Can overtime be taken in paid time off rather than a cash payment?
As long as there is an agreement in writing or as part of a Collective Agreement, time off with pay in lieu of overtime is provided for in the Act. The time off must be calculated by multiplying the hours of overtime worked by the employee by time and one half and be paid at his/her regular rate of pay at the time it was earned. Any unused lieu time must be paid out within a twelve month period stated in the agreement or if none is specified, within a calendar year.
