Overtime
For most employees, whether they work fulltime, parttime, are students,
temporary help agency assignment employees, or casual workers, overtime
begins after they have worked 44 hours in a work week. After that time,
they must receive overtime pay.
Overtime Pay
Overtime pay is 1½ times the employee's regular rate of pay. (This is
often called "time and a half.")
For example, an employee who has a regular rate of $12.00 an hour will
have an overtime rate of $18.00 an hour (12 x 1.5 = 18). The
employee must therefore be paid at a rate of $18.00 an hour for every hour
worked in excess of 44 in a week.
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, 2000 (ESA).
Others work in jobs where the overtime threshold is more than 44 hours in
a work week. (See the Special
Rule Tool)
Managers and Supervisors
Managers and supervisors do not qualify for overtime if the work they do
is managerial or supervisory. Even if they perform other kinds of tasks
that are not managerial or supervisory, they do not get overtime pay if
these tasks are performed only on an irregular or exceptional basis.
Different Kinds of Work ("50% Rule")
Some employees have jobs where they are required to do more than one kind
of work. Some of the work might be specifically exempt from overtime pay,
while other parts might be covered. If at least 50 per cent of the hours
the employee works are in a job category that is covered, the employee
qualifies for overtime pay.
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. Working as a cab driver
he is exempt from overtime pay, but working in the office as a
dispatcher he is not.
During a work week, Gerard worked 26 hours in the office and 24 hours
driving a cab, for a total of 50 hours. This is six hours over the
overtime threshold of 44 hours.
Because Gerard spent at least 50 per cent of his working hours that
week as a dispatcher (a job category that is covered), he qualifies
for six hours of overtime pay.
Agreements for Paid Time Off Instead of Overtime Pay
An employee and an employer can agree 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."
If an employee has agreed to bank overtime hours, he or she must be given
1½ hours of paid time off work for each hour of overtime worked.
Paid time off must be taken within three months of the week in which the
overtime was earned or, if the employee agrees 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 receive overtime pay. This must be paid no later than
seven days after the date the employment ended or on what would have been
the employee's next pay day.
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.
Overtime pay calculations may also be affected by public holidays. The
following are several examples of how overtime pay is calculated in
different cases. See also: Overtime
& Time Off in Lieu .
Hourly Paid Employees
Ravi's regular pay is $12.00 an hour. His overtime rate (1½ × regular
hourly pay) is $18.00 an hour. This week Ravi worked the following
hours:
Day 
Hours Worked 
Sunday 
0 
Monday 
8 
Tuesday 
12 
Wednesday 
9 
Thursday 
8 
Friday 
8 
Saturday 
8 
Total hours: 
53 
Any hours worked over 44 in a week are
overtime hours. Ravi worked nine hours of overtime (53  44 = 9).
Ravi's pay for the week is calculated as follows:
Regular pay: 44 × $12.00 = $528.00 
Overtime pay: 9 × $18.00 = 162.00 
Total pay: $690.00 
Employees on a Fixed Salary
If an employee's hours of work change from
day to day but his or her weekly pay stays the same, the employee is
paid a fixed salary.
A fixed salary compensates an employee for all nonovertime hours up
to and including 44 hours a week. After 44 hours, the employee is
entitled to overtime pay.
Sharon's salary is $500.00 a week. She worked 50 hours this work week.

First Sharon's regular (nonovertime)
hourly rate of pay is calculated:
$500.00 ÷ 44 = $11.36
Sharon was paid a regular rate of $11.36 for each hour she worked
up to and including 44 hours.

Next her overtime rate is calculated:
$11.36 regular rate × 1½ = $17.04
Her overtime rate is $17.04 for every hour in excess of 44.

Then the amount of overtime she worked
is calculated:
50 hours − 44 hours = 6 hours of overtime

Her overtime pay is calculated:
6 hours × $17.04 an hour = $102.24
Sharon is entitled to $102.24 in overtime pay.

Finally, Sharon's regular salary and
overtime pay are added together:
Regular salary: $500.00 
Overtime pay: 102.24 
Total pay: $602.24 
Result: Sharon is entitled to total pay of $602.24.
Employees on a Fluctuating Salary
If an employee has set hours and a salary
that is adjusted for variations in the set hours, the employee's
salary fluctuates.
Suppose Ben is hired on the understanding that he will be paid $450.00
a week for a regular work week of 40 hours. 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.
Ben's salary is $450.00 in a regular work week of 40 hours (where the
salary is not adjusted). This week, he worked 50 hours.

First Ben's regular (nonovertime)
hourly rate of pay is calculated:
$450.00 ÷ 40 = $11.25
Ben's regular rate of pay is $11.25 an hour.

Next his regular (nonovertime)
earnings are calculated. He is entitled to $11.25 an hour for all
hours up to and including 44 hours a week:
$11.25 regular rate × 44 hours = $495.00
Ben's regular earnings for the week are $495.00.

Then his hourly overtime rate is
calculated:
$11.25 regular rate × 1½ = $16.88
His overtime rate is $16.88 for every hour in excess of 44 hours.

The amount of overtime Ben worked is
calculated:
50 hours − 44 hours = 6 hours of overtime.

His overtime pay is calculated:
6 hours × $16.88 an hour = $101.28
Ben is entitled to $101.28 in overtime pay.

Finally, Ben's regular pay and overtime
pay are added together:
Regular pay: $495.00 
Overtime pay: 101.28 
Total pay: $596.28 
Result: Ben is entitled to total pay of $596.28.
Calculating Overtime When There is a Public Holiday
When an employee's work week includes a public holiday
Antonio’s
regular pay is $12.00 an hour. Antonio worked overtime on a week with
a public holiday, but he did not work on the holiday. Antonio’s
public holiday pay for the Monday is $96.00 (See Public
Holidays Pay for information on how to
calculate public holiday pay). This week Antonio worked the following
hours:
Day 
Hours Worked 
Sunday 
0 
Monday
(public holiday) 
0 
Tuesday 
12 
Wednesday 
9 
Thursday 
8 
Friday 
8 
Saturday 
8 
Total hours: 
45 
Antonio worked one hour of overtime
(45 − 44 = 1).
Antonio's pay for the week is calculated as follows:
Regular pay: 44 × $12.00 = $528.00 
Overtime pay: 1 × $18.00 = $18.00 
Public holiday pay: $96.00 
Total pay: $642.00 
When an employee works on a public holiday and gets premium pay
Etsuko’s regular hourly pay is $11.00/hour.
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.
During the week of the public holiday, Etsuko worked the following
hours:
Day 
Hours Worked 
Sunday 
0 
Monday 
9 
Tuesday 
9 
Wednesday 
9 
Thursday 
9 
Friday 
9 
Saturday 
9 
Total hours: 
54 
Since Etsuko received premium pay for
working nine hours on the public holiday, these hours are not included
when the overtime pay is calculated:
54 hours − 9 hours at premium pay = 45 hours = 1 hour of overtime pay
Etsuko's pay for the week is calculated as follows:
Regular pay: 44 × $11.00 = $484.00 
Overtime pay: 1 × $16.50 = $16.50 
Premium pay: 9 × $16.50 = $148.50 
Public holiday pay: $99.00 
Total pay: $748.00 
When an employee works on a public holiday and gets a substitute day
off
Kathleen's regular hourly pay is $12.00.
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).
During the week of the public holiday, Kathleen worked the following
hours:
Day 
Hours Worked 
Sunday 
0 
Monday 
9 
Tuesday 
9 
Wednesday 
8 
Thursday 
9 
Friday
(public holiday) 
9 
Saturday 
6 
Total hours: 
50 
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:
50 hours − 44 hours = 6 hours of overtime
Kathleen's pay for the week is calculated as follows:
Regular pay: 44 × $12.00 = $528.00 
Overtime pay: 6 × $18.00 = 108.00 
Total pay: $636.00 
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.
Employees Who Are Paid Wages That Are Not Based on the Hours
Worked
Some employees' wages are not based on the number of hours they work in a
week but instead are paid by the number of pieces they complete and/or by
commission. 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.
Calculating the overtime for piecework or straight commission
employees
Becka is paid on a piecework basis. Rhian
earns straight commissions. They both worked 48 hours this work week
and each received a total of $480.00.

First the regular (nonovertime) hourly
rate of pay is calculated:
$480.00 ÷ 44 hours = $10.91
Their regular hourly rate of pay is $10.91.

Then the hourly overtime rate is
calculated:
$10.91 regular rate × 1½ = $16.37
Their overtime rate is $16.37 for every hour in excess of 44
hours.

Next, the amount of overtime worked is
calculated:
48 hours − 44 hours = 4 hours of overtime.

The overtime pay is calculated:
4 hours × $16.37 an hour = $65.48
They are each entitled to $65.48 in overtime pay.

Finally, the regular pay and overtime
pay are added together:
Regular pay: $480.00 
Overtime pay: 65.48 
Total pay: $545.48 
Result: Becka and Rhian are each entitled to total pay of $545.48.
Calculating the overtime for hourly rate plus commission
employees
Justine is paid $15.00 an hour plus
commissions. In one work week she worked 50 hours and was paid $750.00
in hourly wages plus $200.00 in commissions.

First Justine's regular rate is
calculated:
$750.00 + $200.00 = $950.00 total wages paid
$950.00 ÷ 44 hours = $21.59 an hour
Justine's regular rate is $21.59 an hour.

Then her overtime rate is calculated:
$21.59 regular rate × 1½ = $32.29
Her overtime rate is $32.39.

Next her overtime wages are calculated:
6 hours × $32.29 an hour = $194.34
She earned $194.34 in overtime wages.

Because Justine was paid $15.00 per hour for all hours she worked,
including her 6 overtime hours, she has already received $90.00 in
respect of her overtime entitlement.
Result: Justine was entitled to $194.34 for overtime pay and was paid
$90.00. Her employer therefore owes her an additional $104.34.
Note: Some
commission employees are exempt from the overtime provisions. (See the Special
Rule Tool.)
Averaging Agreements
Sometimes employees need to work variable hours to meet family
responsibilities. For example, perhaps an employee needs to take a child
once a month for a day of special medical treatment, but cannot afford to
lose a day's pay. Instead the employee would like to work extra hours in
the preceding weeks, to make up the time.
Likewise, employers may need employees to work extra hours during a peak
period, in order to fill customer orders.
An employer and an employee can agree in writing to average the employee's
hours of work over a specified period of two or more weeks for the
purposes of calculating overtime pay. Under such an agreement, an employee
would only qualify for overtime pay if the average hours worked per week
during the averaging period exceed 44 hours.
For example, if the agreed period for averaging an employee's hours of
work is four weeks, the employee is entitled to overtime only after
working 176 hours during the four work weeks (44 hours × 4 weeks = 176
hours). Note that averaging periods cannot overlap one another and must
follow one after the other without gaps or breaks.
Where a union does not represent employees, averaging agreements must
contain an expiry date that cannot be more than two years from the date
the averaging agreement takes effect. Where the agreement applies to
unionized employees, the employer and union may agree to any expiry date.
An averaging agreement cannot be revoked by either the employer or
employee(s) before its expiry date, unless both the employer and
employee(s) agree in writing to revoke it.
In addition to having agreements in writing, the employer must also obtain
an approval to average hours of work for overtime pay purposes from the
Director of Employment Standards.
If, however, an employer has not received
either an approval or a notice of refusal from the Director within 30 days
of serving the application on the Director and has met all other
conditions as set out in the ESA,
the employer may begin averaging employees' hours but only over twoweek
periods.
An approval to average hours of work for overtime pay purposes expires on
the date on which the averaging agreement between the employer and
employee expires, or on any earlier date specified by the Director in the
approval. The Director of Employment Standards may also unilaterally
revoke an approval to average hours of work by providing the employer with
reasonable notice.
Employers who would like to make an application
for an approval to average hours of work for overtime pay purposes are
required to make their application in a form provided by the Ministry of
Labour. Theapplication
form is
available on the Ministry's website. See also: Averaging
and Time Off in Lieu.
An employer who receives an approval to average overtime pay must post a
copy of the approval in the workplace where it is likely to come to the
attention of the employee(s) identified in the approval and to keep it
posted until it expires or is revoked and then remove it.
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 and
Myron's employer obtains an approval from the Director of Employment
Standards. Myron works 54 hours the first week and 36 hours the second
week. He earns $14.00 an hour and his overtime rate is $21.00 per hour
(1½ × $14.00).
Myron's overtime entitlement is calculated as follows:

The total number of hours worked in the
averaging period are added together and then divided by the number
of weeks in the averaging period to get the average number of
hours worked in each week of the averaging period.
54 + 36 = 90 hours
90 hours ÷ 2 weeks = 45 hours per week

The average number of hours worked per
week minus 44 hours equals the average number of overtime hours in
each week of the averaging period.
45 hours per week − 44 hours per week = 1 overtime hour per week

The overtime entitlement in week one
and two of the averaging period is calculated by multiplying the
average overtime hours per week by his overtime rate for that
week.
Week 1: 1 hour × $21.00 per hour = $21.00
Week 2: 1 hour × $21.00 per hour = $21.00
Calculating overtime pay when hours of work are being averaged
over four weeks
Connor earns $13.00 an hour in weeks when
he is working in the retail department and $20.00 an hour when he is
working on the assembly line of his employer's operation. He and his
employer have agreed in writing and the employer has received an
approval from the Director of Employment Standards to average his
hours over four weeks for the purpose of calculating overtime. In the
first two weeks of the averaging period he is working in the retail
department and his overtime rate is $19.50 per hour ($13.00 × 1½). In
the second two weeks of the averaging period he is working on the
assembly line and his overtime rate is $30.00 an hour ($20.00 × 1½).
The maximum number of hours an employee can work in a regular work
week, before being paid overtime, is 44 hours. However, since Connor
has signed a written agreement and his employer has an approval from
the Director to average his hours of work for overtime pay purposes
over a four week period he will qualify for overtime pay if his
average hours (that is, the average hours per week during the
averaging period) exceed 44 hours.
During a fourweek period, Connor worked the following hours:
Week 1: 56 
Week 2: 43 
Week 3: 35 
Week 4: 46 
Total hours: 180 
Connor's average hours per week in the
averaging period are:
180 ÷ 4 = 45 hours. Connor's average overtime is 1 hour per week.
Connor's overtime entitlement is:
Week 1: $19.50 per hour × 1 hour = $19.50 
Week 2: $19.50 per hour × 1 hour = $19.50 
Week 3: $30.00 per hour × 1 hour = $30.00 
Week 4: $30.00 per hour × 1 hour = $30.00 
Total overtime pay for 4 week averaging period: = $99.00 
What Cannot Be Done
An employee can make an agreement to take time
off in lieu of overtime pay or an agreement to average hours of work for
overtime pay purposes, however, an employer and an employee cannot agree
that the employee will give up his or her right to overtime pay under the ESA.
Agreements such as these are not allowed and the employee is still
entitled to overtime pay.
An employer cannot lower an employee’s regular wage to avoid paying time
and a half after 44 hours (or another overtime threshold that applies) in
a work week. For example, if Josée’s regular pay is $15.00 an hour, her
employer cannot drop her regular rate in a week when overtime was worked
to $12.00 an hour and then pay her $18.00 (1½ × $12.00) for overtime hours
worked instead of $22.50 (1 ½ × $15.00).