Ontario judge approves $20.6M settlement in Scotiabank overtime class-action suit

TORONTO – After nearly a decade-long legal battle, roughly 1,600 individuals who say they were necessary for Scotiabank to work unpaid overtime will quickly be splitting a $20.Six million settlement.

Judge Edward Belobaba of the Ontario Superior Court approved funds within the class-action lawsuit from the bank Thursday, with written good reasons to follow within the coming weeks.

The suit was originally settled in 2014 and since then, roughly $18.7 million has been distributed among 600 class members. But an additional 1,600 retail branch employees had their claims rejected or reduced.

The ruling is really a victory for all those workers, said David O’Connor, an attorney for the class members.

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“We are all extremely pleased and proud to have driven this tough fought case through certification, appeals after which right into a settlement and resettlement that generated almost $40 million for a class of bank employees,” O’Connor said in an email Friday.

“Scotiabank has confirmed in a very material way that it will recognize the significant contributions of their employees over many years. Let’s hope it inspires exactly the same recognition at other employers across Canada.”

In addition to the cash being paid to frontline sales staff, the bank may have paid as many as $12.5 million in legal fees during the period of both settlements, O’Connor said.

Scotiabank spokesman Rick Roth said the bank is pleased to reach the final stage in the case.

“The financial institution values each employee and recognizes that their contributions are an integral part of our ongoing success,” he explained within an email.

The lawsuit was originally filed in December of 2007 by Cindy Fulawka, an individual banking representative at Scotiabank, who alleged that the institution breached the minimum standards of overtime compensation deliver to by the Canada Labour Code, as well as employment contracts.

Fulawka, who first joined the financial institution in a Saskatchewan branch in 1986, also alleged the bank was unjustly enriched by keeping money for itself that should have been paid as wages.