When do I have to pay overtime?

When do I have to pay overtime?

What is overtime?

All jurisdictions in Canada have provisions set aside for what constitutes overtime pay. When an employee works over a set number of hours in a day or hours in a week, his or her employer is required to pay for that time at a rate of 1.5 times their hourly rate.

There is a misconception that salaried workers cannot earn overtime; employers and salaried employees need to agree upon a number of hours per week that the employee is expected to work and work in excess of that is indeed overtime pay. 

Below we have a brief overview of the rules from region to region:

Alberta
Maximum workday length is 12 hours. A standard day is 8 hours and a standard week is 44 hours. Anything over of either of those standard thresholds is overtime pay; Alberta legislation indicates that whichever is greater counts for overtime. Overtime is paid out at 1.5 times regular pay, but an employer may offer time off in lieu of overtime pay. There are no provisions for averaging agreements.

British Columbia
There is no maximum workday length, but an employee's work hours must not "be excessive or harmful to the employee's health or safety". A standard workday is 8 hours and a standard week is 40 hours. Employees may be eligible for both and must be paid for both (values calculated separately). Overtime is paid at a rate of 1.5 times regular pay and 2 times regular pay for hours over 12 per day. Employers may offer time off in lieu of overtime pay and there are provisions for averaging agreements.

Saskatchewan
There is no maximum workday length but the maximum workweek length is 44 hours. A standard work day is 8 hours and the standard work week is 40 hours. Saskatchewan legislation indicates that an employee may be eligible for weekly or daily overtime and is paid out at whatever is greater. Employees are paid at a rate of 1.5 times their hourly rate. There are no provisions for time off in lieu of overtime but there are for averaging agreements.

Manitoba
There is no maximum workday in Manitoba. The standard work day is 8 hours and the standard work week is 40 hours. Employees may be eligible for either weekly or daily overtime pay and are paid whichever is greater. Employees are paid an overtime rate of 1.5 times their hourly rate. There are provisions for allowing time off in lieu of overtime and averaging agreements.

Ontario
The maximum workday length in Ontario is 8 hours and the maximum workweek is 48 hours. The standard work day is 8 hours and the standard work week is 40 hours. Employees are paid overtime for worked hours in excess of 44 hours a week at a rate of 1.5 times regular. There are provisions for time off in lieu of overtime and for averaging agreements.

Quebec
There is no maximum workday in Quebec. The standard workday is 8 hours and the standard work week is 40 hours. Employees are paid overtime for hours worked in excess of 40 hours in a week at a rate of 1.5 times regular pay. There are provisions for time off in lieu of overtime and averaging agreements.

New Brunswick
There is no limit on the number of hours an employee may work. Employees are paid an overtime rate at hours worked in excess of 44 hours a week at a rate of 1.5 times the minimum wage. There are provisions for time off in lieu of overtime and averaging agreements.

Nova Scotia
There is no maximum workday in Nova Scotia. Employees are paid overtime for hours worked in excess of 48 hours a week at a rate of 1.5 times their hourly rate. There are no provisions for time off in lieu of pay but there are for averaging agreements.

Prince Edward Island
There is no maximum workday in PEI. Overtime is paid for hours worked in excess of 48 hours a week at a rate of 1.5 times the regular rate. There are no provisions for time off in lieu of overtime nor averaging agreements.

Newfoundland and Labrador
The maximum workday in Newfoundland and Labrador is 14 hours. Overtime is paid for hours in excess of 40 hours a week at a rate of 1.5 times the minimum wage. There are provisions for time off in lieu of overtime but not for averaging agreements.

Northwest Territories
The maximum workday is 10 hours and the maximum workweek is 60 hours. Overtime is paid for hours worked in excess of 8 hours a day or 40 hours a week. Employees may be eligible for either weekly or daily overtime pay and are paid whichever is greater. Employees are paid an overtime rate of 150% their hourly rate. While there are no provisions for time off in lieu of overtime, the NWT Ministry of Labour states that employees may "bank" time if their employer agrees, but the time must be paid out at time and a half. There are provisions for averaging agreements.

Yukon
There is no maximum workday in the Yukon. Overtime is paid out for hours worked in excess of 8 hours a day or 40 hours a week. Employees may be eligible for either weekly or daily overtime pay and are paid whichever is greater. Employees are paid an overtime rate of 150% their hourly rate. There are provisions for allowing time off in lieu of overtime and averaging agreements.

Nunavut
The maximum workday in Nunavut is 10 hours and the maximum workweek is 60 hours. Overtime is paid for hours worked in excess of 8 hours a day or 40 hours a week. Employees may be eligible for either weekly or daily overtime pay and are paid whichever is greater. Employees are paid an overtime rate of 150% their hourly rate. There are no provisions for allowing time off in lieu of overtime but there are for averaging agreements.

Notes: 
An averaging agreement is a written agreement between the employer and employee to average out the employees pay over a period of time.This allows employees to work longer days in a shorter period and have more days off. Many in the healthcare industry are under such agreements.

PLEASE NOTE: While Rise endeavours to provide correct information, this is adapted from documents provided by various provinces and is subject to change and is subject to interpretation by those agencies. More complete information regarding meal breaks or rest periods can be found at the appropriate jurisdiction's website.


    • Related Articles

    • How to add overtime hours to the input sheet

      1. Navigate to Payroll, then under Payroll, click Process Payroll / Review Payroll History. 2. Open the Input Sheet of the pay run you want to add overtime hours to. 3. Add each employee's overtime hours in the OT HOURLY PAY column.
    • How to adjust an employee's pay class

      Pay classes are used in Rise to separate employees into different groups and connect pay rules and pay codes to employees in each group. Pay classes are most commonly used to separate hourly employees and salaried employees. To change an employee's ...
    • How to finish (approve) a pay run

      Submitting a pay run This tutorial is for the final steps of this process, you will have already done the following; Created a regular or ad-hoc pay run. For more information on how to create pay runs, check out our articles on How to create a ...
    • How to create an ad-hoc pay run

      1. In the Payroll menu on the left-hand side, click Payroll. 2. Click Process Payroll / Review Payroll History.                                                    3. Click Create Ad-Hoc Payroll.                                                         ...
    • How to access an employee's pay-stubs

      1. Navigate to the employee's profile, and select the Reports tab. For instructions on how to access an employee's profile, check out our article on How do I access an employee file? 2. Select the desired pay run, and click View. The statement of ...