Overtime Part 2: The Manager Exemption

manager exemption for overtime

Photo by Jonas Leupe on Unsplash

Last week we wrote about ways employers can manage overtime liabilities with Averaging Agreements and Time in Lieu. This week we will tackle a commonly litigated overtime issue – the manager exemption. 

The Manager Exemption 

Not every worker is entitled to overtime pay. Exemptions are set out in section 8 of Ontario Regulation 285.1 under the Employment Standards Act, 2000. Included in the list of the exempt is the manager or, to be exact, “a person whose work is supervisory or managerial in character and who may perform non-supervisory or non-managerial tasks on an irregular or exceptional basis.” Who exactly falls under this exemption can be unclear. 

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Overtime Part 1: Averaging and Time Off In Lieu

Overtime: averaging and lieu time as alternatives to paid overtime

Photo by Jonas Leupe on Unsplash

Along with vacation pay, overtime is another area of the Employment Standards Act that can be confusing and can get employers in trouble. 

Entitlement to Overtime Pay

Most employees are entitled to be paid overtime – which is 1.5 times their normal pay rate – for every hour they work in excess of 44 hours in a week. 

Some employees are exempt, including most of the regulated professions, many employees in healthcare jobs, IT workers and managers among others. For a full list of job types that are not entitled to overtime see the Ministry of Labour’s Guidance.

The manager exemption can be a tricky one and we will address that in Part 2 next week. 

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