If you’re an employer in Newfoundland and Labrador, chances are that you’ve had to think about overtime pay at some point. But while most provinces share similar overtime legislation (how Canadian overtime pay works at a glance), Newfoundland and Labrador is a little bit different. This means you’d better have a solid understanding of the province’s rules if your employees are going to be working overtime hours.
To help you navigate these quirks and better understand important concepts such as the minimum overtime wage rate, we’ve put together a brief overview of overtime pay in Newfoundland.
Newfoundland & Labrador Overtime Pay Rate
Like New Brunswick, Newfoundland’s overtime pay rate is tied to its minimum wage. To calculate the minimum overtime wage rate, employers must take the current minimum wage and multiply it by 1.5.
As of April 2020, the current minimum wage in Newfoundland and Labrador is $11.65 per hour, making the current minimum overtime wage rate $17.48 per hour. However, Newfoundland’s minimum wage is set to increase to $12.15 per hour on October 1, 2020, which will bring the minimum overtime wage rate up to $18.23 per hour.
In Newfoundland and Labrador, standard working hours are 40 hours a week—with a workweek defined as seven continuous days. This means that if an employee works an excess of 40 hours in a week, they must be paid at the minimum overtime wage rate. However, this rule does not apply if an employee switches shifts with another employee, resulting in more than 40 hours worked.
Though Newfoundland and Labrador does not have a daily overtime threshold, it’s important to know that 14 hours is the maximum number of hours an employee can work in one day (with some exceptions).
Special Rules and Exceptions
In Newfoundland and Labrador, there are several exemptions from the provincial overtime provisions.
For instance, overtime rules do not apply to agricultural employees. This refers to workers involved in the planting, cultivating, and harvesting of farm produce, as well as those involved in the raising of livestock.
Live-in housekeepers or baby sitters are also exempt from overtime if there is an arrangement in place that entitles the employee to time off with pay for hours worked in excess of 40 hours per week.
Additionally, exemptions to overtime may be permitted if an employer approves a written request from one or more employees to switch shifts.
It’s also important to note that unlike in many other provinces, managers and supervisors in Newfoundland and Labrador are entitled to overtime pay for overtime hours worked.
Calculating Overtime Pay in Newfoundland & Labrador
Newfoundland and Labrador has no daily overtime threshold, which means calculating overtime pay is relatively straightforward.
To demonstrate how to calculate overtime pay in Newfoundland, let’s use the example of Phil, who makes the current minimum wage of $11.65 per hour.
In one week, Phil worked 44 hours. Since Newfoundland’s overtime threshold is 40 hours, Phil is entitled to four hours of overtime pay at the minimum wage overtime rate of $17.48 per hour. Therefore, Phil is owed $69.92 in overtime pay ($17.48 x 4 hours of overtime = $69.92).
Agreements for Banked Time
Unlike in New Brunswick, employees in Newfoundland and Labrador can enter into an agreement to bank overtime hours instead of receiving overtime pay. Under this type of agreement, an employee receives 1½ hours of paid time off work for each hour of overtime worked, as long as:
- Both the employee and employer agree to the arrangement
- The time off is taken within three months of the date the overtime is earned (unless the employer and employee agree to extend the time period)
- Payment or time off must be finalized within 12 months of the date the overtime is earned
- If the employment ends before the time off is taken, the employer will pay the employee for all overtime hours worked within 7 days of termination
Like every other province in Canada, Newfoundland and Labrador has its own unique rules that can make calculating overtime a little tricky. However, once you understand the minimum overtime wage rate and the weekly overtime threshold, calculating overtime pay in Newfoundland is smooth sailing.
Curious how other provinces compare? Check out how Quebec handles overtime pay.