My company in Ontario have “Principle Engineers” by title and their function is the team manager. If they perform more than 50% of the task managing the team, are they not eligible for overtime, though they have no title of “managers”?
Thanks in advance.
The normal employment standards law duty to pay overtime doesn’t cover supervisors and managers (referred to collectively “managers,” unless indicated otherwise). Being able to recognize who’s a manager is crucial. Misclassifying a manager as an employee may result in paying overtime when you’re not required to; misclassifying an employee as a manager exposes your organization to risk of grievances, complaints, prosecution, fines and other penalties. In Ontario, 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” is exempt from overtime requirements. An irregular non-managerial task means something exceptional and that isn’t covered in the job description. For example, an employee required to clean the gutters each spring is performing a non-managerial task infrequently, but not irregularly. Ontario uses the so called “50% rule”: Employees aren’t subject to the exemption if they spend at least 50% of their time on duties that are covered by mandatory overtime.
Overtime Traps to Avoid: Misclassifying Employees as Managers