23 Feb 2023
Phillip v. Deloitte Management Services LLP et al
The case of Phillip v. Deloitte Management Services LLP et al, dated February 23, 2023, involved nearly eight years of legal battles and a challenging certification process. A class-action lawsuit alleging employee misclassification and violations of provincial employment standards had reached a settlement totaling $2.4 million.
The lawsuit had revolved around approximately 500 individuals who had provided document review and e-discovery services to third parties under independent contractor agreements with the defendants. The claim had sought damages related to the defendants' failure to compensate document reviewers for benefits mandated by the Employment Standards Act, including minimum hourly wage, overtime pay, vacation pay, holiday pay, as well as damages concerning CPP payments and EI payments.
The court had approved various aspects of the settlement, including the $2.4 million settlement amount, legal fees, taxes, and disbursements totaling $966,845.63, and a payment of $152,821.43 to the Class Proceedings Fund, which had supported the lawsuit's costs.
Regarding distribution and notices, a fair and reasonable plan had been outlined for class members to submit claims, with Class Counsel overseeing the process.
The most debated issue during the hearing had been the request for an honorarium of $20,000 for the representative plaintiff, Mr. Phillip. While acknowledging his valuable contributions, the court had emphasized that such payments were only warranted in cases of truly extraordinary effort or financial hardship. Ultimately, an $8,000 honorarium had been awarded to Mr. Phillip due to the personal and financial challenges he had faced.