KPMG

KPMG

February 19, 2008 17:05 ET

KPMG Implements Plan to Compensate Current and Former Employees for Unpaid Overtime

Crawford Class Action Services retained to administer plan

TORONTO, ONTARIO--(Marketwire - Feb. 19, 2008) - KPMG LLP (Canada) today announced that it has begun to implement a plan to redress employees for unpaid overtime.

In September 2007 a class action for unpaid overtime was filed against KPMG on behalf of former employees. KPMG immediately began a thorough investigation and has now developed an Overtime Redress Plan to provide compensation to all eligible employees as soon as possible.

Under the terms of the plan, KPMG intends to ensure that all its eligible current and former employees are fully and fairly compensated, according to the relevant provincial laws, for all overtime since January 1, 2000 that has been determined to have been earned but unpaid.

The KPMG Overtime Redress Plan will be administered by an independent third party, Crawford Class Action Services (Canada), which has an international reputation for managing redress plans. Crawford will notify current and former employees about the Plan through individual letters and advertisements in Canadian national newspapers.

"At the time we learned of the allegations in the class action we promised a thorough review of our work practices," said Bill MacKinnon, Chief Executive Officer, KPMG. "The Overtime Redress Plan directly and fairly addresses any past concerns about unpaid overtime. We estimate the total amount of the payout from the Plan will be less than $10 million."

"We very much regret that we did not pay overtime when it was earned by current and former employees," added MacKinnon. "While this was an error of omission, not commission, it should not have happened. The principles of the Plan will be reflected in all KPMG's overtime remuneration in the future."

It is KPMG's view that the Overtime Redress Plan is the preferred method of dealing with overtime claims by both its current and former employees. Implementing the plan now does not constitute an admission of liability. KPMG reserves all of its rights to fully respond to any motions that may be brought in the class action and to defend the class action.

About KPMG

KPMG LLP, a Canadian limited liability partnership established under the laws of Ontario, is the Canadian member firm affiliated with KPMG International, a global network of professional firms providing Audit, Tax, and Advisory services. Member firms operate in 145 countries and have more than 123,000 professionals working around the world.

The independent member firms of the KPMG network are affiliated with KPMG International, a Swiss cooperative. Each KPMG firm is a legally distinct and separate entity, and describes itself as such.

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