Are you complying with overtime rules?

To whom, how much, and when to pay overtime
By Sheila Brawn
|Canadian Payroll Reporter|Last Updated: 11/02/2015

One are of compensation that can cause headaches for employers and payroll departments is overtime pay. Knowing who is entitled to overtime pay, how much to pay, when to pay and how to keep good records are critical components in ensuring that employer policy complies with labour standards rules.

Employers that do not adhere to overtime rules could have to answer to a labour standards board or even face a lawsuit. In Ontario, the Ministry of Labour lists overtime pay as one of the top five complaints it received in 2014-2015.

In recent years, some large employers, including CIBC and Scotiabank, have had to deal with class-action lawsuits for unpaid overtime. Most recently, transportation and logistics company Canada Cartage is facing a $100-million class-action lawsuit alleging it "had a policy or practice of avoiding or disregarding its obligations to pay overtime" to the members of the class action.