Overtime Pay

If an employer requires or permits an employee to work in excess of the standard hours of work, the employer shall pay to the employee one and one-half times the employee’s regular wages for all hours worked in excess of:

  • eight in a day; or

  • 40 in a week, but excluding hours worked in excess of eight in a day

Time off with pay instead of overtime

An employee or a group of employees can agree, either through a collective agreement or a written agreement with their employer, that instead of being paid overtime pay, they will receive time off with pay.

The agreement between the employee or group of employees and the employer must be in writing if there is no collective agreement in place. The agreement can specify that the time off is taken wholly or partly in place of overtime pay.

  • An agreement shall be deemed to include the following provisions:

    • the employee shall receive time off calculated by multiplying the hours of overtime worked by the employee by time and a half;

    • the time off with pay instead of overtime pay shall be provided, taken, and paid at the regular rate of pay at a time when the employee could have worked and received wages from their employer;

    • time off with pay is not provided, taken, and paid in accordance with, the employee shall be paid at the overtime rate for all the overtime hours with respect to which time off was not provided, taken, or paid;

    • that time off with pay instead of overtime pay shall be earned by the employee and provided, taken, and paid to the employee within a 12-month period as stated in the agreement or, if no 12-month period is stated, within a calendar year; and

    • that no amendment or termination of the agreement shall be effective without at least one month’s notice in writing by the employer or the employee or group of employees, as the case may be, to the other party to the agreement.

    • An employee or a majority of a group of employees may, as part of a collective agreement or if there is no collective agreement may work a regular day of work in excess of eight hours but not in excess of 12 hours provided that the total hours of work of each employee shall not exceed 80 hours in a two week period.

    • an employer requires or permits an employee to work in excess of 80 hours in a two-week period, the employer shall pay the employee one and one-half times the employee’s regular wages for all hours worked in excess of 80 hours.

YK ESA s.8-9