Shuttered Kelowna distillery loses another appeal over $60K unpaid wages
The owners of a shuttered Kelowna distillery have failed in their second attempt to overturn a ruling which ordered the company to pay a former staffer $60,000 in unpaid wages.
In two separate April 24 BC Employment Standards Tribunal decisions, Forbidden Spirits directors Charles Blair Wilson and Kelly Janine Wilson appealed a ruling that as directors of the company they were each personally liable for $24,937 in unpaid wages for a former executive assistant.
In March, Forbidden Spirits lost an appeal after it was ordered to pay a former executive assistant $60,513 to cover the "many hours" they'd worked but not been paid for.
In Charles' appeal, he argued that there was new and relevant evidence available and the Tribunal had failed "to observe the principles of natural justice."
However, the Tribunal ruled he hadn't provided any new evidence nor any argument for his "natural justice" ground of appeal.
The Tribunal said Charles founded the company with Kelly and that he was the individual responsible for the business affairs. The executive assistant reported to him and he was "very aware" of the executive assistant's extended working hours.
"I fail to appreciate how (The Tribunal) could have concluded that (Charles) should not be held liable for corporate penalties," the Tribunal ruled. "Rather than there being 'insufficient' evidence... there was, in fact, ample evidence."
Kelly argued she was a board member and didn't participate in the "day-to-day operations of the company," or have any input regarding employees.
"I was not in any way involved in operational decisions such as payroll, accounting, or HR procedures," she said in the decision.
Kelly argued company directors weren't liable for any monetary penalties if they didn't authorize the conduct that led to the penalty.
However, the Tribunal said her argument was "fundamentally misconceived" and related to monetary penalties, whereas the $24,000 she was ordered to pay was unpaid wages, not a fine.
They both also argued the Employment Standards Tribunal incorrectly calculated the unpaid wages and an "error of law" had occurred.
However, the Tribunal ruled their calculations were based on "fundamentally incorrect" readings of the Tribunal's math.
Ultimately, the Tribunal upheld its ruling and ordered the couple to pay up.
The East Kelowna distillery is currently closed due to unpaid loans and its property was subject to a court-ordered sale.
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