Alberta Overtime Requirements

If you are paid partly by salary and partly by commission, overtime will be paid at your wage rate (if it is above the minimum wage) or minimum wage (if your wage rate is equal to or below the minimum wage). Alberta also allows employers and employees to enter into a mediation agreement for overtime mediation (ESA, § 23.1 para. 1). Average agreements allow an employer to calculate the hours worked by an employee over a given period of time that is too average to calculate whether the employee has reached the weekly ERGO threshold and is entitled to the ERGO wage premium. Currently, overtime agreements can average over a period of one to twelve weeks. Average agreements allow employees and employers to work compressed weeks (e.g., four days of ten hours instead of five days of eight hours) without triggering the OT rewards. The employee is entitled to the higher amount of overtime. Therefore, 17 hours of weekly overtime is used as regular free time. Employers and employees in Alberta can agree to store an employee`s overtime. This means that instead of receiving overtime pay, the employee can take paid leave.

While it is not always easy to calculate overtime pay in Alberta, employers should be cautious when making arrangements that do not meet the minimum standards of the Code and the Employment Standards Regulations. Bill 32 (Restoring Balance to Alberta`s Workplaces Act) was introduced in the Legislative Assembly in early July. If this bill is passed, it will make various changes to the Labour Standards Code and the Labour Relations Code. With respect to this position, Bill 32 will allow employers to impose average occupational therapy agreements on employees with two weeks` notice (Bill 32, at p. 1 (11)), unless there is a collective agreement. Currently, employees must accept the average overtime. This is exactly the turn that Conservative governments across the country have used to justify the legal rules that allow employers to avoid overtime pay. In this context, Copping fails to provide that (1) under the current system, employees (as a group) have the option to choose (or reject) a flexible schedule, and (2) Bill 32 removes that choice by transferring decision-making to the employer. It also ignores that employers can manipulate this system to avoid overtime bonuses and that long shifts increase the risk of injury to workers. According to the 8/44 rule, Ilana`s daily overtime is greater than her weekly overtime, so this is the number used to calculate her overtime pay.

Here`s how it works: Most Alberta employees are eligible for overtime pay, including employees. However, there are exceptions and special rules for certain industries. It`s important to clarify your industry rules in advance, as this can change the way you charge overtime. For example, you may need to consider monthly overtime totals. To calculate Ilana`s overtime pay, we need to look at her daily and weekly overtime: Employers are also required to keep records of overtime agreements that state the following: As an employer governed by Alberta`s Employment Standards Code, you must pay overtime pay to employees (full-time and part-time) who work a certain number of times. hours per day or per week. work. All overtime paid under an overtime agreement before September 1, 2019 will be booked at a rate of at least 1.5 hours for each hour worked. After September 1, 2019, overtime will be booked at the rate of 1 hour for each additional hour worked. Overtime pay is at least 1.5 times your employee`s normal rate of pay for all overtime worked.

However, there are some exceptions for certain industries and professions. Ask Employer Line if you`re not sure whether you have to pay your employees or charge overtime pay. To understand the 8/44 rule, we can use the Mayan example. Let`s say Maya works 12 hours a day on Mondays, but eight hours a day from Tuesday to Friday. Although Maya did not work more than 44 hours a week, she worked more than eight hours on Mondays, which means she reaches the threshold of daily overtime. A maximum of 12 hours can be withdrawn from the bank, as these 12 hours charge the employee`s total number of hours during the second week of 32 to 44 hours. The total number of hours worked in week 2 plus bank hours worked in that week cannot exceed 44. This is because the employee`s paid leave must be provided and used outside of overtime. It is important to note that while the payment period may end in the middle of the week, overtime pay is based on overtime for the work week, not the pay period.

The following industries and occupations have exceptions to the Code`s basic rules for 8-hour overtime per day and 44 hours per week: all overtime paid at the end of the average period is paid at a rate of 1.5 times normal earnings. Although the legislation is somewhat vague in this regard, government policy states that free time taken in place of occupational therapy is paid for at an equal time. Here is the existing government summary of the medium agreement scheme. Like all Canadian jurisdictions, Alberta has set limits on hours of work. In most cases, Alberta limits work to a 12-hour window (ESC, at p. 16(1)). Alberta also generally requires employers to pay an overtime bonus (1.5 times the rate of pay) if employees work more than 8 hours a day or 44 hours a week (ESC, at p. 21). The political reasons for limiting working hours and requiring occupational therapy bonuses focus on workers` quality of life, reducing the safety risks associated with worker fatigue, and creating additional incentives to hire additional employees.

Only if you have an overtime agreement with your employer. In some workplaces, the work week is less than 44 hours (i.e. a 40-hour week). Normally, the 8/44 rules continue to apply to these workplaces. The only exception is if there is a written agreement that overtime will be counted after less than 8 hours have been worked on a working day or 44 hours per work week. Are workers protected from dismissal if they refuse to work overtime without extra pay? Alberta employees are eligible for overtime pay after working more than eight hours a day or more than 44 hours a week (whichever is greater). This is sometimes called the 8/44 rule. In January of this year, I worked more than 300 hours a month. I could barely see my family. I would get home in time to put my kids to bed and then go to bed themselves. In such a month with my overtime, I sometimes pay about 40% tax.

Why would someone take the regular payment against the OT payment? Most employees in Alberta (including those paid by the hour, week, month or annual salary) are eligible for overtime pay, which means that an employer must pay at least 1.5 times the employee`s rate of pay for overtime worked. Why, then, have I met so many organizations where employees have not worked overtime when they should have been? I have seen many violations of this “professional” label in organizations. The truth is that a company cannot call everyone a professional, which determines that they are not eligible for overtime. Of course, they could fall into another unauthorized category like managers, but this must be proven using the test above. An example of an individual overtime agreement can be found here. From 1 September 2019, overtime can only be booked directly. This means that an employee can only take one hour off for every hour of overtime worked. Most employees (full-time and part-time) are entitled to overtime pay. The Banking Overtime Act was also amended on 1 September 2019. The law stipulated that if there was an overtime agreement, an employee could take 1.5 hours off for each bank overtime hour.

Your employer must pay you for overtime at 1.5 times your usual rate of pay. Some employers believe that if an employee receives a salary, they should cover all the overtime they work. Others believe that those with an hourly rate are not eligible for overtime, even if they are employees. I even came across a company that thought it could compensate for overtime with end-of-year bonuses. But the most common mistake I see is that a company can mistakenly refer to an employee as a “professional,” “manager”, or “supervisor,” or someone who is “employed in confidence,” and thus automatically consider them exempt from overtime, even if in fact they often don`t comply with the law. Employees must use bank overtime within 6 months of the end of the payment period in which they earned it, unless there is a collective agreement that allows for an extension of the overtime banking period.