Yahoo Finance CIBC to pay out $153 million in proposed class-action settlement over unpaid overtime
Canadian Imperial Bank of Commerce has agreed to settle a class-action lawsuit alleging systemic unpaid overtime of retail branch employees.
The Toronto-based bank will pay a total of $153 million to compensate about 30,000 current and former front-line retail staff for alleged unpaid overtime, lawyers involved in the settlement said. The amount includes legal fees and the cost of distributing the settlement funds.
The class action, filed in 2007, alleges the bank failed to pay its branch customer service employees for overtime work since 1993.
“It is good news for the class to have this case finally resolved,” Dara Fresco, a former CIBC bank teller and the case’s lead plaintiff, said in a press release.
CIBC to appeal $1.1-billion damage award in Cerberus lawsuit
Why Laurentian's CEO thinks 2023 will be a back-to-basics moment for Canada’s banks
A spokesperson for the bank said the settlement will avoid further legal costs for CIBC and “put the matter behind us.”
“We believe CIBC has a clear, accessible and effective overtime policy and practices,” Tom Wallis, CIBC’s senior director of public affairs, said in a statement. “Where overtime is required or permitted of eligible team members, it is paid.”
The settlement still needs to be approved by the Ontario Superior Court to become binding. A motion for approval will be brought next month.
• Email: dpaglinawan@postmedia.com | Twitter: denisepglnwn
