Overtime Employment Standards – Construction Industry

Overtime requirements for construction jobs in the Province of Manitoba are governed either by the Employment Standards Code or The Construction Industry Wages Act (CIWA). For construction jobs that fall outside of CIWA, generally, employers must pay their employees overtime if they exceed 8 hours per day and 40 hours per week. However, as of 2018, an employer is permitted to create an Averaging Agreement which allows them some movement away from the standard hours as outlined in the Employment Standards Code.

The standard hours of work for the construction industry are as follows:

• Residential Construction/Home Building Sector
  • 8 hours per day and 40 hours per week
• Landscaping
  • Same as residential construction/home building sector but varied from April 15 to November 30 each year (10 hours per day, 50 hours per week and 2,080 hours per year)
  • According to the Employment Standards postings, a landscaping business involves construction or maintenance of a landscape, including lawn cutting, fertilizing, applying sod and controlling weeds. They do not include the maintenance or cleaning of parking lots or snow removal, or working with inventory or customers at a gardening/landscaping retail outlet.
• Industrial, Commercial, and Institutional Construction Sector (Falls under CIWA)
  • 10 hours per day and 40 hours per week
• Heavy Construction Sector (Falls under CIWA)
  • 50 hours per week outside of Winnipeg
  • 50 hours per week in Winnipeg from April 1 to October 31
  • 48 hours per week in Winnipeg from November 1 to March 31 the following year

Any hours worked in excess of these standard hours must be paid at 1 ½ times the employee’s regular wage rate as overtime.

Averaging Agreement – New in 2018

Landscapers or construction jobs that do not fall under The Construction Industry Wages Act have the option of obtaining an Averaging Agreement which will allow them to move away from the standard hours as outlined above. This only applies if they are not covered by a collective agreement and may not apply to employees who work less than 30 hours per week.

Under an Averaging Agreement, the standard hours of work can be up to 12 regular hours per day and 60 regular hours per week over a 12 week cycle. The schedules can be up to a maximum 12 week cycle but the regular hours must average back to 40 hours or less per week over the cycle. When the cycle is shorter than 12 weeks, the number of weeks in the cycle should be multiplied by 40 hours to calculate the maximum regular hours for the cycle.

Employers who allow or ask employees to work longer than the hours set out in the agreement must pay these employees 1 ½ times their regular hourly wage for any overtime worked.

If an employer wants to propose new standard hours of work that exceed 12 hours per day or 60 hours per week, or the averaging cycle is longer than 12 weeks, an application needs to be made to Employment Standards for an Averaging Permit.

For more information on Averaging Agreements or for an overview of what is required for a valid Averaging Agreement, click here (insert link: https://www.gov.mb.ca/labour/standards/doc,averaging_agreements,factsheet.html#q2113)

Averaging Permits

Averaging Permits were an option available to employers prior to the 2018 addition of the Averaging Agreement where the Employment Standards Branch must approve the permit. Now, an Averaging Permit is only required when an employer wants to propose new standard hours of work that exceed the maximum requirements of an Averaging Agreement. The new schedule may cycle over several weeks but must always average back to 40 hours per week.

In order to obtain an Averaging Permit, a survey must be conducted of all employees who would be affected by the new schedule. Within the survey, it must include the proposed terms and conditions for the new schedule. At least 75% of the employees must agree to the proposed schedule for the permit to be granted.

If an employer asks or allows an employee to work longer than the hours set out in the permit they must pay these employees 1 ½ times their regular hourly wage for each overtime hour worked.

For more information on Averaging Permits or to download the application form, click here (https://www.gov.mb.ca/labour/standards/doc,varying_hours_work,factsheet.html)

The Construction Industry Wages Act

Construction jobs that fall under The Construction Industry Wages Act (CIWA) are not eligible for an Averaging Agreement and must be paid overtime as defined above. The CIWA does not apply to the following types of construction jobs:

• House building sector (except for major building construction projects)
• Renovations and redecorations (unless the work requires structural or architectural renovations)
• Onsite maintenance by regular maintenance staff
• In-shop prefabrication of structures
• Construction of farm buildings

The CIWA includes definitions of what is defined as the “house building sector” (which would be jobs excluded from this Act) as well as what is defined as the “industrial, commercial and institutional sector”, “heavy construction sector” and “heavy construction employees” (which would be jobs included within this Act). To assist in determining whether a specific type of job falls within the CIWA, click here (https://web2.gov.mb.ca/laws/statutes/ccsm/c190e.php) to view the definitions section of the Act or contact the Manitoba Employment Standards Branch.