Important Changes to WorkSafeBC Coverage for Loan-Out Corporations (LOCs)

On January 1, 2023, a new WorkSafeBC policy took effect.

• All Loan-Out Corporations (LOCs) will be required to register for WorkSafeBC coverage starting January 1, 2023.
• There is no longer an exemption for people working under LOCs in the film (or any other) industry. As such, there are no more 1800MPTIs to fill in.
• If someone working under a LOC does not register, they will still be covered by WorkSafeBC while working on a production if the production has applied for extended coverage in the motion picture and television industry, which is available to film productions which have a collective agreement in place.
• As we understand it, most productions signed to the DGC BC Collective Agreement will have this type of coverage in place, but other types of productions (commercials, documentaries, etc.) will not. To be certain, you should confirm with your existing production, or before starting work on a new production.
• If someone working under a LOC does not register with WorkSafeBC and then files a claim, WorkSafeBC will force their registration at that time, along with all applicable back-premiums

The DGC BC strongly encourages people working under LOCs to register for WorkSafeBC coverage.

If you have a Loan-Out Corporation and have questions about this new WorkSafeBC policy, please feel free to contact Rob Larson, DGC BC Business Agent at rlarson@dgcbc.com. 

NOTE TO ANY MEMBERS WORKING THROUGH AN LOC THAT PAYS SALARIES TO MORE THAN ONE EMPLOYEE

If you pay employees, other than yourself, through your loan-out corporation, WorkSafeBC requires you to register with them (see above) to provide your own insurance coverage. While this may have favourable tax implications for you it could also have a direct and potentially very negative impact on the calculation of your wage loss compensation in the event of a claim.

Your compensation will be a percentage of the wage that your loan-out pays you. NOT the wage that you are earning on the production you were injured on. This could put you in serious jeopardy in the event of an injury that prevents you from working long term or, worse yet, permanently.

It is important that you speak to your accountant about the best overall option for you and your corporation.

 HAVE YOU RECENTLY INCORPORATED?

Members who have opened up a corporation must contact the DGC BC office to complete an LOC RSP application. Any contributions under company names that Canada Life has no paperwork for are left unallocated (not earning anything) and could be returned to your employer.

If you need an application, please email Jamie (production@dgcbc.com) at the DGC BC office and she will assist you with completing the required application forms.