Gym giant GoodLife Fitness has settled a class-action lawsuit over unpaid wages for $7.5 million, after employees 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, and created “an unlawful barrier to payment of overtime” at its 166 locations across Ontario.
Last year, the scope of the suit was expanded nationwide — so the settlement, which is pending court approval, will impact thousands of current and former non-managerial employees across Canada.
After the $60 million class action launched, GoodLife made significant changes to its payment policies. It began paying personal trainers for their prospecting hours and removed clawbacks on their commission. It also began paying trainers for preparation and administrative tasks and paying lieu time at time-and-a-half, rather than straight time, as required by law.