Section 12 Flashcards
Jared and Lucy are both managers at a popular fast-food franchise. Jared spends his entire day dealing with scheduling matters and supervising the employees. Lucy, on the other hand, spends her time overseeing the kitchen operations and works approximately 4 hours each day with the frontline employees during the dinner/evening rush. Although Jared and Lucy both are managers, they have different duties that are not interchangeable. The franchise requires that all employees who work in the kitchen must hold a Food Handler Certificate. While Lucy has obtained her Food Handler Certificate, Jared has not. After each put in 48 hours a week in each of the previous two weeks, both look forward to receiving a higher paycheque on their next pay day. When pay day comes, Jared and Lucy find their paycheques did not include any overtime. Lucy, who rarely puts in overtime, was particularly looking forward to the extra money. They confront Craig, the regional HR manager responsible for overseeing the franchise’s payroll, about their paycheques. Mariko, the franchise owner, begins to worry that she may owe overtime pay to employees she had assumed were exempt. What are Jared’s and Lucy’s overtime pay entitlements? a) Only Jared is entitled to overtime pay. b) Only Lucy is entitled to overtime pay. c) Neither is entitled to overtime pay.
The answer is b. Only Lucy is entitled to overtime pay. Functional Area: A3 Rationale(s): A is incorrect. Except on rare occasions, Jared’s duties are exclusively managerial. B is correct. Lucy typically performs the duties of a regular employee and is, therefore, not exempt from overtime. She should be receiving overtime pay. C is incorrect. While Jared falls under the managerial exemption, Lucy does not. Reference(s): Ontario Ministry of Labour: “Overtime Pay” (https://www.labour.gov.on.ca/english/es/tools/esworkbook/overtime.php).
Jared and Lucy are both managers at a popular fast-food franchise. Jared spends his entire day dealing with scheduling matters and supervising the employees. Lucy, on the other hand, spends her time overseeing the kitchen operations and works approximately 4 hours each day with the frontline employees during the dinner/evening rush. Although Jared and Lucy both are managers, they have different duties that are not interchangeable. The franchise requires that all employees who work in the kitchen must hold a Food Handler Certificate. While Lucy has obtained her Food Handler Certificate, Jared has not. After each put in 48 hours a week in each of the previous two weeks, both look forward to receiving a higher paycheque on their next pay day. When pay day comes, Jared and Lucy find their paycheques did not include any overtime. Lucy, who rarely puts in overtime, was particularly looking forward to the extra money. They confront Craig, the regional HR manager responsible for overseeing the franchise’s payroll, about their paycheques. Mariko, the franchise owner, begins to worry that she may owe overtime pay to employees she had assumed were exempt. Mariko asks Craig how she can minimize any overtime pay she might owe in the future. What should Craig suggest? a) Cut Jared’s and Lucy’s hours to less than the overtime threshold. b) Even out Jared’s and Lucy’s managerial duties. c) Ask Jared and Lucy if they would agree to averaging the hours they work over a 4-week period.
The answer is c. Ask Jared and Lucy if they would agree to averaging the hours they work over a 4-week period. Functional Area: A3 Rationale(s): A is incorrect. This would likely be considered a reprisal. B is incorrect. This would not work because Jared does not have a Food Handler Certificate. C is correct. Since Lucy rarely works beyond the overtime threshold, averaging her hours over 4 weeks could allow Mariko to keep her performing the same duties while also limiting the amount of overtime she must be paid. Reference(s): Ontario Ministry of Labour: Information for Employees About Hours of Work and Overtime Pay (https://www.labour.gov.on.ca/english/es/pubs/hours/infosheet.php). Pooran Law: Bill 66 proposes changes to labour and employment legislation (https://pooranlaw.com/bill-66-proposes-changes-to-labour-and-employment-legislation/) Legislative Assembly of Ontario: Bill 66, Restoring Ontario’s Competitiveness Act, 2019, Explanatory Note (https://www.ola.org/en/legislative-business/bills/parliament-42/session-1/bill-66)
Jared and Lucy are both managers at a popular fast-food franchise. Jared spends his entire day dealing with scheduling matters and supervising the employees. Lucy, on the other hand, spends her time overseeing the kitchen operations and works approximately 4 hours each day with the frontline employees during the dinner/evening rush. Although Jared and Lucy both are managers, they have different duties that are not interchangeable. The franchise requires that all employees who work in the kitchen must hold a Food Handler Certificate. While Lucy has obtained her Food Handler Certificate, Jared has not. After each put in 48 hours a week in each of the previous two weeks, both look forward to receiving a higher paycheque on their next pay day. When pay day comes, Jared and Lucy find their paycheques did not include any overtime. Lucy, who rarely puts in overtime, was particularly looking forward to the extra money. They confront Craig, the regional HR manager responsible for overseeing the franchise’s payroll, about their paycheques. Mariko, the franchise owner, begins to worry that she may owe overtime pay to employees she had assumed were exempt. Craig considers offering all staff members time off in lieu rather than paying out overtime. If a waiter works 48 hours a week for two weeks, how many days off will he receive in lieu of time worked? a) 1 day b) 1.5 days c) 2 days
The answer is b. 1.5 days Functional Area: A3 Rationale(s): A is incorrect. This answer is based on a 44-hour, regular pay work week and does not include the “time and a half” overtime pay. According to the ESA, every hour worked over 44 hours a week must be paid at least “time and a half”. 48 hours x 2 weeks = 96 hours, of which 88 hours are worked under regular pay. Therefore, they are owed 8 hours of overtime pay. With time off in lieu, it is equal to 8 x 1.5 = 12 hours or 1.5 days. B is correct. According to the ESA, every hour worked over 44 hours a week must be paid at least “time and a half”. 48 hours x 2 weeks = 96 hours, of which 88 hours are worked under regular pay. Therefore, they are owed 8 hours of overtime pay. With time off in lieu, this is equal to 8 x 1.5 = 12 hours or 1.5 days. C is incorrect. This answer is based on a 40-hour, regular pay work week and does not include the “time and a half” overtime pay. According to the ESA, every hour worked over 44 hours a week must be paid at least “time and a half”. 48 hours x 2 weeks = 96 hours, of which 88 hours are worked under regular pay. Therefore, they are owed 8 hours of overtime pay. With time off in lieu, this is equal to 8 x 1.5 = 12 hours or 1.5 days. Reference(s): Ontario Ministry of Labour: “Overtime Pay” (https://www.labour.gov.on.ca/english/es/tools/esworkbook/overtime.php). Ontario Ministry of Labour: “Averaging and Time Off in Lieu” (https://www.labour.gov.on.ca/english/es/tools/hours/overtime_averaging_tutorial.php) Employment Standards Act, 2000, S.O. 2000, c. 41, s. 22(7).
