Does changing employees to salary circumvent overtime regulations?

By Peter Israel
|Canadian Employment Law Today

Question:

We have negotiated a deal with our employees by which they have agreed to be paid at a regular rate of pay for any hours worked in excess of 40 hours a week. In order to implement this we had the employees sign an agreement which states they are willing to accept the above and to change their employment status to “salary” plus straight time for any additional hours worked. Is this permissible in Ontario?

Answer: