Averaging Overtime: How Averaging Agreements Work

Under Ontario's Employment Standards Act, most employees earn overtime after 44 hours in a work week. An averaging agreement lets an employer average your hours over a longer period.

How it works

• Your hours over the averaging period (for example, two weeks) are added up.
• Overtime is owed for hours over 44 × the number of weeks.
• Example: in a two-week period, overtime starts after 88 hours, even if one week was 50 hours.

The rules

• The agreement must be in writing (an electronic agreement can count).
• The averaging period can't be longer than four weeks.
• It must have an expiry date, no more than two years after it starts.
• Unionized workplaces follow the collective agreement.

Before you sign

• Ask how your schedule will look across the period.
• Check whether your pay drops compared with weekly overtime.
• Keep a copy of the agreement.

If something is wrong

You can file an employment standards claim for unpaid overtime, usually within two years.

Sources

• Employment Standards Act, 2000
• Ontario: overtime pay

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General Ontario legal information, not legal advice for your matter, and reading it does not create a retainer. Sources checked 16 October 2026: check the current law, forms and dates before you act.

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This article is general information for people in Ontario, not legal advice. Rules, forms and deadlines change, and every situation is different. Check the current rule or speak to a licensed legal professional before you act.