TORONTO – A research snapshot from the Canadian Federation of Independent Business (CFIB) is revealing small businesses could unlock almost $5 billion in financial relief if seven workers’ compensation boards (WCBs) return surplus employer funds currently sitting above their own contingency thresholds.
According to a release, boards in British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Prince Edward Island, Quebec and the Yukon are in an overfunded position. For a typical small business with five employees, rebates could total over $4,800 in New Brunswick, $3,631 in British Columbia and $3,652 in the Yukon.
“While strong funding is essential to support injured workers, it’s not fair when boards hoard billions in surplus funds – that by their own definitions are above and beyond the high end of their contingency thresholds – without a clear plan to return them to businesses who pay directly into WCBs,” said Bradlee Whidden, CFIB’s senior policy analyst for Western Canada and snapshot co-author, in a statement. “At a time when small firms are facing high costs and significant economic uncertainty, a direct rebate would provide immediate cost relief, allowing business owners to invest in workplace safety, increase wages and benefits, or hire more staff.”
Eight out of 12 boards have a policy to return funds to employers ─ Yukon, Northwest Territories/Nunavut, Alberta, Manitoba, Ontario, New Brunswick, Prince Edward Island, and Newfoundland and Labrador.
In 2024, several boards returned surplus funds to employers. Manitoba returned $115 million in 2024 and Yukon $10 million. In 2025, New Brunswick is returning $53 million in surplus funds, while Ontario and Manitoba have returned $4 billion and $122 million, respectively.
“Ontario remains the only province to legislate the return of WCB surplus funds to employers, including mandatory rebates when the Workplace Safety and Insurance Board (WSIB)’s funding level is at least 125 per cent,” the release notes.
As result of this research, the CFIB is putting forth a number of recommendations for nationwide change.
They are as follows:
- Return surplus funds to employers or lower employer premiums where the funding ratio exceeds the board’s funding target;
• legislate the return of WCB surplus funds to eligible employers;
• implement mandatory distribution policies so surplus funds are returned on a regular basis;
• enhance WCB transparency and accessibility by setting dates to publicly release board funding levels; and
• WorkSafeBC, and other jurisdictions reviewing similar policies, should align its treatment of tips and gratuities with the federal approach, counting only employer-controlled tips as assessable payroll for WCB purposes.
“Returning rebates to eligible employers would come at no cost to taxpayers, and it wouldn’t jeopardize the boards’ funding positions. We urge governments to follow Ontario’s lead and come up with a clear, predictable plan to return employer-funded surpluses to those who paid them,” added Kalith Nanayakkara, CFIB’s senior policy analyst for B.C. and snapshot co-author.
