In the recent case of 614128 Ontario Ltd. v. Kevin Kinzett and Director of Employment Standard, 2026 (“614128 Ontario Ltd. v. Kinzett”), the Ontario Labour Relations Board (“OLRB”) has, again, reinforced the importance of proper overtime classification and payroll compliance under the Employment Standards Act, 2000 (“ESA”).
The dispute arose after an employee (Kinzett - a salaried dispatcher) filed a complaint with the Ministry of Labour alleging unpaid overtime. An Employment Standards Officer investigated and issued an order to pay overtime wages. The employer appealed the order to the OLRB, arguing that the employee was not entitled to overtime pay because he fell within an exemption under the ESA.
Under the Ontario ESA, most employees are entitled to overtime pay at 1.5 times their regular rate for hours worked beyond 44 hours in a week. The employer claimed that the employee was only entitled to overtime pay after working beyond 50 hours in a week. The central question before the OLRB was whether the employee’s actual job duties met the requirements of an overtime exemption.
The OLRB found that the employee was entitled to the standard overtime threshold of 44 hours per week and ordered the employer to pay $55,011.
In addition, the OLRB confirmed several important principles:
- Paying a salary alone does not remove overtime obligations.
- Payroll records and documentation are critical in defending ESA claims. OLRB rejected the employer’s argument that the employee’s time entries were unreliable as the employer had no independent time records, while the employee’s timesheets had been routinely reviewed and used for billing.
- An employer cannot penalize an employee for asserting their ESA rights. OLRB found that the employer dismissed the employee because of his ESA claim. Accordingly, OLRB awarded $130,003 in reprisal damages (lost wages, loss of employment, job‑search expenses, and emotional suffering compensation).
To reduce overtime liability risk, employers should:
- Conduct regular job duty audits
- Ensure payroll systems properly track hours worked
- Train managers on ESA compliance requirements
The decision in 614128 Ontario Ltd. v. Kinzett reinforces that overtime exemptions are based on actual job functions. Ontario employers should proactively review their classifications to ensure compliance under the ESA.
If you have questions about overtime eligibility, employee classification, or Employment Standards compliance, we recommend reaching out to speak to an e2r® Advisor.