Clarification on paying overtime to employees on salary

1. Kathryn Kissinger HR Services 2014
Ask The Expert:
Salary Employees are
Entitled to Overtime

2. Paying Overtime To Salary
Employees
There is a common misconception that if you pay
an employee by salary, instead of an hourly wage,
then the employee is not entitled to overtime.
THIS IS NOT TRUE!
The only employees who are not entitled to
overtime are Managers, Supervisors, and some
“white collar” professionals such as Engineers and
Doctors. (See the “Special Rule Tool” here)
Kathryn Kissinger HR Services 2014

3. Paying Overtime To Salary
Employees
Let’s use an example: “Steve” is a sales rep. He is
not in a managerial or supervisory role (i.e. he has a
boss to report to who dictates what Steve is to do
each day and reviews his performance).
Steve works 5 days per week and is paid $500 per
week. The employer does not have an “Averaging
of Hours” agreement with the employees.
Kathryn Kissinger HR Services 2014

4. Paying Overtime To Salary
Employees
Steve worked 50 hours in the week, so he is entitled to overtime
for those extra six hours. His overtime would be calculated as
follows:
$500 ÷ 44 = $11.36 (this is his hourly rate)
$11.36 x 1.5 = $17.04 (his overtime rate) $17.04 x 6 = $102.24
His pay would be: $500 regular rate + $102.24 = $602.24
You can see the Ministry’s calculations Here
Kathryn Kissinger HR Services 2014

5. Where to Find Us
Web: www.kissingerhrservices.com
info@kissingerhrservices.com
Phone: 519-758-1952
Mail: KGRPO Box 24052,
185 King George Rd.
Brantford, ON N3R 7X3
Kathryn Kissinger HR Services 2014