NOTICE TO CLASS
RE: DISCONTINUANCE OF PROPOSED CLASS ACTION
AGAINST MICHAEL STORES, INC. AND MICHAELS OF CANADA, INC.
The lawsuit commenced against Michaels Stores, Inc. and Michaels of Canada, Inc. (together “Michaels”) by James Cotton and Suzette Kennedy in the Ontario Superior Court of Justice is being discontinued on the advice of counsel and with the approval of the Court.
The lawsuit was commenced as a proposed class proceeding under the Class Proceedings Act, S.O. 1992, c. 6.
Cotton and Kennedy alleged that affected employees of Michaels who were classified as “supervisory/managerial” and paid on a salary basis without receiving pay for overtime hours worked in excess of 44 hours per week, actually performed tasks that were primarily non-supervisory/non-managerial in nature, thus entitling them to overtime pay.
Cotton and Kennedy are receiving a payment of compensation from the defendants in settlement of their personal claims.
The discontinuance of the lawsuit means that it is not going forward or being pursued.
If you are/were relying on this proposed class proceeding to protect your rights, you should seek your own legal advice immediately.
Discontinuance of the proposed class proceeding will mean that applicable limitation periods in respect of these claims, which limitation periods had been suspended, will now run again.
Statement of Claim
Click Here
to Read the Amended Statement of Claim
Click Here to
Read the Statement of Claim
Overview of Claim
A Statement of Claim was issued in the Ontario
Superior Court of Justice on December 20, 2002 for damages and other relief against
Michaels Stores, Inc., The Arts and Crafts Superstore.
The claim has been brought on behalf of a
class consisting of any persons in Canada who were/are former employees/employees
of Michaels who worked in excess of 44 hours in any given week without receiving
overtime pay.
The Statement of Claim, which contains allegations
yet to be proven in court, alleges that managers and assistant managers at Michaels
retail stores across Canada routinely worked in excess of 44 hours per week performing
mainly non-supervisory/non-managerial tasks and that Employment Standards legislation
requires that Michaels pay overtime pay to those employees at the rate of 1-½ times
the regular rate for each hour over 44 hours in a week.
The Statement of Claim alleges that Michaels
specifically required that its store managers and assistant managers work 60
hours or more per week during busy peak sales periods. The pre-Christmas period
is one such busy sales peak for Michaels and many other retailers.
It is suspected that the problem is widespread
in the retail sector and that Michaels is not the only alleged offender.
Michaels is a publically traded company on
the New York Stock Exchange (NYSE) and trades under the symbol "MIK".
Michaels is the world's largest retailer of
arts, crafts, framing, floral, decorative wall decor and seasonal merchandise
for the hobbyist and do-it-yourself home decorator.
The Statement of Claim alleges that Michaels
owns and operates approximately 30 stores in Canada along with close to 700 stores
in the United States.
The Statement of Claim alleges that Michaels
knew or ought to have known that by classifying employees as supervisory or managerial,
it would avoid liability for proper payment of overtime pay required pursuant
to Employment Standards legislation.
The Statement of Claim requests that Michaels
pay all such present and former employees for all overtime hours worked in excess
of 44 hours per week in any given week at the rate of 1-½ times the regular
rate of pay, for all such weeks.
The plaintiff has served its Motion seeking
certification of the action as a class proceeding. The defendant has not yet responded
to the Motion by filing materials.
It is anticipated that the defendant will
shortly file its responding materials and that the Court will set a date for
hearing the Certification Motion.
At this point, the plaintiff expects that
the Motion will be heard early in 2006.
We are compiling a database of individuals
who live in Canada who were/are former employees/employees of Michaels who worked
in excess of 44 hours in any given week without receiving overtime pay.
If you have not contacted us, we would appreciate
hearing from you as it may assist us in pursuing this claim. You may contact
us by e-mail, telephone, mail, courier, fax, etc.
|
