The persistent misconceptions around who qualifies for overtime pay continue to amaze me on both sides of the table. I have represented a number of employees who have worked ridiculously long hours for their employer without any additional compensation when employment standards legislation clearly stipulates time and a half beyond a certain threshold. On the other side, I have had to deliver some tough news to employer clients as to who is eligible for overtime so that they can avoid stepping on a financial landmine.
Overtime claims before the courts, unlike many other damage claims, are not subject to time limitations or caps on damages. Employers on the losing end of judgments can find themselves paying overtime claims stretching back many years.
Here are some common myths about who qualifies for overtime pay and who does not:
Myth #1 – Anyone with a managerial title cannot claim overtime. Only those who actually have managerial responsibility, such as supervising staff, hiring and promoting and responsibility for administration functions are exempt from overtime. Those with a manager’s title but whose job responsibilities are operational rather than administrative are eligible.
Myth #2 – Salaried employees do not quality for overtime. Being paid an hourly or salaried wage has no relation to qualifying for overtime. Both are eligible.
Myth #3 – High-tech digital employees are illegible for overtime provisions. IT professionals who maintain information technology infrastructures do not qualify for overtime. However, those who work extensively with computers, such a programmers, testers, animators or CAD product designers are all entitled to be paid for every hour they work.
Myth #4 – Sales staff cannot claim overtime. Sales people who sell outside their company’s offices do not qualify. But those who sell from their offices, such as order desk staff, are all entitled to overtime.
The reality is that many employees are misled – either knowingly or unknowingly – into thinking they do not qualify. Those who don’t complain for fear of reprisals need to know that their overtime rights are protected under Canada’s employment standards legislation.
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