Go Directly to Jail - Directors & Unpaid Wages

The liability of officers and directors of corporations for unpaid wages to employees is not a new concept. The Employment Standards Act, 2000 (ESA) in Ontario also provides for fines that can certainly drive the intended message home to directors. But jail sentences?

Such was the case with Steve Blondin, who was sentenced to 90 days in jail for a number of violations of the ESA. Mr. Blondin, who operated a number of companies in the Toronto region, faced separate orders to make good for unpaid wages to 61 employees. When he failed to comply with the orders, the Ministry of Labour prosecuted the relevant corporations and Mr. Blondin personally. Following guilty pleas, the order in the Ontario Court of Justice proceedings was that the defendants pay all outstanding wages to the employees and pay a fine of $280,000, both of which are common outcomes.  In addition to those payment requirements, Mr. Blondin was sentenced to 90 days in jail.