The maximum number of hours an employee can be required to work in a single day is eight hours. The weekly limit employees can be required to work is 48 hours. The daily and weekly maximum can be exceeded by an electronic or written agreement between the employee and employer.

Agreeing to hours exceeding the daily and weekly maximum does not relieve an employer from the requirement of overtime pay.

Overtime Pay in Ontario

Under the Employment Standards Act, an employer is required to pay overtime pay of at least one- and one-half times (also known as “time and a half”) the employee’s regular rate for each hour of work in excess of 44 hours in a work week. In other words, overtime is payable after 44 hours worked.

An employee may be compensated for overtime hours by receiving one- and one-half hours of paid time off work for each hour of overtime worked instead of overtime pay. In order to receive paid time off instead of pay, the employee and employer must agree to do so in writing.

How is Overtime Calculated?

Overtime is not calculated daily (e.g. working more than 8 hours a day). Overtime is calculated on a weekly basis or over a longer period under an averaging agreement.

An averaging agreement is arranged when an employee works different hours on different workdays. For example, an employee only works 3 hours on Mondays to watch her son but makes up the remaining 5 hours of that workday within the rest of the month.

Therefore, the employee and employer will agree (in writing) to average the employee’s hours of work over a specified period of two or more weeks. Under this agreement, an employee would only qualify for overtime pay if the average hours worked per week during the averaging period exceeded 44 hours.

Overtime Pay for Salaried Employees in Ontario

Many believe that because they are a salaried employee, they cannot receive overtime. This is incorrect. The Employment Standards Act (ESA) does not exempt salaried employees from receiving overtime. If an employee has an employment contract that states the salaried employee will not receive overtime, that term is void as it violates the ESA.

If you are a salaried employee working more than 44 hours per week and not being paid for overtime, you should contact our firm immediately.   You could be entitled to years of overtime payable at time and a half!

Is Overtime Required for Salaried Employees?

Yes, overtime is required for salaried employees. There are certain exceptions to this rule, such as for those who hold a manager or supervisor position. Managers and supervisors do not qualify for overtime if the work being done is managerial or supervisory. An individual who has a position title stating “manager”, but does not actually do managerial work, will be paid overtime.

Factors that are considered to determine if you are truly a manager or supervisor are:

  • Do you supervise other employees?
  • Do you have the power to hire, fire and/or discipline other employees?
  • Are you able to make decisions on behalf of the company?
  • Do you exercise discretion and independent judgment in management affairs?
  • Do you perform a role of leadership?

If your job title specifies you are a manager or supervisor, but your work duties do not reflect as such and you are not being paid overtime pay, please contact our firm.

Overtime Hours for Salary Employees

Overtime hours for salary employees are consistent with overtime hours in Ontario generally. Therefore, overtime is payable over 44 hours worked in a week.