Understanding Employers' Attitudes Towards Worker Classification to Improve Compliance with the Law

Worker misclassification is a global problem, but limited research examines employer perspectives on the issue. This research explores the experiences and attitudes of employers in Ontario's tech industry towards worker classification to shed light on challenges and barriers to compliance and inform policy recommendations. It employs a qualitative methodology and draws on theories of responsive regulation, strategic enforcement, and behavioural ethics approach to compliance. The analysis of 14 semi-structured interviews with employers in Ontario's tech industry reveals three main themes. First, participants found the law inaccessible and inadequate, leading to confusion and frustration and demonstrating lack of knowledge and capacity to comply. Second, participants were primarily concerned about the tax implications of misclassification. Finally, while exhibiting unfamiliarity with enforcement mechanisms, participants considered them ineffective. The findings demonstrate the need for clearer and more targeted laws and enforcement, the integration of tax implications and more strategic enforcement initiatives to mitigate non-compliance.