WorkSafeBC is sitting on over $2 billion in excess funds that should go back to small businesses

BC Hydro and ICBC have already issued similar rebates—WorkSafeBC should follow suit.

Vancouver, August 28, 2024 – Rebating WorkSafeBC’s $2 billion surplus could provide a significant financial boost to BC small businesses, according to the Canadian Federation of Independent Business (CFIB)’s latest research snapshot, Funding Fairness: State of Workers’ Compensation Funding in 2024.

Currently, WorkSafeBC is 142% funded, well above board’s target upper limit of 130%. CFIB’s research finds that rebating even a portion of this surplus would not jeopardize WorkSafeBC's financial stability and could offer much-needed cost relief to struggling small businesses. CFIB estimates that returning these excess funds could provide a BC small business with five employees up to $3,810.

“Small businesses are under pressure from higher interest rates, lower consumer spending, and rising costs”, said Jairo Yunis, Director of BC and Western Economic Policy. “Rebating WorkSafeBC excess funds would help business owners pay down debt, offset high operating costs, invest in employee health and safety, and grow their businesses. Given WorkSafeBC’s strong financial position, issuing rebates won’t impact worker payouts.”

While nine out of 12 workers’ compensation boards across Canada have rebate policies, WorkSafeBC has yet to adopt one. Other provinces have taken similar steps in recent years. Manitoba returned $118 million to employers in 2024, Prince Edward Island $21 million in 2023, and Ontario $1.2 billion in 2022. In Ontario, the Workplace Safety and Insurance Board (WSIB) distributed $1.2 billion in surplus funds to nearly 300,000 eligible businesses when its funding level fell within the discretionary range for surplus rebates under the legislation.

“CFIB encourages WorkSafeBC to follow the example set by other provinces and provide immediate financial relief to businesses across the province,” said Emily Boston, BC Senior Policy Analyst. “Small business owners aren’t asking for special treatment; they’re asking for fairness. It’s time for WorkSafeBC to step up, issue a rebate, and provide the financial relief that will help these businesses survive during these challenging times.”

To ensure fairness, consistency, and certainty for employers, CFIB recommends that WorkSafeBC:

• Return surplus funds to employers or lower employer premiums where the funding ratio exceeds the board’s 130% funding target, with a stronger preference for a rebate to eligible employers.
• Legislate the return of WorkSafeBC surplus funds to eligible employers.
• Implement mandatory distribution policies, so surplus funds are returned on a regular basis.

For media inquiries or interviews, please contact: 

Dariya Baiguzhiyeva, CFIB 

647-464-2814 

public.affairs@cfib.ca

About CFIB
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small- and medium-sized businesses with 97,000 members across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.