Overtime pay in Canada is extra compensation owed to eligible employees who work beyond the overtime threshold that applies to them, usually at 1.5 times their regular rate of pay.
The exact point when overtime starts depends on where you work. Ontario generally uses a 44-hour weekly threshold, Alberta uses its 8/44 rule, British Columbia has daily and weekly overtime, and federally regulated employees generally work under an eight-hour daily and 40-hour weekly standard.
Being paid a salary does not automatically eliminate your right to overtime. If you regularly work extra hours without proper compensation, keep your own records and check the rules that apply to your province and job before assuming you are exempt.
On This Page:
- 1. How Overtime Pay Works
- 2. Overtime Rules by Province
- 3. Salaried Employees and Overtime
- 4. Exemptions, Averaging and Banked Time
- 5. What to Do About Unpaid Overtime
- 6. Overtime Pay FAQs
How Overtime Pay Works in Canada
Most eligible employees earn overtime when they work beyond the legal daily or weekly threshold that applies to their job.
For most employees who qualify, the overtime rate is 1.5 times the regular rate of pay. This is often called “time-and-a-half.”
How do you calculate overtime pay?
Multiply your regular hourly rate by 1.5, then multiply that overtime rate by the number of overtime hours you worked.
For example, if your regular rate is $25 per hour:
- Regular hourly rate: $25
- Overtime rate: $25 × 1.5 = $37.50
- Five overtime hours: $37.50 × 5 = $187.50 in overtime pay
The important step is determining which hours count as overtime. That depends on the employment standards rules that cover you.
Is overtime always after 40 hours in Canada?
No. There is no single 40-hour overtime threshold for every employee in Canada.
Some jurisdictions use daily overtime, some use weekly overtime and some use both. For example, most Ontario employees do not receive statutory overtime simply because they worked more than eight hours in one day. Their standard threshold is generally more than 44 hours in a work week.
Overtime Pay Rules by Province
Overtime rules differ across Canada, but eligible employees in Ontario, Alberta and British Columbia are generally entitled to premium pay when they cross their province’s overtime threshold.
- Ontario: Most eligible employees receive overtime at 1.5 times their regular rate after working more than 44 hours in a work week. See our complete guide to overtime pay in Ontario.
- Alberta: Alberta generally uses the 8/44 rule. Overtime is based on the greater of daily overtime over eight hours or weekly overtime over 44 hours. See our guide to overtime pay in Alberta.
- British Columbia: Eligible employees generally receive time-and-a-half after eight hours in a day and for qualifying hours beyond 40 hours in a week. Work beyond 12 hours in a day is generally paid at double time. See our guide to overtime pay in BC.
- Federally regulated employees: Standard hours are generally eight hours per day and 40 hours per week, with overtime for work beyond the applicable standard hours. Learn more about employee rights under the Canada Labour Code.
Special rules and exemptions can apply to particular occupations and industries. The provincial pages above explain those details without forcing every employee to work through rules that do not apply to them.
Do Salaried Employees Get Overtime Pay in Canada?
Yes. Being paid a salary does not automatically mean you lose your right to overtime pay.
A common workplace misconception is that overtime only applies to hourly employees. That is not the rule. A salaried employee can still be entitled to overtime if their job is covered by the applicable employment standards legislation.
What matters is the work you actually perform and whether a legal exemption or special rule applies — not simply whether your paycheque describes you as salaried.
What if your employer calls you a manager?
A management title by itself does not decide whether you are exempt from overtime.
Management and supervisory exemptions exist in several jurisdictions, but your actual responsibilities matter. Calling an employee a “manager” does not automatically remove overtime rights if the employee’s real job does not satisfy the applicable exemption.
The same concern arises with titles such as supervisor, team lead or director. If you are working substantial extra hours without overtime because of your title, the exemption should be checked against what you actually do.
When Overtime Pay May Be Calculated Differently
Overtime can be calculated differently when a valid exemption, averaging arrangement or time-off arrangement applies.
Who can be exempt from overtime?
Depending on the jurisdiction, exemptions or special rules can apply to certain:
- Managers and supervisors
- Regulated professionals
- Industry-specific occupations
- Employees working under special hours-of-work rules
Don’t assume you are exempt simply because your employer says so. Classification depends on the legal test that applies to your actual job.
What is an averaging agreement?
An averaging arrangement can change the period used to calculate overtime, but it must comply with the employment standards rules that apply to the employee.
For example, an employee may work longer hours during one part of an averaging period and fewer hours during another. If a valid arrangement applies, overtime can be calculated using the permitted averaging period rather than the normal weekly calculation.
The rules are not the same across Canada. Ontario employees can learn more about overtime averaging agreements in Ontario, while Alberta employees should review our guide to averaging arrangements in Alberta.
Can overtime be banked as time off instead?
Sometimes, but an employer can’t simply replace overtime pay with informal time off whenever it wants.
Several jurisdictions permit overtime to be taken as paid time off when the required arrangement is in place. The amount of banked time, required agreement and deadline for using it vary by jurisdiction.
If your employer says your overtime is being “banked,” make sure the arrangement actually complies with the law that applies to you.
What Should You Do If Your Employer Does Not Pay Overtime?
If you believe you are owed overtime, keep a detailed record of your hours and raise the discrepancy in writing.
Useful records can include:
- Your start and finish times
- Schedules and timesheets
- Pay stubs
- Emails and messages showing after-hours work
- Login or system records
- Any overtime, averaging or banked-time agreement
What if the overtime was not pre-approved?
An overtime pre-approval policy does not automatically make hours your employer required or permitted you to work unpaid.
An employer can set reasonable rules about scheduling and obtaining approval before working extra hours. But an employee should not assume that actual work becomes free simply because a manager failed to complete an internal approval process.
If you are being told to complete work that regularly takes you beyond your scheduled hours, document the hours and the instructions you received.
Can your employer punish you for asking about overtime?
Your employer can’t lawfully punish you for exercising protected employment standards rights.
If your hours are cut, you are disciplined or your employment ends after you raise a legitimate overtime concern, get legal advice promptly. The overtime issue may no longer be the only employment-law problem involved.
Deadlines for recovering unpaid wages vary. If significant overtime has gone unpaid, don’t assume you can deal with it months or years later without consequences.
Overtime Pay FAQs
Is overtime pay time-and-a-half in Canada?
Usually, yes. The standard overtime rate for eligible employees in Ontario, Alberta, B.C. and federally regulated workplaces is generally 1.5 times the regular rate, although special rules and exemptions can apply.
Do you get overtime after eight hours in Canada?
Not everywhere. BC and Alberta have daily overtime rules, while Ontario’s standard overtime threshold is generally based on working more than 44 hours in a work week.
Is working on Saturday or Sunday automatically overtime?
No. Working on a weekend does not by itself create a statutory overtime entitlement. Overtime normally depends on the number of hours worked and the rules that apply to your jurisdiction, although an employment contract or workplace policy can provide better rights.
Can an employer refuse to pay overtime because you are salaried?
No — salary alone is not an overtime exemption. The employer must be able to rely on an actual exemption or other lawful rule that applies to your job.
Can you agree to work overtime for regular pay?
An eligible employee generally can’t simply waive minimum overtime rights. Employment standards legislation creates minimum protections. Where averaging or paid-time-off arrangements are permitted, they must comply with the applicable legal requirements.
Can your employer require you to work overtime?
Often, yes, but there are limits. Hours-of-work rules, required rest periods, your employment terms, protected leaves and human rights accommodation can all affect whether an employer can require additional hours in a particular situation.
Questions About Overtime Pay?
If you regularly work extra hours, have been told you are “not eligible” for overtime or believe your employer has calculated your pay incorrectly, don’t assume the company’s explanation is the final word.
The employment lawyers at Samfiru Tumarkin LLP advise non-unionized employees in Ontario, Alberta and British Columbia. We can review your job duties, hours, compensation and any overtime or averaging arrangement and explain your options.
You can also explore our broader employment law resources for employees.