Let’s say Bob works for a landscaping company in Ontario. He’s paid hourly, and last week was busy. Really busy. Bob worked 49 hours.
The employer assumes overtime starts after 40 hours, because that’s what they’ve always thought. Bob isn’t sure either. He just knows his pay feels off sometimes.
Here’s how this actually works in Ontario.
In most cases, overtime is paid after 44 hours, not 40. Overtime is paid at 1.5 times the employee’s regular hourly wage.
So let’s break it down.
Bob’s regular hourly wage is $22/hour.
Regular hours: 44 hours × $22 = $968
Overtime hours: 5 hours (49 − 44)
Overtime rate: $33/hour
Overtime pay: 5 × $33 = $165
Bob’s gross pay for the week should be $1,133.
Not $1,078.
Not “close enough.”
Not whatever the payroll system guessed.
This kind of situation is exactly why I share examples like this.
Most payroll issues aren’t intentional. They come from assumptions, outdated practices, or someone setting things up years ago and never revisiting it. Employees don’t always know what to ask, and business owners often assume payroll is just “handled.”
But small mistakes add up quickly. For employees, it affects trust. For employers, it creates risk, back pay issues, and compliance problems down the road.
I use examples like this to show how real-life situations should be handled, and why having proper oversight matters. If something ever feels confusing, off, or “we’ve just always done it this way,” that’s usually a sign it’s worth taking a closer look.
And yes, this exact scenario comes up more often than you’d think.