The Ontario government is going after restaurant owners who don't pay their employees for trial shifts and deduct the cost of thefts from their paycheques.
The Working for Workers Four Act would update the Employment Standards Act, protecting more than 400,000 restaurant and hospitality industry employees.
The Ontario government cited unnamed studies showing one in 20 diners has left a restaurant without paying, committing a so-called "dine and dash." It also said gas thefts cost Ontario businesses more than $3-million last year.
"It is unacceptable that any worker in our province should have their wages deducted or see themselves put in harm's way because of someone else's criminal activity," said Minister of Labour, Immigration, Training and Skills Development David Piccini.
Ontario has laws requiring employers to pay workers for every hour worked and prohibit punitive deductions. However, Piccini said the practice is still commonplace in the restaurant and service industries.
Employers would also have to post any policy of pooled tips explaining how tips are calculated and distributed in the workplace.
Some employers use direct deposit to pay out tips, which can charge workers fees before they can access their funds. Under the legislative changes, workers would choose the account they want the money in, avoiding the added cost.
"These changes to the Employment Standards Act give restaurant employees the protection they deserve," said President and CEO of Restaurants Canada Kelly Higginson. "They will reduce costs for employees around their gratuities, ensure their earnings are safeguarded from patrons who dine and dash, and reinforce that our employees' hard-earned paycheques are their own."
Higginson acknowledged that most restaurant employers already follow the practice the government intends to make law.
Likewise, Tony Elenis, the President and CEO of the Ontario Restaurant Hotel and Motel Association, lauded the improvements, saying, "The announced changes support clear messaging and transparent procedures for both restaurant operators and employees, ensuring fair practices are in place."
