Overtime Pay in Ontario—Need to Know When it Comes to Salaried Employees

“Overtime” often carries a negative reputation. It can feel like a sign of understaffing, unrealistic expectations, or a workplace culture that rewards exhaustion. And because overtime can be abused—especially when extra hours go unpaid—employment standards legislation across Canada includes rules designed to protect workers.

In Ontario, overtime rules are set out in the Employment Standards Act, 2000 (ESA). One of the most common misunderstandings is that salary automatically cancels overtime. It doesn’t.

For most provincially regulated employees, overtime pay applies when total hours worked in a week exceed 44 hours.

A frequent point of confusion is thinking overtime is triggered by a long day. Under the ESA approach, overtime is generally based on total hours in the entire week.

That means an employee typically can’t claim overtime for working beyond their usual daily hours if their weekly total remains below 44 hours.

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

Who may be excluded from overtime pay?

The ESA includes exemptions and special rules for certain roles and professions. While eligibility depends on the details, overtime protections are commonly limited for some categories, including:

• Lawyers

• Doctors

• Engineers

• Accountants

• Many information technology professionals

Managers and supervisors are also often excluded, though the real duties and circumstances matter.

Can salaried employees claim overtime pay?

Yes—many salaried employees can still be entitled to overtime pay.

The misconception comes from the way overtime is often discussed: it’s usually framed as “time-and-a-half of your hourly rate.” But the ESA doesn’t say salary equals no overtime. Instead, if a salaried employee is eligible, the salary is typically translated into an hourly rate for calculation purposes.

How overtime can be calculated for salaried employees? A common method is:

1. Convert weekly salary to an hourly rate by dividing weekly compensation into an hourly amount.

2. Apply the overtime rate (1.5×) to the hours worked above 44 in that week.

Because the math and assumptions can matter (for example, what the salary is intended to cover), it’s often worth getting advice before asserting a specific amount.

In some workplaces, overtime is handled through an agreement for paid time off instead of overtime pay—often called banked time or time in lieu.

Where permitted and properly agreed to, the exchange is commonly 1.5 hours of paid time off for every 1 hour of overtime worked.

What if your employer doesn’t pay overtime?

The ESA sets minimum standards. An employment agreement can’t legally reduce ESA minimum entitlements. If a contract tries to “sign away” overtime rights below ESA minimums, that provision is generally unenforceable.

If you believe you’re owed overtime, potential next steps may include:

1) Put the concern in writing

A written complaint to your employer creates a clear record and may resolve the issue quickly.

2) Have a lawyer send a demand letter

An employment lawyer can send a demand letter summarizing the facts and the legal basis for the claim. This can be an effective starting point for negotiation and can clarify whether the employer is willing to resolve the issue.

3) File a Ministry of Labour complaint

In Ontario, the Ministry of Labour investigates ESA complaints. After a complaint is filed, an employment standards officer may request records and information from both sides and can issue a decision, including an order for payment of overtime owed under the ESA.

4) Consider constructive dismissal (in some cases)

If overtime pay is withheld and hours are increased without consent, some employees may argue the employment relationship has been fundamentally changed. Depending on the facts, that can support a claim for constructive dismissal, which may allow a civil claim for damages such as severance.

Because legal strategy matters—and because choosing one route can affect what you can recover—it’s wise to speak with an employment lawyer before starting formal proceedings.

Employment disputes are fact-specific. A lawyer can help you:

• Determine whether you’re covered by overtime rules or an exemption

• Calculate what may be owed

• Decide whether a demand letter, negotiation, a Ministry of Labour complaint, or a civil claim makes the most sense

• Prepare materials and arguments to support your position

• Negotiate a settlement or represent you through the appropriate process

Overtime pay is a core employment standard meant to reduce exploitation and ensure extra hours are compensated fairly.

If you believe you’re owed overtime, there are options—from raising it in writing, to a demand letter, to a Ministry of Labour complaint, to civil claims such as constructive dismissal. Getting legal advice early can help you protect your rights and choose the path that fits your situation.

This post is general information and not legal advice.

Until next time,