OVERTIME EXPLAINED
There’s a shortage of workers and those in your employ are having to work longer hours to keep the business running but please note you cannot just agree to your own approach for overtime.
Overtime needs to be managed and is strictly controlled by the Employment Standards Act (ESA), there is a misconception that employers and employees are free to “work it out for themselves” and come to an agreement on when, or if, overtime will be paid.
This is a myth, and the ESA requires employers to accurately track and record all hours worked, including overtime hours, and to pay employees overtime wages if they require or allow employees to work more than eight hours in a day, or 40 hours in a week.
Overtime must be paid at the rate of time and-a-half for hours worked more than eight in a day or 40 in a week and double-time for hours worked in excess of 12 in a day.
Common Overtime Work Questions
Start and end of shift - It’s important to know that if your front office opens at 8:00 am and you require an employee to be there 10 or 15 minutes before opening (prep time) and after closing (cash out) they need to be paid for this time. This approach applies to all your workspaces there is no free time or wiggle room.
Changing or cancelling shifts - Employers can change shifts at any time as long as employees have enough time free from work. Employees do not need to be paid if they are given notice of shift changes or cancellations before they report to work.
Scheduling meal and coffee breaks - Employers are not required to provide coffee breaks. A 30-minute unpaid meal break must be provided when an employee works more than five hours in a row. The employee must be paid for the meal break if they're required to work (or be available to work) during their meal break. Working through a meal break does not always result in overtime pay.
Recording actual time worked - Employers must keep a record of the hours worked by each employee each day and provide a pay statement every payday. Employers need to keep these records in English at their principal place of business in BC for 4 years after each record was created.
Travel to work – paid or not - In most cases, travelling to work is a commute. It's not work – even if the employee is driving a vehicle provided by the employer or the employee has been picked up by the employer or another employee. However, commute time is considered work if an employee is providing a service to the employer by bringing employer-provided tools, equipment, supplies or material to the worksite or if asked by the employer to pick up other employees and bring them to the worksite.
Time bank considerations - An employee can make a written request to bank their overtime hours instead of being paid for them during the pay period when they're earned. Later on, they can ask for:
- Part or all of the wages in the time bank to be paid out.
- Time off with pay for a period agreed upon by the employer and employee.
- The employer to close the bank and pay out their banked hours entirely – this request must be made in writing.
An employer can close a time bank after giving the employee one month’s written notice. Within six months, the employer must do one of the following:
- Pay the employee all of the overtime wages credited to the time bank.
- Allow the employee to use the credited overtime wages to take time off with pay.
- Pay the employee for part of the wages credited to the time bank and allow the employee to use the remainder of the credited overtime wages to take time off with pay.
Employee(s) file(s) an ESB overtime claim at the end of the season - Incorrectly tracking overtime can have costly consequences for employers. Unpaid overtime claims can go back 12 months and will add up quickly, especially if a claim involves several employees. The key take-away is that employers and employees cannot agree to overtime arrangements that are inconsistent with the ESA. The best practice is to establish an overtime policy that simply and clearly sets out the overtime rules, in accordance with the ESA.
Some Additional ESB Resources
Explain workplace standards - Employers need to clearly communicate to employees what their rights are for working in B.C. They should do so by posting and sharing the information in these documents:
Foreign workers - The Foreign Workers info sheet contains information about the rights of foreign workers under the Temporary Foreign Worker Protection Act and Regulation. Employers and recruiters need to share this information with foreign workers they hire or recruit.
Guide to the Employment Standards Act and Regulation - The guide is an interpretation of the B.C. Employment Standards Act and Regulation to help provide a clear understanding of the law. It is not a legal document and should not be used as a substitute for legal counsel.
Disclaimer: The BC Lodging and Campgrounds Association makes no representations or warranties regarding the use of this information and encourages members to obtain independent legal advice regarding whether this information satisfies their own personal or business needs.
