CIBC hit with overtime class-action lawsuit

Suit seeks $600 million in damages for unpaid overtime for thousands of non-management, non-union employees across Canada

CIBC is facing a $600-million class-action lawsuit over unpaid overtime.

Dara Fresco, 34, a teller who has worked at the bank for almost 10 years, is spearheading the action with the help of Sack Goldblatt Mitchell LLP and Roy Elliott Kim O’Connor LLP.

Fresco, who says she currently earns $30,715 per year, claims she is owed about $50,000 in unpaid overtime at the bank. The class-action lawsuit, which was filed in Toronto on June 4, is seeking compensation for alleged unpaid overtime hours worked by current and former non-management, non-unionized employees of CIBC in Canada who are or were tellers or other front-line customer service employees (limited to personal bankers, commercial bankers and account executives, working at CIBC retail branch offices across Canada).

At a press conference, Fresco said she has been with CIBC since 1998 as both a teller and a personal banking associate.

“I’ve been working for the CIBC since 1998 as both a teller and a personal banking associate,” she said. “During my time with the bank, I have worked my scheduled hours as well as additional hours, as was required to perform my job. From my observations and experience at over 12 branches where I have worked, this is a common occurrence.”

But Fresco said she didn’t have a problem with putting in the additional time.

“What is unfair is that my colleagues and I are rarely paid for the overtime we are working and that’s just not right,” she said. “I decided to seek out legal advice mainly to see if this was allowed and to find out what my options were. So, this is what brings me here today because it isn’t fair to work and not get paid for your time. It isn’t right for me and it isn’t right for my fellow colleagues.”

A statement on www.unpaidovertime.ca, a website setup to provide information on the lawsuit reads:“The lawsuit alleges that CIBC failed to compensate the class members for the overtime they have worked in excess of their standard working hours. The statement of claim alleges that the class members are required to work overtime and that CIBC fails to pay for the overtime work. The allegations in the statement of claim have not been proven in court. No statement of defence has yet been filed by CIBC.”

According to the Toronto Star, the statement of claim alleges that non-management employees at the bank are assigned heavy workloads that cannot be completed within standard working hours. The claim is seeking $500 million in damages on behalf of about 10,000 customer service staff and $100 million in punitive damages.

Rob McLeod, senior director of communications and public affairs, said CIBC employees are the cornerstone of the bank's strength as a company. In an e-mail to Canadian HR Reporter, McLeod said:

"We have comprehensive compensation, benefit and employment programs to ensure we attract, retain and reward our employees and create an environment where they can excel.

"With respect to overtime, we have a clearly defined policy as to how we compensate our frontline retail branch employees that exceeds legislative requirements in Canada.

"We have just received this lawsuit and will be reviewing it in detail prior to further response."

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