Toronto-area staffing agency hit with record fine following deaths of five workers
A temporary staffing agency in the Toronto area has been ordered to pay a total of $5 million following an investigation after five workers were killed when their van was hit by a commuter train in the summer of 2002.
TIPS Inc., based in Woodbridge, Ont., its president and vice-president were fined $1 million after they pleaded guilty to charges under the Workplace Safety and Insurance Act.
The remaining $4 million is restitution for underreporting its monthly payroll, which determines the premiums it pays to the province’s Workplace Safety and Insurance Board (WSIB).
Thomas Beechner, the vice-president of operations for TIPS, said he prepared and filed fake invoices to the WSIB in an effort to convince the board the driver of the van was an independent contractor and not an employee of the company. He was fined $50,000, the maximum amount under the act.
David Burleigh, president of TIPS, pleaded guilty to one count relating to the false payroll information and one count of submitting false and misleading information to the WSIB and was also fined $50,000.
If the driver had been an independent contractor, the dependants of the deceased workers might not have been able to collect survivor benefits. But the board ruled all five men, including the driver, were employees of TIPS.
A history of shady practices
The investigation by the WSIB into the deadly accident uncovered a history of shady practices at the company, including:
•five counts of submitting false and misleading information when reporting workplaces injuries unrelated to the accident; and
•filing false forms indicating workers had not missed time away from work when they had in an effort to avoid premium increases.
“Essentially, workers were injured, were away from work, the employer told them not to file with the board and the employer would pay them directly,” Wayne Pushka, the board’s director of enforcement told the Toronto Star. “You can’t do that.”
Under the province’s legislation, employers must notify the WSIB within three days of an accident if an employee requires medical care or is unable to earn full wages.
A growing problem
David Wilken, a staff lawyer at the Industrial Accident Victims Group of Ontario, a legal clinic in Toronto, told the Star these types of activities are an “emerging problem” with temporary staffing agencies.
“They’ll even advertise themselves as a way of having employees without having the hassle of permanent employees,” he said.
TIPS Inc., based in Woodbridge, Ont., its president and vice-president were fined $1 million after they pleaded guilty to charges under the Workplace Safety and Insurance Act.
The remaining $4 million is restitution for underreporting its monthly payroll, which determines the premiums it pays to the province’s Workplace Safety and Insurance Board (WSIB).
Thomas Beechner, the vice-president of operations for TIPS, said he prepared and filed fake invoices to the WSIB in an effort to convince the board the driver of the van was an independent contractor and not an employee of the company. He was fined $50,000, the maximum amount under the act.
David Burleigh, president of TIPS, pleaded guilty to one count relating to the false payroll information and one count of submitting false and misleading information to the WSIB and was also fined $50,000.
If the driver had been an independent contractor, the dependants of the deceased workers might not have been able to collect survivor benefits. But the board ruled all five men, including the driver, were employees of TIPS.
A history of shady practices
The investigation by the WSIB into the deadly accident uncovered a history of shady practices at the company, including:
•five counts of submitting false and misleading information when reporting workplaces injuries unrelated to the accident; and
•filing false forms indicating workers had not missed time away from work when they had in an effort to avoid premium increases.
“Essentially, workers were injured, were away from work, the employer told them not to file with the board and the employer would pay them directly,” Wayne Pushka, the board’s director of enforcement told the Toronto Star. “You can’t do that.”
Under the province’s legislation, employers must notify the WSIB within three days of an accident if an employee requires medical care or is unable to earn full wages.
A growing problem
David Wilken, a staff lawyer at the Industrial Accident Victims Group of Ontario, a legal clinic in Toronto, told the Star these types of activities are an “emerging problem” with temporary staffing agencies.
“They’ll even advertise themselves as a way of having employees without having the hassle of permanent employees,” he said.
