Workers owed $60M in unpaid wages Ontario failed to collect since 2017
CBC
Workers in Ontario are owed tens of millions of dollars in unpaid wages that the provincial government has yet to collect from employers, according to internal government records.
The records, obtained by CBC Toronto through a freedom of information request, provide a snapshot of the prevalence of wage theft in Ontario, which worker advocates say is a major issue.
The records show there's around $60 million in unpaid wages the provincial government has yet to collect from employers, between the 2017-2018 fiscal year and July 2024.
The figures include Ontario Labour Relations Board orders and notices of contravention, which can include penalties for violations such as not keeping proper payroll.
If the Ministry of Labour orders an employer to pay wages and they don't comply within 30 days, the case gets referred to the Ministry of Finance for collections.
The records show that, since the 2017-2018 fiscal year, on average, less than 30 per cent of that money has been paid.
The numbers are disappointing but they aren't surprising, say a workers' rights organization and employment lawyer.
They're calling on the provincial government to take stronger enforcement action against employers who don't comply with paying orders, in hopes of sending a message that wage theft is being taken seriously in Ontario and employers will be held accountable.
"I feel that the system is really broken right now," said Deena Ladd, executive director of the Workers' Action Centre in Toronto.
Sharaf Sultan, an employment lawyer who specializes in workplace related immigration files, says wage theft must be addressed in Ontario.
"I think it's a big issue, but I think ... to a certain extent, at least until now, it's been a relatively forgotten issue," he said.
Ministry of Finance spokesperson Scott Blodgett says the government has made "significant strides" in bolstering its enforcement and has introduced tougher penalties for those who violate the Employment Standards Act (ESA).
"The Ministry of Finance makes every effort to recover amounts owed to claimants under the Employment Standards Act," he said in a statement.
Wage theft typically refers to when an employer withholds earnings that are owed, doesn't provide vacation and holiday pay, makes illegal wage deductions, misclassifies employees, and other violations, according to Ladd.
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