Across the country, most employers are required to understand Canadian overtime pay inside and out. However, in New Brunswick, the situation is a little bit different. That’s because New Brunswick has a minimum overtime wage rate and any employees making above that amount are ineligible for overtime pay. In other words, overtime pay doesn’t come into play as often in New Brunswick as it does in other provinces.
But just because New Brunswick overtime pay isn’t a burning issue for employers, it doesn’t mean it’s not important. To help employers in New Brunswick understand their obligations, we’ll cover the ins and outs of New Brunswick overtime pay, including how to calculate any overtime owed.
New Brunswick Overtime Pay Rate
Unlike most provinces, New Brunswick’s overtime pay rate is based on its minimum wage — similar to Newfoundlad overtime. As of April 2020, the minimum wage overtime rate is $17.55 per hour. Any employee who makes more than the overtime rate does not qualify for overtime compensation. This means that if an employee’s regular wage rate is $17.56 or more, they do not qualify for overtime pay.
For those who make less than the minimum wage overtime rate of $17.55 per hour, the overtime rate only pay kicks in when an employee has worked more than 44 hours in a week. New Brunswick does not have a daily overtime threshold.
It’s also important to note that New Brunswick does not allow employees to bank their overtime hours.
Special Rules and Exceptions
In New Brunswick, some occupations have different overtime rules or are exempt from overtime altogether. This includes some government and construction workers, as well as camp counselors and program staff.
Calculating Overtime Pay in New Brunswick
Since New Brunswick has no daily overtime threshold, calculating overtime pay is relatively straightforward. Below, we’ll go over an example of how to calculate overtime pay in New Brunswick.
To illustrate how to calculate overtime pay in New Brunswick, let’s use the example of Angela, who makes the minimum wage of $11.70 per hour working at a restaurant.
In one week, Angela worked 49 hours. Since New Brunswick’s overtime threshold is 44 hours, Angela is entitled to five hours of overtime pay at the minimum wage overtime rate of $17.55 per hour. Therefore, Angela is owed $87.75 in overtime pay ($17.55 x 5 hours of overtime = $87.75).
With tight restrictions on who is entitled to overtime pay in New Brunswick, there’s a chance you might not encounter this common payroll issue. However, for certain industries, such as hospitality and retail, it’s important to understand the minimum overtime wage rate and how to calculate it.
Want to learn more about overtime? Check out how the neighbouring Nova Scotians calculate overtime pay.