Employers Beware: Failures to Comply with Orders to Pay Result in Hefty Fines

On February 18th, 2010, an Ontario employer was fined $5,000 for its failure to comply with an order to pay in violation of the Employment Standards Act, 2000 (ESA). After issuing an order to pay related to hours of work and overtime pay, the employment standards officer reviewed the company’s payroll records and found that an employee had worked overtime hours since the order was issued, but had not been paid the appropriate overtime pay. The employer pleaded guilty to failing to pay an employee overtime pay.

In a similar case, a different Ontario employer and its director were fined $25,000 for violating the ESA by failing to comply with two orders to pay. An investigation of two claims for unpaid wages had caused the Ministry of Labour to issue orders to pay totaling approximately $10,000, which the employer failed to pay. The employer and its director were then found guilty of failing to comply with orders to pay. A Justice of the Peace imposed a $15,000 fine on the company and a $10,000 fine on the director.

These cases serve as a reminder to employers to ensure that they comply with orders of the Ministry of Labour, as a failure to do so can result in severe financial penalties for both the company and its directors.