That’s the moment your compliance risk walked through the front door.

It might not blow up today.

But six months from now — when your salaried designer leaves and files a complaint for 112 hours of unpaid OT — you’ll wish you had figured it out earlier.

If you’re relying on handshake agreements, vague promises of “comp time,” or the mythical belief that salaried = exempt, you’re not just underpaying, you’re out of compliance.

Let’s talk about how this goes sideways — and how to fix it.

 

Myth #1: “They’re Salaried, So Overtime Doesn’t Apply”

Wrong.

In most provinces, being salaried doesn’t exempt you from overtime.

Overtime rules are based on:

• What work they do
• Whether they’re truly a manager/supervisor
• Whether they meet exemption criteria — which vary by province

In BC, Ontario, Alberta, etc., salaried employees are still entitled to overtime unless they fall into very specific categories (like managers, certain professionals, or high-tech developers with contracts that waive OT — carefully).

If your admin assistant is salaried and regularly works late?

You might owe more than you think.

 

Myth #2: “We’ll Just Give Them Comp Time Instead”

This one feels generous — but it’s legally risky if you’re winging it.

Yes, comp time is allowed in many provinces.

But it’s only legal if:

• It’s agreed to in writing
• The time off is taken within the correct timeframe (often within 3–12 months)
• You track it accurately

If someone leaves before using their time, and your records are sloppy?

You’re cutting them a cheque for the overtime — and you’re probably on the hook for vacation pay on top.

 

Myth #3: “We Don’t Really Track Hours Here”

If your employees ever bring an overtime claim, you have two choices:

✅ Produce accurate time records

❌ Lose the case

Courts and tribunals don’t care if your team is “flexible” or “trust-based.”

If an employee says they worked 60-hour weeks and you have no proof to the contrary?

You pay.

And it’s not just hourly workers.

Salaried staff who aren’t properly exempt must still be tracked — or you’ll have no defense if a complaint comes in.

 

Why This Blows Up So Often

Unpaid overtime is one of the most common employment complaints in Canada.

Why?

Because it’s:

• Easy to prove (if you have records)
• Hard to fight (if you don’t)
• Purely about money (no he-said-she-said needed)

All it takes is one burnt-out team member deciding they weren’t treated fairly — and you’re staring down a multi-thousand dollar payout.

True story:

A marketing coordinator left a company after a year.

She was salaried, never tracked hours, and routinely worked 50+ hour weeks.

Claimed 10 hours/week unpaid OT × 50 weeks = 500 hours.

Employer had no records.

Tribunal ruled in her favour. Full payout plus vacation pay on the OT hours.

 

What a Real Overtime Policy Looks Like

If you want to protect your business and stop making up rules on the fly, here’s what needs to be in your policy:

• Clear overtime thresholds (e.g. 8 hrs/day or 40 hrs/week in BC)
• Who qualifies for overtime (and who doesn’t — legally)
• Whether and how comp time is handled
• Who approves overtime, and how
• Time tracking expectations
• Province-specific rules (daily vs weekly limits, banking time, etc.)

This isn’t about red tape.

It’s about clarity. For your people. For your payroll. And for your protection.

RascalHR Builds the Right Overtime Policy for You

We’ve seen the DIY approach.

It ends with sticky notes, burnout, payroll errors, and legal letters.

RascalHR gives you:

• Overtime policies tailored to your province
• Options for comp time, properly structured
• Clear language your team can actually follow
• Legal alignment baked in — so you’re not winging it

RascalHR’s overtime policies are built for your province, your industry, and your sanity.

Don’t let vague promises turn into real claims.

Get protected →