Judge approves GoodLife class action deal
Some 22,000 employees eligible to receive portion of $7.5-million settlement
Ajudge has approved a $7.5 million class action lawsuit settlement, launched after employees of gym giant GoodLife Fitness claimed the company “systematically failed” to accurately compensate them for hours of work and overtime.
The suit, originally filed in October 2016 by Toronto-based labour law firm Goldblatt Partners, alleged that the gym did not pay employees for certain kinds of work, such as preparation for classes and seeking out new clients, creating “an unlawful barrier to payment of overtime” at its 166 locations across Ontario.
The scope of the suit was later expanded to GoodLife outlets across Canada.
Some 22,000 current and former employees are covered by the class action.
After the suit was filed, GoodLife made significant changes to its practices, including scheduling paid prospecting time for personal trainers and removing clawbacks on their commissions.
It also now pays trainers for preparation and administrative tasks and pays lieu time at timeand-a-half, as required by law, rather than straight time.
Acting for Carrie Eklund, a Toronto-based personal trainer and the class action’s representative plaintiff, lawyers Charlie Sinclair and Josh Mandryk said at their settlement hearing that GoodLife’s payment changes made the claim largely “historical” in nature and paved the way for a settlement agreement. Think you may be impacted? Here are some of your questions answered, as set out by the settlement approved by Superior Court Justice E.M. Morgan on Tuesday:
Who is eligible for payments?
All current and former nonmanagerial staff of GoodLife Fitness clubs across Canada, except Quebec, who worked at the gym during the time period covered by the suit (see below).
Fit4Less outlets were not included in the class action.
How will the settlement be distributed?
The $7.5 million will be allocated as follows:
$5.5 million will be divided among personal trainers;
$150,000 for club opening specialists; $800,000 for fitness advisers; $1,050,000 for all other nonmanagerial job categories.
How much will individuals get?
GoodLife will calculate individual payments based on the number of recorded hours worked by each individual during the time period covered by the class action. Here are conservative estimates for individual payments if you worked for the entire time period: $2,500 for personal trainers; $1,600 for fitness advisers; $7,500 to $10,000 for club opening specialists;
$150 for all other job categories; Amounts worth less than $50 will not be paid.
Is there a deadline?
GoodLife must make the payments within 90 days of the settlement’s final approval, which came July 3.
If cheques aren’t cashed within six months, GoodLife will donate the uncashed funds to the Canadian Cancer Society.
How are payments made?
If you were non-managerial staff who worked at GoodLife during the time periods set out below, you don’t need to do anything to receive payment — unless you moved and have not updated your contact details with GoodLife.
Cheques will be sent automatically to home addresses.
The only requirement, where necessary, is to notify GoodLife of a change of address.
What time period does the class action cover?
For personal trainers: Oct. 12, 2014 to Dec. 31, 2017;
For club opening specialists: Oct. 12, 2014 to March 30, 2017;
For fitness advisers: Oct. 12, 2014 to Feb. 28, 2018;
For all other classes of nonmanagerial employees: from Oct. 12, 2014 to Feb. 28, 2018.
What if I work for a unionized GoodLife gym?
The period for which you are eligible for compensation ends slightly earlier — Dec. 5, 2017, the date collective agreements came into effect at unionized GoodLife gyms.
For more information visit goodlifeclassaction.com.