What Is Overtime Pay in Ontario?
Overtime pay in Ontario is defined as pay at 1.5 times an employee’s regular rate of pay (“time and a half”) for every hour worked over 44 hours in a work week under Section 22 of the Employment Standards Act, 2000 (ESA).
Example: If you earn $20/hour and work 48 hours in a week, you are entitled to:
- 44 hours at $20/hour = $880
- 4 hours at $30/hour (time and a half) = $120
- Total pay = $1,000
Who is Entitled to Overtime Pay in Ontario?
Most employees in Ontario are entitled to overtime pay once they work more than 44 hours in a work week. This applies to both hourly and salaried employees unless they fall into an exemption under the ESA regulations.
A common misconception is that only hourly employees are eligible. In fact, salaried employees are also entitled — their salary is simply converted to an hourly rate to calculate overtime.
Who is Exempt From Overtime Pay in Ontario?
While most employees qualify, the ESA excludes certain categories of workers:
- Managers and supervisors – Only employees whose work is truly managerial (hiring, firing, decision-making authority) are exempt. Job titles alone do not decide entitlement. If you regularly perform non-managerial tasks, you may still be owed overtime.
- Regulated professionals – Lawyers, doctors, engineers, and accountants.
- IT professionals – Employees primarily engaged in systems analysis, software design, or similar work.
- Certain salespersons – Outside sales employees who earn most of their pay from commissions.
- Other special categories – Agricultural workers, firefighters, and ambulance drivers, among others.
Employee Tip: Some employers mislabel staff as “managers” or “independent contractors” to avoid paying overtime. What matters is the substance of your work, not your job title or contract label. If you’re unsure whether you really fall into one of the exempt categories, you may be misclassified.
—–> Not sure if you’re really exempt from overtime? Learn about employee misclassification in Ontario.
Monkhouse Law has represented employees in misclassification cases — including class actions — where groups of workers recovered unpaid overtime they were owed. If you suspect you’ve been misclassified, you may still have the right to overtime pay.
How is Overtime Pay Calculated?
Overtime pay in Ontario is always based on your “regular rate of pay”, not just your base wage. That means hourly wages, salaries, and commissions all factor into the calculation. Here’s how it works for different types of employees:
1. Hourly Employees
- Rule: Any hours over 44 in a work week are paid at 1.5 × your hourly rate (“time and a half”).
- Example: You earn $20/hour and work 50 hours in one week.
- First 44 hours = $20 × 44 = $880
- 6 overtime hours = $20 × 1.5 × 6 = $180
- Total weekly pay = $1,060
2. Salaried Employees
- Rule: Convert your weekly salary into an hourly rate by dividing by 44 hours. Then apply the 1.5× multiplier for overtime hours.
- Example: You earn $880/week on salary.
- Regular hourly rate = $880 ÷ 44 = $20/hour
- If you work 50 hours, that’s 6 overtime hours.
- Overtime pay = $20 × 1.5 × 6 = $180
- Total weekly pay = $1,060
3. Commissioned Employees
- Rule: Overtime pay must include commissions as part of regular pay. Your hourly rate is based on total earnings (wages + commissions) divided by hours worked.
- Example: You earn a $500 base salary + $500 in commissions in a 44-hour week.
- Regular pay for the first 44 hours of work= $1,000 ÷ 44 = $22.73/hour
- If you work 50 hours, that’s 6 overtime hours.
- Overtime pay = $22.73 × 1.5 × 6 ≈ $204.57
- Total weekly pay = $1,204.57
Key Takeaway: Overtime isn’t limited to your “base pay.” It must include commissions, piecework, and other regular earnings to reflect your true hourly rate under the ESA.
Quick Overtime Pay Formula (Ontario)
Step 1. Find your regular hourly rate:
- Hourly employee → your hourly wage.
- Salary employee → weekly salary ÷ 44.
- Commission employee → total weekly earnings (base + commission) ÷ total hours worked.
Step 2. Multiply your hourly rate by 1.5 to get your overtime rate.
Step 3. Multiply that overtime rate by the number of hours worked beyond 44 in the week.
Step 4. Add this overtime amount to your regular weekly pay.
Example Calculations
- Hourly employee: $20/hour × 1.5 × 6 OT hours = $180 overtime.
- Salary employee: $880/week ÷ 44 = $20/hour → $20 × 1.5 × 6 = $180 overtime.
- Commission employee: $1,000/week (base + commissions) ÷ 44 = $22.73/hour → $22.73 × 1.5 × 6 ≈ $205 overtime.
Employee Tip: Employers must include all forms of regular pay — not just your base wage — when calculating overtime. This means commissions, piecework, or bonuses tied directly to work performed count toward your overtime rate under the ESA.
Can I Get Time Off Instead of Overtime Pay in Ontario?
Yes. Instead of paying overtime wages, an employer and employee can agree in writing to provide paid time off, also called “lieu time.”
- For every 1 hour of overtime worked, you must receive 1.5 hours of paid time off.
- Lieu time must usually be taken within 3 months of the week the overtime was earned.
- This can be extended up to 12 months if both the employee and employer agree in writing.
- If the employee’s job ends before the lieu time is taken, the employer must pay out the unused time at the proper overtime rate.
Employee Tip: Lieu time can’t be imposed — there must be a written agreement. Without one, overtime must be paid in wages.
Do I Need Pre-Approval for Overtime in Ontario?
No. Under Ontario’s Employment Standards Act, 2000 (ESA), you are entitled to overtime pay if you work more than 44 hours in a week — whether or not your employer gave “pre-approval.” What matters is whether the employer permitted or did not prevent the work.
This was confirmed in Fresco v. CIBC, 2020 ONSC 75, a class action involving thousands of bank employees. The Ontario Superior Court held that even if overtime wasn’t explicitly ordered, employees who worked extra hours had to be paid if the employer knew or should have known the work was being done.
In other words, a company policy requiring prior written authorization does not override your legal right to overtime pay. If you worked the hours and the employer allowed it, you must be compensated.
Maximum Hours of Work and Averaging Agreements
- The ESA limits most employees to 48 hours per week, unless the employee provides written consent.
- Employers and employees may agree to “averaging” overtime hours across up to four weeks. This may reduce overtime entitlement, but again, it requires employee consent.
Do you need approval to work overtime?
Some employers require pre-approval before you work overtime. However, if you worked the hours and the employer permitted or did not prevent it, you must still be paid.
In Fresco v. CIBC, 2020 ONSC 75, the court confirmed that employees who worked overtime without explicit orders were still entitled to be paid if the employer knew or should have known the work was being done.
Common employer tactics that deny overtime
- Misclassifying employees as “managers” when they perform regular staff duties.
- Treating employees as “independent contractors” when they are really employees.
- Telling salaried employees they don’t qualify.
- Refusing to pay because overtime wasn’t “pre-approved.”
If any of these sound familiar, you may be entitled to significant unpaid overtime compensation.
Do employers have to keep overtime records?
Yes. Under Ontario law, employers must keep accurate records of the hours employees work each day and each week, including overtime hours, and the amounts paid. If records are missing or inaccurate, this can itself be a violation of the ESA and may strengthen an employee’s claim. Employees should also keep their own records, such as timesheets, emails, or personal logs, to protect themselves in case of a dispute.
What to do if you are not paid overtime in Ontario
If you believe you are owed overtime pay:
- Keep records – Track your hours and request a copy of your employer’s records (they are legally required to maintain them).
- Request payment – Ask your employer in writing for your overtime pay.
- File a complaint – Submit a claim with the Ontario Ministry of Labour (claims limited to the past 2 years).
- Consider legal action – You may recover more through the courts, including unpaid overtime beyond 2 years, wrongful dismissal claims, or punitive damages if the employer acted in bad faith.
Employee Tip: In rare cases, courts may award punitive damages if an employer’s refusal to pay overtime is malicious, oppressive, or represents a serious departure from ordinary standards of conduct. Punitive damages are not about compensating the employee, but about punishing the employer for egregious behaviour. For example, in Giacomodonato v. PearTree Securities Inc. (2023 ONSC 5628), the court awarded the employee $10,000 in punitive damages. The employer had suspended salary continuation, attempted to offset amounts it still owed, and conditioned payment on release—conduct the court found reprehensible enough to warrant penalization, not just recovery.
FAQs: Employee Overtime Rights in Ontario
Do salaried employees get overtime in Ontario?
Yes. Salaried employees are entitled to overtime unless they fall under an exemption.
What jobs are exempt from overtime pay?
Managers, supervisors, certain professionals, IT staff, and some salespersons are exempt under the ESA.
How far back can I claim unpaid overtime?
Through the Ministry of Labour, you can recover up to 2 years. Through court, potentially longer.
Do I need pre-approval for overtime in Ontario?
No. Even if your employer requires “pre-approval,” if you worked the hours and the employer permitted or did not prevent it, you are still entitled to overtime pay. In Fresco v. CIBC, 2020 ONSC 75, the court confirmed that employees must be paid overtime in these circumstances.
Can my employer refuse to pay overtime?
No. Even if your employer requires “pre-approval,” if you worked the hours and they allowed it, they must pay.
Can I get time off instead of pay?
Yes, if you agree in writing. For every 1 hour of overtime, you must receive 1.5 hours off.
Why Choose Monkhouse Law
At Monkhouse Law Employment Lawyers, we focus mainly on employee rights. Our team has successfully represented employees in class actions and individual claims for unpaid overtime, helping workers recover what they are owed.
If you believe you haven’t been paid fairly for your overtime hours, contact us for a free 30 minute consultation to learn your options.