WSIB and how it affects us.

Local Inspection Issues Canadian Home Inspectors
1

I am planning a joint OntarioACHI/InterNACHI meeting with representatives of the WSIB to try to identify if there is a good reason for de-registering Home Inspections from the recent mandatory WSIB regulations. The regulations require mandatory coverage for the Construction Industry, and because no-one noticed prior to this regulation that Home Inspectors were aligned with the electrical trade, we have been grandfathered into the regulation too.

While it is eminently sensible the Commercial inspections should be included in the WSIB coverage, we feel that imposing regulation on Home Inspectors who are working for the private individual who is trying to purchase an investment property is little more than a money grab.

The requirements that BOTH the Home Inspectors AND their clients obtain clearance certificates for an inspection on a property that is owned by a third party is not only wrong, but put too many barriers in the way of the client and their future investment options.

The problems is that the WSIB comes under the Ministry of Labour, while Home Inspection regulation comes under the Ministry of Consumer Services, and therefore both departments are washing their hands of the problems, and leaving ti essential to the DAA.

The WSIB will come out an meet with any large group independently, which is why I feel that having a Home Inspection specific meeting with them may be more beneficial than going to one of the WSIB general construction meetings.

The first meeting I am attempting to get with them will be in the Golden Horseshoe (Hamilton/Burlington/Oakville) area.

If anyone is interested in attending, please let me know at secretary@ontarioachi.ca. This is primarily open to InterNACHI and OntarioACHI members but we will not turn away anyone who is a member of another association or not affiliated.

I need to have an idea of numbers of people who are interested so I can book the venue, and get confirmation from the WSIB that the meeting is on.

2

http://www.wsib.on.ca/en/community/WSIB/ArticleDetail?vgnextoid=eddd82bd67344310VgnVCM100000469c710aRCRD#18
Q19. What about home inspectors?

Currently, home inspectors are classified in our Employer Classification Manual under Rate Group 704-02 CU 4499-001: Testing, Inspection, and Related Services. To be exempt from coverage, the home inspector must exclusively do home inspections on an existing private residence where they are paid by, and work directly for, the occupant or potential occupant (or member of their family). However, home inspection work is not exempt when it is for potential purchasers or a member of their family, who do not intend to occupy the residence themselves.

4499-001 : Testing, Inspection, and Related Services Amendment/08
http://www.wsib.on.ca/en/community/WSIB/230/ECMDetail/24348?vgnextoid=074772cc3bfc7210VgnVCM100000449c710aRCRD&vgnextchannel=807810ab63f5e110VgnVCM1000000e18120aRCRD

3

Also not exempt if the inspection is for a client who is going to be resident in the property but paid for by someone else, such as the Realtor or the Mortgage provider.

In all cases where the inspection is NOT exempt, both the Inspector and the person paying for the inspection needs a clearance certificate.

If the inspection is non-exempt, but the purchase does not proceed, and therefore would technically make the inspection process exempt, it does not.

Every such non-exempt inspection requires the Inspector to pay the relevant premiums of 3.69% from his or her GROSS income for the next 3 months to the WSIB, irrespective of whether the following inspections are exempt or not.

This is where the Home Inspection and Electrical trade deviate. All electrical work is subject to WSIB coverage, not all Home Inspections are, yet an Inspector still gets charged a premium on ALL work following an non-exempt inspection.

This is something we need to have addressed, and can only be addressed by the policy division of the WSIB.

4

Not every inspector is going to fall under those provisions. As such one must register, but are exempt from paying any premiums.

5

My question would be. How could they make Home Inspectors follow this without having a way to do it safely? Think of the expense also of some kind of ladder that could do it safely and the training involved? What about statistics of Home Inspectors following proper procedures and still getting hurt in a fall? One man operations should not become 2 man operations unless it will not hurt the business significantly.

6

Kevin

Just spoke to a rep at WSIB and if you as a sole proprietor and do an inspection paid for by the purchaser you are exempt from WSIB.

I strongly suggest anyone in doubt call the WSIB contact info below to clarify whether or not you are required to register.

The Workplace Safety and Insurance Board
Telephone: 416-344-1000
Toll free: 1-800-387-0750
TTY: 1-800-387-0050
Fax: 416-344-4684 or 1-888-313-7373Head Office
200 Front Street West
Toronto, Ontario M5V 3J1
Map

7

Yes! I did however get my fall arrest and just need to update at the time it is enforced. I doubt that will happen for Home Inspectors unless you form a business with employees.

8

Man, sounds like an attorney’s dream to me.

HI laws only create mass confusion. They do not solve anything.

9

I’ll be there Len.

10

Not from ON, but I have some experience in this area.
I see there is a classification within WSIB for ‘independent operator’ which fits for the self employed home inspectors, but not for employed ones or other inspectors such as electrical inspectors employed by a regulatory agency.

Independent Operator rates are based on the labour portion of your revenue, or for inspectors, what you declare as income after costs have been deducted. According to their calculator, annual premium for 35K revenue after costs would be about $1300. This is not bad for compensation coverage, which is a lot better than straight medical coverage IMO, and worth considering.

As mentioned already, HIs are exempt if they do inspections for buyers who intend to occupy the house. In other words, coverage is only required for commercial inspections.

As a PS in AB they have a special category for self employed which comes with a $200 annual premium, which entitles the person to work related medical coverage but is limited for compensation for lost income.

Finally if you feel strongly about it one way or another, get all or as many as you can of the associations to write a well written letter the Minister of Labour, copying any other Ministers that are affected, as well as local MPPs. Encourage everyone to badger the politicians, they in turn will hand it to the bureacrats, who listen better when the pols are asking the question.

11

Workers compensation is to protect the workers .
When we had employees we too paid for their coverage like all other Companies do.
When we became a sole proprietorship we then no longer paid WSIB. and we had no government coverage for on the job injuries .
. Same with HST not required to charge and pay it if you do not make over $50,000;00 but if you do make over then you are required to get a tax number and pay HST on all your sales .
This applies to all companies even not for profit over ,$50,000;00 they are required to collect and pay according to Canada revenue agency.
Taxes are what keeps our country running .
You can get a number and charge GST under this amount .
I recommend you do get a number there is no cost .
If you do not have a HST number this can tell all you are just a small company that does very little business.

Not for HST/or not for profit information can be had at 1-800-959-5525 Press*for a person

12

Oh, now I see, Roy. Hi licensing is just a cash-cow for your government. It will not affect, or help the home buyers any way. Question from me would be if they need more money, where will the money come from to run the HI laws?

13

I’m sure the number is actually $30,000.00 Roy

14

Thanks for the correction a small business is only $30,000 .00 the $50,000.00 is for Not for profit .
If as a home Inspector if you are not making over $30,000.00 you might need to have a good look at your business returns .
What with insurance, advertising Phone, car expenses , Continuing , education there might not be much left .

I could not hear the person I was talking too.

If you have to register for the GST/HST, your effective date is determined as follows:

  1. If, during the four most recent consecutive calendar quarters, your GST/HST taxable sales are more than $30,000 ($50,000 if you are a public service body), your effective date is the date you make your first taxable sale in Canada after the month following the calendar quarter in which your sales were more than $30,000 (or $50,000).
15

I have no idea if your statement is correct .
I have no idea what the cost will be for a license.
I have no idea what the cost will be to look after the system.
Until I get some facts I will try to remain neutral.

I do want what is best for our industry and will continue to try and to make sure it is best for all inspectors .

16

The workers’ compensation system is a “no-fault” insurance plan that provides compensation to workers hurt or disabled from work.

Their only option is to make a claim for compensation to the Workplace Safety and Insurance Board (the WSIB).

Because of the WSIA and WSIB, if you have been injured at work you cannot sue your employer.

There is also no right of appeal from a decision of the Workplace Safety & Insurance Appeals Tribunal. Occasionally, a dissatisfied party will bring an application for a Judicial Review of a Tribunal decision.

One reason the courts are reluctant to interfere with Tribunal decisions is Section 123 of the Workplace Safety & Insurance Act. Section 123 is a “privative” clause, which states that Tribunal decisions are not open to question or review in a court.

As for being there to protect the employee, it appears it’s there more to protect the employer.

How this translates to a Home Inspector is curious.

The “Employer”, of the Home Inspector (sole-proprietor) or Home Inspection Company (Incorporated inspection company or Franchise) in this circumstance is the client.

The client, when they are a private individual, is not generally registered with the WSIB. This makes it difficult for them to obtain a clearance certificate, which is a requirement in a non-exempt inspection.

If you register with the WSIB and you get a clearance certificate for a non-exempt inspection, your client could be liable unless they too register with the WSIB and get a reciprocal clearance certificate.

This is nuts! Given this scenario, every individual that wants to purchase a cottage they may rent out, or second property they want to buy as an income suite will have to register.

The paperwork and administration costs to the WSIB will be unmanageable, and can do nothing but force the rates for the premiums up.

17

I collected compensation in about 1975 for a broken arm .No argument I was covered.

There is also no right of appeal from a decision of the Workplace Safety & Insurance Appeals Tribunal. Occasionally, a dissatisfied party will bring an application for a Judicial Review of a Tribunal decision.
Still belong to the electricians union 58 years and get the monthly news letter .
The union some times gets involved with some decision’s and having a strong group defending sure does help.
One reason the courts are reluctant to interfere with Tribunal decisions is Section 123 of the Workplace Safety & Insurance Act. Section 123 is a “privative” clause, which states that Tribunal decisions are not open to question or review in a court.

From WSIB and how it affects us. - Page 2 - InterNACHI Inspection Forum http://www.nachi.org/forum/f48/wsib-and-affects-us-88669/index2.html#ixzz2sx2AyRos

18

Roy, I’m not saying that the Workers Comp system doesn’t give some benefits to injured workers, but it was put in place to protect employers from large lawsuits from workers who were injured.

Like the Home Inspection regulation, it is smoke and mirrors to attempt to persuade the public the government are doing something for the little people, whereas it protects mainly the large corporate bodies.

Now the only penalty for negligent employers is handed out by the WSIB, and such penalties are covered by the E&O insurance.

As for unions working on your behalf this is a good thing, but once the Tribunal has made a judgement, it’s final. There is NO recourse for a successful appeal. The laws have been written to sew any loopholes up.