Time Clocking

What to know about overtime in the restaurant industry

Apr 9, 2023
min read


The restaurant industry is one that can be tough for both employees and employers. There are many laws and regulations to keep track of, especially when it comes to overtime pay. It can seem daunting at first but we hope this article will help you understand what overtime is in the restaurant industry and how you can control it.

What is restaurant overtime?

Restaurant overtime is paid time worked in excess of 40 hours per week. The Government of Canada requires employers to pay employees overtime at a rate of 1.5 times their regular rate of pay for each hour worked over 40 hours per week.Before you can understand your rights as an employer or employee, it's important to know what the laws are in your province.

What can you do to control overtime pay?

It's important to have a system in place to track overtime. You can use Ameego as a way to manage your overtime because the software gives you the ability to set up automatic alerts so that if an employee works over 40 hours in one week, you'll get notified.

If your restaurant is open seven days a week and has employees working shifts that cover all three shifts (daytime, evening and late night), then there will be times when they work more than eight hours straight without taking any breaks. For example: if someone works 6am-2pm on Monday through Friday--and then comes back at 5pm for another shift--they've put in 12 hours without taking any breaks throughout those two days. That's why it's important for managers and chefs alike to know how much time their staff members are working each day so they can plan accordingly when planning staffing schedules or assigning tasks within the workplace itself.

Overtime should be an exception not a rule

Overtime should be an exception, not a rule. It's important to remember that employees are people too, with families and lives outside of work. If you're planning on having them stay late or come in early without pay, make sure it's for a good reason--and only after talking with them about it first.

In addition to giving your employees more control over their schedules (which we've established is great), this also helps keep morale high because they feel listened to and valued by management.

Cross train employees

Cross training your employees is a great way to reduce overtime. When you cross train, employees learn new skills and feel more confident in their abilities, which means they can be flexible when needed. Cross-trained employees also help each other out when there's an emergency or extra work load--this makes it easier for managers to plan schedules around peak times, because they know that if one person isn't available, another will be able to fill in without any problems.

Create an overtime policy

It's important to have a clear policy in place so that employees know what they can expect, and managers are held accountable for their decisions.

What should be included in your policy?

The number of hours per week an employee is allowed to work overtime (for example, 40 hours).

The circumstances under which an employee may be required to work overtime (for example, only when there are no other available employees).

The rate of pay for overtime hours worked (for example, time-and-a half).

Get started with Ameego to track and monitor overtime

Ameego is a great tool for helping you understand how much money you're earning (or paying out) in overtime pay each week so that it doesn't come as a surprise later on. It also helps employers prevent overages by making sure everyone is getting paid fairly for their work.


We hope this article has given you more insight into the restaurant industry and its overtime policies. We know that it can be difficult to manage, but there are some simple steps you can take to help control the amount of time your employees spend working. If you want to learn more about how Ameego can help track and eliminate overtime, please contact us today!

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