Toronto Dominion Bank Faces Potential $500-Million Class Action Suit
A class action lawsuit has been launched against TD Bank (TSX: TD), accusing the institution of failing to properly compensate its mobile mortgage specialists for vacation and public holiday pay linked to their commissions, volume bonuses, and other variable earnings. The lawsuit is seeking total damages of up to $500 million.
The statement of claim, which has been submitted to the Ontario Superior Court of Justice, aims to represent the interests of over 1,000 TD mobile mortgage specialists located throughout Canada. These specialists allege that they are owed vacation and holiday pay on top of their standard commissions and non-salary compensation, which they claim has not been duly provided.
Jason Chiang, a seasoned mobile mortgage specialist with nearly 13 years of service at TD Bank in Vancouver, has been put forward as the proposed representative plaintiff. “It is important to me that a court assess whether these mobile mortgage specialists are being paid the vacation and holiday pay required by the employment legislation,” stated Chiang. “I am pleased to advance this case for all these employees.”
Under the federal Canada Labour Code, employees covered by the legislation, including those who receive commissions and bonuses as part of their compensation, are entitled to vacation pay ranging from four to eight percent of their gross or total wages, depending on their length of employment. The Code also mandates additional pay for statutory public holidays. Many employees across various industries may not be fully aware of these minimum employment standards and how they apply to them.
A legal team based in Toronto is representing Jason Chiang, featuring David O’Connor of Roy O’Connor LLP, Stephen Moreau of Cavalluzzo LLP, and Daniel Lublin of Whitten & Lublin PC. They emphasize the significance of adhering to minimum employment standards for all workers. The legal team intends to seek certification for this class of employees, and if certified, the court will subsequently examine the issues raised in the claim.
It is important to note that the allegations in the claim have not yet been tested or proven in a court of law. It is anticipated that TD Bank will mount a defense against the lawsuit and deny the allegations made therein.
Most recently, TD Bank witnessed a decline in earnings in Q3 2023 compared to the previous year. The reported earnings saw an 8% decrease from the same period in the previous year, while adjusted earnings slipped by 2%.
TD last traded at $80.74 on the TSX.
Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
