Labour and Employment Law Blog

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.

If your organization has any questions about the incoming rules for platform operators, we would be pleased to help you. Please contact a member of our Labour, Employment & Human Rights Group.