Ontario Employers Caught Violating Overtime Pay and Employment Standards Laws

An Ontario Ministry of Labour inspection blitz found that roughly three-quarters of previously non-compliant employers were still violating employment standards laws. Problems included unpaid overtime, excessive working hours, public holiday pay and poor record-keeping.

Employment lawyer Lior Samfiru discussed the findings in three radio interviews, explaining why employers continue to break the rules, when Ontario employees are entitled to overtime pay and what workers can do when they’re not being paid properly.

Ministry of Labour Finds Widespread Employment Standards Violations

The historical Ontario inspection blitz examined 103 workplaces with previous compliance problems. According to the findings discussed during the broadcasts, only 28 were fully complying with employment standards requirements.

Common violations included:

• Failure to pay overtime and other wages properly.
• Employees working excessive hours.
• Incorrect public holiday and vacation pay.
• Inadequate payroll and employment records.

Speaking with radio host Larry Fedoruk on News Talk 610 CKTB, Lior said he wasn’t surprised by the findings. He was surprised the number of violations wasn’t even higher.

He identified two recurring problems: employers who knowingly ignore their obligations because they expect few consequences, and employers who struggle to understand Ontario’s complicated employment standards rules.

Lior also explained that many employees never report violations because they don’t know their rights or fear challenging their employer.

When Does Overtime Pay Start in Ontario?

For most provincially regulated employees in Ontario, overtime pay begins after 44 hours of work in a week, not after eight hours in a day.

The standard overtime rate is time and a half, meaning 1.5 times the employee’s regular rate of pay.

For example, an employee earning $25 per hour who works 48 hours in a week would normally receive $37.50 per hour for the four overtime hours.

During his interview with Scott Radley, Lior explained that overtime entitlements can become confusing because Ontario’s Employment Standards Act contains special rules and exemptions for certain occupations.

However, an employer can’t simply decide that an employee doesn’t qualify for overtime because they’re paid a salary or hold a particular job title.

Learn more about overtime pay in Ontario.

Can Your Employer Refuse to Pay Unapproved Overtime?

An employer can’t automatically refuse to pay legitimate overtime simply because it wasn’t approved in advance.

Lior explained that employees must be paid for work they’ve actually performed, even when the employer has a policy requiring advance approval for overtime.

That doesn’t mean employees can ignore workplace policies without consequences. An employer may discipline an employee for repeatedly working unauthorized overtime, but that is a separate issue from paying wages owed for legitimate work.

Lior also discussed the pressure employees face when employers expect them to complete increasing workloads without recording additional hours.

Employees may feel compelled to work late to protect their jobs, earn promotions or avoid disappointing management. Those pressures can create serious workplace problems, particularly when extra hours go unpaid.

Learn more about your rights with unpaid overtime in Ontario.

Are Managers Entitled to Overtime Pay in Ontario?

Having “manager” in your job title doesn’t automatically make you exempt from overtime pay.

Ontario’s overtime exemptions depend on the nature of the work performed, not simply the title an employer assigns.

An employee who is called a manager but primarily performs regular operational duties may still qualify for overtime.

Lior emphasized that employers must look at an employee’s actual responsibilities when determining whether an exemption applies.

This is one reason overtime disputes arise even in workplaces where employers believe they’re following the rules.

Why Do Employers Keep Violating Ontario’s Employment Standards Act?

In separate interviews with Larry Fedoruk and Lorne Honickman, Lior discussed why employment standards violations remain widespread.

He argued that some employers see the financial consequences of non-compliance as too small to discourage violations. Others misunderstand their obligations because the legislation contains numerous exceptions and special rules.

Lior also called for clearer guidance to help employers understand their responsibilities and stronger enforcement to discourage deliberate violations.

Listen to his additional commentary on the Ministry of Labour’s inspection findings below.

What Can You Do if Your Employer Isn’t Paying You Properly?

If you believe your employer is withholding overtime pay or violating your employment rights:

1. Track your hours. Keep your own record of when you start, finish and work beyond your regular schedule.
2. Save your pay records. Preserve pay stubs, schedules, emails and messages about additional work.
3. Check whether an exemption applies. Don’t assume you’re excluded from overtime because you’re salaried or called a manager.
4. Don’t resign or sign anything without advice. If your employer is threatening your job or changing your working conditions, understand your options first.
5. Speak with an employment lawyer. Find out how to recover unpaid wages and whether you may have additional employment claims.

Ontario employees can also pursue certain unpaid wage complaints through the Ministry of Labour. However, if your employer has fired you, reduced your hours or significantly changed your job, you may have broader rights involving constructive dismissal, wrongful dismissal or Ontario severance pay.

Learn how to file a Ministry of Labour complaint in Ontario.

Employer Violating Your Rights? Get Legal Help

If your employer isn’t paying you properly, is pressuring you to work excessive hours or has punished you for raising concerns, the Ontario employment lawyers at Samfiru Tumarkin LLP can assess your situation and help you pursue the compensation you’re owed.

We represent non-unionized employees in Ontario, Alberta and British Columbia.

Before you sign, always check first. Contact us today or call 1-855-821-5900.