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Ontario Employers: Key Updates on Proposed Bill 105 / POWER Act, 2026 (Including Schedule 9)

 
The Ontario government introduced Bill 105, the Protecting Ontario’s Workers and Economic Resilience Act, 2026 (POWER Act), in April 2026. This omnibus legislation proposes significant amendments to several workplace statutes, including the Workplace Safety and Insurance Act, 1997 (WSIA) and the Occupational Health and Safety Act (OHSA). Schedule 9 of the Bill specifically addresses WSIA-related changes that will impact claims at the Workplace Safety and Insurance Board (WSIB).
 
Status: Following committee consideration, Bill 105 has been reported back to the House and called for Third Reading. No significant committee amendments were made. The Bill remains positioned to proceed when the Legislature resumes on October 27, 2026.
 

Key WSIA Changes (Schedule 9 and Related Provisions):

  1. Expanded Mandatory Coverage: Privately operated residential care facilities and group homes, included under Schedule 1, would become subject to mandatory WSIB coverage, extending protection to an estimated 29,000 workers.
  2. Increased Loss of Earnings (LOE) Benefits: The benefit rate would rise from 85% to 90% of the difference between pre-injury and post-injury net average earnings (with no change to the maximum insurable earnings ceiling). Similar increases would apply to certain survivor benefits. These enhancements apply to new claims on a go-forward basis.
  3. LOE Benefits Past Age 65: Workers could apply (between ages 63-65) for continued LOE benefits beyond age 65 if they demonstrate they would likely have continued working in suitable and available employment. Added ability to review LOE payments after 65 where a post-65 work end date is determined. This reflects recent workforce trends showing that many workers are remaining in the workforce longer.
  4. Loss of Retirement Income (LRI) Adjustments: LRI accrual and payout linked to a later retirement date if the WSIB determines the worker would have continued working past 65. Contributions recalculated using the higher 90% LOE rate post-specified date.
  5. Elimination of the 72-Month Statutory Lock-In: The current “lock-in” of LOE benefits at the 72-month mark would be removed for new claims and ongoing claims not yet locked in. The WSIB would gain broader ability to review and adjust benefits, subject to prescribed limits on review frequency.
  6. New Offsets to LOE Benefits: New rules would allow offsets from other government benefits or employer payments ensuring total income does not exceed 100% of pre-injury net earnings. Details to be set in regulation; CPP disability benefits explicitly excluded in some contexts.

 

OHSA Highlights Relevant to Employers

  • Development of a worker Occupational Exposure Registry for tracking exposures to agents.
  • Ability to recognize equivalent health and safety standards from other Canadian jurisdictions.
  • Potential reimbursement for prescribed protective headwear in construction.

 

Potential Impacts on Employers

The amendments may affect Ontario employers in several ways. Extended post-65 coverage, LRI/survivor adjustments, and expanded mandatory coverage could influence premium costs and claims experience, especially in sectors with aging workforces or newly covered operations such as residential care.

 

New review processes and transitional rules may provide additional flexibility for claims management while introducing procedural steps for return-to-work planning and post-65 determinations. Related OHSA and Labour Relations Act updates could impact safety compliance, administrative burdens, and operational timelines in affected industries.

 

How OEA Can Help

At the Office of the Employer Adviser (OEA), we deliver free, confidential legal advice, representation, and education to employers across Ontario on WSIB, and workplace safety insurance matters, as well as OHSA reprisals. Our experienced team can help you assess potential implications for your business and develop practical strategies tailored to your organization in areas such as premiums, claims, return-to-work programs, compliance obligations and registering with WSIB.

 

Take proactive steps today. Contact OEA for clear guidance that positions your business to navigate these developments with confidence. Visit our website or reach out directly for free advice.

 

This article is for educational purposes and based on the Bill as introduced/amended. It is not legal advice. Laws and details may change.

 

July 2026

 

Email: askOEA@ontario.ca

Phone: OEA toll free 1-800-387-0774

Website: www.employeradviser.ca

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