- How to calculate Alberta overtime
- Salaried and commission staff aren't automatically exempt
- Banked overtime: the 1 for 1 rule
- A worked week, hour by hour
- Records you have to keep
- Who doesn't get overtime
- Industries with different thresholds
- Hours limits that sit beside overtime
- My verdict
- Frequently asked questions
Overtime pay in Alberta is at least 1.5 times the regular wage rate for every hour over 8 in a day or 44 in a week, whichever gives the greater number of overtime hours. The only alternative is a written agreement to bank 1 hour of paid time off for each overtime hour.
That's the 8/44 rule from Alberta's Employment Standards Code, as set out on the Government of Alberta overtime page in October 2026. Here's how to apply it, plus the agreement rules and the industries with different thresholds.
How to calculate Alberta overtime
- Count the daily overtime: every hour past 8 on each day, then add them up for the week.
- Count the weekly overtime: every hour past 44 in the work week.
- Use whichever total is larger. Don't add the two together.
- Pay those hours at least 1.5 times the regular wage rate, or bank them under a written agreement.
Overtime is calculated by work week, not by pay period, even if the pay period ends mid-week. And if you've set a shorter 40-hour week, the 8/44 rule still decides overtime unless a written agreement or consistent written practice says overtime starts earlier.
Salaried and commission staff aren't automatically exempt
Alberta is clear that the same overtime rules apply to salaried and non-salaried employees. For people paid only by commission or piecework, the wage rate for overtime is deemed to be the minimum wage, and if their earnings fall below what minimum wage would have paid, you have to top them up. As of October 2026 that general minimum is $15 an hour.
Banked overtime: the 1 for 1 rule
This is the insight most people outside Alberta don't expect. Under a written overtime agreement, banked time is earned at 1 hour off for each overtime hour, not 1.5 hours. That's the only exception to time and a half. The conditions are strict:
- The agreement has to be in writing and every covered employee, including new starters, gets a copy.
- The time off has to be taken and paid at the regular rate within 6 months of the end of the pay period in which it was earned, unless a collective agreement allows longer.
- If the banked time isn't used in that window, it has to be paid out at 1.5 times.
- Either side can end or change an individual agreement with one month's written notice.
- A group agreement needs signatures from the employer and a majority of the employees in the group.
| Overtime worked | Pay period ends | Banked time must be taken by |
|---|---|---|
| June 1 | June 30 | December 30 |
| August 11 | August 12 | February 12 |
| September 15 | September 15 | March 15 |
A worked week, hour by hour
Alberta's own example shows how the daily count usually wins. An employee under an overtime agreement works a 5-day week with two long days, ending on 41 hours. There's no weekly overtime because 41 is under 44, but the long days produce 1 + 2 = 3 hours of daily overtime, so 3 hours go into the bank. They take 2 of those hours off with pay on the Friday, when they only worked 6 hours.
That last step matters. Banked time has to be taken during non-overtime hours, so hours worked plus banked hours used can't go over 8 in a day or 44 in a week. Friday works because 6 plus 2 is 8, and the week totals 43, under the 44 limit. The remaining hour stays in the bank.
Records you have to keep
- The number of overtime hours each employee has banked.
- The number of banked hours taken off with regular pay.
- A pay statement each pay period showing the banked hours taken.
- All of it kept for at least 3 years from the date each record is made.
If the business is sold, the previous owner pays any overtime pay owed up to the transfer date and the new owner has to honour the banked time.
Who doesn't get overtime
Excluded groups include managers, supervisors and people employed in a confidential capacity, professionals such as certified or chartered accountants, engineers, lawyers, architects and veterinarians, various commission salespeople, licensed land agents, domestic employees, and waged non-family farm and ranch employees. Domestic employees still keep their rest period and day of rest rights.
Industries with different thresholds
| Industry | Daily hours | Weekly hours | Monthly hours |
|---|---|---|---|
| Ambulance attendants | 10 | 60 | N/A |
| Trucking | 10 | 50 | N/A |
| Taxi cab industry | 10 | 60 | N/A |
| Oilwell servicing | 12 | N/A | 191 |
| Logging and lumbering | 10 | N/A | 191 |
| Highway and railway construction | 10 | 44 | N/A |
Hours limits that sit beside overtime
Overtime doesn't make unlimited hours legal. Work must fit within 12 consecutive hours a day unless there's an accident, urgent work or a variance, and there must be at least 8 hours' rest between shifts.
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My verdict
If you're paying salaried staff in Alberta and assuming overtime doesn't apply, check now. And if you use banked time, put the agreement in writing, track the 6-month deadline per pay period and pay out anything unused at time and a half. Compare the 40-hour rule in Ontario overtime pay, and for the wider picture see the overtime laws explainer.
Frequently asked questions
What is the 8/44 rule in Alberta?
Overtime is all hours worked over 8 hours a day or 44 hours a week, whichever is greater.
Is overtime time and a half in Alberta?
Yes. Overtime must be paid at least 1.5 times the regular wage rate unless a written overtime agreement banks time off instead.
Do salaried employees get overtime in Alberta?
Yes. The same overtime rules apply to salaried and non-salaried employees unless they fall into an excluded group such as managers or listed professionals.
How long can banked overtime be held in Alberta?
Banked time must be taken within 6 months of the end of the pay period in which it was earned, unless a collective agreement allows longer.
Can I bank overtime without a written agreement in Alberta?
No. Banking time off instead of paying 1.5 times is only allowed under a written individual or group overtime agreement, and every covered employee must get a copy of it.
Does overtime apply to part-time employees in Alberta?
Yes. Part-time employees are covered by the same 8/44 rule, and an overtime agreement can cover part-time or full-time staff.

