Overtime Pay

One of the areas that causes significant problems for employers is the issue of overtime.  The issue usually arises after an employee has stopped working for you, and either starts a lawsuit or makes a claim to the Ministry of Labour for overtime pay that they claim is owing to them.  Many employers governed by the do not understand or apply the rules properly, and they end up having to pay.  These amounts can be significant.

If they work it, you will pay.  That is the bottom line.  It does not matter if the employee worked overtime without permission or in breach of your policy on overtime.  It is your responsibility to manage your employees.  If they work overtime without permission, you must still pay them, but you should also discipline them.  Failure to do so could be seen as condoning the behaviour.

All hours worked in excess of the regular work week are to be paid as overtime.  For example, if the regular work week is 35 hours, you should pay overtime for any hours in excess of 35.  This does not mean that you have to pay time and a half for all those hours. Only hours over 44/week are worth time and a half.

Keep in mind that , without a permit, an employee is not permitted to work more than 8 hours per day and 48 hours per week. There are also some exceptions to the overtime provisions, which cannot be easily summarised in this limited space.

Most importantly, if you do not track the overtime, and a claim is made against you, you will pay.  The court or the Ministry will accept the employee?s records as accurate and you will lose.

If you have a workplace where employees work overtime, you must keep track of their hours, or approve their records on a regular basis.  If you have policy of requiring approval for overtime, make sure you enforce it by disciplining those who don?t follow it.  Otherwise, be prepared to pay.