Should I Be Paid Overtime if I am Paid a Salary?

A common misconception is that salaried employees are not entitled to overtime. No such exception exists. Whether an individual is paid an hourly wage or an annual salary in no way impacts their eligibility to receive overtime pay.

If an employee is paid a salary and sometimes work over 44 hours in a week, then they may be entitled to overtime pay for all hours worked over 44 in those weeks at time and a half for each additional hour worked.

What if I am a Manager?

There are exemptions from the requirement to pay overtime pay. For example, managerial employees are not entitled to overtime pay and therefore overtime regulations do not apply to them. However, just because an employee’s job title has the word “manager” in it, does not necessarily mean that the employee is exempt from overtime regulations. An employee will only be considered a manager (and therefore exempt from overtime pay provisions) if they spend most of their time managing or supervising other employees in the workplace. If an employee has no one reporting to them, does not have the authority to discipline, set schedules, promote, etc., then they are likely not exempt from overtime provisions under Ontario’s employment standards legislation.

What if I Cover for a Non-Managerial Employee?

Even if an employee is considered a “true” manager, they will be entitled to be paid overtime pay in any week that they spend at least 50 percent of their working hours doing non-managerial work. For example, if a subordinate is absent from work for a week and a managerial employee is required to fill in for the absent employee that week, the managerial employee may be entitled to overtime pay for that week, provided they have worked over 44 hours.

Key Takeaways

Whether you are paid a salary or hourly does not dictate whether you are entitled to overtime pay.

Many so-called managers are entitled to overtime because they perform non-managerial or non-supervisory work on a regular basis.

Even true managers (i.e. those who only perform non-managerial or non-supervisory work on an irregular or exceptional basis) may be entitled to receive overtime pay if they spend at least 50 percent of their working hours in a week doing non-managerial work.

If you are an employee and you think that you may have an overtime claim against your current or former employer, or want to learn more about the rules relating to overtime, please contact Toronto employment lawyers at Sultan Lawyers by telephone at 416-214-5111, by here, or by filling out the form below.