For many employers in the U.S., Canada offers an attractive market for business expansion. Culturally and economically close, Canada shares a strong western economy, one of the world’s largest disposable incomes, a higher paid price for goods, and on occasion, less competition for market share.

Even with all the advantages, businesses should also be aware of the risks when considering expansion across the border. Workplace legislation and the legal policies companies must follow are significantly different from those in the United States. Notably, the Workers’ Compensation system has some unique and costly elements.

No employer wants to see an accident or injury in the workplace, but when they do happen, employers in Canada need to understand how to negotiate the complex maze of the local Workers’ Compensation Board.

The Canadian Workers’ Compensation system

The Canadian Workers’ Compensation system is more than 100 years old and was cultivated in the rich and hazardous landscape of a booming industrial and economic revolution. In 1910, Chief Justice of Ontario, Sir William Meredith, was asked to head a Royal Commission studying Workers’ Compensation systems throughout the world.

In his Royal Commission report, Meredith said that the true aim of compensation law was to provide for both injured workers…