KPMG in law suit over unpaid overtime

I am feeling really tired today trying to do some songs searching and see what is appropriate for my wedding dinner and which one I should embarrass myself on stage. Hence, not much time to blog and I shall leave you with this piece of news which came to my attention last month. I have pasted the article below.

As for those formerly Ernst & Young, you might want to have a look at the debate on overtime payment that’s happening here. Apparently EY is also under a lawsuit over unpaid overtime… Very interesting time we live in…

I wonder such thing will ever happen in Malaysia… you’ll never know.

RITA TRICHUR
BUSINESS REPORTER

KPMG LLP has become the second high-profile employer to be slapped with an unpaid-overtime class-action lawsuit and could face damages worth millions of dollars, says the lawyer for the lead plaintiff.

The suit against the Canadian division of KPMG, which provides audit, tax, and advisory services, comes on the heels of similar action in June against Canadian Imperial Bank of Commerce. Both cases were filed in Ontario Superior Court.

"Professional services firms are under the impression that because they are professional service firms, they are outside the purview of the overtime rules," said lawyer Henry Juroviesky, of Juroviesky and Ricci LLP.

That's because chartered accountants make up the bulk of KPMG's staff and are excluded from overtime provisions, he said. The firm, however, has a diverse workforce that includes other professionals subject to the rules. The suit's proposed class covers those employees who worked more than 44 hours in a week without overtime.

"This class action will hopefully make them cognizant of that fact and lead to behaviour modification on the part of these firms," Juroviesky said in an interview.

The lead plaintiff is Toronto resident Alison Corless, who was employed as a "technician" at KPMG from 2000 to 2004. She alleges she is owed $87,000 in overtime for that period.
According to the statement of claim: "It is well known in the accounting and professional industry that hours worked by a productive employee are approximately one-third more than the hours they charge."

The suit alleges breach of Ontario's Employment Standards Act and breach of contract. It seeks $20 million in general damages for the class, but Juroviesky estimated the claim is viable for damages between $65 million and $100 million.

The case has not been certified and none of the allegations has been proven in court.
KPMG issued a statement saying it values its employees, adding it provides "a competitive compensation and benefits package in keeping with its goal of being an employer of choice."

"Our comprehensive compensation practices include overtime policies which comply with applicable legislative requirements. We have only recently received this lawsuit and will be reviewing it in detail with our counsel before making any further response," it added.