Overtime Laws in Ontario - Everything you didn't know!

Do you feel like you’re working an excessive amount of hours and not being properly compensated for it?

In most cases here in Ontario, employers are required to pay their employees for overtime work in addition to their regular salary.

While some exceptions apply, it is important to be aware of your labour rights and to consult a lawyer if you believe you are owed additional compensation.

Not to worry, because JuriGo demystifies everything pertaining to overtime work in Ontario!

There are laws in place to protect you!

Employment laws in Canada—including those related to overtime pay—fall under provincial jurisdiction for most occupations. In Ontario, the Employment Standards Act, 2000 (ESA) sets out the rights and responsibilities of both employees and employers .

The ESA covers many aspects of employment including working hours, breaks, and overtime pay. However, certain professionals, such as healthcare workers, lawyers, police officers, and federal employees, may be subject to special rules usually outlined under their respective Regulatory College.

Understanding the Employment Standards Act

How many hours can an employee work?

Generally, the ESA prohibits an employer from making an employee work more than 8 hours in a single day or more than 48 hours in a week. If an employee agrees to it, an agreement can be made which allows them to exceed these standard limits for daily and weekly hours .

Nonetheless, this agreement needs to be documented and the employee should be fully aware of their rights before signing such an agreement .

It is also important to note that this agreement will not be valid unless the employer has provided the employee with a document outlining their rights, and the employee acknowledges in writing that they have received this document.

How much rest are you entitled to? What are the exceptions?

In most cases, employers are required to give employees at least 11 hours of rest per day and at least one full day off per week (or two full days off every two weeks).

If your work involves shifts, you are then entitled to at least 8 hours of rest between shifts.

However, an employer may ask you to work beyond these limits without an agreement in exceptional circumstances .

These include any situations such as emergencies, essential service disruptions or unforeseen events, where not working the extra hours would severely affect the employer’s operations.

What about eating breaks?

As outlined in the ESA, employees are entitled to a 30-minute eating break if they work more than five consecutive hours. This break may also be split into two smaller breaks that total 30 minutes if both parties agree to it.

It is important to note that you are not entitled to get paid for your eating break unless your employment contract says otherwise .

How does overtime work?

The general overtime rule is that, if you work more than 44 hours in a week (or any other specified overtime threshold), your employer has to pay you at least one and a half times your regular hourly wage for each additional hour worked .

If you are compensated at different rates for different kinds of work you perform for the same employer in the same week, you will still receive the higher overtime pay rate.

This overtime begins after you have exceeded the set threshold of hours. Your overtime pay will then be one and a half times the regular rate for the specific type of work you are doing during those extra hours.

If you are performing multiple kinds of work, and one of them does not usually qualify for overtime, you are still entitled to get overtime unless that type of work is more than half of your workweek.

Is your employer allowed to give you paid time off instead of pay?

Generally yes, but both you and your employer must agree to this . In these cases, instead of receiving extra compensation for overtime, you can opt to take paid time off at a rate of one and a half hours for each hour of overtime worked .

You must take this time off within three months (or within 12 months if both parties agree) and, if your employment ends before you have taken your paid time off, your employer will then have to pay you for those hours at the appropriate overtime rate.

How do public holidays affect overtime?

If you work in a place where you are entitled to public holiday pay, normally the amount you get will be based on the regular wages and vacation pay you earned in the four weeks before the public holiday, which is then divided by 20.

Now, if your employer has to pay you for working overtime during a public holiday (also known as “premium pay”), you are entitled to be paid at least one and a half times your regular pay rate .

However, these hours will not count towards calculating any other overtime pay you might be entitled to.

If a public holiday falls on what would normally be your working day and you are not on vacation, your employer has to give you that day off and pay you the public holiday pay.

However, if you skip your last scheduled workday before the public holiday or the first one after, without a good reason, you will not receive that public holiday pay.

In cases where a public holiday lands on a day you usually do not work or are on vacation, your employer must give you a different workday off as a substitute and still pay you as though it were a public holiday.

If that occurs, your employer must let you know in writing which public holiday is being substituted and what the substitute day will be.

Special conditions for hospitals and continuous operations

Some places such as hospitals, restaurants, or hotels may require you to work on a public holiday that is ordinarily a working day for you. If they do, they must either give you a substitute holiday or pay you the public holiday pay plus premium pay for the hours worked on that day.

What happens if you fail to work on a public holiday as previously agreed or required?

Whether you have agreed to work on a public holiday or are required to do so by your employer, if you fail to work without a reasonable cause, you could lose your entitlement to public holiday benefits.

However, if you have a reasonable cause for not working, you may still get a substitute day off or the public holiday pay, unless you also skipped your last or first scheduled day around the holiday without a good reason.

Other factors to consider when working overtime

Employers are allowed to average your hours over a set period to calculate overtime pay, but only if you previously agreed to this in writing .

In these cases, the period for averaging cannot be longer than four weeks or the number of weeks you have specifically agreed upon with your employer.

Additionally, any agreement to average your hours must have a start and end date. If you are not part of a trade union, this agreement cannot extend over two years. In the case that you are part of a union, the agreement will last until a new collective agreement is in place.

You have an issue with overtime work? JuriGo is here to help you find the right lawyer!

You think your employer is violating your rights regarding overtime hours?

Your employer or director is responsible for preparing and publishing a document that clearly lays out employees’ rights and employers’ obligations, particularly when it comes to agreements that override the standard work-hour limits.

Fill out our form at the bottom of the page, and we will take care of referring you to the right lawyer in your area specialized in labour law.

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