growth in foreign-worker recruitment has raised questions about whether some employers are adequately investing in domestic recruitment, training, retention and compensation.
Industry representatives have also identified difficult working conditions, time away from home and stagnant wages as barriers to attracting new drivers.
These explanations are not mutually exclusive.
A legitimate shortage of qualified drivers can coexist with poor working conditions at particular employers.
The important policy question is whether recruitment programs are filling genuine labour needs while maintaining fair wages, training standards and worker protections.
Source: Employment and Social Development Canada’s trucking and TFW Program briefing.
Ontario’s Truck-Driver Training System Under Scrutiny
Perhaps the most direct public-safety concern involves the training that some new commercial drivers receive before operating heavy trucks.
In May 2026, Ontario’s Auditor General released findings identifying significant weaknesses in the province’s commercial truck-driver training and licensing oversight.
Ontario already requires Mandatory Entry-Level Training (MELT) for new Class A drivers, with a minimum of 103.5 hours.
However, an audit involving undercover students found that two private career colleges provided only 59.5 and 81 hours of instruction, respectively.
Some students were not taught essential driving manoeuvres, including reverse parking, emergency stopping and left turns at major intersections.
The audit also found that, as of March 2025, 54 of 216 registered private career colleges offering the training had never been inspected by the responsible ministry.
These findings were based on a limited investigation and should not be interpreted as evidence that every truck-driver training school is deficient.
Nevertheless, they identified serious gaps in a system responsible for ensuring that commercial drivers are prepared to operate vehicles weighing tens of thousands of kilograms.
Why the findings matter
Large commercial vehicles require considerably more stopping distance, space and planning than passenger vehicles.
Driver proficiency becomes especially important in situations involving:
- Sudden traffic slowdowns and emergency braking.
- Icy highways, steep grades and poor visibility.
- Heavy loads and changing weight distribution.
- Trailer off-tracking during turns.
- Air brake inspection and operation.
- Vehicle control during mechanical failures.
- Safe coupling, uncoupling and pre-trip inspections.
A written examination and a short road test cannot substitute for comprehensive practical experience.
For a new driver travelling through congested sections of Highway 401 or navigating winter conditions on Highway 11 or Highway 17, deficiencies in training can have serious consequences.
Ontario’s New Rules: What Changes in 2027?
On September 21, 2026, Ontario announced plans to develop a standardized commercial truck-driver training curriculum.
The revised curriculum is expected to be introduced in early 2027.
It will build upon Ontario’s existing mandatory training requirement, rather than introducing mandatory entry-level training for the first time.
Subjects being considered include fatigue management, northern and rural driving, human trafficking awareness and mandatory air brake training.
The province has also identified stronger oversight measures, including school reviews, testing-integrity monitoring and enforcement activity.
The six-month waiting period
A separate, confirmed licensing change takes effect on January 1, 2027.
Drivers taking the full Ontario Class A road test must have held a Class G or higher driver’s licence for at least six months.
The requirement is intended to ensure applicants have a minimum period of general driving experience before proceeding to a commercial Class A road test.
Ontario also introduced requirements in May 2026 for applicants for specified commercial licence classes to verify Ontario residency, lawful presence in Canada and eligibility to work.
The province has additionally announced increased enforcement along the Highway 11/17 corridor, including additional officers, inspection activity and mobile inspection support units.
Source: Ontario’s September 21, 2026 announcement.
Commercial-Carrier Safety Ratings: Another Area Facing Review
Beyond driver licensing, Canada’s commercial-carrier safety oversight system is receiving attention.
In Ontario, the Commercial Vehicle Operator’s Registration system, commonly called CVOR, tracks carrier safety performance.
Among the existing classifications is a rating known as Satisfactory—unaudited.
This designation is significant because it indicates that a carrier has not received the same verified satisfactory rating through a completed facility audit.
The Canadian Trucking Alliance has called for national efforts to address oversight gaps involving unaudited carriers.
The association has also advocated more consistent enforcement, improved national sharing of carrier safety information and expanded inspection-station operations.
However, proposals to eliminate or revise the Satisfactory—unaudited designation should not be confused with a completed regulatory change.
As of this article’s publication, Ontario continues to list the designation within its CVOR system.
The challenge of inconsistent oversight
Different provinces administer commercial vehicle safety through their own regulatory systems while also participating in national safety standards.
This can create complications when fleets operate across provincial boundaries.
Some industry representatives have called for stronger national coordination so that safety performance, enforcement records and carrier histories can be more consistently evaluated.
Such changes could also help authorities identify companies that attempt to avoid enforcement by reorganizing or registering under different business names.
Sources: Ontario’s CVOR requirements and Canadian Trucking Alliance’s October 2026 safety recommendations.
The Impact on Responsible Trucking Companies
The financial consequences of non-compliance extend well beyond individual drivers.
A trucking company that properly pays its employees, maintains its equipment and follows applicable rules has operating costs that another company may attempt to avoid.
Those obligations can include payroll contributions, workers’ compensation premiums, vacation entitlements, maintenance programs, safety inspections, training and compliance documentation.
When companies avoid obligations through improper worker classification or other unlawful practices, their costs may appear artificially lower.
This creates an uneven competitive environment.
For legitimate carriers, the concern is not simply about paying taxes. It is about competing for freight contracts under comparable rules.
A business investing in safe equipment, professional drivers and preventive maintenance should not be placed at a commercial disadvantage because another operator disregards legal requirements.
At the same time, enforcement must distinguish genuine independent owner-operators from improperly classified employees.
Broadly treating all incorporated drivers as suspicious would ignore the legitimate role independent businesses play in trucking.
The Mechanical Side of Commercial Vehicle Safety
There is another important dimension to this discussion: the technicians responsible for maintaining commercial fleets.
Driver training and employment compliance are essential, but they are only part of a functioning transportation safety system.
Commercial trucks must also be mechanically sound.
A driver can be properly licensed and experienced, yet still face serious danger if a vehicle has defective brakes, worn steering components, damaged tires or improperly maintained suspension systems.
In Ontario, licensed 310T Truck and Coach Technicians play an important role in maintaining and inspecting heavy vehicles.
Annual and periodic inspections, preventive maintenance, brake measurements, electronic diagnostics and defect repairs all contribute to commercial vehicle safety.
Modern trucks are increasingly complex machines equipped with electronic braking systems, advanced driver-assistance technology, sophisticated emissions controls and computerized powertrains.
Maintaining these vehicles requires specialized knowledge, proper diagnostic equipment and continual technical training.
The same principle applies to drivers: professional competency cannot be measured by possession of a licence alone.
A safer trucking industry requires competent drivers, qualified technicians, properly maintained equipment and companies that operate within the law.
Will These Reforms Make Canada’s Roads Safer?
The answer depends on implementation.
Ontario’s updated training curriculum could improve consistency, but a curriculum is only effective if schools deliver the required instruction.
The Auditor General’s findings raise an important concern: if some training providers failed to meet existing requirements, creating another standard without sufficient inspections may not resolve the underlying problem.
Similarly, stronger federal enforcement could reduce employee misclassification, but only if investigations are timely and penalties are meaningful enough to discourage non-compliance.
There are also legitimate concerns about regulatory costs.
Smaller trucking businesses may face additional administrative burdens as reporting, licensing and compliance requirements become more complex.
Governments therefore have to balance effective enforcement with clear rules and practical compliance procedures.
The public interest is not served by imposing unnecessary complexity on responsible businesses. Nor is it served by allowing repeated violations to continue without consequences.
The effectiveness of these initiatives will ultimately have to be measured through results rather than announcements.
What Should Canada Be Measuring?
As these changes progress, several measurable outcomes deserve attention.
1. Training compliance: Are schools actually delivering the required hours and practical instruction, and are independent audits becoming more frequent?
2. Worker protection: Are complaints about unpaid wages and misclassification declining, and are employees receiving recovered earnings more promptly?
3. Highway safety: Are serious violations and preventable collisions decreasing after accounting for traffic volume and exposure?
4. Fair competition: Are compliant carriers seeing more consistent enforcement across the industry?
5. Recruitment and retention: Are employment conditions improving sufficiently to attract and retain qualified professional drivers?
Tracking these measures would help Canadians evaluate whether reforms are producing meaningful improvements.
The Bigger Picture: Protecting an Essential Canadian Industry
Canada cannot function without commercial trucking.
Railways, ports, pipelines and air cargo services all contribute to the national supply chain, but trucks remain essential for connecting businesses, farms, factories, distribution centres and communities.
For rural Canada, reliable trucking is especially important.
Agricultural producers depend on commercial transport to move grain, livestock, feed, fertilizer and equipment. Rural businesses rely on deliveries, and many smaller communities have few alternatives to highway transportation.
That makes the health of Canada’s trucking industry a national economic concern.
The current debate is not simply about Driver Inc., immigration, licence testing or enforcement penalties.
It is about what standards Canadians expect from an industry entrusted with moving essential goods while sharing public highways.
Most professional drivers and legitimate carriers should not be judged by the actions of non-compliant operators.
The industry includes experienced drivers, responsible owner-operators, well-managed fleets and skilled maintenance professionals who take safety seriously.
For these businesses and workers, consistent enforcement can help protect professional standards and fair competition.
But government announcements alone will not solve the problems.
Effective change requires adequate inspections, consistent application of the law, meaningful training, reliable data and cooperation among governments, employers, drivers and safety professionals.
Canada’s trucking industry does not simply need more drivers or more regulations. It needs a system that supports skilled professionals, protects vulnerable workers, rewards responsible operators and holds non-compliant businesses accountable.
That is the challenge facing Canadian trucking as the industry approaches 2027.
Verified Sources and Further Reading
- Canada Revenue Agency — Compliance Requirements for the Trucking Industry
- Department of Finance — Driver Inc. Measures in Budget 2025
- Parliament of Canada — Bill C-39 Legislative Progress
- Government of Canada — Bill C-39 Backgrounder
- Employment and Social Development Canada — Trucking and Temporary Foreign Worker Program Briefing
- Government of Canada — Temporary Foreign Worker Program Statistics
- Ontario Ministry of Transportation — New Truck Driver Training Requirements
- Ontario — Class A Commercial Driver Licensing
- Ontario WSIB — Transportation Industry Worker Classification
- Government of Canada — Federal Hours-of-Work Requirements
- Canadian Trucking Alliance — Driver Wage Theft and Misclassification Survey Findings
- Office of the Auditor General of Ontario — May 2026 Special Reports Announcement
Editorial note: This article distinguishes confirmed regulatory requirements from proposed legislation and industry recommendations. Statistics are attributed to their reporting periods. Information is current to November 3, 2026.
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