Arbitration Agreement After Dispute

By 11 September 2021 Uncategorized

In her complaint, Ms. Sutherland attempted to enforce her rights under national minimum wage and overtime legislation. The Federal Act on Fair Labour Standards contains a provision that expressly allows complaints of minimum wage and overtime violations to be filed on a collective basis. Mr. Sutherland tried to use this provision, but in order to do so, it had to avoid the force of the arbitration clause, which stipulated that it could only bring a case on an individual basis. To that end, she argued that if she were to settle her claim on an individual basis, it would cost her $160,000 in legal fees, more than US$6,000 on other costs, and more than US$25,000 in expert testimony. In total, she claimed, she would have to spend nearly $200,000 to recover less than $2,000 in unpaid overtime.


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