Summary: Overtime Pay in Alberta

Overtime pay is the additional compensation owed to employees who work more than 8 hours a day or 44 hours a week.

Under the Employment Standards Code, most non-unionized employees are entitled to be paid at a rate of 1.5 times their regular wage for these extra hours.

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Many employees are unaware that overtime pay is mandatory in Alberta for most sectors. Whether you are paid hourly or by salary, our Alberta team ensures your employer is following provincial overtime pay laws.

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What is Overtime Pay in Alberta?

If you are wondering is overtime pay mandatory in Alberta, the answer is yes for the vast majority of workers. Alberta overtime pay is designed to compensate employees for working beyond standard limits. According to overtime pay rules in Alberta, overtime is calculated on both a daily and weekly basis to ensure workers are protected during long shifts or busy work weeks.

While most employees qualify, there are specific exemptions. Managers, supervisors, and certain professionals (such as lawyers, engineers, and architects) are often exempt from overtime pay laws in Alberta. However, many employees are “misclassified” as managers by their employers to avoid paying overtime; if you do not have significant hiring/firing or budgetary authority, you may still be entitled to these payments.

How Much is Overtime Pay in Alberta?

The standard overtime pay rate in Alberta is 1.5 times the employee’s regular wage. This is often referred to as “time and a half.” If you are salaried, your hourly rate is calculated by dividing your weekly salary by your regular hours of work to determine your overtime pay in Alberta entitlements.

💡 How does overtime pay work in Alberta for “banked” time? Employers and employees can agree to “bank” overtime. In these cases, for every hour of overtime worked, you must receive 1.5 hours of paid time off. This time off must be taken within 6 months of the end of the pay period in which it was earned.

How to Calculate Overtime Pay in Alberta

To understand how to calculate overtime pay in Alberta, you must apply the “8/44 rule.” Overtime is the greater of:

  • Any hours worked beyond 8 hours per day.
  • Any hours worked beyond 44 hours per week.

For example, if you work four 10-hour shifts in a week, you have worked 40 total hours. Although you are under the 44-hour weekly limit, you worked 2 hours of overtime each day. Therefore, you are owed 8 hours of overtime pay in Alberta.

💡 Note: These standard calculations can be modified if you have signed an averaging agreement in Alberta. In these cases, your employer may average your hours over several weeks, which can change when overtime pay is triggered.

Vacation Pay on Overtime Alberta

A common question for workers is: is there vacation pay on overtime Alberta? Yes. In Alberta, vacation pay is calculated as a percentage (typically 4% or 6%) of your total wages. Because overtime pay is considered part of your total wages, vacation pay on overtime Alberta is a mandatory requirement for employers. If your employer only calculates vacation pay on your “base” hours, you are being underpaid.

Is it Illegal to Not Pay Overtime in Alberta?

Yes. If you are a non-exempt employee, do employers have to pay overtime in Alberta? Absolutely. Failure to pay earned overtime is a breach of the Employment Standards Code. Furthermore, an employer can’t ask you to “waive” your right to overtime pay in your employment contract — any such clause is legally invalid in Alberta.

⚠️ Note: If you are being denied overtime pay, or if your duties have been changed to avoid overtime eligibility, you may be facing constructive dismissal.

Get a Legal Consultation

If your employer is failing to follow overtime pay laws in Alberta, or if you have been terminated and your final paycheck did not include your outstanding overtime, the Alberta employment law team at Samfiru Tumarkin LLP can help. We ensure you recover every dollar you have earned — including full severance pay.

➡️ Contact us today to understand your options for recovering unpaid overtime.

Not Being Paid Your Overtime?

Overtime pay is a legal right, not a workplace perk. If your employer is refusing to pay or has misclassified your role, our Alberta experts will fight to get you the wages you are owed.

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