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.

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.