What Contractors Should Know About the POWER Act 

Bill 105, Protecting Ontario’s Workers and Economic Resilience Act, 2026, referred to as the POWER Act  was tabled in the legislature on April 20th, passed second reading and was referred to the Committee on Finance and Economic Affairs on May 4th.  It is an omnibus Bill that amends 8 statutes and creates one new one.  The Committee is scheduled to hold one day of public hearings on May 12th.

The proposed amendments, which if passed will have the greatest impact on the construction industry are as follows: 

Environmental Assessment Act 

  • The proposed amendments clarify provincial ministries’ service standards and are designed to cut red tape, streamline and expedite permitting and approvals processes for mining projects, certain sewage systems, water taking and heritage 

Amendments to the Employment Standards Act 

  • prohibits employers from requiring employees to pay for uniforms or other prescribed items, or for their repair or laundering, except in limited circumstances such as loss, damage beyond normal wear and tear or failure to return items as agreed. Amounts improperly charged are enforceable as wages owing.  
  • Gives the ministry authority to handle specific types of complaints with an inspection rather than an investigation and refuse complaints from people who are purposefully misusing the complaints process 
  • Ensures that when an employer owes an employee money and  the ministry issues an Order to Pay, that during the collections process, money would go to employees first, before collection and administrative fees to the government. 

Amendments to the Labour Relations Act 

  • The two-month timelines in which another trade union may apply to the Labour Relations Board for certification as bargaining agent for employees to whom a collective agreement applies, and the two-month timelines for applying for a declaration that a trade union no longer represents the employees in a bargaining unit will, be reduced to a one-month timelines instead. 

Amendments to the Occupational Health and Safety Act 

  • permits the Chief Prevention Officer to collect personal information about workers’ exposure to a physical, chemical or biological agent for the purpose of maintaining a worker occupational exposure registry and other purposes. 
  • To facilitate harmonization and labour mobility across Canadian jurisdictions, the Minister may recognize standards for training, personal protective equipment and other equipment that comply with requirements in another Canadian jurisdiction or the requirements under an agreement between Ontario and another Canadian jurisdiction. 
  • The Minister is authorized to reimburse such employers and constructors as may be prescribed for the cost of purchasing Type 2 hard hats   

Amendments to the Workplace Safety and Insurance Act 

  • In certain circumstances, the WSIB can continue to provide benefits to injured workers beyond age 65 when the worker indicates their intention has been to continue working beyond age 65 
  • Increases the amount of loss of earnings (LOE) benefits paid to injured workers from 85% of net pre-injury earnings to 90%  
  • Allows the WSIB to reduce injured workers loss of earnings benefits if the loss of earnings benefits together with other collateral earnings are greater than 100% of the worker’s net pre-injury earnings 
  • For injured workers whose injury dates are 72 months or more out from the in-force date of the amendment, it allows the WSIB to review the benefits of such injured workers  and adjust for over-compensation or under-compensation (beyond  100% of net pre-injury earnings) which may be the result of other collateral benefits (the precise collateral benefits will be prescribed in regulation) received by the worker 
  • Expands mandatory participation in the WSIB’s insurance scheme to include residential care facilities operated by a private employer and group homes