When is overtime paid in ontario

Overtime pay calculations may also be affected by public holidays. The following are several examples of how overtime pay is calculated in different cases.

This week Ravi worked the following hours:. Any hours worked over 44 in a week are overtime hours. A fixed salary compensates an employee for all non-overtime hours up to and including 44 hours a week. After 44 hours, the employee is entitled to overtime pay. His salary is adjusted for weeks in which he works either more hours or fewer hours. In this case, Ben is actually receiving a wage based on the number of hours he works. This week, he worked 50 hours.

Antonio worked overtime in a week with a public holiday, but he did not work on the holiday. This week Antonio worked the following hours:. Etsuko and her employer agreed in writing that she would work on the public holiday and she would be paid premium pay for the hours she worked on the holiday plus public holiday pay. Since Etsuko received premium pay for working nine hours on the public holiday, these hours are not included when the overtime pay is calculated:. Kathleen and her employer agreed in writing that she would work on the public holiday and she would receive a substitute day off work with public holiday pay plus her regular rate for hours worked on the public holiday rather than be paid public holiday pay plus premium pay for the hours she worked on the holiday.

Since Kathleen agreed not to receive premium pay for the nine hours she worked on the public holiday, these hours are counted when the overtime pay is calculated:.

Kathleen will also get a substitute day off work with public holiday pay within three months of the public holiday or, if Kathleen and her employer agree, within twelve months of the public holiday.

These employees must be paid at least the minimum wage for all the hours they work. They are also usually entitled to overtime if they work more than 44 hours a week. The short answer is that most workers are entitled to overtime pay in Ontario —even if any employee is salaried or highly paid.

For instance, regulated professionals such as physicians, pharmacists, dentists, lawyers, and public accountants are not entitled to overtime pay. Another common exception is managers and supervisors. Managers and supervisors do not qualify for overtime pay if the work they do is managerial or supervisory. Moreover, some employees work in jobs where the overtime pay threshold is more than 44 hours a week. For instance, highway transport truck drivers are only entitled to overtime pay for every hour worked in excess of 60 hours per week.

To find out if your employees are exempt from the Ontario overtime pay provisions or subject to special rules, you can use this handy tool from the provincial government. You can also reference the regulation titled O.

In some cases, employees may have jobs where they are required to carry out different kinds of work. Some of that work may be exempt from overtime pay, while some of the work may be covered. For instance, someone may drive a taxi cab a job exempt from overtime pay , but they may also work in the office as a dispatcher a job that is entitled to overtime pay. In some cases, employees with more than one role may also receive a different pay rate for each type of work.

In cases where employees have two regular rates, the overtime rate for each hour of overtime is based on the rate of pay for the work performed in that overtime hour.

Depending on the type of work, some employees may agree to receive paid time off work instead of overtime pay. This time must be taken within three months of the week in which the overtime was earned. However, an agreement can be made in writing or electronically to allow the employee to take the time within 12 months.

If the employee has more than one regular rate of pay for work performed and, in a work week, the employee performed work for the employer in excess of the overtime threshold, the employer must calculate overtime using the corresponding rate of pay for each overtime hour worked. Hours of work may be averaged over two or more work weeks up to a maximum of four weeks for overtime pay purposes if the employee has entered into a valid electronic or written agreement for averaging.

An averaging agreement must meet certain requirements. An employee and an employer can agree electronically or in writing that the employee will receive paid time off work instead of overtime pay.

This is sometimes called "banked" time or "time off in lieu. Paid time off must be taken within three months of the week in which the overtime was earned or, if the employee agrees electronically or in writing, it can be taken within 12 months. If an employee's job ends before he or she has taken the paid time off, the employee must be paid for all unused banked time.

However, an employee can make an agreement to take paid time off in lieu of overtime pay or to average hours of work for overtime pay purposes. The Ministry of Labour, Training and Skills Development advances safe, fair and harmonious workplace practices that are essential to the social and economic well-being of the people of Ontario.

Skip to main content. Overtime pay. No overtime on a daily basis Unless a contract of employment or a collective agreement states otherwise, an employee does not earn overtime pay on a daily basis by working more than a set number of hours a day.

Overtime is calculated only: on a weekly basis or over a longer period under an averaging agreement Exceptions Many employees have jobs that are exempt from the overtime provisions of the Employment Standards Act, ESA. Managers and supervisors Managers and supervisors do not qualify for overtime if the work they do is managerial or supervisory. Different kinds of work "50 per cent rule" Some employees have jobs where they are required to do more than one kind of work.

When an employee does two kinds of work Gerard works for a taxi company both as a cab driver and as a dispatcher in the office. If the employee has more than one regular pay rate for overtime work performed An employee who is paid on an hourly basis may perform, in one work week, two types of work, each of which attracts a different hourly rate. Calculating overtime pay The manner in which overtime pay is calculated varies depending on whether the employee is paid on an hourly basis, on a fixed salary, or has a fluctuating salary.

This week Ravi worked the following hours: Sunday: 0 hours Monday: 8 hours Tuesday: 12 hours Wednesday: 9 hours Thursday: 8 hours Friday: 8 hours Saturday: 8 hours Total: 53 hours Any hours worked over 44 in a week are overtime hours.

She worked 50 hours this work week. Next his regular non-overtime earnings are calculated. Example: Calculating the overtime for piecework or straight commission employees Becka is paid on a piecework basis. Example: Calculating overtime pay when hours of work are being averaged over two weeks Myron and his employer agree in writing to average his hours for overtime purposes over a period of two weeks.

What cannot be done. Labour, Training and Skills Development. Ministry of Labour, Training and Skills Development. MLTSD - webes ontario.