Coming Soon: BC Employment Standards For Gig Workers
July 15, 2024 at 05:11 pm
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Online platforms that offer ride-hailing and delivery services have become increasingly popular in recent years. Starting in September, companies that offer such services will be required to provide workers in British Columbia with certain minimum employment standards and workers' compensation coverage. This is the first legislation of its kind in Canada.
Previously, ride-hail and delivery workers, often called "gig workers", were typically classified by companies as independent contractors. However, recent amendments to the Employment Standards Act ("ESA") now deem such workers as "employees", regardless of their classification under any other law. Amendments to the Workers Compensation Act also now classify these workers as "workers" for the purposes of occupational health and safety protections. Further, on June 17, 2024 the BC government released new regulations (the "Regulations") which will provide ride-hail and delivery workers with certain employment standards protections.
Who does this Apply to?
Online platform workers: workers who perform and accept work through an online platform, specifically food delivery and ride-hailing. Examples include Uber eats delivery drivers, Lyft drivers, and Instacart shoppers.
Platform operators: individuals or companies who operate online delivery or ride-hailing services that connect online platform workers with customers seeking their services. Examples include the companies Uber, Lyft, and Instacart.
The Regulations stipulate that the online platform through which an online platform worker accepts work is considered the employer of the online platform worker. The Regulations do not apply to third parties, such as the restaurants that provide food for delivery.
Below we cover some but not all of the new rules that apply to online platform workers.
Minimum Wage
The biggest upcoming change is that online platform workers will be entitled to a minimum wage for "engaged time". Engaged time is the period during which an online platform worker is completing a work offer (e.g. a food delivery), from the acceptance of the assignment until it is completed. If a customer cancels the assignment after the online platform worker has already started, they will still be paid for the time.
The Regulations establish a minimum wage of $20.88 per hour during engaged time. Platform operators will be required to top up an online platform worker's earnings if they fall below the established minimum wage standards for engaged time during a pay period. Notably, the minimum wage does not include tips, and platform operators will not be permitted to withhold or make deductions from tips unless otherwise permitted under the ESA. Platform operators will also have to provide detailed wage statements.
Online platform workers who use their personal vehicle (which includes e-bikes and scooters) for assignments will also be eligible for a distance expense, which is separate from the minimum wage.
Protections against Suspension & Termination
Online platform workers will have stronger protections against suspension and removal. If a platform operator intends to suspend an online platform worker's ability to accept assignments, it must provide:
72 hours' written notice;
Reasons for the suspension; and
How the online platform worker may respond to the notice or request a reconsideration.
Suspensions may only last up to 14 days under the new Regulations. Platform operators will also be required to provide written reasons for the permanent removal of an online platform worker. If the removal is without cause, an online platform worker will be entitled to notice or pay in lieu of notice based on their length of service.
Exceptions to Employment Standards
Although online platform workers will enjoy minimum wage and other protections, they will not enjoy the full protections of the ESA. For example, hours of work and overtime, statutory holiday, and vacation provisions of the ESA will not apply to online platform workers.
Workers' Compensation
Workers' compensation coverage will apply to online platform workers. Platform operators will need to register for coverage, pay premiums, adhere to reporting requirements, and investigate incidents of significance for such workers.
Key Takeaway
Companies that provide food delivery or ride-hailing services in BC should start preparing for the new Regulations, which will take effect on September 3, 2024.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
Ms Katy Allen
Lawson Lundell LLP
Suite 1600 Cathedral Place
925 West Georgia Street
Vancouver
British Columbia
V6C 3L2
CANADA
Tel: 6046853456
Fax: 6046691620
E-mail: inquiries@lawsonlundell.com
URL: www.lawsonlundell.com
Uber Technologies, Inc. is specialized in the development and operation of technology platforms designed to connect users with drivers, restaurants and service providers. Net sales break down by activity as follows:
- operation of a platform for booking trips and providing vehicles with drivers (76%). The group also offers carpooling solutions;
- operation of an online meal ordering platform (17.7%; Uber Eats);
- operation of an application for linking freight carriers and shippers (5.2%);
- Other (0.8%).
The balance of net sales (0.3%) mainly concerns the development and marketing of stand-alone vehicles and carpooling technologies.
Net sales are distributed geographically as follows: the United States and Canada (62.2%), Europe/Middle East/Africa (15.2%), Latin America (13.8%) and Asia/Pacific (8.8%).
UBER TECHNOLOGIES, INC. 
