Hotel Employees Laid Off Due to COVID-19 File Class Action Lawsuit

Beware of class action lawsuits by employees laid off during the COVID-19 pandemic. This case was filed by hourly rate hotel employees who claim they were constructively dismissed and thus entitled to termination notice, punitive and other damages. In addition to denying the charge, the hotel has challenged the employees’ right to bring it as a class action. The case is in its early stages. The immediate issue involves the pleadings and wording of the complaint. Once that’s all cleaned up, the BC court will have to decide whether a class action is warranted. If it okays the class action, the hotel will face the difficult decision of expensive settlement or going to trial and risking an even bigger damage award [Escobar v Ocean Pacific Ltd., 2021 BCSC 2414 (CanLII), December 10, 2021].