Legal & Compliance

Compliance & Legal Framework

TGC Build Network enforces strict compliance across the United States and Canada. Every worker, client, and project must meet legal requirements for licensing, insurance, classification, and payment processing.

Federal, State & Provincial LawsAuto-VerificationZero-Tolerance Enforcement

Critical Platform Rule: All Payments Must Stay On-Platform

Direct payments between clients and workers (cash, Venmo, Zelle, Interac e-Transfer, wire transfers) are strictly prohibited. Violations result in account suspension and permanent bans. This protects workers, ensures tax compliance, and guarantees dispute resolution.

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The U.S. Department of Labor strictly monitors worker classification. Misclassification can deny workers minimum wage, overtime pay, and other protections under the Fair Labor Standards Act (FLSA).

Requirements

  • Workers control how work is performed (method, manner, means)
  • Workers provide their own tools and equipment
  • Workers have opportunity for profit or loss
  • Workers are not integrated into the business operations
  • Workers can work for multiple clients simultaneously

Penalties for Non-Compliance

  • Back wages and overtime liability
  • IRS tax penalties and reclassification audits
  • State labor board fines
  • Loss of workers compensation coverage
  • Potential class-action lawsuits
Source: U.S. Department of Labor β€” Wage and Hour Division

Worker Classification: USA vs Canada

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United States

The U.S. Department of Labor and IRS use different but overlapping tests. The DOL focuses on economic reality: is the worker economically dependent on the employer? The IRS uses a 20-factor control test.

1

Behavioral Control

Does the payer control how, when, and where work is done?

2

Financial Control

Does the worker have opportunity for profit/loss? Own tools?

3

Relationship

Contracts, benefits, permanency, and whether work is core to business.

Warning: Misclassification can trigger back wages, overtime liability, IRS penalties, and DOL audits. TGC Build Network enforces clear contractor agreements to support legitimate independent contractor relationships.

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Canada

The Canada Revenue Agency (CRA) evaluates the complete relationship. There is no single definitive test β€” courts look at the totality of the relationship, including control, ownership of tools, chance of profit/risk of loss, and integration.

1

Control Test

Who controls where, when, and how work is performed?

2

Ownership of Tools

Does the worker supply significant tools, equipment, and vehicles?

3

Profit / Risk

Can the worker realize a profit or incur a loss? Hired for result?

Warning: CRA reclassification leads to back taxes, CPP and EI premiums, plus provincial labor board enforcement. WSIB/WCB implications vary by province β€” workers may need independent coverage.

Built-In Protection

Digital Contract on Every Job

Before any work begins, TGC Build Network generates a binding digital contract that captures: scope of work, agreed rate, estimated hours, start/end dates, payment terms, cancellation policy, and dispute resolution process. Both parties must e-sign. The contract is stored permanently and enforceable.

E-signature required Stored permanently PDF download Audit trail

Service Agreement

Auto-generated

Worker Rate$35/hr
Est. Hours16 hrs
Client Pays$38.50/hr
Total$616.00
E-Signed by both parties
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