The Canadian government will outlaw wage-fixing and no-poaching agreements between employers concerning wages, work conditions and hiring practices starting in June 2023.
François-Philippe Champagne, minister of Innovation, Science and Industry, said when the government reviewed Canadian competition law earlier this year, it homed in on tackling wage-fixing agreements.
"The goal of Canada's Competition Act is to protect Canadian employees," said W. Michael G. Osborne, an attorney with Cassells in Toronto.
Canada's Competition Act now includes a provision that will make it a crime for any employer in Canada to enter into a wage-fixing agreement with another employer to fix, maintain, decrease or control salaries, wages, or any terms and conditions of employment, explained Antonio Di Domenico, an attorney with Fasken in Toronto.
Employers that violate this law beginning in June 2023 could face imprisonment for up to 14 years or an uncapped fine in the discretion of the court—or both, Osborne noted. To date, the highest fine under the Competition Act was $40 million Canadian dollars (approximately USD $29.2 million).
"The sky's the limit," he added. "Judges want to make sure the fine is appropriate for the crime."
Similarly, the U.S. Department of Justice Antitrust Division (DOJ) announced in 2016 that it would prosecute no-poach and wage-fixing agreements as crimes. While the U.S. government has ramped up enforcement of antitrust laws the past six years, the DOJ has...
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