A much-anticipated ruling keenly followed by federally-regulated employers and employees could sound the death knell of class action suits seeking compensation for unpaid overtime after an Ontario judge held that overtime claims are individual in nature and lack the essential element of commonality necessary to justify a class action proceeding.
In a ruling that draws distinctions between overtime claims, clarifies the Canada Labour Code (CLC), and provides guidance over evidentiary considerations in certification motions, Justice Joan Lax of the Ontario Superior Court refused to certify a class proceeding that claimed $600-million in compensatory and punitive damages against the Canadian Imperial Bank of Commerce.
“This ruling should give pause to plaintiffs considering overtime claims, no matter what the basis for the claim is,” noted Brett Ledger, a senior partner in the litigation department at Osler, Hoskin & Harcourt LLP in Toronto.