Alberta Overtime Averaging Agreements

The employer must provide a copy to any worker subject to the average value plan. An employer may terminate a group overtime contract by making available to workers a written period of one month. If the group of employees wishes to terminate the contract, it must also provide for a period of one month in writing and be signed by the majority of the staff members of the designated group. Alberta employees will be entitled to overtime pay after working more than eight hours in a day or more than 44 hours in a week (which is greater). This is sometimes referred to as the 8/44 rule. A medi cation agreement is an agreement between an employee and an employer which allows the worker to work on a modified schedule. It also benefits the employer by meditating on an employee`s hours over several weeks, which can exempt the employer from paying overtime. Agreements may apply to a staff member or group. There are certain minimum provisions that, according to the code, apply to all overtime agreements, even if the agreement does not explicitly contain them. Among these conditions, Alberta is proposing changes to its standard employment code that would allow employers to circumvent the payment of overtime (OW) bonuses to workers by depriving workers of the right to refuse to participate in average overtime agreements.

This has the potential to shift hundreds of millions of dollars in OT wages from workers` pockets to employers` profits. Bill 32 (Restoring Balance in Alberta`s Workplaces Act) was introduced in early July. If passed, it will make a large number of amendments to the Labour Standards Act and the Labour Relations Act. Bill 32 will allow employers to impose average agreements with a period of two weeks (Bill 32, § 1 (11)), except collective agreement. Currently, workers have to accept the average overtime. Like all Canadian jurisdictions, Alberta has imposed restrictions on working time. In most cases, Alberta limits work to a 12-hour window (ESC, p.16(1)). Alberta also requires employers to pay an overtime bonus (1.5 times wages) when workers work more than 8 hours a day or 44 hours a week (ESC, see 21). The political justification for the limitation of working time and the demand for OT bonuses focus on ensuring workers` quality of life, reducing safety risks related to worker fatigue and encouraging additional hires. Currently, employers and individual workers who work at least 35 hours per week may, at the worker`s request, enter into an FAA that allows the employer to keep the worker`s working time at an average for up to two weeks to determine overtime pay or paid free time. FAAs also allow employers and workers: while calculating overtime pay in Alberta is not always easy, employers should be cautious when making arrangements that do not meet the minimum standards of the employment code and regulations.

For example, if you worked ten hours a day for five days, you would have 10 hours of overtime with the first method (2 overtime hours per day) and 6 hours with the second method (50 hours of less than 44 hours in a work week). . . .