Overtime Part 2: The Manager Exemption

manager exemption for overtime

Photo by Jonas Leupe on Unsplash

Last week we wrote about ways employers can manage overtime liabilities with Averaging Agreements and Time in Lieu. This week we will tackle a commonly litigated overtime issue – the manager exemption. 

The Manager Exemption 

Not every worker is entitled to overtime pay. Exemptions are set out in section 8 of Ontario Regulation 285.1 under the Employment Standards Act, 2000. Included in the list of the exempt is the manager or, to be exact, “a person whose work is supervisory or managerial in character and who may perform non-supervisory or non-managerial tasks on an irregular or exceptional basis.” Who exactly falls under this exemption can be unclear. 

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The 444 Employment Law Toolkit

The 444: employment law tooklit for small employersSpringLaw is 4!!!!  To celebrate our 4-year anniversary, thank our clients and welcome non-client businesses who are looking for a new way to receive legal services, we are pleased to offer The 444 Toolkit.

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Overtime Part 1: Averaging and Time Off In Lieu

Overtime: averaging and lieu time as alternatives to paid overtime

Photo by Jonas Leupe on Unsplash

Along with vacation pay, overtime is another area of the Employment Standards Act that can be confusing and can get employers in trouble. 

Entitlement to Overtime Pay

Most employees are entitled to be paid overtime – which is 1.5 times their normal pay rate – for every hour they work in excess of 44 hours in a week. 

Some employees are exempt, including most of the regulated professions, many employees in healthcare jobs, IT workers and managers among others. For a full list of job types that are not entitled to overtime see the Ministry of Labour’s Guidance.

The manager exemption can be a tricky one and we will address that in Part 2 next week. 

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Vacation pay class actions a heads up for employers

Since 2019, there have been five proposed class actions against insurance companies and banks for failure to pay proper vacation pay to employees, both past and present. The total amount claimed in the aggregate of these five actions is around $1.2 billion. Royal Bank of Canada is a named party in three of the five actions; in one, it is facing a proposed $800-million class-action lawsuit involving thousands of advisors. Bank of Montreal and Allstate Insurance are also named in these class actions. A significant aspect of the allegations against these employers revolves around the calculation of their employees’ vacation pay. The issue is that for many of these employees, the majority of their compensation is and was made up of commissions and bonuses. Their vacation pay, however, was and continues to be based solely on their much lower base salaries.

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Workplace Lessons from Rideau Hall

Rideau Hall is the latest workplace to become famous for its toxicity. The story of Julie Payette’s reign and downfall serves as an important reminder for workplaces. The law attempts to protect employees from violence and harassment in the workplace with both proactive and reactive requirements. However, when the offending behaviour comes from the very top, as was the case for the Rideau Hall employees, feelings of powerlessness are pervasive. 

The independent workplace report resulting from a review of the circumstances at Rideau Hall reported that 43 employees described the work environment as “hostile.” Out of 93 current and former employees interviewed, only 10 described the work environment in neutral or positive terms.

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Waksdale: Now the Final Word on Termination Provisions – Leave to Appeal Waksdale Decision to the Supreme Court of Canada is Denied

Leave to Appeal Waksdale Decision

Image by Edar from Pixabay

The highest Canadian court has just confirmed that an invalid “just cause” termination section in an employment contract will also knock out the entire termination section, including the “without cause” section. 

In our earlier blog discussing employment termination packages –Termination Entitlements: Benefits, Bonuses, and Commissions – we promised to keep you updated on 2020’s employment law decision of the year, Waksdale v. Swegon North America Inc. So here we go. 

Leave to Appeal Denied

To recap, Waksdale was a decision from the Ontario Court of Appeal that immediately put termination provisions in jeopardy. In the case, the Court of Appeal found that the employer, Swegon North America, could not rely on their properly drafted “without cause” termination provision, in a without cause termination of their employee, Benjamin Waksdale.

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