Changes to registration thresholds for in-house lobbyists: What businesses need to know

On July 16, 2025, the Office of the Commissioner of Lobbying of Canada (the OCL) released two new interpretation bulletins, providing notable updates. Most significantly, the OCL issued a new interpretation of the words “significant part of the duties” as they apply to the lobbying activities of employees of corporations and organizations. Paragraph 7(1)(b) of the Lobbying Act requires organizations and corporations to register the lobbying activities of their employees (called “in-house lobbyists”), if these activities constitute a significant part of the duties of one employee, whether performed by a single employee, or by multiple employees. 

According to the first interpretation bulletin, the OCL now interprets a “significant part of the duties” to be 8 or more hours spent lobbying public office holders within any consecutive four-week period (as opposed to the previous “20% rule”, explained below).¹ This new interpretation creates a much lower threshold for when corporations and organization must be registered with the OCL. 

In the second interpretation bulletin, the OCL confirmed that former designated public office holders who are subject to the 5-year lobbying prohibition shall now apply the new “8 hour” interpretation to determine whether lobbying activities constitute a “significant part of the individual’s work.”² This new interpretation will significantly restrict former designated public office holders now working in the private sector from using the lobbying threshold exemption (which used to be the “20% rule”, explained below) to engage in lobbying activities after leaving public office.  

Both new interpretations will apply starting on January 19, 2026.

Significant Part of Duties Registration Threshold

Certain communications with public office holders are classified as lobbying in Canada at the federal level.  This includes any communications with public office holders related to the development, passage, amendment, defeat, or withdrawal of laws, regulations, or government policies, as well as the awarding of any federal grants, contributions or other financial benefits. In the context of in-house lobbyists, time spent preparing as well as actually communicating with public office holders both count towards determining whether those activities constitute a “significant part of the duties” under paragraph 7(1)(b) of the Lobbying Act.

In 2009, the OCL issued an interpretation bulletin that established that a “significant part of the duties” should be interpreted using the “20% rule”. In short, if 20 percent of a full-time equivalent employee’s work, individually or collectively, consisted of lobbying public office holders (including planning and implementing), the corporation or organization was required to file a registration with the OCL. The “20% rule” was based on a calendar month and represented 32 hours in a given month.

The OCL’s new interpretation bulletin updates the threshold for a “significant part of the duties”. The new bulletin explains that if employees of a corporation or organization spend 8 or more hours lobbying public office holders (planning and implementing) within any consecutive four-week period, either individually or collectively, the corporation or organization must register its lobbying activities. This is a significant reduction to the threshold for registration, as 8 hours per consecutive four-week period represents approximately 5% of the working hours of a full-time employee in a given month.  

As is currently the case, once the threshold is reached, the corporation or organization has two months to file an in-house corporation or organization registration with the OCL. As a result of the new lower threshold, corporations and organizations must include in their registration all senior officers and employees who spend more 8 hours or more per four-week period lobbying, as opposed to the previous “20% rule”.

The 5-Year Prohibition

Under the Lobbying Act, a former designated public office holder is prohibited from engaging in lobbying activities for a period of 5 years following the conclusion of their duties as a public office holder, subject to limited exceptions and exemptions. Designated public office holders are a subset of public office holders that occupy senior roles.  This is known as the “5-year prohibition”.

There is a limited exception to the “5-year prohibition”, allowing former designated public office holders employed by a corporation to engage in lobbying activities, so long as these activities do not constitute a “significant part” of their work on behalf of their employer. Previously, the OCL interpreted a significant part of the individual’s work based on the “20% rule”. With the new interpretation, the OCL will now apply the “8-hour” interpretation as of January 19, 2026.

The OCL’s interpretation bulletin confirms that the OCL will continue to employ the “20% rule” for any employee hired prior to July 16, 2025. For any employee starting on or after July 16, 2025, the OCL will apply the “20% rule” until January 19, 2025, and thereafter apply the “8-hour rule”. 

Conclusion

This new interpretation is significant. For in-house employees, this represents a 75% reduction in the threshold before which registration is required. Corporations and organizations that engage with the federal government should proactively plan and track all communications with federal public offer holders as well as any related preparation time, with the assumption that if a corporation or organization does not register with the OCL, it will be important to clearly demonstrate why the threshold has not been met. Failure to register can result in fines of up to $50,00 for a first-time offence.

Similarly, for former designated public office holders, the new interpretation represents an increased risk of non-compliance and potential sanctions. In addition to any tracking by their employer, former designated public office holders should diligently track, on an individual level, any communications and any related preparation time with public office holders during their “5-year prohibition”. Corporations should also consider the new lower “8-hour rule” threshold applicable for the lobbying exemption when hiring former designated public office holders.

The authors would like to thank Catherine Héroux, summer student, for her contribution to preparing this legal update.