Junior hockey employment lawsuit on thin ice; judges refuse to OK $30-million deal

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A $30-million settlement of three class actions over the alleged failure to pay junior hockey players the minimum wage has been thrown into jeopardy after three judges refused to sign off on the agreement.

In their decisions, the judges in Ontario, Quebec and Alberta objected to wording in the settlement they said was too broad and could prevent the players from pressing other legitimate claims.

The plaintiffs in the three lawsuits alleged the Ontario Hockey League, Western Hockey League and Quebec Major Junior Hockey League and their affiliated clubs -- all operate under the umbrella of the Canadian Hockey League -- failed to treat them as employees. In response, the leagues argued, among other things, that the players were amateur athletes and not employees. Nevertheless, in March, the leagues agreed after mediation to pay $30 million to settle the lawsuits -- with about $9 million going to the players' lawyers.

"To be blunt about it, in the immediate case, in my opinion, once the 11th-hour objection arrived, class counsel should have withdrawn their motion for settlement approval until the matter of the prejudicial scope of the release was resolved," Perell said. "What is required is a renegotiation of the release provisions of the settlement agreement."

 

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