The B.C. Workers’ Compensation Appeal Tribunal (WCAT) has upheld a decision ordering a volunteer-based, non-profit gym to compensate its former operations manager for lost wages and interest after finding the employer took a prohibited action under the Workers Compensation Act.
The operations manager, who was also a coach who ran fitness classes, was terminated after she raised safety concerns about the conduct of another coach. WCAT found that the employer dismissed the worker in retaliation for her complaints, rather than due to financial difficulties as it had claimed.
The case stems from a complaint filed with WorkSafeBC in which the worker alleged the employer engaged in a prohibited action in November 2020. A WorkSafeBC legal adjudicative officer (LAO) found the employer had failed to rebut the complaint and issued a decision in September 2022 confirming the prohibited action. The employer’s appeal of that decision was denied by WCAT in a previous ruling.
Following that ruling, the LAO issued a separate decision in July 2023 ordering the employer to pay the worker $6,552, plus $586.68 in interest. The employer subsequently appealed the remedy decision to WCAT, arguing that the worker was not entitled to the amount awarded.
Employer’s position
The employer, a volunteer-based non-profit, contended that no formal agreement existed between the worker and the executive director, X, for a $2,000 monthly payment for her role as operations manager. It argued that the initial arrangement was for $1,000 per month and no formal approval had been given for any increase.
The employer also asserted that it had communicated to the worker on Oct. 2, 2020, that it could not afford to pay her $2,000 per month due to financial difficulties. It noted that it had laid off its director of social programs around the same time due to economic strain caused by COVID-19 restrictions.
The employer further challenged the worker’s claim regarding the number of coaching hours worked, pointing to scheduling records showing she was assigned to two classes per week rather than four. Additionally, the employer maintained that it was struggling financially and lacked the resources to pay the ordered remedy.
Worker’s position
The worker, who represented herself, submitted evidence indicating she had been earning $2,000 per month as operations manager in addition to $700 per month from coaching. She provided invoices dating back to 2017 that documented her earnings, demonstrating a gradual increase in her work hours and pay over time.
In support of her claim, she referenced an unsigned proposal letter from June 24, 2020, outlining her role as operations manager, which included oversight of the gym’s daily business operations. The worker also presented financial statements for September and October 2020, which reflected a profit of approximately $4,000 per month, contradicting the employer’s assertion of financial hardship.
She further argued that following her termination, her duties as operations manager were reassigned to another employee, which indicated that the role remained necessary. The employer did not contest this assertion. The worker also provided information on the employer’s fundraising history, highlighting its ability to generate substantial revenue through charitable events.
WCAT findings
WCAT determined that the worker would have remained in her role as operations manager and coach for a longer period had the employer not taken prohibited action. The tribunal rejected the employer’s argument that financial constraints alone necessitated the worker’s termination, citing the previous merit decision, which found that the worker’s termination was linked to safety concerns she raised regarding the conduct of another coach.
The tribunal found that the employer did not provide financial records to support its claims of hardship. It also noted that the employer’s fundraising history and recent financial performance undermined its assertion that it could not afford to pay the worker.
WCAT found that the worker was entitled to a total remedy of $11,400 in lost wages, calculated as follows:
- $2,000 per month for four months for her role as operations manager, totalling $8,000.
- $50 per hour for four hours per week over 17 weeks for coaching work, totalling $3,400.
Additionally, the tribunal ordered the employer to pay $1,202.70 in interest, increasing the total award to $12,602.70.
Decision
WCAT denied the employer’s appeal and varied the Board’s original remedy decision. It ordered the employer to pay the worker the full remedy amount of $12,602.70, with no payroll deductions, as the worker was typically paid in lump sums. The worker is responsible for making any required payroll and statutory contributions. The tribunal did not make any orders regarding expenses, as none were requested.
For more information, see A2302346 (Re), 2025 CanLII 9862 (BC WCAT).