Why misclassifying employees as managers can create real risk under the BC Employment Standards Act.
Many BC businesses assume that giving someone a "manager" title means they're not entitled to overtime. That's not how it works. Under the BC Employment Standards Act, overtime eligibility is based on job duties — not job titles.
1. Relying on Job Titles Instead of Actual Duties
Calling someone a manager doesn't make them one under the law. If the role is primarily operational, task-based, or closely supervised, they may still be entitled to overtime.
Assess the actual duties of the role — not the title.
2. Misunderstanding What "Manager" Means
In BC, a manager is generally someone whose primary role is supervising employees, making decisions about hiring, discipline, or operations, and exercising independent judgment. If someone spends most of their time doing the same work as their team, they may not meet the threshold.
Ensure the role has genuine managerial responsibilities — not just a title.
3. Trying to Avoid Overtime Costs
Some employers intentionally label roles as "manager" to avoid paying overtime. This is a high-risk approach. If the role doesn't meet the legal definition of "manager", overtime may still be owed — sometimes retroactively.
Structure roles properly and budget for overtime where required. Avoid shortcuts that can create larger liabilities later.
4. Inconsistent Role Design Across the Organization
Similar roles may be classified differently across departments. One "manager" role may qualify — another may not. This creates confusion, inconsistency, and potential complaints.
Apply a consistent framework when defining and evaluating roles.
Final Thought
Titles don't determine overtime eligibility — job duties do. If your organization is relying on job titles to manage overtime obligations, it's worth taking a closer look. Misclassification can create risk quickly — and often goes unnoticed until it becomes a problem.
Senterra HR helps BC businesses structure roles, ensure compliance with employment standards, and reduce risk through practical, defensible HR practices.
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