NOTICE TO CLASS
RE: DISCONTINUANCE OF PROPOSED CLASS ACTION
AGAINST MICHAEL STORES, INC. AND MICHAELS OF CANADA, INC.
The lawsuit commenced against Michaels Stores, Inc. and Michaels of Canada, Inc. (together “Michaels”) by James Cotton and Suzette Kennedy in the Ontario Superior Court of Justice is being discontinued on the advice of counsel and with the approval of the Court.
The lawsuit was commenced as a proposed class proceeding under the Class Proceedings Act, S.O. 1992, c. 6.
Cotton and Kennedy alleged that affected employees of Michaels who were classified as “supervisory/managerial” and paid on a salary basis without receiving pay for overtime hours worked in excess of 44 hours per week, actually performed tasks that were primarily non-supervisory/non-managerial in nature, thus entitling them to overtime pay.
Cotton and Kennedy are receiving a payment of compensation from the defendants in settlement of their personal claims.
The discontinuance of the lawsuit means that it is not going forward or being pursued.
If you are/were relying on this proposed class proceeding to protect your rights, you should seek your own legal advice immediately.
Discontinuance of the proposed class proceeding will mean that applicable limitation periods in respect of these claims, which limitation periods had been suspended, will now run again.
Statement of Claim
Overview of Claim
A Statement of Claim was issued in the Ontario Superior Court of Justice on December 20, 2002 for damages and other relief against Michaels Stores, Inc., The Arts and Crafts Superstore.
The claim has been brought on behalf of a class consisting of any persons in Canada who were/are former employees/employees of Michaels who worked in excess of 44 hours in any given week without receiving overtime pay.
The Statement of Claim, which contains allegations yet to be proven in court, alleges that managers and assistant managers at Michaels retail stores across Canada routinely worked in excess of 44 hours per week performing mainly non-supervisory/non-managerial tasks and that Employment Standards legislation requires that Michaels pay overtime pay to those employees at the rate of 1-½ times the regular rate for each hour over 44 hours in a week.
The Statement of Claim alleges that Michaels specifically required that its store managers and assistant managers work 60 hours or more per week during busy peak sales periods. The pre-Christmas period is one such busy sales peak for Michaels and many other retailers.
It is suspected that the problem is widespread in the retail sector and that Michaels is not the only alleged offender.
Michaels is a publically traded company on the New York Stock Exchange (NYSE) and trades under the symbol “MIK”.
Michaels is the world’s largest retailer of arts, crafts, framing, floral, decorative wall decor and seasonal merchandise for the hobbyist and do-it-yourself home decorator.
The Statement of Claim alleges that Michaels owns and operates approximately 30 stores in Canada along with close to 700 stores in the United States.
The Statement of Claim alleges that Michaels knew or ought to have known that by classifying employees as supervisory or managerial, it would avoid liability for proper payment of overtime pay required pursuant to Employment Standards legislation.
The Statement of Claim requests that Michaels pay all such present and former employees for all overtime hours worked in excess of 44 hours per week in any given week at the rate of 1-½ times the regular rate of pay, for all such weeks.
The plaintiff has served its Motion seeking certification of the action as a class proceeding. The defendant has not yet responded to the Motion by filing materials.
It is anticipated that the defendant will shortly file its responding materials and that the Court will set a date for hearing the Certification Motion.
At this point, the plaintiff expects that the Motion will be heard early in 2006.
We are compiling a database of individuals who live in Canada who were/are former employees/employees of Michaels who worked in excess of 44 hours in any given week without receiving overtime pay.
If you have not contacted us, we would appreciate hearing from you as it may assist us in pursuing this claim. You may contact us by e-mail, telephone, mail, courier, fax, etc.
If you would like more information regarding this claim or wish to be added to our database of claimants, you may e-mail us at: email@example.com
You can also access our class action hotline at 1-905-523-8048
You can contact us directly by telephone at Scarfone Hawkins LLP
You can contact us by fax at 1-905-523-5878.
Due to the volume of inquiries, please allow one week for a response.