Overtime pay
Overtime pay is the pay an employer owes for hours worked beyond a threshold set by employment standards law, at a premium over the regular rate. The threshold, premium and exemptions differ by statute, so the governing law has to be identified first.
In Ontario, Part VIII of the Employment Standards Act, 2000 (ESA) sets overtime pay. Section 22(1) requires an employer to pay at least a stated premium on the regular rate for each hour over the overtime threshold, or over another threshold if one is prescribed, subject to s.22(1.1). The Act also contemplates employees to whom Part VIII does not apply (s.15(3)(b)). Under the Canada Labour Code s.174(1), a federally regulated employee required or permitted to work overtime is entitled to be paid for it at a premium or to be granted time off with pay on the conditions in s.174(2) to (5), subject to regulations under s.175. Alberta’s Employment Standards Code has sections on overtime hours and overtime pay (ss.21 and 22).
What a buyer reviews
- Ask for time records and pay records, and compare hours worked with hours paid
- Ask which roles the seller treats as exempt and on what basis
- Confirm which statute governs, and whether a contract promises more than the minimum
Record checks are part of how to check employment records in due diligence.
Sources
This definition is checked against primary sources. Links were last confirmed on the dates shown.
- 01Government of OntarioGovernmentEmployment Standards Act, 2000, S.O. 2000, c. 41
- 02Government of Canada (Department of Justice)GovernmentCanada Labour Code, R.S.C. 1985, c. L-2
- 03Government of AlbertaGovernmentEmployment Standards Code, R.S.A. 2000, c. E-9
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.