Overtime Pay
Many employers do not think about overtime pay or assume that overtime does not apply to their employees. However, this can be a costly mistake. Overtime pay is mandatory for most employees in Ontario, including full-time employees, part-time employees, casual employees, and students (with some exceptions). Contrary to the belief of many employers, overtime applies whether an employee is paid on an hourly basis or has a salary.
For qualified employees, overtime starts once that employee works a certain number of hours per week (depending on which legislation applies to that workplace). Once that point is reached, the employee is entitled to 1.5 times their regular pay (commonly referred to as “time and a half”).
At Rousseau Mazzuca LLP, we have defended employers from individual as well as group claims for overtime pay. Our experienced employment lawyers can help save costs while meeting your overtime obligations. If a legal claim has been filed against you, we can guide you through the process and decrease your risk.
EXEMPTIONS FOR OVERTIME PAY
The majority of employees are eligible for overtime, including students, part-time employees, casual employees, full-time employees. It does not matter whether your employees are paid hourly or are on a salary. It is very challenging for an employer to contract out of their overtime obligations.
There are, however, a number of exceptions of employees who do not qualify for overtime. For instance, under the Employment Standards Act, managers/supervisors, traveling salespeople, and IT professionals are not eligible.
CONSEQUENCES FOR FAILURE TO PAY
Employers should be careful before they assume that an employee is not entitled to overtime pay. Employers must understand that there can be serious financial implications for failure to pay overtime, including the obligation to pay money owed retroactively. There have been successful class-action lawsuits filed by large groups of employees claiming back pay due to unpaid overtime.
In addition, if a complaint is filed under the Employment Standards Act, the Ministry of Labour can come into the workplace and perform an investigation of everything in that workplace, not just the employment of the individual who filed the complaint. This can lead to additional, unforeseen penalties.
