A 30-minute unpaid meal break must be provided when an employee works more than five hours in a row. Unless specifically exempted, employees covered by the Act must receive overtime pay for hours worked in excess of 40 in a workweek at a rate not less than time and one-half their regular rates of pay. PLUS, an average day's pay (for the stat holiday) Calculation for pay on the statutory holiday: 1. NOTE: In this example, the employee has not been provided with 32 hours free from work during this week as required by Section 36. For instance, if an employee worked for 13 hours they would receive 1.5 times their base pay for four hours, as well as an additional double their base pay for one hour worked past 12 hours. financial representative relevant to your needs for financial advice. In this example, 1.5X regular wage is applicable for both; therefore, the employee is paid 1.5X for all hours worked on the Saturday. Ta-dah! 4. Who is exempt from overtime pay? This unexpected call back to work is different than overtime. Most employees receive 1.5 times their base pay after working more than 48 hours in a week. follows the typical 40-hour workweek, and overtime is paid at 1.5 times the rate of the employees standard pay. Most employees inPrince Edward Islandare paid time-and-a-half after working 48 hours in a week but some occupations have different overtime structures. Some industries such as oil, gas, and fisheries base the overtime rate on minimum wage, rather than base pay. The trip from the meeting location to the worksite and back is paid travel time. Overtime entitlement: Employees who work more than eight hours in a day or 40 hours in a week must be paid time-and-a-half or double-time for overtime hours worked. Overtime: 2 hours at 1.5x $15 = $22.50 per hour x 2 hours = $45.00 overtime. There are also some industries and professions exempt from overtime pay in B.C.. For instance, oil and gas workers, farm workers, truck drivers, and taxi cab drivers are all exempt from overtime pay. for identification purposes only and does not imply endorsement. Employee receives: o Overtime pay: Saturday: 8 hours X 1.5 (weekly overtime). The FLSA does not require overtime pay for work on Holidays present confusion around paying for hours worked . o Statutory holiday pay: Monday: 8 hours X1.5 regular wage plus an average days pay. Overtime hours can also be banked and taken as time off later. In the United States, Federal Law applies in many of the states for on-Call Time-related activities. There is quite a bit of variation by province and territory when it comes to overtime in Canada. Overtime is only granted when employees work more than 40 hours in a week. (1) An employer must pay an employee overtime wages in accordance with section 40 if the employer requires, or directly or indirectly allows, the employee to work more than 8 hours a day or 40 hours a week. Overtime terms may vary if the employer and employee enter into anaveraging agreement. Use Solution Explorer Calculate statutory holiday pay. The only workers who dont receive overtime pay are those in exempt professions. Calculating daily overtime is quite simple. NOTE that Overtime is NOT included in Total Wages for Stat Pay in BC. Certain employees are exempt from this section, or Part 4 entirely, under the Employment Standards Regulation. The employee would be compensated $30 per hour for the additional 10 hours, which amounts to an additional $300 on their paycheque. Overtime is when an employee works more than their regular schedule. The most common exceptions are for management and unionized employees (unions may have collective agreements with different provisions for overtime pay). Even if you worked under 40 hours that same week, you would still be eligible for the time-and-a-half. Thats because even if an employee doesnt work more than eight hours a day, they could work more than five days per week, meaning the total number of hours they worked during the week would be in excess of 40 hours. may take a little bit longer, its more straightforward than it seems. A full list of the professions exempt from overtime pay can be found in Part 7 of the Employment Standards Regulations. Related Information. An averaging agreement is when hours worked are calculated by finding the average of one, two, three, or four weeks. Also divide the total hours by the number of days worked to get their Insurable Hours for the Stat Day. For more information, refer to the Managers factsheet and the definition of manager in section 1 of the Employment Standards Regulation. Employees in the PEA bargaining unit do not havesuch language in the PEA Main Agreement. An employee working under an averaging agreement must be paid 2 times their regular rate of pay if he/she works more than 12 hours in a given day. (b) double the employee's regular wage for any time over 12 hours. Working through a meal break does not always result in overtime pay. Its essential that you pay close attention to your local laws so you can account for overtime pay in the budget and maintain accurate books. Employees are paid for travel time if they are sent out of town for work. In those situations, the 48-hour workweek still applies. Statutory Term with a bargaining unit classification. (2) Subsection (1) does not apply for the purposes of an employee who is working under an averaging agreement under section 37. follow the typical overtime in Canada structure of 1.5 times the standard pay for more than 40 hours worked per week. Therefore, if a shift straddling midnight ends on a Sunday the time worked on Sunday will be applied to the time worked on Saturday. The bad news is: Its pretty time consuming. Overtime is compensated for the following employee groups: Communications, Energy and Paperworkers Union. Alberta does abide by the eight-hour workday rule, so any additional time after eight hours must be compensated by 1.5 times the employees normal pay. For example, if an employee works 10 hours of overtime in one day, they would earn 3 hours of overtime (2 hours of overtime x 1.5 their regular pay rate = 3 hours of banked time). Part 7 of the Employment Standards Regulations, Allow the employee to use all the credited overtime wages to take paid time off, Pay the employee all of the overtime wages credited to the time bank, Pay the employee a portion of the wages credited to the time bank and allow the employee to use the rest of the credited overtime wages to take paid time off, It must be signed by the employee and employer before the start date, It must identify a starts date and an end date for the averaging agreement, It must identify the number of weeks (one to four) over which working hours will be averaged, It must include the work schedule for each day covered by the agreement, It must include the number of times the agreement may be repeated. (See sections 45 and 46 in the Act). is based on multiplying the current minimum wage by 1.5. This type of arrangement gives employees more flexibility when it comes to their work hours, while helping employers keep overtime costs in check. Additionally, overtime hours can be used as time off, as long as theyre used within three months of when they were earned. *Exception: Employees in the Communications, Energy and Paperworkers Union receive double-time for all overtime worked. Under Canadian law, your employees receive severalpaid holidaysper year. Join thousands of businesses that are set up for success. Otherwise, the Acts requirements are deemed to be incorporated in the collective agreement. Example: A person who works a six-hour shift (6 am to 12 pm) five days a week is asked to work an extra four hours (2 pm to 6 pm). You will need to pay your employees their regular wages for any sick days taken. Employees can be required to work overtime. The good news is: Its not that hard However, if Tom works 52 hours the first week and then just 26 hours the next week, he is not entitled to overtime pay (52 hours + 26 hours = 78 hours). Where an employee earns two combined entitlements, they do not double up but, rather, the employee would get paid in a fashion that provides the greater benefit to the employee. 2. Do the sick days have to be taken consecutively? If an employee is paid by a weekly, monthly or yearly salary, overtime is payable to that employee if they work over 8 hours in a day or over 40 hours in a week. Other excluded employees (for example,managers, EAAs, SEAs) are not compensated for overtime. All trademarks, service marks, logos and company names are the property of their Related sections of the Act or Regulation, Oil and Gas Well Drilling and Servicing Employees, *Don't provide personal information . If you worked more than 12 hours in a day, you would need to be paid double time for those hours. The first thing to note is that Salaried employees typically do not receive Statutory Holiday Pay per se. This website is using a security service to protect itself from online attacks. Employment, business and economic development, Employment standards and workplace safety, Birth, adoption, death, marriage and divorce, Environmental protection and sustainability, Tax verification, audits, rulings and appeals, Transportation and infrastructure projects, Fraser Valley Highway 1 Corridor Improvement Program, Highway 1 - Lower Lynn Improvements Project, Belleville Terminal Redevelopment Project, 32 hours in a row free from work each week, Section 35 Maximum hours of work before overtime applies, Section 40 Overtime wages for employees not working under an averaging agreement, Section 34 Exclusions from hours of work and overtime requirements, Section 34.1 Hours of work and overtime for farm workers, Section 34.2 Hours of work and overtime for livestock brand inspectors, Section 37.64 Oil and gas field workers under section 37.6 - overtime wages, Section 44 Exclusions from overtime pay requirements, Part or all of the wages in the time bank to be paid out, Time off with pay for a period agreed upon by the employer and employee, The employer to close the bank and pay out their banked hours entirely this request must be made in writing, Pay the employee all of the overtime wages credited to the time bank, Allow the employee to use the credited overtime wages to take time off with pay, Pay the employee for part of the wages credited to the time bank and allow the employee to use the remainder of the credited overtime wages to take time off with pay. Please contact your financial or legal advisors for information specific to your situation . Canadian labour laws are set up to protect workers from being overworked and underpaid, and those laws extend to overtime. Employees should be paid statutory holiday pay (an average day's pay) for a regular or scheduled day off that falls on a statutory holiday. Ensure you're paying employees fairly, discover the various rules around paying overtime wages in Canada, based on each province and territory. All Rights Reserved. Include vacation days. Like British Columbia, averaging agreements may affect how overtime is paid. An employee who is defined as a manager under section 1 of the Employment Standards Regulation is excluded from the hours of work and overtime provisions of the Act, pursuant to section 34 of the Regulation. An employee must also have at least eight hours off between shifts. . Don't include overtime. If an employee doesn't qualify for statutory holiday pay, they get regular pay for working on a statutory holiday. By QuickBooks Canada Team November 13, 2019 7 min read Understanding overtime in Canada ensures you're paying employees fairly when they work more hours than the normal work period. Daily Overtime After working eight hours in a day, if the employee continues to work, they must be paid a time-and-a-half (1.5 times) their regular wage rate. Extra pay for odd-hours work that is at least 1.5x the . To better understand daily overtime pay rates, lets use the example of Sheena, who works in communications making $28.00 per hour. Specifically, subsections 33, 34, 35 & 37 exclude certain employees from the hours of work and overtime provisions. Most employees are eligible for overtime in British Columbia. Within six months, the employer must do one of the following: An employee must have at least 32 hours in a row free from work each week. Employees in the BCGEU, Nurses' and King's Printer/Unifor bargaining units have the right to refuse overtime, unless there is an emergency. A week is from Sunday to Saturday. Overall, she worked 38 hours that week, which places her under the 40 hours a week threshold for standard work hours. Starting Jan. 1, 2022, B.C. Employees working under an averaging agreement are required to be paid overtime wages in accordance with section 37 of the Act. Ontarioemployees are paid 1.5 times their base pay if they work more than 44 hours in a week. In some cases, an employer and any of its employees may wish to submit a written joint application to the Director under section 72 of the Act requesting a variance to section 40. Only Amanda's hours worked during the week prior to Labour Day count towards the calculation of General Holiday Pay. The official standard work hours are 40 hours a week, 8 hours a day, from Sunday to Saturday. Some industries such as oil, gas, and fisheries base the overtime rate on minimum wage, rather than base pay. So to help B.C. The definition of Total Wages includes: Time-and-a-half can be paid for the day with the least number of hours. If overtime normally kicks in at 40 hours, it is lowered to 24 for this week. can enter into average agreements. With banked overtime, employees earn 1.5 hours of regular pay time off for each hour of overtime worked. When these hours are exceeded, overtime is generally payable. An employee must have at least 32 hours in a row free from work each week. Other Overtime Laws Canadian Employers Should Know, Paying overtime can cut into your companys bottom line, so you may want to improve your approach to employee scheduling if you find youre paying it too frequently. (2023). Each financial situation is different, the advice provided is intended to be general. If you work on a statutory holiday, you are paid time-and-a-half for the hours worked. Overtime is only granted when employees work more than 40 hours in a week. Regular hours 8 at $15.00 = $120.00 2. Employers are not required to provide coffee breaks. Text of Legislation If an employee earned $1,000 and worked 50 hours in a week; divide $1,000 by 50, so the average wage rate is $20. Employees are paid time-and-a-half for hours worked on a statutory holiday double-time for hours worked over 12 hours. or communicate with your employees so you can factor overtime pay into the budget or request that they stay within their scheduled hours to avoid any confusion. Like New Brunswick, the overtime rate inNewfoundland and Labradoris based on multiplying the current minimum wage by 1.5. When calculating overtime, statutory holidays and vacation days count as worked days, and so qualify for overtime. This usually means the employee must be paid at overtime rates. When a holiday occurs, that lowers the overtime threshold by eight hours. Varying this section Questions about the collection of information can be directed to the Manager of Corporate Web, Government Digital Experience Division. It can be based on employee seniority or availability, or other criteria the employer chooses. This applies even if the employee works less than 40 hours in a week. Examples: Employees meet at the airport at 5:30 a.m. to fly into a logging site. It should be noted that when statutory holiday pay is earned and weekly overtime is also earned, as in Example 2 above, the employer is not required to pay both. Only the first eight hours worked in a day count towards weekly overtime. The Total Wages in the 30 days previous to the Stat Day. Colorado wage law does not require nor prohibit any paid holidays, and does not require nor prohibit any extra pay for working on holidays. Later on, they can ask for: An employer can close a time bank after giving the employee one months written notice. Statutory holiday pay = Total wages number of days worked in the pay period leading up to the statutory holiday. Cloudflare Ray ID: 7ee826b1cc312c18 For example, if Tom and his employer agree to an averaging period of two weeks, Tom is entitled to overtime if he works more than 80 hours during the two week period (40 hours 2 weeks = 80 hours). Standard work hours are eight hours in a day and 40 hours in a week. The Act does not require overtime pay . But some professions arent eligible for overtime, including loggers, fishers, and trappers.
does stat pay count towards overtime bc
