Summary: After the Canadian Imperial Bank of Commerce (CIBC) was found to have engaged in serious, long-term wage theft, it reached a $153 million class action settlement with past and current workers. Wage theft happens in every country and in all industries, however, workers are increasingly blowing the whistle on companies engaging in these violations and taking action to recover their unpaid back overtime wages. If you believe your employer owes you back wages, do not wait to contact an attorney to get the legal help you deserve.
Overtime pay violations occur across all industries and affect workers around the world. A recent story involving the Canadian Imperial Bank of Commerce (CIBC) and its $153 million class action settlement with current and former employees is just one example of the broad economic impact that these violations can have on workers.
The CIBC story is also a notable example of the consequences that companies face when they engage in illegal wage theft. If you believe that your employer has engaged in illegal employment practices, contact an unpaid wages attorney immediately to get more information about your legal rights.
The Story Behind CIBC’s $153 Million Settlement
In 2007, more than 30,000 employees of CIBC commenced a class action lawsuit against the bank for overtime pay violations. These workers ranged from customer service representatives to assistant branch managers.
- The plaintiffs alleged that CIBC had engaged in illegal wage practices involving failure to pay overtime going all the way back to the 1990s
- CIBC had consistently failed to pay overtime to its workers despite expecting them to work overtime hours
- The class action also alleged that CIBC engaged in policies that discouraged pre-approval for overtime pay or seeking overtime pay
The 2007 class action sought $500 million in damages for unpaid overtime. CIBC habitually denied liability, and the lawsuit dragged on for 15 years before reaching the Court of Appeals in 2022. The Court dismissed CIBC’s appeal.
It essentially determined that CIBC engaged in unlawful policies in how it recorded hours of work and overtime, which created consistent challenges to employees securing rightful overtime pay. Subsequently, CIBC entered into a $153 million settlement with the 30,000 workers, which includes:
- Back pay
- Attorney’s fees
- The cost of distributing settlement funds
Filing an Unpaid Overtime Claim
While some employees are exempt from overtime pay, many jobs are entitled to overtime. Individuals exempt from overtime can include:
- Executives
- Administrative personnel
- Individuals with expert computer programming skills
- People in outside sales roles
Many employers misclassify positions as a way to avoid paying overtime. Employees who bring a lawsuit for unpaid overtime are often entitled to payment for lost wages plus liquidated damages equal to the unpaid wages the employer owes.
An Attorney Can Help Protect Your Right to Unpaid Overtime
If you suspect your employer has not paid you the overtime you deserve, you do not have to face the system alone. A qualified lawyer can carefully review your case and help you understand the best legal options.
We work on a contingency fee basis, which means that we do not get paid unless we win your case. You need an attorney who will put your interests first and leave no stone unturned to secure positive results for your case. Contact us today by submitting your information through the chat or intake form to receive your free confidential review.
