Figure out what you'd get with an averaging agreement

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Employment and Work - Getting paid
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CLEO (Community Legal Education Ontario / Éducation juridique communautaire Ontario)

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Can an employer ask me to sign an overtime agreement?
This question has an answer and 3 steps

Figure out what you'd get with an averaging agreement

Figure out the difference in the amount of overtime you'd get if you sign or don't sign an averaging agreement.

You can use the Ministry of Labour's Averaging & Time Off in Lieu Calculator to see how much overtime you'd get over 2, 3, or 4 weeks if you have an averaging agreement.

In most jobs, the hours you work over 44 hours a week are overtime hours. The examples below show the difference in how much overtime you get with or without an averaging agreement if:

  • your regular work week is 35 hours
  • you work a total of 180 hours in 4 weeks

No averaging agreement

week hours worked overtime hours over 44
Week 1 35 0
Week 2 50 6
Week 3 60 16
Week 4 35 0
Total 180 22

Without an averaging agreement, you’d have 22 hours of overtime.

Averaging agreement

To find out your average overtime hours in the 4 weeks, take the total number of hours you worked in the 4 weeks and divide by 4.

Then subtract the 44 hours you must work in a week to qualify for overtime. This gives you the "average" number of overtime hours per week.

Then multiply this by 4 to get the averaged number of overtime hours.

week hours worked
Week 1 35
Week 2 50
Week 3 60
Week 4 35
Total 180
averaged overtime hours
180 hours ÷ 4 weeks = 45 hours
45 hours - 44 hours = 1 hour
1 hour x 4 weeks = 4 hours

With an averaging agreement, you'd have 4 hours of overtime.

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Ontario Ministry of Labour
Reviewed: April 4, 2019

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