The rule is simple: the overtime an employer should pay is the daily or weekly amount, whichever is greater. Alberta requires you to pay overtime after 44 hours of work per week, instead of the usual 40 hours. Alberta adheres to the eight-hour rule, so any overtime after eight hours must be offset by 1.5 times the employee`s regular wage. If employees are paid in whole or in part on commission or if they work a compressed work week, special regulations may apply on a case-by-case basis. The same formula is used to calculate overtime pay for Alberta employees, regardless of whether basic or special overtime rules apply. Overtime is calculated on both a daily and weekly basis (except in cases where monthly overtime must also be taken into account). According to the 8/44 rule, overtime is the largest number of overtime hours of the daily, weekly or (if applicable) monthly totals. There is the 8/44 rule, which states that all overtime worked more than 8 hours a day or 44 hours a week (whichever is greater) is considered overtime. So, if you work 9 hours for 3 days and regularly 8 hours for the remaining 2 days, you are not entitled to overtime payment. This may seem confusing at first glance. But once you understand how it works, it will seem easier. The Employment Standards Regulations exclude a number of occupations from these sections. The Regulation also lays down specific rules for the calculation of overtime for several other professions.
It is important to know that anyone who violates or does not comply with the rules set out in the Code and employment standards regulations or who does not comply with an authorization or an enforcement tool is guilty of a crime under the law. When it comes to paying employees for overtime, Alberta follows the 8/44 rule. This state requires employers to pay overtime after 44 hours a week instead of the usual 40 hours. Nevertheless, Alberta follows the eight-hour rule, so any overtime after eight hours must be paid at least 1.5 times the employee`s standard salary. 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. Unless there is a written agreement on the average value, an employer must pay an employee overtime pay at least 1.5 times the employee`s normal rate of pay for all overtime worked. Overtime in the bank account Sometimes, instead of paying overtime pay, an employer may grant an employee 1.5 hours of paid leave (overtime) for each overtime hour worked under an overtime agreement between the employer and the employee.
This period must be used within 6 months of the bank transfer or justify a withdrawal. Calculation of overtime for employees Overtime is calculated on a daily and weekly basis. Overtime is either more than 8 hours a day or 44 hours a week (not both), whichever is greater. For example, someone can work 9 hours a day, but not 44 a week – they have to be paid OT for the hour. In addition, someone can work 8 hours a day, then 4 on weekends for a total of 44 hours – no OT is due. If a person`s total number of hours is more than 44 (which would include more than 8 on certain days), the total hours must be paid more than 44. Keep in mind that ERGO is not payable for hours beyond a person`s schedule if that time is less than 8 hours/day. 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. Basic overtime rates Overtime must be paid at least 1.5 times the employee`s rate of pay. This overtime pay is multiplied by the total number of overtime hours worked by the employee. 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. Calculation of overtime as part of an averaging agreement An averaging agreement was previously called a compressed work week.
This is not a way for an employer to eliminate overtime pay, but a way to allow employees to work a longer day in exchange for a shorter work week. For example, an average agreement could result in employees working 10 hours a day over a 4-day period and no overtime to be paid. If this person then needs to work more time, they will be paid as regular time, unless they exceed 44 hours per week. Averaging agreements may seem very different in terms of planning, but there are absolute rules for a law-compliant averaging agreement. For example, the agreement must be accepted by the majority of those affected, the schedule can last from 1 to 12 weeks, a maximum of 12 hours per day and posted in writing and in obvious places in the workplace. For more details, please visit the Alberta government`s employment standards website based on 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. In some cases, the 8/44 rule does not apply at all and these employees are not entitled to overtime pay in Alberta.
A group of employees has entered into an overtime agreement with their employer, which includes overtime after 44.08. paid. The shop is open 5 days a week, from Monday to Friday. An employee works in a week: In some industries, employees are not exempt from overtime pay, but different overtime rules apply. For example, some industries have different daily, weekly and/or monthly overtime pay thresholds. For example, employees in the taxi industry are only entitled to overtime pay if they work more than 10 hours a day or more than 60 hours a week. On the other hand, loggers and loggers are eligible for overtime after working more than 10 hours a day or more than 191 hours a month. The full list of exceptions can be found here.
According to Alberta`s Employer Standards Code (ESC), overtime is defined as all hours worked more than 8 hours per day or 44 hours per week, whichever is higher.