Tuesday, March 27, 2012

When are managers still entitled to overtime pay?

Employment Standards Act (“ESA”) managerial overtime exemption applies only to those employees "whose only work is supervisory or managerial in character".

Especially where no direct reports - let alone any discretion nor independent judgment in management affairs at all - too many employees are manager in name only, and therefore entitled to significant overtime monies claimed.

According to 595749 Ontario Ltd. v. Ilowski, [2001] Canlii 14888 (O.L.R.B.):

"At the same time, one cannot impute managerial status to any employee whose job duties include some tasks which might be considered managerial in nature, or who has some involvement in the management team, as the term 'only', as is noted by the Divisional Court, balances the notion of 'character'. The term 'only' has to be given some meaning, and while it does not preclude the performance of some duties other than those which are supervisory or managerial in character, it does not permit the exclusion of an employee whose main job duties cannot be so characterized."

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