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ARTICLE · 06 DECEMBER 2007

Employees Find Strength In Numbers: Overtime Class Actions Arrive In Canada

McCarthy Tétrault
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Although large employment-related class action lawsuits have become commonplace in the United States, particularly in relation to unpaid overtime and pension entitlements, such lawsuits were virtually unknown in Canada prior to 2007.

CanadaEmployment and HR
Trevor Lawson
Trevor Lawson
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When strength is yoked with justice, where is a mightier pair than they?

 — Aeschylus

Although large employment-related class action lawsuits have become commonplace in the United States, particularly in relation to unpaid overtime and pension entitlements, such lawsuits were virtually unknown in Canada prior to 2007. The relative peace enjoyed by Canadian employers on this front was shattered with a $651-million class action lawsuit filed in June 2007 against the Canadian Imperial Bank of Commerce, followed quickly by a $20-million class action lawsuit against KPMG LLP. Both lawsuits seek damages for unpaid overtime in relation to thousands of current and former employees. If certified, these lawsuits are expected to serve as a springboard for similar class action lawsuits targeting large employers in Canada.

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