Ontario court refused to certify class action status over unpaid over time suit against CIBC

Ontario Superior Court of Justice has decided that overtime policy of bank was not illegal, hence a and and the claims for unpaid overtime should be claimed on an individual basis.

Court believes that as the issue was the application of the policy and not the policy itself, hence the court found a class action approach was not appropriate because the effects would have to be examined on a case-by-case basis for each employee.

Therefore, the $600 million class action suit against the Canadian Imperial Bank of Commerce (CIBC) for unpaid overtime, which was claimed by  CIBC employee Dara Fresco will not go any further.

The lawsuit was filed by Dara Fresco in 2007, accusing the bank for a forceful unpaid work between two and five hours per week beyond her normal scheduled hours .

The lawsuit also alleges that the extra hours were a regular occurrence and she was expected to work them to do her job properly, which was contrary to the Canada Labour Code.

Fresco applied to have the suit certified as a class action on behalf of other CIBC employees who faced similar expectations of working unpaid overtime.

However, the court agreed that Fresco had a valid cause of action for her unpaid overtime, but  Ms. Fresco’s real complaint is not that the policy is illegal, but that the policy was applied in an illegal manner, and the effect is to be evaluate in a case to case basis.

Source: Employment Law Today

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