• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Kissinger HR Services

Human Resources Consultants

  • Home
  • About Us
  • Advice
  • EMPLOYEE RELATIONS
  • HEALTH & SAFETY
  • COVID 19 Supports
  • ASK US
  • Courses
You are here: Home / Blog / Salary Employees Entitled to Overtime

Blog · 7 July 2014

Salary Employees Entitled to Overtime

The first installment in the “Ask the Expert” Series! 

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)

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.

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 0vertime = $602.24

You can see the Ministry’s calculations Here

 

Share this:

  • Twitter
  • Facebook
  • LinkedIn

Filed Under: Blog

Previous Post: « Dealing with Non-WSIB Injury or Illness
Next Post: Proposed Changes to Ontario Employment Laws »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Recent Posts

  • Pandemic Demonstrates Need for Basic Income Program
  • Changes to ESA Effective Dec 17 2020
  • 2021: The Year of Adaptation
  • Have Your Say on Local Transportation!
  • WSIB’s Health & Safety Excellence Program Offers Funds for Compliance

Footer

About:

Privacy Statement
©2021, Kissinger HR Services
All Rights Reserved.

Connect with us:

  • Facebook
  • LinkedIn

Member of The Brantford-Brant Chamber of Commerce

Contact Us:

519.756.0989
Kissinger HR Services
24052-185 King George Rd.
Brantford ON
N3R 7X3

Silver 6 Media webdesign