What is the test for a settlement of an overtime class action?

In Corless v. KPMG LLP, [2008] O.J. No. 3092 (S.C.J.), Perell J. approved a settlement of an overtime class action against a large public accounting and consulting firm. After the commencement of the class action, the employer had taken steps to voluntarily establish an “Overtime Redress Plan” to provide previously unpaid overtime to a group of over 10,000 current and former employees. The plan was subsequently adopted as the mechanism to resolve the claims asserted in the class action. The basic structure of the plan is described in the reasons of Perell J. approving the settlement. He noted that there was an elaborate process to determine claims for overtime, with a built-in mediation and arbitration process for claims that were not resolved on a summary basis. Perell J. found at para. 40 that the settlement was “fair, reasonable, adequate” and “in the best interests of the Class”.