Overtime Averaging

Bill 32 permits overtime pay or time-off entitlements to be averaged over a 52-week period. Extending hours of work averaging to such an extreme length suggests the policy goal is to minimize overtime costs for employers and rob workers of earnings.

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Checkmark symbolBefore Bill 32

The Code formerly permitted an hours of work averaging agreement to be made by an employer and employees. Hours of work can be averaged over a maximum of 12 weeks for purposes of calculating overtime pay or time-off entitlements.

Example:

Before Bill 32 a non-union worker works 540 hours (45 hours per week) between January 1 and March 31. Under a 12-week averaging arrangement, the worker is owed 60 hours of overtime pay.

Warning symbolAfter Bill 32

Under Bill 32, the Code will permit an employer unilaterally to implement a written “averaging arrangement” for employees not covered by a collective agreement. An averaging arrangement can average hours of work over up to 52 weeks without a variance or exemption.

Example:

Under Bill 32, the employer can average out the extra 60 hours over the entire year. This allows the employer to average the accrued overtime hours to slower periods.