Overtime Labor Standards With Salaried Employees
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FAQ
Overtime hours must be paid at time and a half, which corresponds to a 50% increase in the regular hourly rate. Overtime pay can thus be calculated by multiplying the base hourly rate by 1.5.
Salaried employees are entitled to receive 1.5 times their regular rate in respect of each hour worked in excess of 44 in a work week (or other applicable threshold).
Canada's Basic Overtime Laws The law makes few distinctions about who qualifies. It's commonly thought that only hourly workers are eligible. In truth everyone, even if on salary or commission, is technically owed compensation for extra hours worked, unless exempted by law.
Step 1: Calculate regular rate of pay by dividing salary by total hours worked. Step 2: Calculate overtime pay by multiplying the hours of overtime worked by one-half the regular rate of pay. Step 3: Add overtime time to salary to determine total pay.