How is Overtime Pay Calculated?
Though many employees and employers claim to have a complete understanding of overtime and how it is calculated in BC, few individuals truly have all the facts. When discussing overtime pay, there are many elements to consider and facts to keep track of. As experts on the various elements of employment law, the team at Linley Welwood understands how important it is for employers and employees to understand the intricacies of overtime pay. That is why our employment lawyers have compiled some important information outlining how overtime pay is calculated and the differences between each type of overtime pay in BC.
How Overtime Pay is Calculated in BC
Overtime is paid when employees work beyond their standard work hours. In most cases, overtime pay starts after more than 8 hours of consecutive work in a single day or more than 40 hours of work in a week. Employers must pay for overtime even if an employee says that they are okay with being paid at their regular rate. Overtime must be given to employees whether they are paid hourly, monthly, annually, or on commission. It should be noted that employees under an averaging agreement or variance have different rules for calculating overtime. Unique rules may also apply when scheduling overtime for managers and in certain industries such as agriculture and high technology.
The Different Types of Overtime Pay in BC
British Columbia has a daily overtime pay threshold and a weekly overtime pay threshold. Overtime is paid at different rates based on the number of hours worked. The types of overtime pay in BC include:
Employees are paid at a rate of time-and-a-half, which is 1.5 times more than their regular rate for any time worked after 8 hours in a day. This rate can be paid for up to 12 hours, even if the employee does not work more than 40 hours a week. After 12 hours, employees are paid double the rate of their regular wage. This is commonly referred to as double time.
Employees are paid time-and-a-half for any time worked over 40 hours in a week. This applies even if an employee does not work more than 8 hours a day. A week is defined as the period from Sunday to Saturday. Only the first 8 hours worked in a day count towards weekly overtime.
Working on Statutory Holidays
If an employee works on a statutory holiday—Canada Day, Victoria Day, etc.—they are paid an average day’s pay in addition to overtime pay for the hours worked.
To learn more about overtime, vacation pay, employment contracts, or other important areas of employment law, reach out to the experts at Linley Welwood. We can be reached at 604-850-6640 or through our online contact form and will be happy to answer your questions.