Accuracy vital to overtime tracking

As complexities grow, automation makes more sense
By Sarah Dobson
|Canadian HR Reporter|Last Updated: 09/07/2007

The challenges of tracking and paying for overtime hours have been in the spotlight thanks to the recent $600-million class-action lawsuit facing the Canadian Imperial Bank of Commerce that has a bank teller claiming she was not adequately compensated for her extra hours of effort.

The case highlights the grey areas and complexities of overtime hours in Canada — thanks to variations in provincial and federal legislation and different rules among industries and worker levels. And when shift premiums, unionized environments or statutory holidays are thrown in, they all add up to a daunting task for payroll professionals.

“Payroll managers are generally aware of the challenges they have; whether they necessarily know every rule and regulation at their fingertips, I’d say that’s unlikely,” says Aaron Hudson, time and labour management products at ADP Canada in Toronto. “We’re seeing a lot more payroll departments becoming centralized and paying employees in several provinces. That greatly increases the complexities of the regulatory landscape for them.”