Am I exempt from overtime pay?

Short answer: Most Ontario employees earn overtime after 44 hours in a work week at 1.5× their regular rate. But there are real exemptions and special rules. Use the workflow below to figure out where you land.

The Overtime Exemption Workflow (Ontario)

1) Jurisdiction: Provincial or Federal?

  • If you’re in a federally regulated industry (e.g., banking; airlines/airports; interprovincial trucking/rail; telecom/broadcasting; pipelines; postal/courier; many Crown employers), the Canada Labour Code (CLC) applies, not Ontario’s ESA. Under the CLC, managers/superintendents/employees who exercise management functions are excluded from the hours-of-work part (where overtime lives). For most non-managers, standard federal hours are 8/day and 40/week, with overtime at 1.5×.

  • If you’re not in a federally regulated sector, you’re almost certainly under Ontario’s Employment Standards Act, 2000 (ESA).

2) Coverage: Are you excluded from ESA hours/OT or under a special rule?

Under O. Reg. 285/01, some occupations/industries are excluded from the ESA’s hours-of-work and overtime parts, or have special thresholds. Examples:

  • Professionals (e.g., architecture, law, professional engineering, public accounting, surveying, veterinary science) and certain regulated health professions.

  • Commission salespersons who sell away from the employer’s business (non-route).

  • Certain primary agriculture roles.

  • Information Technology (IT) professionals (definition-driven carve-out for hours/OT).

  • Business & Information Technology consultants (a separate category that can be fully excluded from the ESA if strict pay/contract conditions are met).

  • Transportation special rules, including local cartage drivers (OT after 50 hours/week) and highway transport truck drivers (OT after 60 hours/week; only certain driving/related hours count).

If a carve-out applies, stop here and follow that rule set.

3) If still covered by the ESA, are you exempt from overtime as a manager/supervisor?

The ESA overtime exemption is narrow. A “manager/supervisor” is OT-exempt only if the work is truly managerial/supervisory in character, and any non-managerial tasks happen only on an irregular or exceptional basis. Titles don’t decide it — duties and frequency do.
Red flag: if the “manager” routinely spends regular time on frontline work (cash, stocking, floor, line), the exemption often doesn’t apply.

4) If you’re not exempt, apply the default ESA OT rules (and options)

  • Overtime: 44+ hours/week at 1.5× (hourly and salaried employees).

  • Time off in lieu: Allowed only with a written agreement, banked at 1.5 hours off per OT hour, generally taken within set timelines.

  • Overtime averaging: You can average hours over 2–4 weeks for overtime calculations, but you need a proper written agreement with start/end dates.

5) Contract check (always last)

You can’t contract out of ESA minimums, but your employment agreement or policy can give more (for example, OT after 40 hours instead of 44, or richer lieu terms). If a contract/policy provides a greater right or benefit, the greater benefit prevails.

Common “Am I Exempt?” Snapshots

  • IT professional (systems analysis/design/implementation/management): Often exempt from ESA hours/OT — hinges on meeting the regulatory definition. Routine support/help-desk work doesn’t automatically qualify.

  • Commission salesperson “on the road”: Often excluded from ESA hours/OT (verify the “away from employer’s place of business” requirement and pay structure).

  • Local cartage driver: OT after 50 hours/week (special rule).

  • Highway transport truck driver: OT after 60 hours/week (special rule; only certain hours count).

  • Titled “manager” who regularly covers frontline shifts: Likely not OT-exempt; evaluate actual duties and time spent.

Need help?

Vanguard Law audits roles against ESA/CLC and special-rule carve-outs, drafts averaging/lieu agreements, and aligns job descriptions so facts match classification. Send us a real-world role (job ad + weekly duties + timesheets); we’ll map it through this workflow and give you a practical, risk-scored answer.

This post is general information, not legal advice. Laws and guidance change - get advice for your situation.

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