BC Employment Standards Overtime Averaging Agreement: What You Need to Know
British Columbia`s Employment Standards Act sets out the minimum standards that employers and employees must follow in the province. This includes rules around overtime pay and averaging agreements.
What is an overtime averaging agreement?
An overtime averaging agreement is a written agreement between an employer and employee that allows the employer to average an employee`s hours of work over a period of one to four weeks for the purpose of determining overtime pay. This means that if an employee works more than eight hours per day or 40 hours per week, the employer may not have to pay overtime if the employee`s hours are averaged over the agreed-upon period.
However, there are rules that must be followed to enter into an overtime averaging agreement. The agreement must be in writing, signed by both the employer and employee, and must specify the period over which the hours will be averaged. The agreement must also state that the employee is aware of their right to revoke the agreement in writing with two weeks` notice.
What are the benefits of an overtime averaging agreement?
For employers, an overtime averaging agreement can provide flexibility in scheduling and reduce costs associated with overtime pay. For employees, an overtime averaging agreement can provide the opportunity for more predictable hours and scheduling.
What are the risks of an overtime averaging agreement?
Employers must be careful when entering into an overtime averaging agreement. If the agreement is not properly executed or the employee revokes the agreement, the employer may be liable for unpaid overtime. Additionally, it`s important to note that an overtime averaging agreement cannot be used to avoid paying overtime entirely. If an employee works more than 12 hours per day or 44 hours per week, they must still be paid overtime regardless of the agreement.
What do you need to know about overtime pay in BC?
In BC, eligible employees are entitled to time-and-a-half pay for any hours worked over eight hours per day or 40 hours per week. For any hours worked over 12 hours per day or 44 hours per week, employees are entitled to double-time pay.
Employers must also ensure that employees take at least 30 minutes of unpaid meal break for every five hours of work. Additionally, employers must keep accurate records of hours worked, including regular and overtime hours.
Conclusion
Overall, an overtime averaging agreement can provide benefits for both employers and employees, but it must be properly executed and in compliance with BC`s Employment Standards Act. Employers should consult with legal counsel and ensure that they are meeting their obligations under the Act to avoid liability for unpaid overtime. Employees should also be aware of their rights to overtime pay and be cautious when entering into any overtime averaging agreements.