Overtime

Overtime is calculated on the basis of the standard work week, which for most workers consists of 40 hours. A person who works more than 40 hours in a week is working overtime, even if the standard work week where they are employed is less than 40 hours.

In certain circumstances, a worker may refuse to work overtime.

Calculate overtime

Overtime hours must be paid at time and a half, which corresponds to a 50% increase in the regular hourly rate. Overtime pay can thus be calculated by multiplying the usual hourly rate by 1.5.

Example of calculating overtime

Sébastien is working in a printing shop. He is paid $20 an hour. Last week, he worked 45 hours. How does the employer calculate his overtime?

• The employer pays Sébastien his regular wage of $20  x 40 hours = $800.
• He is paid at time and a half ($20  x 1.5 = $30) for each overtime hour.
• He worked 5 hours of overtime, so 5 x $30 = $150.

Sébastien will receive $800 in regular pay, plus $150 in overtime pay, for a total of $950.

Premiums that are added to the hourly rate, such as night or evening shift premiums, are not taken into account when calculating overtime.

Calculating overtime for statutory holidays or vacation

When calculating overtime to be paid, hours included in annual vacation time and statutory general holidays are considered hours worked. Include these hours when calculating hours worked in the same week.

If a statutory holiday falls on a day of the week that would normally be a work day, to calculate overtime, the hours for that day are added to the hours actually worked. If the total hours exceed the standard work week, overtime must be paid at time and a half.

If the worker’s number of hours worked varies from one day to the next, the total number of hours worked in the week, plus those of the statutory holiday, are calculated on the basis of the average number of hours worked in the 4 weeks preceding the statutory holiday.

If the statutory holiday falls on a day of the week on which the worker normally does not work, the statutory holiday is excluded when calculating hours worked.

Example of calculating overtime for a week that includes a statutory holiday

Andrew works from Monday to Friday.
Last week, Monday was a statutory general holiday. Therefore, Andrew is entitled to a paid leave.
He worked 38 hours, from Tuesday to Friday.
He usually works 8 hours on Mondays at an hourly rate of 17,75 $. Andrew is entitled to paid leave that day.

1. Hours to consider when calculating total hours to be paid

38 hours worked
+ 8 hours considered time worked (holiday Monday)
= 46 hours counted as worked
 

2. Calculation of overtime payable

46 hours (i.e., the number of hours to include in calculating overtime)
- 40 hours (i.e., the duration of the standard work week)
= 6 hours of overtime to be paid at time and a half (x 1,5)
 

3. Calculation of hours payable at the regular wages

38 hours actually worked
- 6 hours of overtime
= 32 hours payable at the regular wages 

4. Calculating the indemnity for a statutory holiday

4.1 In the 4 weeks preceding the statutory holiday, Andrew worked 40 hours per week:
$17.75 x 40 hours = $710 earned for each of these weeks
$710 × 4 weeks = $2,840 earned in the 4 weeks preceding the holiday

4.2 $2,840 ÷ 20 (1/20 of wages earned in the 4 weeks preceding the holiday) = $142

For more information, visit the page on Calculating the indemnity for a statutory holiday.

5. Calculating wages to be paid for the week

• 32 hours x $17.75 (actual hours worked, payable at the regular rate) = $568
• 6 hours x $26.63 (overtime paid at time and a half, $17.75 x 1.5) = $159.78
• $142 (indemnity for a statutory holiday)
• Total wages due to Andrew for the week = $869.78

Replace overtime with leave

The worker may ask their employer for leave instead of payment in exchange for overtime. In this case, the time and a half rate is applied to hours of leave instead of hourly rate.

To calculate leave hours, the one and a half (1.5) rate is multiplied by the amount of overtime.

Payment for overtime may be replaced by paid leave only when requested by the worker or as stipulated in a collective agreement or by decree.

If the worker requests it, overtime may also be accumulated in a time bank.

Example of trading overtime for leave

Salima worked 46 hours last week. She wants to trade her overtime (6 hours) for hours of leave instead of receiving pay.

Her employer will multiply the 6 hours by time and a half (6 x 1.5 = 9 hours) to find out how many hours of paid leave she is entitled to. This gives Salima 9 hours of paid leave.

Flat-rate wages with a fixed schedule

Workers who are paid a fixed rate wage and who work a predetermined number of hours are considered an hourly rate worker. Their hourly rate can be calculated by dividing their wage by the number of hours worked. Hours worked in excess of 40 hours are paid at time and a half.

Example of calculating flat-rate wages

Nathalie is paid a wage of $1120 per week for 40 hours of work from Tuesday to Sunday. She worked 48 hours in the past week. How can her hourly rate be determined in order to calculate her overtime pay?

• The employer pays her a wage of $1120 per week.
• Nathalie works normally 8 hours per day from Tuesday to Sunday (8 hours per day x 5 days = 40 hours).
• To establish her hourly rate, her weekly wage is divided by the number of hours in her regular workweek ($1120 ÷ 40 hours = $28 per hour).
• She must be paid at time and a half ($28 x 1.5 = $42) for each hour of overtime.
• Last week, she worked 8 hours of overtime at $42 an hour, or 8 x $42 = $336.

Nathalie will receive her regular weekly salary of $1,120 plus $336 for overtime, for a total of $1,456.

Flat-rate wages with variable work schedule

Workers who get paid a flat rate but work variable hours must receive at least the equivalent of minimum wage for hours worked. The calculation must include any overtime hours paid at one and one half the minimum wage.

Example of calculating fixed-rate wages for a variable work schedule

Carlos is paid a wage of $1200 per week as a sales representative. He worked 60 hours in the past week.

• Minimum wage is $16.10
• The normal workweek is 40 hours x $16.10 (minimum wage) = $644.
• Carlos must be paid at time and a half ($16.10 x 1.5 = $24.15) for each hour of overtime.
• He worked 20 hours of overtime at $24.15 an hour = $483
• $644 (40 hours at minimum wage) + $483 (pay for 20 hours of overtime) = $1,127

Carlos' employer did not pay him any overtime for that week to his usual pay of $1,200 last week, since his wages are already more than the $1,127 he would have received if he were paid the minimum wage.