As I said before, the business relationship here makes the situation unique from any other arrangement.
He didn't go to jail, he was dismissed for knowingly violating workplace rules.
Note that the employer did nothing wrong, as evident by the fact that they weren't charged with anything.
In fact, the best proof that the employer was doing something not only legal, but within their rights, is the fact that in order to stop the employer from continuing to do what they were doing, the legislature had to make it illegal.
What does that mean?
It means that what was done WAS LEGAL IN EVERY SENSE OF THE WORD.