Student wrongfully classified as an independent contractor, Ministry of Labour decided
The Ontario Employment Standards Act defines an independent contractor using several criteria, including:
- The ability to choose your own hours
- You are in business for yourself
- You have the ability to either make a profit or lose money for the work that you complete
Independent contractors are not entitled to minimum wage, making it an attractive option for businesses.
Kyle Novak, a philosophy PhD student at the University of Guelph, experienced first-hand how this type of employment can be exploitative. During his one week of employment at the Domino’s on Stone Road, he was paid only five dollars an hour for delivery services as an independent contractor. While Novak was aware of his pay rate from the time that he was hired, he told The Ontarion that “I assumed there would be more freedom being an independent contractor.” Instead, Novak was put to work the same way that any other employee would be — he had specific start and end times, and when he wasn’t out doing deliveries, he would be assigned to other tasks such as sweeping, making boxes, or doing dishes.
“They charge $3.50 for delivery, but they only reimburse the drivers a dollar. I would typically have eight deliveries an hour, so while they were getting around $20 for that hour, you were getting $5 plus another $8 for the gas reimbursement. But you pay all the costs for the car yourself, so it barely covers that.”
Novak explained that he believes that people are generally unaware that the delivery fee does not go to the driver, and that tips are essential to a driver’s income.
“I’ve always been very conscious of workers’ rights, so the fact that there was a problem was something I was aware of almost immediately,” he stated. Novak did not remain with Domino’s long enough to speak with a manager about these conditions. “I was hired by Papa John’s a week later and started working there. It was at that point that I realized that the Domino’s model is pretty bad.” It is important to note that hiring delivery drivers as independent contractors is the norm in Ontario. While Novak is more satisfied with his position at Papa John’s, he still earns below minimum wage at seven dollars an hour.
After leaving his position at Domino’s, Novak filed a claim with the Ministry of Labour. “The process was fairly easy but not exactly helpful,” he said. “There’s a form to fill out online and then you write down your complaint and what needs to be remedied. I alleged that I was an employee and needed to be paid minimum wage for the time that I worked there.”
After filling out the form in February, Novak and the Ministry of Labour “played phone tag” until August. After speaking briefly about the complaint, the Ministry contacted the employer regarding the complaint and made a ruling in Novak’s favour.
“I didn’t have to do much, but it was a very slow process,” Novak explained. “What I would like to see is more employees, especially at Domino’s, filing these complaints. Some of my coworkers, one of whom had been working there full-time for the past six years, could be owed as much as $90,000. That could be a huge amount of money switching hands, and I think it would be going where it deserves.” While hiring drivers as independent contractors is the norm in Ontario, this is not the case elsewhere. “I worked for nine years in the States doing delivery. I worked in three different states and it was never the case that a fast food worker or delivery driver could be classified as an independent contractor.”
The Domino’s restaurant that Novak worked at was contacted, but declined to comment.
The designation between independent contractor and employee continues to be blurred as advancements are made with technology. For example, in Canada, the U.S., and the U.K. multiple cases have emerged looking to decide whether or not Uber drivers can be classified as independent contractors.
Individuals who are concerned that they may be mislabelled as an independent contractor and owed wages can contact the Ministry of Labour to file a claim. Further information to help determine whether or not an individual is an independent contractor or employee can be found on the Government of Canada website.
Photo by Alora Griffiths/The Ontarion