Class Action Led by Taylor Mergui Expands to $32M as Transit Commission Added as Defendant
Lawsuit Against City Contractor Expands to $32 Million, TTC Added as Defendant
A class action lawsuit let by Partner Ryan O’Connor and Senior Associate Gurpreet Farmaha targeting a municipal contractor and the City of Toronto has expanded significantly, now seeking $32 million in damages and naming the Toronto Transit Commission (TTC) as an additional defendant. The claim alleges that hundreds of frontline security workers were improperly paid while performing duties at shelters, transit facilities, and other public sites across Toronto. What began as a dispute involving contractor One Community Solutions (OCS) has broadened to include multiple related entities and, now, the city’s transit authority.
Allegations of Cash Payments and Employment Violations
According to the statement of claim, some workers were paid in cash, off the books, or outside standard payroll systems. The suit also alleges irregular or missing wages, unpaid overtime, and other violations of provincial employment standards. Former workers say they were recruited and deployed quickly to fill urgent staffing needs at municipal locations, but were left without proper protections or consistent compensation. Many of those affected reportedly worked long hours in demanding conditions, including at shelters and transit hubs serving vulnerable populations.
TTC Named in New Filing
The lawsuit’s latest revision adds the TTC, alleging it benefited from or relied upon contracted security services tied to the disputed employment practices. In a brief response, TTC officials declined to comment on the legal matter, citing ongoing proceedings.
Contract Fallout
The dispute appears to have triggered operational changes. The city confirmed it has ended certain contracts associated with OCS. Other security providers have stepped in to ensure continuity at shelters and public facilities. Transit operations are expected to continue as normal, though staffing arrangements may be adjusted. Industry observers say the situation underscores the risks municipalities face when relying heavily on third-party vendors for essential frontline services. While outsourcing can offer flexibility and cost savings, gaps in oversight can expose governments to legal and reputational risk.
Broader Implications
The case could have wider consequences for how Toronto and other municipalities structure public-service contracts.
If the plaintiffs succeed, the lawsuit may set precedents around:
Liability for subcontracted labour practices
Oversight obligations for public agencies
Accountability when contractors fail to meet employment standards
Taylor Mergui Law Group says the action aims to secure compensation and ensure stronger protections for frontline employees.
What Comes Next
The matter is expected to proceed through the courts over the coming months. In the meantime, city officials say essential services will continue without disruption. For the workers at the centre of the case, the issue is more immediate: recovering unpaid wages and establishing clearer accountability for who bears responsibility when contracted labour breaks down.
If you or your clients are affected employees, please feel free to contact ryano@tmpi.ca or gurpreet@tmpi.ca.