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Ask an Expert

Does overtime qualify for additional vacation pay?

Expert: Howard Levitt

Rico asked:

I am on a yearly salary with an Ontario company I work for. I also receive payment for overtime hours worked.

For example, my salary is $65,000 per year, plus an overtime worked payment for the year is $40,000. My total pay for the year is $105,000.00.

Am I entitled to vacation pay of four per cent, based just on my salary of $65,000. Or should I also be receiving vacation pay for the overtime pay as well.

Howard Levitt answered:

You receive vacation pay on the total cash compensation. That includes your regular salary of $65,000, plus any overtime pay that you accumulate, in this case the $40,000.

About the author

Howard Levitt, Counsel to the national law firm Lang Michener. He is author of, The Law of Dismissal in Canada, The Quick Reference Guide to Employment Law and an upcoming book on Canadian Hiring Law. He is Editor In Chief of the Dismissal & Employmnet Law Digest.

Phone: (416) 307-4059
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