This week, Traci welcomes Laura Tolhoek, founder and principal consultant at Essential HR, where she leads a team delivering clear, results-focused solutions to businesses facing HR challenges across Canada. With her CHRL designation and over 20 years of experience, Laura specializes in helping companies navigate the complex world of Canadian employment law.
Laura has built her career guiding managers through high-volume decision-making in fast-paced restaurant, food service, and retail environments.
Her expertise becomes critical when US-based companies attempt to expand north of the border using American HR practices—a mistake that can cost tens of thousands in severance.
Spoiler alert: That US employment contract you're using in Canada is probably null and void—and that might actually work in the employee's favor.
Laura breaks down why expanding into Canada makes strategic sense—from accessing highly educated workers at a 30-35% exchange rate discount to tapping salary ranges significantly lower than US metropolitan areas.
You'll also hear the critical legal pitfalls that can turn a cost-saving hire into an expensive nightmare, including the "dependent contractor" classification that's caught countless US companies off guard.
What We Cover:
– The Target Canada lesson – Why understanding operational and cultural differences before expansion matters, even for America's most successful retailers
– Why at-will employment doesn't exist in Canada – Termination without a strong contract can cost months of severance instead of weeks
– The contract clause that voids everything – One mention of drug testing invalidates your entire employment agreement
– Dependent contractors aren't subcontractors – If someone gets 75%+ of their income from you, courts may deem them an employee with back taxes, vacation, and overtime owed
– How to find strong mid-level managers for $60-80K CAD – The salary arbitrage that builds loyalty while expanding your talent pool
– Quebec's French-first requirement – Why Montreal expansion means understanding distinct cultural approaches to business
– The 18-month parental leave structure – How progressive family leave policies help balance workforce discrimination concerns
– Why employees always get the benefit of the doubt – Understanding Canada's employee-first legal system where courts consistently side with workers
Key Quote: "You can't get a subcontractor relationship clean in Canada. All is good till it's not. If your subcontractor gets more than 75% of their income from you, they're called a dependent contractor—and then the company says, 'You decide how much you think you owe them and we'll tell you if we think you're right.'" – Laura Tolhoek
Connect with Laura Tolhoek:
Website: essentialhr.ca
Instagram: @essentialhr.ca
LinkedIn: https://www.linkedin.com/in/laura-tolhoek/ | https://www.linkedin.com/company/essential-hr-canada/
Connect with Traci here: https://linktr.ee/HRTraci
Disclaimer: Thoughts, opinions, and statements made on this podcast are not a reflection of the thoughts, opinions, and statements of the Company by whom Traci Chernoff is actively employed.
Please note that this episode may contain paid endorsements and advertisements for products or services. Individuals on the show may have a direct or indirect financial interest in products or services referred to in this episode.