Bill 148: Overtime Pay
As part of the Fair Workplaces, Better Jobs Act, 2017, Ontario employers will see changes related to overtime pay. This labour law is in effect as of January 1, 2018.
Working Hours: A Quick Recap
What are Ontario’s working hours? An employer cannot require staff to work more than eight hours in a day and 48 hours in a work week, unless there is written agreement. An employee is entitled to a daily rest period of at least 11 consecutive hours where they are not working.
Overtime Pay and Entitlement
Overtime Begins After 44 Hours
In most cases, overtime begins after an employee has worked 44 hours in a work week, regardless of their employment status. If an employee is working overtime, they must be compensated with their set overtime pay rate.
Overtime Pay Is Time And A Half
If an employee is working overtime, their pay is 1 ½ times their regular wage. Overtime is calculated on a weekly basis, not a daily basis. For example, if an employee works beyond their daily hours but does not work in excess of 44 hours in a week, they do not receive overtime pay. Exceptions may be made if a contract states otherwise.
When Exceptions Are Made
There are many occupations that work outside the typical hours of the average work week. In these cases, an employee may work more than 48 hours in a week. As an employer, you will need to be aware of the regulations surrounding working hours to ensure you are acting in accordance with the law.
Are you compliant?
If you’re unsure about your obligations as an Ontario employer, we’re here to help you and your business. Call Employer Line at 1(833) 247-3650 to speak with one of our HR professionals today.