Overtime pay in Ontario is defined as pay at 1.5 times an employee’s regular hourly rate of pay (often called “time and a half”) for every hour worked over 44 hours in a single work week. Under the Employment Standards Act (ESA), most hourly and salaried employees are legally entitled to this premium compensation.
Unfortunately, many Ontario employers fail to pay their staff correctly, incorrectly labeling workers as “managers,” claiming overtime wasn’t pre-approved, or refusing to pay salaried employees for extra hours. If your employer is withholding your overtime pay, you have the legal right to recover that money.
On This Page:
- 1. Do Salaried Employees Get OT in Ontario?
- 2. Who is Exempt?
- 3. Pre-Approval and Unpaid Overtime
- 4. Banked Overtime and Averaging Agreements
- 5. How Far Back Can You Claim OT?
- 6. Fired for Asking for Overtime Pay
Do Salaried Employees Get Overtime Pay in Ontario?
Yes. One of the most common workplace myths in Ontario is that salaried employees are not entitled to overtime pay. This is entirely false.
Whether you are paid hourly or receive a fixed annual salary, you are legally entitled to overtime pay if you work more than 44 hours in a week—unless your specific job title falls under a legal exemption. To calculate a salaried employee’s overtime rate, you simply divide their weekly salary by their regular working hours to find their “hourly rate,” and then multiply that number by 1.5.
Who is Exempt From Overtime Pay in Ontario?
While the vast majority of workers qualify for time and a half, the ESA does exclude certain categories of workers. However, employers frequently misclassify employees to avoid paying them.
Commonly exempt professions include:
- Information Technology (IT) Professionals (Such as network administrators and software engineers)
- Regulated Professionals (Such as lawyers, doctors, engineers, and accountants).
- Managers and Supervisors
The “Pre-Approval” Myth and Unpaid Overtime
Many employers refuse to pay overtime by claiming, “We didn’t pre-approve those extra hours, so we don’t have to pay you for them.” This is illegal. Under Ontario law, if an employer knows (or ought to have reasonably known) that you were working late, and they permitted you to do so or did nothing to stop you, they must pay you.
This was heavily reinforced in the landmark Ontario court case Fresco v. CIBC, which confirmed that employers can’t turn a blind eye to employees working late and then refuse to pay them.
Banked Overtime & Averaging Agreements
Instead of paying you time and a half, your employer may ask to give you paid time off instead (often called “banked time” or “time in lieu”). For this to be legal, you must agree to it in writing. Furthermore, the time off must be calculated at the overtime rate.
- If you work 2 hours of overtime, you are legally entitled to 3 hours of paid time off (2 hours x 1.5).
What is an Overtime Averaging Agreement?
Some employers use an Overtime Averaging Agreement, which allows them to average your work hours over a period of 2 to 4 weeks. This means you might work 50 hours one week and 30 hours the next, and the employer will not have to pay you overtime because your “average” was under 44 hours. You can’t be forced to sign an averaging agreement.
How Far Back Can You Claim Unpaid Overtime?
If your employer has been illegally withholding your overtime pay, you have options:
- Ministry of Labour: If you file a claim through the Ministry, you can generally only recover unpaid overtime from the past 2 years.
- Going Through the Courts: By hiring an employment lawyer to pursue a claim through the courts, you can often pursue unpaid wages stretching back significantly further, depending on the specifics of your employment contract.
Fired for Asking for Overtime Pay?
Your employer can’t legally punish you, cut your hours, or fire you for asking for the overtime pay you legally earned. If they do, this is considered a reprisal and a wrongful dismissal in Ontario. If you are fired, you are not only owed your unpaid overtime, but you are also entitled to full Severance Pay in Ontario, which can equal up to 24 months of your regular compensation.
If you are owed unpaid overtime, or if you have been terminated, contact the Ontario employment lawyers at Samfiru Tumarkin LLP. We have helped tens of thousands of workers across Ontario secure the compensation they are legally owed.