Managerial or supervisory exemption (hours of work and overtime)
The managerial or supervisory exemption removes some employees from parts of employment standards law on hours of work and overtime. In Ontario it covers a person whose work is supervisory or managerial in character and who may perform non-supervisory or non-managerial tasks on an irregular or exceptional basis.
A buyer relying on a manager title to skip overtime meets this exemption in Ontario’s O. Reg. 285/01. Section 4(1)(b) says sections 17, 18 and 19 of the Act, in Part VII on hours of work, do not apply to such a person, and s.8(b) says Part VIII on overtime pay does not apply.
What the wording turns on
The ministry’s overtime guide says managers and supervisors do not qualify for overtime if the work they do is managerial or supervisory, and that other tasks they perform only on an irregular or exceptional basis do not change that. Both texts speak of the person’s work, not of a title. Under s.167(2) of the Canada Labour Code, Division I on hours of work does not apply to employees who are managers or superintendents or exercise management functions, or who are in professions designated by regulation.
What to ask
- What each person called a manager does day to day.
- How often they perform tasks that are not managerial or supervisory.
- Which roles the seller has treated as exempt, and on what record.
See what employment liabilities you inherit and the regular rate of pay. This entry covers Ontario and the federal Code only; check the rules where you are.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of OntarioGovernmentO. Reg. 285/01: When Work Deemed to be Performed, Exemptions and Special Rules
- 02Government of Ontario — Ministry of Labour, Immigration, Training and Skills DevelopmentGovernmentOvertime pay — Your guide to the Employment Standards Act
- 03Government of Canada (Department of Justice)GovernmentCanada Labour Code, R.S.C. 1985, c. L-2
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