Overtime Approval Procedure
This policy establishes a mandatory, auditable pre-approval process for all overtime hours worked by non-exempt employees. It defines authorization thresholds, documentation requirements, and escalation paths to control labour costs while ensuring operational continuity.
Overtime hours represent a significant operational cost and, when unmanaged, introduce legal risk under provincial employment standards legislation. This procedure mandates that all overtime work — defined as any hours worked beyond the standard 8-hour workday or 40-hour workweek — receive written pre-approval from the relevant supervisor and, depending on the duration and cost, from department management or director-level leadership.
The policy applies equally to scheduled overtime, emergency call-outs, and voluntary shift extensions. No overtime may be worked without an approved OT-Request form or digital equivalent entered into the corporate timekeeping system. Retroactive approval is strictly prohibited except under documented emergency circumstances subject to 48-hour post-event ratification.
This policy applies to all non-exempt hourly employees across all divisions, branches, and remote work locations within the organization. Exempt salaried employees classified under management, professional, or administrative exemptions per applicable employment standards legislation are not subject to this overtime approval procedure, though voluntary documentation of extra hours is encouraged for operational planning.
Contractors, temporary agency workers, and co-op students working on-site must follow their respective employer's overtime policies, though host supervisors must log all hours in the visitor time register for compliance tracking. This policy supersedes any conflicting departmental practices regarding overtime authorization.
- Pre-Approval Requirement: No overtime may be worked without a completed OT-Request form or digital approval entry in the timekeeping system. Approval must be obtained at least 48 hours before the overtime shift, except in verified emergency situations.
- Authorization Tiers: Supervisors may approve up to 2 hours of overtime per employee per shift. Department managers may approve up to 4 hours. Any overtime exceeding 4 hours or involving premium pay multipliers (e.g., statutory holidays) requires director-level sign-off.
- Documentation Standards: Every approval must include: employee name and ID, date and duration of overtime, detailed justification, cost code or project number, and the approving manager's electronic signature or unique approval code.
- Prohibition of Retroactive Approval: Overtime worked without prior authorization will not be compensated at the overtime rate unless the employee can demonstrate that exigent circumstances prevented advance notification. In such cases, a written explanation must be submitted within 24 hours for executive review.
- Monthly Audit Requirement: Each department head must review and sign off on a monthly overtime report detailing all approved OT hours, variances from estimates, and any unauthorized overtime incidents with corrective actions taken.
- Employees: Must not work overtime without receiving a valid approval code from their supervisor. Must accurately record all overtime hours worked in the timekeeping system and report any discrepancies to payroll within 48 hours.
- Supervisors: Evaluate overtime requests against operational necessity and budget availability. Submit OT-Request forms in the system and notify employees of approval or denial. Track overtime patterns to identify potential abuse or excessive reliance on OT.
- Department Managers: Review and approve or escalate overtime requests exceeding the supervisory threshold. Conduct monthly overtime audits for their department and submit variance reports to the Director of Operations.
- Payroll/HR: Verify that all overtime recorded in the timekeeping system is linked to an approved OT-Request code. Process premium pay accordingly and flag unmatched or unauthorized hours for investigation.
- Director of Operations: Establish annual overtime budgets by department. Approve overtime exceeding 4 hours per employee per shift. Review monthly OT audit summaries and approve corrective action plans for chronic overtime issues.