McDonald’s CEO Steve Easterbrook Fined: What Canadians Can Learn About Workplace Relationships

Former McDonald’s CEO Steve Easterbrook has been fined $400,000 (USD) by US regulators for misleading investors about his 2019 firing.

The Securities and Exchange Commission (SEC) found that Easterbrook failed to disclose additional relationships with employees before his termination — a violation that led to his removal and the loss of a $105 million severance package. McDonald’s later sued him for dishonesty, recovering the payout in 2021.

This latest development serves as a reminder that even the world’s largest employers are grappling with the line between personal relationships and professional responsibility — and that the rules differ significantly in Canada.

What Happened at McDonald’s

McDonald’s fired Easterbrook in late 2019 after determining he had engaged in a consensual relationship with an employee, breaking company policy that bans relationships between direct or indirect subordinates (CBC News).

Further investigation revealed additional undisclosed relationships, prompting a corporate lawsuit. In 2023, the SEC ruled that Easterbrook had misled investors about the scope of his misconduct and ordered the fine.

Canadians Have Asked: Could This Happen Here?

When the story first broke, employment lawyers at Samfiru Tumarkin LLP across the country were asked this exact question — and their insights still hold true today.

Lior Samfiru, co-founding partner of Samfiru Tumarkin LLP, told Corus Radio that McDonald’s board had little choice at the executive level:

“When you’re the CEO, the buck stops with you. He’s the embodiment of company policy. The board couldn’t ignore it without setting a double standard.”

At the same time, Samfiru emphasized that breaching company policy doesn’t automatically mean termination without severance — a crucial distinction in Canadian law.

Office Relationships: Where Consent Meets Risk

Chantel Goldsmith, Partner in Toronto, explained on 640 Toronto that hiding a workplace relationship can be far more damaging than disclosing it:

“It’s riskier to keep it quiet. Disclosure allows safeguards to be put in place — for example, changing reporting structures or shifts to prevent conflicts.”

Transparency helps both sides. Employers can take proactive steps, while employees show honesty and protect themselves from claims of dishonesty or favoritism.

Employers should be clear about expectations

“Vagueness will ultimately hurt you when you’re trying to enforce policy,” said Goldsmith.

Her takeaway? Clarity protects everyone — whether you’re the CEO or a part-time employee.

How Canadian Law Views These Situations

In Canada, consensual relationships between coworkers are not illegal. But problems arise when there’s a power imbalance or a potential conflict of interest.

Key legal points:

• Human Rights Codes prohibit harassment and discrimination in all provinces.
• Occupational Health and Safety Acts require employers to prevent harassment, including situations involving managers or supervisors.
• Termination for cause is only justified in extreme cases — such as dishonesty, harassment, or serious misconduct.

Simply breaking a workplace policy — without causing harm — usually means the employee is still entitled to severance pay.

Takeaways for Workers and Employers

For Employees

• Be transparent about relationships that might raise concerns.
• Don’t assume a consensual relationship can’t be questioned later.
• If you’re terminated, get legal advice before signing any release — you may still be owed severance pay in Canada (up to 24 months’ pay).

For Employers

• Create clear, written relationship and harassment policies.
• Apply rules consistently, regardless of seniority.
• Encourage reporting and confidentiality without overreaching into employees’ personal lives.

Need Legal Advice About Workplace Policy or Termination?

If your employer is citing cause, questioning a relationship, or withholding severance, you don’t have to accept their decision.

Samfiru Tumarkin LLP — Canada’s most positively reviewed employment law firm — has represented over 50,000 clients nationwide.

Our team has:

• 💰 Secured millions in severance payouts
• ⚖️ Settled over 99% of cases out of court
• 📱 Free Termination Consultations — in some, but not all, cases
• ⭐ Earned 3,000+ 5-star Google reviews
• 🏆 Named on of Canada’s Best Law Firms

Call 1-855-821-5900 or request a consultation online.