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Overtime pay

Last updated on January 31, 2024

Overtime is paid when employees work more than standard work hours. Employers must pay for overtime, even if an employee agrees not to claim overtime pay.

Overtime is given to employees regardless of how they're paid – hourly, monthly salary, annual salary, or commission earnings.

Employees under an averaging agreement or variance have different rules for calculating overtime. There are also special rules for scheduling and overtime for managers, commission salespeople and certain industries such as agriculture and high technology.

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Overtime rates

Overtime is paid at different rates, depending on the number of hours worked.

Daily overtime

Employees are paid time-and-a-half for any time worked over 8 hours in a day, up to 12 hours – even if the employee does not work more than 40 hours in a week.

Employees are paid double time for any time worked over 12 hours during a day.

Example 1: Daily overtime pay
  Sun Mon Tues Wed Thurs Fri Sat Total
Hours worked   8 10 6 13     37
Scheduled hours   8 8 6 8      
Time and a half rate     2   4     6
Double time rate         1     1

Weekly overtime

Employees are paid time-and-a-half for any time worked over 40 hours worked in a week – even if an employee doesn't work more than 8 hours in a day. A week is from Sunday to Saturday. Only the first 8 hours worked in a day count towards weekly overtime.

Example 2: Weekly overtime pay
  Sun Mon Tues Wed Thurs Fri Sat Total
Hours worked   8 7 8 8 7 7 45
Scheduled hours   8 7 8 8 7 2  
Time and a half rate             5 5
Double time rate                

Overtime on statutory holidays

If the employee works overtime hours on a statutory holiday, they are paid an average day's pay plus time-and-a-half for the hours worked. Employees do not also receive overtime pay for the same hours worked.

Banking overtime

Employees can bank their overtime. An employee can make a written request to bank their overtime hours instead of being paid for them during the pay period when they're earned. Later on, they can ask for:

  • Part or all of the wages in the time bank to be paid out
  • Time off with pay for a period agreed upon by the employer and employee
  • The employer to close the bank and pay out their banked hours entirely – this request must be made in writing

An employer can close a time bank after giving the employee one month’s written notice. Within 6 months, the employer must do one of the following:

  • Pay the employee all of the overtime wages credited to the time bank
  • Allow the employee to use the credited overtime wages to take time off with pay
  • Pay the employee for part of the wages credited to the time bank and allow the employee to use the remainder of the credited overtime wages to take time off with pay

Rest periods

Employees get extra pay for working during their rest period.

An employee must have at least 32 hours in a row free from work each week. If an employee works during this period, they must be paid time-and-a-half.

If the hours an employee works are also considered overtime, they are only paid time-and-a-half for the hours worked. Employees do not receive overtime pay and premium pay for the same hours worked.

Example: If an employee works every day 7 days in a row, they must be paid time-and-a-half for one of the days, even if they worked less than 40 hours in total. Time-and-a-half can be paid for the day with the least number of hours.

Example
  Sun Mon Tues Wed Thurs Fri Sat
Regular wage 4 7 7 7 7 4  
Time and a half             2

What you can do

If you're having issues at work, find out what you can do:

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References from the Employment Standards Act and Regulation