Executive Summary: Key Legal and Evidentiary Issues

• Entitlement to overtime pay for 2021 and 2022 required interpretation of company policy and assessment of corroborating evidence.

• Calculation and payment of unpaid overtime, statutory holiday pay, vacation pay, and RRSP contributions were central to the dispute.

• The effect of a signed letter by Ms. Brito regarding overtime hours was disputed, specifically whether it constituted settlement of her claims.

• Credibility of witnesses, particularly between Ms. Brito and Ecora’s representatives, was a pivotal issue in the court’s findings.

• Ecora’s counterclaim for repayment of severance based on alleged misconduct was found to be meritless and made in bad faith.

• Punitive damages and costs were considered due to the defendant’s conduct in bringing a bad faith counterclaim.

Facts of the case

Ms. Terilyn Brito worked as an engineer for Ecora Engineering & Environmental Ltd. from February 2021 until she was terminated without cause on October 19, 2023. Her work required her to work long hours out of town on job sites. After her termination, Ms. Brito sought judgment against Ecora in the amount of $46,892.79, constituting unpaid wages, RRSP contributions, statutory holiday pay, and vacation time, plus court-ordered interest. There was urgency to the judgment as Ecora had been sold and assets were to be distributed on September 5, 2025, after which any judgment would be unenforceable as Ecora would be a shell company.

Employment policy and overtime entitlement

Ms. Brito claimed she was authorized by Ecora to work, and be paid, for overtime. She asserted entitlement to overtime at time and a half for the first four hours worked in excess of eight per day and double time for hours over twelve in a day. For statutory holidays, she claimed time and a half for the first eight hours and double time after that. This was corroborated by Parviz Karmali, a Certified Human Resources professional and former executive at Ecora, who stated that in 2021 and 2022, Ms. Brito was authorized to work and be paid overtime at the rates specified. Internal emails showed that a payment for 90 hours of overtime at straight time was made to Ms. Brito, but management agreed she was entitled to time and a half, and payroll was instructed to make up the shortfall. The court found this email significant, proving Ms. Brito’s entitlement to overtime in 2021 and 2022 and undermining contrary evidence from Ecora’s witnesses. The court preferred the evidence of Ms. Brito and Ms. Karmali where it conflicted with that of Ecora’s representatives.

Disputed payments and calculation of entitlements

Ecora argued that Ms. Brito was not entitled to overtime until January 1, 2023, and that she was paid in full for her overtime, referencing a letter dated November 7, 2023, signed by Ms. Brito. The court found that by signing the letter, Ms. Brito agreed to the calculation of overtime hours, but not to the payment at straight time rather than overtime rates. The court accepted Ms. Brito’s calculations as fair and accurate and found that Ecora owed her $40,158.19 in unpaid overtime. Ecora agreed that Ms. Brito was underpaid $61.31 for statutory holidays and $1,267.02 for accrued vacation days. The court also found Ecora owed $438 for National Truth and Reconciliation Day, September 30, 2021. Regarding RRSP contributions, Ecora was obliged to match 2.5% deducted from Ms. Brito’s paycheque and remit it to the trust company. Ms. Brito demonstrated that Ecora still owed $1,088.77, which the court accepted.

Counterclaim and alleged misconduct

Ecora counterclaimed for repayment of severance, alleging that Ms. Brito made inappropriate comments to clients via song lyrics. Ms. Brito responded that the lyrics were written by drillers at the work site and were not intended to offend. The court accepted Ms. Brito’s explanation, found the counterclaim meritless and made in bad faith, and noted that such allegations can be harmful to a professional’s reputation.

Ruling and outcome

The court ordered Ecora to pay Ms. Brito $44,713.30, constituting the amount owing for unpaid overtime, vacation, statutory holidays, and RRSP contributions less the severance overpayment, plus prejudgment interest in the amount of $3,689.89 and costs. Ecora’s counterclaim was dismissed. Ecora was also ordered to pay punitive damages to Ms. Brito, with the amount to be determined after submissions.