Categories: Payroll

Paying Your Employees Overtime

Did you know that there are different standards across Canada regarding an employer’s obligation to distribute overtime pay to employees?

More importantly — do you know the overtime pay regulations that are in place within your province?

As an employer, you need to be aware of the overtime rules should you have employees who work more than their regular hours. If an employee is not receiving the overtime pay they deserve, they can file a claim under the Employment Standards Act (or equivalent in your province or territory) which can result in a hefty fine towards your business.

The chart below shows how many hours an employee can work at regular pay. Any work completed above the allotted hours in most cases results in overtime pay for the employee at time and a half.

Province

Overtime Hours

Daily Weekly
Alberta 8 44
British Colombia 8 40
Manitoba 8 40
New Brunswick 44
Newfoundland and Labrador 40
Northwest Territories 8 40
Nova Scotia 48
Nunavut 40
Ontario 44
Prince Edward Island 48
Quebec 40
Saskatchewan 8 40
Yukon 8 40

 

Please note: British Columbia has a rule in which an employee who works over 12 hours in a day should receive double time for any extra hours worked.

With PaymentEvolution’s secure, online payroll, employers don’t have to worry about paying their employees overtime manually. When running payroll, simply change the earning type to Overtime Pay and input the amount of overtime hours worked within the pay run. PaymentEvolution’s software will automatically calculate the total overtime hours worked at 1.5x the regular rate and add it to your pay run.  If you have any questions on this or any other payroll related queries you can contact support@paymentevolution.com

 

 

Author

Recent Posts

Small Business Benefits Audit: What to Review Before Hiring New Employees

There was a moment, somewhere between 2012 and 2015, when Canadian employers quietly lost control…

1 week ago

Pay Transparency Laws in Canada: What Every Employer Needs to Know Before It’s Too Late

What started as a viral TikTok trend has arrived at the legislature. Here is what…

2 weeks ago

The T4 Hangover: What Surviving Tax Season Should Actually Cost You

March 3rd has a specific feeling  You know the one. It's not quite relief. It's not quite exhaustion. It's that particular fog that settles in…

4 weeks ago

The Payroll Trap: How Canadian Business Owners Turn Small Mistakes Into Personal Liability

If you run a Canadian business with 10–50 employees, payroll probably feels routine. You approve…

1 month ago

Payroll Security Threats Are Rising. Is Your Payroll System Ready?

Cyberattacks aren’t just targeting massive tech companies anymore. They’re targeting small and mid-sized businesses, and…

1 month ago

Service Fee Reporting: What Trucking Businesses Need to Know

February might be short, but compliance season isn’t. If your business pays contractors, carriers, or…

2 months ago