Another Class Action For Overtime Certified – Are Your Overtime Practices Compliant?

On January 31, 2015 the Ontario Superior Court of Ontario certified a $100 million dollar class action lawsuit for unpaid overtime against Canada Cartage, a transportation company governed by the Canada Labour Code.   The case is a stark reminder to employers of the potential costs of not complying with provincial or federal overtime requirements. 

Overtime claims usually arise in one of the following circumstances:

1. An employer mistakenly believes that the employee is not entitled to overtime because they are paid a salary rather than on an hourly basis. Most provincial employment standards legislation set out the specific exemptions to the overtime requirements.If an employer can't fit within one of the exemptions, overtime will be owed. In Ontario, for example, the method by which an employee is paid is not relevant to the issue of entitlement – it is the nature of the position that matters, not whether the employee is paid a salary or an hourly wage. Regard