Overtime is one of the most misunderstood Ontario employment standards. The general rule is weekly, not daily, and several occupations have exemptions or special thresholds.
The general 44-hour rule
For most covered employees, overtime starts after 44 hours in a work week. The employer cannot avoid the rule simply by calling someone salaried. Salaried employees can still qualify unless a valid exemption applies.
How to calculate overtime
If the regular hourly rate is $20 and the employee works 50 hours:
- Regular hours: 44 × $20 = $880
- Overtime hours: 6
- Overtime rate: $20 × 1.5 = $30
- Overtime pay: 6 × $30 = $180
- Total gross pay: $1,060
What about salaried workers?
Convert the salary into a regular rate using the ESA rules for the applicable work week. For a simple example, if a non-exempt employee is paid $900 for a regular 40-hour week, the regular rate is $22.50 and the overtime rate is $33.75. Payroll structures can make the legal calculation more complicated, so keep the contract and pay records.
Paid time off instead of overtime money
An employee and employer may agree electronically or in writing to paid time off instead of overtime pay. The employee must receive 1.5 hours of paid time off for each overtime hour. It generally must be taken within three months, or within 12 months when both sides agree electronically or in writing.
Averaging hours
Some employers and employees use a written or electronic averaging agreement to calculate overtime across two or more weeks. These agreements must meet ESA requirements. A schedule showing fewer hours in one week does not automatically erase overtime in another week without a valid arrangement.
Who may be exempt?
Managers and supervisors may be exempt when their work is genuinely managerial or supervisory and any non-managerial duties are irregular or exceptional. Other occupations—such as some professionals, information technology professionals, certain salespeople and specific industries—can have exemptions or special rules. Job title alone does not settle the question; actual duties matter.
Records to keep
- Daily start and finish times
- Unpaid break periods
- Schedules and shift changes
- Pay stubs and overtime calculations
- Written time-off or averaging agreements
- Messages asking you to work before or after a shift
Common mistakes
- Calculating overtime only after 48 or 50 hours
- Assuming every salaried employee is exempt
- Paying one hour off for one overtime hour instead of 1.5
- Ignoring required work performed remotely
- Using an averaging arrangement without a valid agreement
Also review Ontario’s 2026 minimum wage, vacation pay and statutory holiday pay.
Official sources
Read Ontario’s official overtime pay guide and the Employment Standards Act.
This is general information, not legal advice. Special rules can change the result for a particular occupation.
Related guide: Learn when Ontario employees must receive meal breaks and rest time in our Ontario break laws 2026 guide.
Free tool: Use our Ontario overtime pay chart and calculator formula to estimate regular and overtime earnings for common hourly wages.
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