Class Action — Ontario Employment Law
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About Class Action
What happens when an employer's unlawful practice affects not just one employee, but hundreds or even thousands? Pursuing a small individual claim for a few hundred dollars in unpaid wages might not be worth the time and expense. This is where a class action lawsuit becomes a powerful tool for justice in the workplace. A class action is a legal procedure where one or more individuals, known as representative plaintiffs, can file a lawsuit on behalf of a larger group, or 'class,' of people who have experienced the same or a very similar legal injury.
In Ontario, class actions are governed by the Class Proceedings Act, 1992. The core idea is to provide access to justice and improve judicial economy by bundling many small, similar claims into a single, efficient case. For a lawsuit to proceed as a class action, a judge must first 'certify' it. This involves meeting a five-part test, which includes showing that there is an identifiable class of two or more people, that there are common legal or factual issues among all class members, and that a class action is the preferable procedure for resolving the dispute.
Common employment-related class actions in Ontario often involve systemic breaches of the Employment Standards Act, 2000 (ESA). These can include widespread employee misclassification (treating employees as independent contractors to avoid paying benefits), systemic failure to pay overtime, improper calculation of vacation or public holiday pay, or illegal deductions from wages across an entire workforce. As seen in many court cases, even large, sophisticated employers can face class actions for these types of company-wide issues. However, employers may defend against certification by arguing that each employee's situation is too different, or by trying to enforce mandatory arbitration clauses in employment contracts, which can prevent employees from going to court at all. Given the procedural complexity and high stakes, navigating a potential class action requires a deep understanding of the law, making specialized legal guidance essential.
Frequently Asked Questions
What is an employment class action in Ontario?
An employment class action is a lawsuit where one or more employees sue an employer on behalf of a larger group of current or former employees who share a common legal complaint. This process is governed by Ontario's Class Proceedings Act, 1992 and is used to address systemic workplace issues efficiently.
What are the most common reasons for an employment class action?
The most frequent claims involve systemic violations of the Employment Standards Act, 2000, such as widespread misclassification of employees as contractors, unpaid overtime for a whole category of staff, or incorrect calculation of vacation and termination pay for many employees.
If a class action is started against my employer, am I automatically included?
Yes, generally. In Ontario, most class actions are 'opt-out,' meaning if you fit the description of the class (e.g., 'all retail cashiers employed since 2020'), you are automatically included unless you take formal steps to remove yourself from the lawsuit.
Does it cost me anything to be part of a class action?
Typically, no. Class action lawyers (class counsel) are usually paid on a contingency fee basis. This means they are paid a percentage of the final settlement or court award, which must be approved by a judge. If the case is unsuccessful, the class members owe nothing.
My employment contract has a mandatory arbitration clause. Can I still join a class action?
This is a significant barrier. Ontario courts have increasingly enforced valid arbitration clauses, which can prevent an employee from participating in a class action and require them to resolve their dispute through individual arbitration instead. The enforceability of such a clause is a complex legal question.
How long does a typical employment class action take to resolve?
Be prepared for a very long process. Due to their complexity, involving certification motions, appeals, and extensive evidence gathering, employment class actions can often take many years from the initial filing to a final settlement or judgment.
I believe my employer is systematically underpaying my entire department. When should I see a lawyer?
You should consult a lawyer specializing in employment class actions as soon as you have gathered some evidence of the systemic issue (like pay stubs or internal memos). They can assess whether the problem is widespread enough and meets the legal criteria to be certified as a class action.
Common Scenarios
- A national delivery company classifies all its drivers as independent contractors, denying them overtime pay, vacation pay, and other protections under the Employment Standards Act, 2000.
- A financial institution implements a company-wide policy that incorrectly calculates vacation pay by excluding commissions and bonuses from the calculation for hundreds of sales employees.
- A chain of restaurants requires all servers to pay for customer 'dine-and-dash' incidents out of their tips, a practice that constitutes an illegal deduction from wages under the ESA.
- A large corporation faces a class action alleging systemic gender-based discrimination in its promotion and compensation practices, affecting female employees across multiple departments.
- A call centre fails to pay hundreds of employees for the 15 minutes they are required to be at their desks before their official shift starts to boot up their computers.
What You Should Know
- If you notice a potential widespread issue, keep meticulous records of your pay, hours, and any company policies or communications related to the problem.
- Discreetly speak with trusted colleagues to see if they are experiencing the same issue; the strength of a class action lies in the commonality of the claim.
- Review your employment contract carefully for any 'mandatory arbitration' clauses, as this could be a major obstacle to participating in a court-based class action.
- Before taking action, a quick online search can reveal if a class action lawsuit has already been filed against your employer for the issue you've identified.
- Class actions are a highly specialized legal area. If you believe you have a claim, it is crucial to consult with an employment law firm that has specific experience with class action certification and litigation.
Featured Cases
Ngan v. The Bank of Nova Scotia
2025 ONSC 2354 (CanLII) · 2025-04-16Class Action Employment Case: Bank of Nova Scotia - Certification and Vacations
A class action case involving the Bank of Nova Scotia where the court certified a class of employees who received incentive awards or RSUs, addressing whether these constitute 'wages' under the Canada Labour Code. The court also granted partial discontinuance of claims related to unused and expired vacation days and approved amendments to the claim to reflect individualized issues.
Morris v. Solar Brokers Canada Corp.
2024 ONSC 3727 (CanLII) · 2024-06-28Class Action Employment Case: Settlement and Fees Approved
A class action case involving the misclassification of workers as independent contractors instead of employees, leading to claims for unpaid wages, overtime, vacation pay, and other benefits under the Employment Standards Act. The court approved the settlement agreement, notice plan, and distribution plan, and also approved the fees requested by the class counsel.
Davidson v. T.E.S. Contract Services Inc.
2024 ONSC 1044 (CanLII) · 2024-02-20Class Action: Employment Standards and Independent Contractor Classification
A class action certification motion regarding the classification of workers as employees under the Employment Standards Act, focusing on the relevance of the defendant's temporary help agency licence application. The court ordered production of relevant portions of the application, subject to redactions, to inform the certification process.
Wasylyk v. Lyft
2024 ONSC 664 (CanLII) · 2024-01-30Lyft Class Action: Arbitration Agreements and Employment Standards
A class action case involving Lyft drivers who alleged they were employees under the Employment Standards Act, 2000. The court granted a stay of the class action in favour of arbitration, upheld the enforceability of arbitration provisions, and found the arbitration agreement lawful under the Employment Standards Act, 2000. Summary judgment was not granted due to the need for individual assessments.
Davis v. Amazon Canada Fulfillment Services, ULC
2023 ONSC 3665 (CanLII) · 2023-06-19Class Action Employment Case: Arbitration Agreements and Misclassification
A class action case involving Delivery Partners (DPs) and Driver Associates (DAs) against Amazon Canada Fulfillment Services, ULC. The court enforced arbitration agreements for DAs, denied certification for DAs and DPs due to failure in meeting class action criteria, and ruled on the common employer status and misclassification of employees under employment law.
Heller v. Uber Technologies Inc.
2023 ONSC 1942 (CanLII) · 2023-03-27Uber Class Action: Employment Relationship and Arbitration Clause
A class action case where plaintiffs alleged they were employees of Uber and sought to challenge the enforceability of the Class Action Waiver and Arbitration Clause in Uber’s Service Agreements. The court determined whether the relationship between the parties is governed by employment law and whether the claims were statute-barred under the two-year limitation period.
Singh v. RBC Insurance Agency Ltd.
2023 ONSC 1439 (CanLII) · 2023-03-02Employment Standards Class Action: RBC Insurance Agency Ltd. and Aviva General Insurance Company
A class action lawsuit against RBC Insurance Agency Ltd. and Aviva General Insurance Company regarding alleged non-compliance with employment standards, particularly regarding vacation and public holiday pay. The court certified the class action, subject to modifications, and addressed issues of class definition, representative plaintiff adequacy, and the possibility of aggregate damages.
Cunningham v. RBC Dominion Securities
2022 ONSC 5862 (CanLII) · 2022-12-29Class Action Employment Standards: RBC Dominion Securities Breach
A class action lawsuit was certified under the Class Proceedings Act, 1992, addressing systemic non-compliance with employment standards legislation for vacation and public holiday pay among commissioned employees. The court granted certification as the requirements under s. 5(1) were satisfied, and the representative plaintiff was deemed suitable.
Le Feuvre v. Enterprise Rent-A-Car Canada Company
2022 ONSC 4136 (CanLII) · 2022-07-15Class Action Employment Case: Misclassification of Branch Managers as Overtime-Exempt
A class action case regarding the misclassification of branch managers as overtime-exempt employees, challenging the commonality of issues and the methodology for assessing damages. The court denied certification due to lack of commonality and rejected the proposed methodologies for damages assessment.
Heller v. Uber Technologies Inc.
2022 ONSC 1996 (CanLII) · 2022-03-31Uber Class Action: Employment Misclassification and Certification Order
A class action case regarding employment misclassification and breaches of employment contracts against Uber Technologies Inc. The court addressed disputes over the Certification Order's phrasing and costs of the motion.
Bourque v. Cineflix
2021 ONSC 8464 (CanLII) · 2021-12-23Class Action Employment Case: Settlement and Fees Approval
A class action case involving the misclassification of workers and alleged failure to pay overtime, holiday, and vacation pay under the Employment Standards Act, 2000. The court is considering the approval of a settlement and the fees for class counsel, as well as an honorarium for a representative plaintiff.
Baroch v. Canada Cartage
2021 ONSC 7376 (CanLII) · 2021-11-10Class Action Employment: Overtime and Misclassification Settlement
A class action lawsuit alleging systemic failure to pay overtime and misclassification of employees under the Canada Labour Code was settled for $22.25 million after eight years of litigation. The court must assess the fairness of the settlement, honorarium for the representative plaintiff, and legal fees for class counsel.
Navartnarajah v. FSB Group Ltd.
2021 ONSC 5418 (CanLII) · 2021-08-11Class Action Employment Case: Misclassification of Independent Contractors
A class action was certified for workers misclassified as independent contractors, seeking statutory entitlements under the Employment Standards Act. The court found the claims met the criteria for certification, including common issues and a preferable procedure.
Brown v. Procom Consultants Group Ltd.
2021 ONSC 4185 (CanLII) · 2021-06-09Employee Misclassification Class Action: Substitution of Representative Plaintiff
A class action case regarding employee misclassification where the court must decide whether to substitute a representative plaintiff and whether her claim is tenable despite the limitations defence and her job-seeking activities.
Aps v. Flight Centre Travel Group
2020 ONSC 6779 (CanLII) · 2020-11-12Class Action Settlement for Unpaid Overtime: $7 Million Approved
A class action case regarding unpaid overtime claims for employees of Flight Centre Travel Group. The court certified the settlement for $7 million and approved a distribution protocol based on employment duration, as well as an honorarium for the representative plaintiff and legal fees for class counsel.
Montaque v. Handa Travel Student Trip Ltd.
2020 ONSC 6459 (CanLII) · 2020-10-23Class Action Employment Misclassification: Trip Leaders Entitled to Wages and Benefits
A class action case where Trip Leaders, previously classified as volunteers, were granted certification to pursue claims for wages and benefits under the Employment Standards Act, 2000. The court also addressed the breach of contract and unjust enrichment claims related to the misclassification.
Fresco v. Canadian Imperial Bank of Commerce
2020 ONSC 4288 (CanLII) · 2020-08-10Class Action Employment Case: Unpaid Overtime and Contract Breaches
A class action lawsuit against the Canadian Imperial Bank of Commerce regarding unpaid overtime, breach of employment contracts, and unjust enrichment. The court certified a common issue for aggregate damages and found no punitive damages due to the defendant's conduct.
Singh v. RBC Insurance Agency Ltd.
2020 ONSC 182 (CanLII) · 2020-01-20Class Action Employment Standards: Common Employer Doctrine and Costs
A class action case involving RBC Insurance Agency Ltd. regarding employment standards violations and common employer status. The court considered whether a summary judgment motion should be scheduled before a certification motion and applied principles from various legal cases. The case also involved statutory interpretation of the Employment Standards Act, 2000, and workplace health and safety costs.
Bozsik v. Livingston
2019 ONSC 5340 (CanLII) · 2019-09-16Class Action Employment: Unpaid Overtime Settlement Approved
A class action for unpaid overtime claims was certified and settled for $19 million. The court approved the settlement and distribution protocol, as well as the contingency fees for class counsel and the fees of the amicus curiae.
Omarali v. Just Energy
2019 ONSC 3734 (CanLII) · 2019-06-21Employment Status Dispute: Just Energy Sales Agents Entitled to Trial
A class action lawsuit regarding the employment status of sales agents for Just Energy. The court dismissed a motion for summary judgment, ruling that genuine issues of fact exist regarding the agents' classification and entitlement to statutory benefits, necessitating a full trial.