What is overtime?
Canadian labour laws protect workers from being overworked and underpaid. Labour laws also include overtime. If your employees work over a certain threshold, you are required to pay them extra. In most provinces, the overtime rate is 1.5 times the employee’s regular compensation, and it’s typically paid after an employee works more than eight hours a day or 40 hours per week. That said, there are several exceptions and the overtime rate may differ depending on location.
Who is entitled to overtime?
Hourly and salaried workers are eligible to receive overtime pay in Canada. However, there are some exempt professions that don’t qualify for overtime pay – including doctors, lawyers, and architects, among others. It’s also important to note that managers and supervisors are exempt from overtime pay. Who is and is not entitled to overtime varies by province, so please refer to provincial guidelines for more information.
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Overtime can be a costly expense for many organizations. The right payroll software can help you better manage schedules and set up rules and workflows around overtime to ensure managers and employees stay within their scheduled hours. Watch the Avanti product tour to see how our time and attendance tools simplify scheduling, avoid confusion, and save you time and money.
Provincial Overtime Rates
The following table outlines federal and provincial overtime calculations:
Disclaimer: The information provided in this guide is for informational purposes only. It is not professional financial or legal advice nor is it intended to be a substitute therefore. Where there are discrepancies between the guide and information provided by the federal government, provincial government, or the Canadian Revenue Agency (CRA) or Revenu Québec, defer to the guidelines provided by the governing agencies.