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Questions about Overtime Pay

What exactly does this provision do?

The new provision in the law provides a specific requirement for employers if they have employees who have two or more regular rates of pay for work performed and, in a work week, the employee performed work for the same employer in excess of the overtime threshold to calculate and pay overtime pay to these employees using the corresponding rate of pay for each overtime hour worked.

Why is this significant?

Employees who have two or more regular rates of pay for work performed and, in a work week, performed work for the same employer in excess of the overtime threshold are entitled to overtime pay for each hour of overtime work performed that is based on the regular rate that applies to the work performed in that hour. There is a new requirement in the law under the recordkeeping provision that requires employers to keep records of the dates, times and regular rate for each overtime hour worked if they have employees who have two or more regular pay rates for work performed and, in a work week, performed work for the employer exceeding the overtime threshold. Employers are required to keep these records for three years.

How is the new provision different from the existing provisions in the Employment Standards Act, 2000?

The new provision sets out a specific requirement for employers if they have employees who have two or more regular rates for work performed and, in a work week, performed work for the same employer in excess of the overtime threshold, to be paid overtime pay using the corresponding rate of pay for each overtime hour worked.

Changes in the recordkeeping provisions now requires these employers to record the dates and times that their employees work in excess of the overtime threshold at each rate of pay.

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