Unlike other large provinces such as Ontario and Quebec, British Columbia has both a daily overtime pay threshold and a weekly overtime pay threshold. In British Columbia, employees are entitled to 1 1/2 times their normal rate of pay if they work more than eight hours a day or more than 40 hours a week. However, the overtime rate of pay rises to 2 times the employee`s regular rate for every hour of more than 12 hours who worked in a day. In other words, B.C. employers should closely monitor the hours of their employees. For example, if Tom and his employer agree on an average period of two weeks, Tom is entitled to overtime if he works more than 80 hours in the two-week period (40 hours × 2 weeks = 80 hours). However, if Tom works 52 hours the first week and only 26 hours the following week, he is not entitled to overtime pay (52 hours + 26 hours = 78 hours). Now, you`re probably wondering why a daily and weekly overtime pay threshold is required? Because even if an employee doesn`t work more than eight hours a day, they could work more than five days a week, which means that the total number of hours they worked during the week would be more than 40 hours. In this case, even if they never reached the daily overtime threshold, they would be eligible for overtime because they reached the weekly overtime threshold. A similar system is also used to calculate overtime in Alberta.
In some cases, an employee may make a written request to create a time bank and credit overtime salaries for future paid leave. This time bank must correspond to the salary to which the employee would have been entitled for overtime. For example, if an employee works 10 hours of overtime per day, he or she earns 3 hours of overtime (2 hours of overtime x 1.5 hours of his or her normal rate of pay = 3 hours of bank work). Employees may be asked to work overtime. Employees who work more than eight hours a day, or 40 hours a week, must be paid one and a half or two times as long for overtime worked. Overtime pay also comes into play on public holidays. In British Columbia, employees are entitled to 11/2 times their normal rate of pay for overtime worked during statutory leave. NOTE: In this example, the employee was not granted 32 hours of leave this week, as required by section 36. By paying the employee weekly overtime equal to 1.5 times his standard rate for the 4 hours worked on Saturdays, the employer also met the requirement to pay 1.5 times the standard rate if he does not work 32 hours of leave per week. Article 40 states that workers who work more than eight hours on shifts are entitled to “one and a half times” or 1.5 times their normal overtime pay. Employees are entitled to a “double time” or 2 times their regular salary for overtime of more than 12 hours per shift. This is your first day in a new job.
Your boss says you have 15 minutes for lunch. They work 11 hours and they tell you that the company`s policy is not to pay overtime. You wonder: is it legal? Because in the calculation of weekly overtime, only the first eight hours of work are counted each day – no more. Two main factors affect your rights in terms of hours of work and overtime: An average agreement is an agreement on the average number of hours of work planned over a period of up to four weeks. With this type of agreement, employees can agree to work up to 12 hours a day without being paid overtime, provided that weekly averages do not exceed 40 hours per week. Simply put, your employer may terminate your employment contract if you refuse to work overtime as long as the termination is legal. In total, Sheena worked a total of 6 hours of overtime (including one hour during a shift that exceeded 12 hours). Therefore, Sheen`s overtime can be calculated as follows: In this following example, we will look at how overtime pay is calculated when an employee works more than 40 hours per week. To illustrate this, let`s take the example of Adam, who works in computer science and earns $35 an hour. The employee receives overtime for each week, whether or not he or she has worked more than eight hours a day. If you work more than 40 hours a week, your employer will have to pay you an hour and a half after 40 hours. Only the first eight hours you work each day count towards the total.
(Daily overtime is billed separately.) Let`s say you regularly work overtime during the week. If this is the case, your employer may ask you to enter into an agreement in which they calculate the total number of hours worked on average over a certain period of time – it can be one week or four weeks. Subsection (1) Section 40 does not apply to work performed under an average agreement This section does not apply to an employee who has signed and is working under an average agreement in § 37. Employees who work under an average agreement must receive overtime pay in accordance with section 37 of the Act. Application of § 40 An employee under this division who works more than 8 hours a day must receive 1.5 times his normal rate of pay for any time worked more than 8 hours to 12 hours a day. Under this section, an employee who works more than 12 hours a day must receive double his or her normal rate of pay for any period that works more than 12 hours a day. Calculation of overtime in a week, including statutory leave The time worked by an employee on statutory leave is taken into account in the calculation of overtime for that week. If weekly overtime and statutory holidays fall on different days of the week, there is a greater financial benefit to the employee than if the holiday falls on a day on which weekly overtime is worked. An employee must also have at least eight hours off between shifts. If an employee works during this period, the hours are added to the other hours worked during the day.
This usually means that the employee must be paid at the overtime rate. According to the BC Employment Standards Act definition, overtime occurs when an employee works more than normal hours of work – typically eight (8) hours per day or forty (40) hours per week. However, it is important to note that if there is a weekly overtime agreement between the employer and the employee, it usually means that the employee has agreed to work more than five days a week. For example, a person who works a six-hour shift five days a week (6 a.m. to 12 p.m.) will be asked to work four hours overtime (2 p.m. to 6 p.m.). This gives them 10 hours for that day. You should be paid two hours at the overtime rate. To better understand daily overtime pay rates, let`s take the example of Sheena, who works in communications and earns $28.00 an hour. Let`s say your employee regularly works on weekends rather than overtime per week. If this is the case, employers can calculate the overtime rate based on a weekly rate.
Calculating overtime pay is a delicate task, but it is even more complicated for british Columbia employers. There is not only a weekly overtime threshold, but also a daily overtime threshold. Not to mention that average agreements can make the calculation of overtime even more complicated. While most British Columbians are covered by the Overtime Pay Act, there are a few exceptions. The most common exceptions apply to management and unionized workers (unions may have collective agreements with different provisions on overtime pay). Overtime can be a complex part of British Columbia`s labour laws and is often overlooked by employers or misunderstood by employees. (2) The employer shall pay an employee who works more than 40 hours per week and who does not work under an average agreement under § 37 1 1/2 times the employee`s normal wages for the period of more than 40 hours. 3. For the purpose of calculating the weekly overtime hours referred to in paragraph 2, only the first 8 hours worked by a worker each day shall be counted, irrespective of the length of time the worker works on any day of the week. Therefore, if an employee works more than forty (40) hours per week, the employer has the right to pay for overtime based on the overtime worked. A week runs from Sunday to the following Saturday.
Knowing that B.C.`s daily and weekly overtime pay thresholds can make things a bit difficult, we`re going to go over a few examples of how overtime pay is calculated. If the employee works more than four hours of overtime (i.e., more than twelve hours per given day), he or she must receive double his or her normal rate of pay for each hour that exceeds more than four hours of overtime. However, if the employee works more than 80 hours in the two weeks covered by the agreement, he must be paid overtime. But while calculating overtime pay in British Columbia may take a little longer, it`s easier than it sounds. To help B.C. employers manage the details of overtime pay, we`ve created a practical guide to overtime pay in British Columbia. Not only does this information keep you compliant, but it can also help you control your labor costs. And for those of you who pay across provincial borders, you can learn more about overtime in Canada here. Although Adam did not work more than eight hours in a single day, he worked more than 40 hours a week. Therefore, Adams` overtime would be calculated as follows: If you`re not sure whether you should get an overtime rate or not and your employer isn`t giving you the right advice, consider talking to an employment lawyer.
There are steps you can take if you don`t think you`ve been treated fairly in terms of hours worked or overtime. A British Columbia law, the Employment Standards Act, sets out rules for the hours of work and overtime that employers must follow. This law applies to “workers,” which covers most, but not all, workers in the province. As in Ontario, employees and employers in British Columbia can enter into average agreements. This type of agreement offers employees more flexibility in terms of working hours and helps employers control overtime costs.