Saad Mirza
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Unfairly treated or fired at work?
April 9, 2025
What To Do If Your Employer Doesn’t Pay Overtime?
Imagine working long hours, exceeding your regular schedule, and expecting fair compensation for your time—only to find out that your employer refuses to pay overtime. Sadly, this scenario is all too common for many employees across Canada.
We’ve encountered numerous cases where hardworking individuals were denied the overtime pay they rightfully earned, leaving them frustrated and uncertain about their options. If you’re facing this issue, here’s what you need to know and how you can take action.
Understanding Overtime Laws in Canada
Overtime laws in Canada are designed to protect employees from being exploited. Generally, overtime pay is calculated at 1.5 times your regular hourly wage for any hours worked beyond 8 hours a day or 44 hours a week, depending on the province.
Both hourly and salaried employees are typically eligible for overtime unless they fall under specific exemptions, such as managerial roles or certain professions like lawyers or architects.
Despite these clear rules, employers sometimes fail to comply. They may misunderstand the law, intentionally ignore it to cut costs, or rely on vague policies that discourage employees from claiming overtime.
For example, one client we represented was told they needed “pre-approval” for overtime but were consistently assigned workloads that required extra hours. This tactic left them working unpaid overtime for months—a violation of their rights under provincial labor laws.
Check Your Employment Contract
Your employment contract can offer valuable insights into your rights regarding overtime pay. However, contracts sometimes contain hidden clauses that attempt to limit your entitlement to overtime compensation. For instance, an employer might include vague language about “additional duties” without specifying how these will be compensated.
It’s important to remember that labor laws override any contractual terms that conflict with statutory protections. In one case we handled, an employer argued that their employee’s contract exempted them from overtime pay due to their salaried status. After reviewing the contract and applicable laws, we successfully demonstrated that the employee was entitled to compensation under the Employment Standards Act.
Gather Evidence of Unpaid Overtime
If you suspect that you’re owed overtime pay, start by collecting evidence. Keep detailed records of your hours worked, including schedules, timesheets, and emails confirming your workload. Witness statements from coworkers can also strengthen your case if others have observed or experienced similar treatment.
For example, in a recent case involving unpaid overtime at Thrive Law, our client meticulously tracked their hours over several months using spreadsheets and email correspondence with their manager. These records were instrumental in proving their claim and securing a favorable outcome.
Talk to Your Employer First
Before escalating the issue, try addressing it directly with your employer. Approach the conversation professionally and calmly—outline your hours and explain why you believe you’re entitled to overtime pay.
Sometimes, employers may not realize they’re violating labor laws and will rectify the situation once it’s brought to their attention.
However, if your employer refuses to pay or dismisses your concerns, it’s time to consider formal action. One client we assisted approached their employer with clear documentation of unpaid overtime but was met with resistance. After receiving no resolution, they turned to us for legal guidance.
File a Formal Complaint
If talking to your employer doesn’t resolve the issue, you can file a complaint with your province’s labor authority.
For instance:
• In Ontario, complaints can be submitted through the Ministry of Labour.
• Federally regulated employees can file wage recovery complaints under Part III of the Canada Labour Code.
Once filed, labor authorities will investigate the complaint and may issue payment orders if unpaid wages are confirmed. While this process can be effective for recovering lost wages, it’s worth noting that claims through labor authorities are often limited to a two-year period—so acting quickly is crucial.
Legal Action Against Your Employer
If filing a complaint doesn’t yield results or if significant amounts are owed beyond statutory limits, consulting an employment lawyer is essential. We’ve helped clients pursue legal remedies such as constructive dismissal claims or lawsuits for unpaid wages.
In one high-profile case we handled recently, an employee who worked excessive hours without compensation was able to recover substantial damages through litigation. Legal action not only secured their owed wages but also sent a strong message about holding employers accountable.
Preventing Future Overtime Issues
To avoid similar problems in the future:
• Track your work hours consistently using tools like spreadsheets or time-tracking apps.
• Understand workplace policies regarding overtime before agreeing to additional duties.
• Seek legal advice before signing contracts with ambiguous terms about compensation.
Next Steps
Unpaid overtime isn’t just frustrating—it’s unlawful. If you believe your employer has failed to compensate you fairly for extra hours worked, don’t hesitate to stand up for your rights.
Start by gathering evidence and addressing the matter directly with your employer; if necessary, escalate through formal complaints or legal action.
Author: Saad Mirza
I’m Saad Mirza, the founder of Thrive Law, a employment law firm dedicated to helping employees across Ontario navigate challenging job terminations and workplace issues.