Working additional hours can become an important employment issue when an employee is not paid the overtime they are entitled to receive. Ontario’s Employment Standards Act, 2000 (ESA) establishes minimum overtime pay requirements for many employees, although there are exemptions and special rules that can apply to certain occupations and employees.

For most employees covered by the ESA, the overtime threshold is 44 hours in a work week. Hours worked beyond that threshold are generally paid at one and one-half times the employee’s regular rate. However, overtime is not simply determined by looking at how many hours an employee works in a single day. Employment contracts, overtime averaging agreements, exemptions and other ESA rules can affect the calculation. (ontario.ca)

Understanding the overtime rules can help employees determine whether they may be entitled to additional pay for hours worked.

What Is Overtime Pay in Ontario

Overtime pay is additional compensation required when an employee works more than the applicable overtime threshold.

For most employees covered by Ontario’s ESA, overtime begins after 44 hours of work in a work week. The minimum overtime rate is one and one-half times the employee’s regular rate. (ontario.ca)

An employment contract or collective agreement can provide a more favourable overtime arrangement. Some employees are also subject to different thresholds or exemptions under the ESA.

How Is Overtime Calculated in Ontario

For most employees, overtime is calculated based on the number of hours worked in a work week.

For example, if an employee works 50 hours in a week and is covered by the standard 44-hour overtime threshold, six hours would generally be overtime hours.

If the employee’s regular rate is $25 per hour, the minimum overtime rate would generally be $37.50 per hour because overtime is paid at one and one-half times the regular rate.

The calculation can become more complicated where an employee has multiple regular rates, an averaging agreement or compensation that is not based entirely on an hourly wage.

Is Overtime Based on Daily Hours

Ontario’s statutory overtime rules generally calculate overtime on a weekly basis rather than automatically providing overtime whenever an employee works more than a particular number of hours in one day.

For example, working 10 hours on one day does not by itself necessarily mean that two of those hours must be paid as overtime under the ESA.

The employee’s total hours for the work week are generally what determine whether the 44-hour overtime threshold has been exceeded, subject to applicable exceptions and averaging agreements. (ontario.ca)

What Is the Overtime Rate in Ontario

The minimum overtime rate for employees covered by the standard ESA overtime rules is one and one-half times the employee’s regular rate.

An employee earning $20 per hour would therefore generally receive at least $30 per hour for overtime hours.

An employer and employee may agree to other forms of compensation for overtime where permitted by the ESA, including paid time off instead of overtime pay under the applicable rules.

Can You Get Time Off Instead of Overtime Pay

In some circumstances, an employee and employer can agree that overtime will be compensated with paid time off instead of overtime pay.

Ontario’s ESA provides specific requirements for this arrangement. The employee generally receives one and one-half hours of paid time off for each overtime hour worked, rather than simply receiving one hour of paid time off for one hour of overtime. (ontario.ca)

The timing and conditions for taking the paid time off are also subject to ESA requirements.

Employees should therefore understand the agreement before accepting time off instead of overtime pay.

What Counts as Hours Worked

Determining the number of hours worked can sometimes be more complicated than looking at the hours recorded on a timesheet.

Time spent performing work for the employer can generally count as working time. Depending on the circumstances, activities performed before or after a scheduled shift may also raise questions about whether the employee was actually working.

Employees should keep accurate records of the time they spend performing work, particularly when their actual working hours regularly exceed their scheduled hours.

Does Working From Home Count Toward Overtime

Working from home does not automatically remove an employee’s overtime rights.

An employee who works remotely may still be covered by the ESA’s overtime provisions if their position is not exempt and they work more than the applicable overtime threshold.

Remote employees should keep accurate records of their working hours and review their employer’s policies concerning overtime and time tracking.

Does Checking Emails After Work Count as Overtime

Work performed outside scheduled hours can potentially count toward an employee’s hours worked.

For example, regularly responding to work emails, completing assignments or attending meetings outside normal working hours may raise questions about whether the employee is working additional hours.

Whether those hours must be included in an overtime calculation can depend on the circumstances, the employee’s position and any applicable ESA exemption.

Employees who regularly perform substantial work outside their scheduled hours should keep records of that work.

Do Managers Get Overtime Pay

Not every manager or supervisor is automatically excluded from overtime.

Ontario’s ESA provides an overtime exemption for managers and supervisors when the work they perform is managerial or supervisory in nature. The rules also address situations where a manager or supervisor performs other types of work only on an irregular or exceptional basis. (ontario.ca)

An employee’s job title alone does not necessarily determine whether the exemption applies. The actual duties performed can be important.

Are Salaried Employees Entitled to Overtime

Being paid a salary does not automatically mean that an employee is exempt from overtime.

Some salaried employees are entitled to overtime when they work more than the applicable threshold, while others are exempt because of their occupation, duties or another provision of the ESA.

Employees should therefore consider their actual job duties and the applicable exemption rather than assuming that salary alone determines overtime eligibility.

Are There Jobs That Are Exempt From Overtime

Yes.

The ESA contains exemptions and special rules for many occupations and types of employees. Some jobs have different overtime thresholds, while other employees may not be entitled to statutory overtime because of the nature of their work.

Examples can include certain managers and supervisors, professionals, some sales employees and employees in occupations subject to special ESA rules.

Because the exemptions can be highly specific, employees should check the rules that apply to their particular occupation before concluding that they are or are not entitled to overtime.

Can an Employer Require You to Work Overtime

An employer may be able to require an employee to work additional hours, subject to the ESA, the employment contract and other applicable requirements.

Ontario also has separate limits on the maximum number of hours an employee can work. In general, an employer cannot require or permit an employee to work more than eight hours in a day, or the employee’s established regular workday if it is longer than eight hours, or more than 48 hours in a work week unless the statutory requirements for an agreement to work additional hours are met. (ontario.ca)

The rules concerning maximum hours of work are separate from the rules concerning overtime pay.

What Is an Overtime Averaging Agreement

An overtime averaging agreement allows an employee’s hours to be averaged over a specified period for the purpose of determining overtime entitlement.

Under Ontario’s current rules, an employer and employee can agree to average the employee’s hours over separate, non-overlapping periods of two or more consecutive weeks, with an averaging period generally limited to four weeks. (ontario.ca)

For example, an employee might work significantly more hours during one week and fewer hours during another. If a valid averaging agreement applies, the hours may be considered across the averaging period rather than calculating overtime separately for each week.

Employees should read an averaging agreement carefully because it can affect when overtime becomes payable.

Can an Employer Average Your Overtime Without Your Agreement

An employer generally cannot simply decide to average an employee’s hours for overtime purposes without satisfying the applicable ESA requirements.

An overtime averaging agreement requires an agreement between the employer and employee. The agreement must meet statutory requirements, including requirements concerning the averaging period. (ontario.ca)

An employee who is presented with an overtime averaging agreement should understand what the agreement does before signing it.

How Long Can an Overtime Averaging Period Be

An overtime averaging period generally cannot exceed four weeks.

The agreement must specify the period over which the employee’s hours will be averaged, and the periods must be separate, non-overlapping and consecutive. (ontario.ca)

The purpose of averaging is to determine overtime entitlement over the applicable averaging period rather than treating every individual week independently.

Can You Cancel an Overtime Averaging Agreement

The ability to cancel an overtime averaging agreement depends on the agreement and the applicable ESA rules.

Employees should not assume that they can simply stop following an averaging arrangement whenever they choose. The agreement may contain an expiry date and specific requirements concerning its duration.

Employees should review the agreement carefully before signing and obtain advice if they are uncertain about its effect.

What Is the Difference Between Overtime and Hours of Work

Overtime pay and hours-of-work limits are separate concepts.

Overtime rules determine when an employee is entitled to additional compensation for hours worked beyond the applicable threshold.

Hours-of-work rules address how many hours an employer can require or permit an employee to work and include requirements concerning maximum daily and weekly hours and eating periods.

An employee can therefore have an issue involving maximum hours even when the employee is not entitled to overtime, and vice versa.

Do Meal Breaks Count as Working Time

Ontario requires employers to provide eating periods that generally prevent employees from working more than five consecutive hours without a break. The standard eating period is at least 30 minutes, although it can be divided into shorter periods if the employee and employer agree. (ontario.ca)

A meal break is not automatically considered working time simply because it occurs during the workday.

If an employee is required to continue working during a supposed meal break, the time may raise separate questions about hours worked and overtime.

What If Your Employer Says You Are Not Allowed to Work Overtime

An employer can have a workplace policy requiring employees to obtain approval before working overtime.

However, a policy does not necessarily resolve whether hours actually worked must be included when determining an employee’s statutory overtime entitlement.

Employees who are regularly asked or expected to work beyond their scheduled hours should keep accurate records of the work performed and communications concerning the additional hours.

What If You Work Overtime Without Approval

Working overtime without obtaining required approval can create a workplace policy issue, but it does not automatically mean that the hours worked disappear for employment standards purposes.

The circumstances matter, including whether the employer knew that the employee was working additional hours, whether the work was necessary to complete assigned responsibilities and what workplace policies state.

Employees should keep records of the additional work and any instructions or communications relating to it.

What If Your Employer Changes Your Schedule to Avoid Overtime

Employers may organize work schedules in different ways, subject to employment standards and contractual requirements.

For example, an employer may schedule an employee for fewer hours in a later part of the week if the employee has worked additional hours earlier in the week. However, an employer cannot simply avoid statutory overtime requirements by relabelling hours or manipulating records.

If an employee regularly works more than the applicable overtime threshold, the total hours worked should be reviewed under the ESA rules that apply to that employee.

Can an Employer Make You Work More Than 48 Hours

Ontario’s ESA places limits on maximum hours of work.

Generally, employees cannot be required or permitted to work more than 48 hours in a work week unless the requirements for an agreement to exceed that limit are satisfied. Agreements concerning excess hours are separate from overtime averaging agreements. (ontario.ca)

An employee and employer can agree in writing or electronically to work more than the applicable daily or weekly maximums, subject to the ESA requirements.

Does Working More Than 44 Hours Always Mean Overtime

Not necessarily.

The 44-hour threshold is the general Ontario ESA overtime threshold, but there are exemptions, special thresholds and averaging agreements.

For an employee who is covered by the standard overtime rules and does not have a valid averaging agreement, hours worked beyond 44 in a work week generally qualify for overtime pay. (ontario.ca)

Employees should therefore determine whether they are covered by the standard rule before calculating an overtime claim.

What If You Have Two Different Pay Rates

An employee can sometimes receive different regular rates for different types of work performed for the same employer.

Ontario’s ESA provides rules for calculating overtime in these circumstances. Once the employee reaches the applicable overtime threshold, overtime pay is calculated using the regular rate that applies to the work performed during the overtime hours. (ontario.ca)

Employees with multiple rates should keep records showing which work was performed at each rate.

Can Bonuses Affect Overtime Pay

Some forms of compensation can affect an employee’s overtime calculation, while other payments may be excluded under the ESA.

The treatment of bonuses and other payments can depend on their nature and the applicable statutory rules.

Employees whose compensation includes bonuses, commissions or incentive payments should not assume that overtime can always be calculated simply by multiplying their base hourly rate by one and one-half.

What Should You Do If You Are Not Paid Overtime

Employees who believe they have not been paid overtime should begin by keeping accurate records of the hours they actually worked.

Useful records can include timesheets, schedules, pay statements, emails, text messages, work logs and other communications showing when work was performed.

Employees should also review their employment contract and determine whether an overtime exemption or averaging agreement may apply. If the issue cannot be resolved with the employer, an employee may consider obtaining legal advice or learning about the Ontario employment standards complaint process.

How Far Back Can You Claim Unpaid Overtime

Employees should not assume that unpaid overtime can be claimed indefinitely.

Employment standards claims are subject to statutory rules concerning the amount of unpaid wages that can be recovered and the applicable complaint process. Other legal claims may be governed by different limitation periods.

Employees who believe they are owed significant unpaid overtime should consider taking action promptly rather than waiting indefinitely.

Can You Be Fired for Asking for Overtime Pay

Employees have protections under Ontario employment standards legislation when exercising rights under the ESA.

An employer generally cannot punish an employee simply for exercising a protected employment standards right. However, the circumstances surrounding any termination or disciplinary action matter.

An employee who experiences a negative employment action after raising an overtime concern should preserve relevant records and consider obtaining legal advice.

Frequently Asked Questions About Overtime Pay

How many hours do you have to work before getting overtime in Ontario?

For most employees covered by the standard ESA overtime rules, overtime begins after 44 hours in a work week.

Some employees are subject to different rules or exemptions, and a valid overtime averaging agreement can affect the calculation. (ontario.ca)

Is overtime always time and a half in Ontario?

The minimum overtime rate under the standard ESA rule is one and one-half times the employee’s regular rate.

There can be special rules for certain employees, so the applicable overtime provisions should be checked for the particular occupation.

Does working 10 hours in one day mean I get two hours of overtime?

Not necessarily.

Ontario’s standard ESA overtime calculation is generally based on weekly hours rather than automatically calculating overtime for each day over eight hours.

Are salaried employees entitled to overtime?

Some salaried employees are entitled to overtime, while others are exempt.

Salary alone does not automatically determine whether an employee receives overtime.

Do managers get overtime?

Some managers and supervisors are exempt from overtime when their actual duties are managerial or supervisory in nature.

Job title alone does not necessarily determine whether the exemption applies. (ontario.ca)

Can my employer make me work overtime?

An employer may be able to require additional hours, subject to the employment contract and Ontario’s hours-of-work rules.

The rules concerning maximum hours are separate from the rules concerning overtime pay. (ontario.ca)

Can my employer refuse to pay overtime because I did not get approval?

An employer can have policies requiring overtime to be approved in advance.

However, whether hours actually worked must be included in an overtime calculation depends on the circumstances and applicable law. Employees should keep records of work performed outside their scheduled hours.

Can I get paid time off instead of overtime?

In some circumstances, yes. Ontario permits paid time off to be provided instead of overtime pay where the applicable ESA requirements are satisfied.

The minimum amount is generally one and one-half hours of paid time off for each overtime hour worked. (ontario.ca)

Can my employer average my hours to avoid overtime?

An employer and employee can enter into an overtime averaging agreement that meets the ESA requirements.

The agreement generally allows hours to be averaged over a period of two or more weeks, up to a maximum of four weeks. (ontario.ca)

Does working from home affect overtime rights?

Working remotely does not automatically remove an employee’s overtime rights.

An employee’s eligibility depends on the ESA provisions and any applicable exemption, not simply whether the employee works from an office or home.

Should I speak with an employment lawyer about unpaid overtime?

Legal advice can be useful when an employer disputes the number of hours worked, claims that an employee is exempt, refuses to pay overtime, uses an averaging agreement or has failed to maintain accurate records.

An employment lawyer can review the employee’s position, compensation structure and employment agreement and explain what options may be available.

Get Advice About Overtime Pay

Overtime entitlement can depend on more than simply counting the hours shown on a schedule. The employee’s actual hours worked, occupation, job duties, compensation, employment agreement and any overtime averaging arrangement can all affect the calculation.

EmploymentLawyerToronto.ca provides employment law information and legal services for employees dealing with workplace issues in Ontario. If you believe you have worked overtime without receiving the compensation you are entitled to, consider speaking with an employment lawyer about your circumstances.

This page provides general information about Ontario employment law and is not legal advice. Employment law can depend on the specific facts of each situation.