• Goodwill Pays Back Wages

    April 2, 2016 | Chad Barr
  • Court battles involving greedy entrepreneurs or enterprises refusing to pay wages to workers are common in the news these days.  However, this latest back pay debacle may shock you: It involves Goodwill!

    Goodwill employees arrived at work in January to learn that the organization had closed its 16 stores and 10 donation centres, as well as two offices, leaving 430 workers in limbo with no explanation of whether they were being laid off or whether the stores were going to reopen.

    Goodwill Toronto executives cited a cash-flow crisis as the reason for not being able to pay their employees. Goodwill’s scheduled payday is Friday, but the organization did not have enough funds to pay its employees at that location.

    The chief executive officer of Goodwill Industries of Toronto, Eastern, Central and Northern Ontario, announced the organization’s employees would have their pay in their bank accounts by the end of the day for all hours worked up to Jan. 16, the day before the organization abruptly closed its doors. She also said records of employment, which workers need to apply for Employment Insurance, will be mailed next week.

    Community organizations stepped forward to help Goodwill pay the unpaid wage bill, which was estimated to be between $500,000 and $750,000.  Other donations poured in to support the workers who needed food, rent, or medication. 

    Goodwill chapters operate independently, and the Toronto unit’s closure has not affected stores in other regions.

    This latest back pay incident is a good reminder that anyone can be affected. Not getting paid by your employer? Give Chad Barr Law a call. You can schedule your FREE legal consultation today by calling 407-374-1884!

    Sources:

    The Globe and Mail; back wages.

    http://www.theglobeandmail.com/news/national/great-sense-of-relief-as-goodwill-announces-it-will-pay-back-wages/article28336091/?cmpid=rss1

    ‘Great sense of relief’ as Goodwill announces it will pay back wages

    www.theglobeandmail.com

    Chief executive Keiko Nakamura says organization will pay employees by end of day for all hours worked up to Jan. 16