P.E.I. Overtime Pay: What Employers Need to Know

Prince Edward Island (P.E.I.) may be a small province, but it has a laundry list of overtime rules and regulations just like any other province. From special rules and exemptions to agreements to bank overtime hours, it’s important that employers in Canada’s tiniest province know the ins and outs of P.E.I. overtime pay, and how it differs from the rest of Canadian overtime regulations.

If you’re looking to brush up on the basics of P.E.I. overtime pay, including how to calculate it, then this guide has the answers you’re looking for.

P.E.I. Overtime Pay Rate

Unlike some of the other Atlantic provinces, employees in P.E.I. are entitled to 1½ times their regular rate of pay for every hour of overtime worked.

Similar to Nova Scotia’s overtime, P.E.I’s standard workweek is 48 hours. This means that overtime pay rate does not kick in until an employee has worked more than 48 hours in a week.

Special Rules and Exceptions

Most employees in P.E.I. are eligible for overtime pay. However, there are a few exceptions.

For instance, those employed to care for individuals in private homes are exempt from overtime pay. 

There are also some exceptions to P.E.I.’s standard workweek. Due to the seasonal nature of some businesses and P.E.I. temperamental weather, the Employment Standards Board has issued an Exemption Order that grants extended overtime hours to specific industries, including:

  • Highway Construction and Maintenance: The standard workweek for employees engaged in the construction, maintenance, traffic control, and snow removal of highways, roads, and streets is 55 hours.
  • Seafood Processing: The standard workweek for employees involved in the procurement, storage, and processing of seafood is 55 hours.
  • Trucking Industry: The standard workweek for truck drivers is 55 hours.
  • Health Care: The community care facility employees are entitled to overtime pay after 96 hours worked in a two-week period.

Calculating Overtime Pay in P.E.I.

Because of its straightforward overtime legislation, calculating P.E.I. overtime pay is fairly straightforward. To illustrate, we’ll go through an example below.

Linda is a store manager in P.E.I. earning $22.00 per hour.

In one week, Linda works 52 hours. Since the overtime threshold is 48 hours, Linda is entitled to four hours of overtime pay. Since his overtime rate is 1½  times his regular hourly pay, Linda should receive $33 per overtime hour worked ($22.00 x 1.5 = $33.00).

Linda’s weekly pay should be calculated as follows:

  • Regular pay: 48 hours x $22.00 = $1,056
  • Overtime pay: 4 hours x $33.00 = $132
  • Linda’s total weekly pay: $1,056 + $132 = $1,188

Agreements for Banked Time

In P.E.I., employees can enter into an agreement to bank an employee’s overtime hours if:

  • The employee requests the agreement in writing and the employer agrees to the request;  and
  • The paid time off is taken by the employee within three months of the workweek in which the overtime was earned. 

If these stipulations are met, the employee is entitled to 1.5 hours of paid time off at their regular rate of pay for each hour of overtime accumulated.

If an employee has accumulated overtime hours remaining after their employment ends, they

must be compensated by the employer at the rate of 1.5 times the employee’s regular

rate of pay for every one hour of overtime accumulated beyond the standard workweek.

Keep in mind that it’s the employer’s responsibility to keep accurate records of any overtime accumulated or used by employees.

With the information above, you should have the tools and the information needed to calculate P.E.I. overtime pay with ease.

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