Overtime Pay in Ontario — What Salaried Employees Should Know

The word overtime doesn’t land the way it used to. For many workers, it signals long days, blurred boundaries, and workplaces where “extra hours” quietly become the expectation. That skepticism is understandable—when overtime isn’t managed properly, it can be exploited.

That’s why employment standards laws exist across Canada: to help ensure employees aren’t pressured into working additional hours without fair compensation.

If you’re in Ontario and you’re paid a salary, you may have been told (or assumed) that overtime doesn’t apply to you. In many cases, that’s simply wrong. A salary does not automatically cancel overtime rights.

Below is a practical overview of overtime pay under Ontario’s Employment Standards Act, 2000 (the ESA), how overtime can apply to salaried employees, what you can do if you aren’t being paid properly, and how an employment lawyer may support you.

Under the ESA, most provincially regulated employees are entitled to extra pay when they work beyond the weekly overtime threshold of 44 hours.

A few points that often surprise people:

• Overtime is calculated based on total hours in the week, not on a day-by-day basis.

• Working past your usual hours on a single day doesn’t necessarily create an overtime claim if your weekly total stays under 44 hours.

• For most employees, overtime must be paid at a minimum of 1.5 times the employee’s regular rate of pay.

Who typically doesn’t qualify for overtime pay?

The ESA includes exemptions, and some categories of workers are commonly excluded from overtime entitlements. Examples often include:

• Lawyers

• Doctors

• Engineers

• Accountants

• Information technology professionals

Managers and supervisors are also frequently excluded, although eligibility can depend on the real nature of the work and the circumstances.

Because exemptions exist, many people jump to the conclusion that salary automatically means “no overtime.” That’s a misconception.

Overtime and salaried employees: can you still claim it?

Yes—being salaried does not automatically remove your right to overtime pay.

The difference is that salaried employees may need to convert compensation into an hourly figure to calculate overtime.

A common method is:

1. Determine your regular hourly rate by dividing your weekly salary into an hourly amount.

2. Apply the overtime multiplier (1.5) to that hourly rate for any time worked beyond 44 hours in the week.

Time off instead of overtime pay (banked time)

In some workplaces, employees and employers agree that overtime will be compensated with paid time off rather than additional pay. This is often called banked time or time off in lieu.

Typically, the exchange is 1.5 hours of paid time off for every 1 hour of overtime worked.

Can an employer contract out of overtime rules?

The ESA sets minimum standards. Employers generally can’t reduce overtime entitlements below those minimums.

In Ontario, a contract term that tries to waive or undercut ESA minimum protections is illegal and unenforceable. Employees can’t sign away ESA rights.

So if your employer is refusing to pay overtime you’re entitled to—or paying less than the ESA requires—you may have remedies.

If you believe you haven’t been paid overtime properly, possible next steps can include:

• Submitting a written complaint to your employer.

• Having an employment lawyer send a demand letter that outlines the facts and the relevant legal basis for your claim.

Sometimes, that’s enough to resolve the issue quickly. If not, you may consider formal action.

Option 1: File a complaint with the Ministry of Labour

In Ontario, you can file a complaint with the Ministry of Labour, which investigates ESA violations.

After a complaint is filed, the process may include:

• an employment standards officer being assigned,

• requests for records, evidence, and other information,

• input from the employer,

• and a decision that may include an order for unpaid overtime.

Option 2: Civil action, including constructive dismissal

Depending on the facts, an employer’s refusal to pay overtime—and/or increasing required hours without consent—may support an argument that the employment relationship has been fundamentally changed. In some situations, this may be framed as constructive dismissal.

If constructive dismissal applies, an employee may sue in civil court and seek damages such as severance.

Because the best route depends heavily on the details, it’s wise to speak with an employment lawyer before starting legal proceedings.

When overtime disputes arise, legal advice can clarify what you’re entitled to and what strategy makes sense.

Depending on your situation, an employment lawyer may:

• assess whether ESA overtime rules apply to your role (including whether an exemption applies)

• calculate what may be owed

• send a demand letter and negotiate a settlement

• advise whether a Ministry of Labour complaint is the right approach

• pursue civil claims, including constructive dismissal, where appropriate

• prepare court materials and arguments properly to improve your position

Overtime protections exist to prevent exploitation and to ensure employees are compensated when work hours extend beyond reasonable limits.

Until next time,