Overtime Hours and Overtime Pay In Alberta
Except for certain industries and professions, most employees are entitled to overtime pay. The basic overtime is all hours worked in excess of:
- eight hours a day, or
- 44 hours a week.
Overtime hours are to be calculated both on a daily and weekly basis. The higher of the two numbers is overtime hours worked in the week. All employees, including those who are paid a weekly, monthly, or annual salary, must be paid overtime pay for overtime hours they work.
Except where overtime hours are accumulated under an overtime agreement, all overtime hours must be paid at the rate of at least one and half times (1.5 x) the employee’s regular wage rate.
Calculating Your Overtime Pay In Alberta
Whether basic or different overtime rules apply, the formula for calculating overtime pay is the same. It is important to remember that overtime hours are calculated on a daily and weekly basis. Overtime pay in Alberta must not be less than 1.5 times (or time and a half) the employee’s current wage. To provide an employee with the correct overtime pay, the rate must be multiplied by the total number of overtime hours an employee has worked.
Overtime must be based on pay periods that suit the employer’s staffing needs, but avoids incorrect calculation of overtime hours. The intent is that overtime is calculated on the appropriate daily, weekly, or monthly basis.
The exception to paying time and a half rates is where overtime has been accumulated under an overtime agreement between the employee and employer. In these cases, the agreement will provide for time off with pay to be taken in replace of overtime pay. It is important to note that even though the pay period may end mid-week, overtime pay is based on overtime hours for the work week, not the pay period.
If your employer establishes a work week of fewer than 44 hours (ie 36 hour work week), overtime pay is still payable under the basic 8/44 rule, unless there is an agreement or consistent practice that establishes that overtime hours are to be counted after working fewer than 8 hours in a day or 44 in a work week.