Under the province’s Employment Standards Act (ESA), there is no exemption for salaried employees. Suite #1100 In addition, content may be out of date. If someone has been misclassified as a manager or supervisor, then they would be entitled to all back-overtime-pay. A workweek is any recurring period of seven consecutive days selected by the employer for the purpose of scheduling work. There is no exemption to overtime for salaried employees. This means they make $43.70 per hour ($1,923.07 / 44 hours = $43.70). The right to overtime pay in Ontario is enshrined in section 22 of the Ontario Employment Standards Act [“ESA”] (our ESA FAQ here), which says that an employee earns overtime pay after they have worked 44 hours or more in a single week. This is particularly true when you’re dealing with salaried non-exempt workers. If overtime applies to an employee’s hours, then the employer has no defence, and the employer must pay overtime. Her compensation does not vary based on the time she actually spends at work, nor what she … Hourly Employees A common misconception is that salaried employees are not entitled to overtime. Nothing on this website is legal advice and no content on this website is intended as legal advice. This “time and half” rate applies to all work above and beyond 44 hours in any given workweek. Alberta does abide by the eight-hour workday rule, so any additional time after eight hours must be compensated by 1.5 times the employee’s normal pay. In this instance, employeesâ overtime payment will be bound by the provisions of the Employment Standards Act (ESA). If employees are paid partly or entirely through commission, or if they work a compressed work week, special rules may apply on a case-by-case basis.Alberta also has a rule that states emp… A full list of workers exempt from overtime in Ontario is enshrined in sections 2 and 8 of Regulation 285/01 of the ESA, which is located here and here respectively. For instance, if an employee who has a regular rate of $25.00 works more than 44 hours in a week, each hour after 44 must be paid an overtime rate of $37.50 an hour ($25× 1.5 = $37.5). Find us on Google Maps, Copyright @ 2020 Whitten & Lublin PC | All Rights Reserved, Past results are not indicative of future results. In Ontario, non-managerial/non-supervisory roles are subject to overtime pay provisions in most cases as per the Employment Standards Act (2000). To that end, any employee can refuse to work more than 13 hours per day and 48 hours per week, but he or she cannot refuse to work less than 13 hours per day and 48 hours per week. Overtime Payment in Ontario: Salaried Employees. Overtime Pay for Salaried Employees in Ontario. To make the calculation of Overtime pay easier, you can use the Government of Ontario’s Overtime Pay Calculator. Certain provinces, such as BC, also have daily overtime pay for hours worked in excess of 8 and 12. Overtime Pay is 1½ times the employee's regular rate of pay. The right to overtime pay is set out in Section 22 of the Employment Standards Act of Ontario. If an employee works more than 44 hours in a single week, overtime kicks in, and he or she must be paid overtime pay. In addition, lawyers at our firm, Monkhouse Law, have sued major corporations in “class action” lawsuits on behalf of thousands of employees who are owed unpaid wages in Ontario. However, employees working in the province of Ontario who are legally exempt from receiving overtime pay, or paid time off in lieu, represent the exception not the rule. In Ontario, the effective overtime rate for truly salaried employees, those covered by point 1 above, is less than for employees whose “salaries” are adjusted based on hours worked. This is often called being paid “time and a half”. For example, let’s say an employee earns $100,000 per year. Banking overtime means the employee is compensated for some or all overtime hours by receiving one and one-half hours of paid time off work for each hour worked in excess of 44 instead of receiving overtime pay if the following criteria are met: If the employee’s employment ends before the banked time (i.e. Overtime Pay for Salary Employees. Example: Iris is paid a fixed bi-weekly salary. For instance, if the set hours are 36 per week, then hours worked in excess of 44 will be paid at one and one-half times the weekly salary divided by 36 hours. The overtime rate would, therefore, be one-and-one-half this amount. Click to share on Twitter (Opens in new window), Click to share on Facebook (Opens in new window), https://www.ontario.ca/laws/statute/00e41#BK41, The employer did not authorize or pre-approve the employee to work overtime, The employee agreed to a built-in overtime rate, The employee contracted out of their overtime pay, The employee performed work for different but related employers, The Employer/employee failed to document all overtime, The employee and the employer agree, in writing to compensate the employee with paid time off at a rate of 1.5 hours off work for every hour of overtime worked, rather than pay the employee overtime pay; and. The maximum hours allowed to work in Ontario are 13 hours per day and 48 hours per week, beyond which time an employer cannot force an employee to work. Since salaried workers are paid a flat rate, if they work more than 40 hours in a week, you will not need to pay them overtime. Accordingly, every hour the employee works per week past 44 hours must be paid at the overtime pay rate of $65.55. If an employer offers a greater benefit than the provisions in the ESA, then the employee is entitled to this greater benefit. 47 th hour overtime rate is $20.00 x 1.5 = $30.00 per hour. Employees must be paid overtime pay for each hour worked in excess of 44 hours in a given workweek. COVID-19 Vaccination: If We Eventually Find a Vaccine For COVID-19, Can My Employer Force Me To Get It? That is not to say that he or she cannot quit their job if they don’t wont to work so many hours. This means that many — but not all — employees with a yearly salary at or below $47,476 are entitled to mandatory overtime … Rights And Obligations of a Remote Worker. Do not rely on this website for legal advice. For example, an employee who has a regular rate of $15.00 an hour will have an overtime rate of $22.50 an hour (15 × 1.5 = 22.50). 46 th hour overtime rate is $17.00 x 1.5 = $25.50 per hour. Moreover, most professions, including doctors, lawyers, engineers and accountants are exempt from overtime in Ontario. Nonetheless, keep in mind that as soon as the employee goes above 44 hours in a week, he or she is entitled to overtime pay. This is incorrect. This also impacts the hourly overtime rate that must be used in Ontario. Jeff is an employment lawyer in Toronto. Ontario Overtime Pay Rate Like most provinces, the Ontario overtime pay rate is 1½ times the employee’s regular rate of pay, or as most people refer to it, “time and a half.” In Ontario, the threshold for overtime pay is 44 hours a week, as set out in the Ontario Employment Standards Act (ESA). One way pay may be calculated is by providing an employee with an annual salary divided by the amount of pay periods within the year without a set amount of required weekly hours. Overtime pay for hourly employees is the additional pay rate paid for working more than a specific number of hours in a week. Toronto, Ontario This requires all monies earned during non-overtime hours to be divided by the total non-overtime hours. You only become a client with us when you sign a formal retainer with us. Fax: (416) 644-5198 For example: an employee who earns a salary of $450 per week and is expected to work a 40-hour week is paid $11.25 per hour. 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