Cineflix class-action settlement good news for other workers

By Paul Russell, LegalMatters Staff • A class-action settlement worth at least $1 million sets an important precedent for any case where employers don’t pay workers overtime, vacation or holiday pay, says Toronto employment and labour lawyer Stephen J. Moreau.

A partner with Cavalluzzo LLP, he represented an estimated 800 to 900 individuals who worked at Cineflix from Oct. 6, 2016 to Sept. 1, 2021. They allege that Cineflix did not pay them overtime, vacation pay, and or holiday pay, all which must be paid pursuant to provincial minimum standards legislation.

Court documents describe Cineflix as “a global media production company which creates and produces reality television programs as well as scripted programs.”

“This settlement is important as it is the first-ever decision that compensates people working in the factual TV or reality TV industry for such things as unpaid overtime and vacation pay,” says Moreau.

He says that many people in the broader tv or film industries belong to unions and enjoy the benefits of having a collective bargaining agreement. “Cineflix does not have a union, and we were arguing that it has to individually properly compensate people legally for the work they are doing,” Moreau says. The class action, he added, “is a vehicle to try and ensure such pay is made systematically”.

Common on TV sets for people to wait around to work

He explains it is common on film and television sets to have people waiting for long periods of time to do the work they specialize in. “They are told, ‘Stick around, and maybe we will film that part later,’” Moreau says. “They might spend hours waiting for a certain scene to be shot, and they may not have been compensated for that time.”

He notes that Cineflix argued many people were hired on contract so they are not entitled to things like overtime or vacation pay since they are not employees. Another defence the company mounted was an argument that a substantial number of class members are employees who were paid a daily or weekly flat rate that allegedly compensates for any other shortcomings.

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“The company said that by paying them a sufficiently large sum of money for the week or the day, the flat rate effectively covers their overtime, their vacation pay and their holiday pay,” he says. “They said it was implicitly understood that everything is covered.”

The settlement approved by the court late in 2021 offers Cineflix two options, the first being to enter into collective bargaining with workers and to pay $1 million to class members. The second option is for Cineflix to pay an additional $1.5 million to class members if a collective agreement cannot be reached.

‘This is almost like two settlements in one’

“Unlike virtually every other settlement out there, this is almost like two settlements in one,” Moreau explains. “The settlement offers a choice to Cineflix. If they agree to a collective agreement, it will be the first negotiated settlement in the factual TV or reality TV industry in Canada.”

He says Cineflix should decide on an option by the end of March.

“Either way, this settlement is good for Cineflix workers, and good for workers in other industries, as it sets a strong precedent,” says Moreau.

“The next time there is a case with employers who don’t allegedly correctly pay overtime, vacation or holiday pay, this settlement will provide some guidance as to what is fair and reasonable to settle such a case.”

In the last paragraph of the document verifying his acceptance of the settlement, Ontario Superior Court Justice Benjamin T. Glustein praised Moreau and the other lawyers involved in this case: “I thank all counsel for their thorough preparation and assistance to the court,” he wrote. “The case is a model example of how counsel can vigorously represent their clients while at the same time acting at all times with courtesy and cooperation to each other and to the court.” 

A notice on the Cavalluzzo Law website invites others to join the class action.