Pay rules
Alberta overtime rules: the 8/44 rule explained for staffing agencies
In Alberta, overtime is calculated as hours worked over 8 in a day OR hours over 44 in a week, whichever is greater. A worker must receive at least 1.5 times their regular wage rate for overtime hours, and written overtime agreements can allow time-off in lieu instead of pay.
The key difference from Ontario (44 hours per week only) and BC (8 hours per day separately, no greater-of rule) is that Alberta uses the greater threshold. A four-day, 40-hour week results in 8 hours of daily overtime (the greater amount), while a standard 44-hour week has no overtime.
Reviewed with the owner of the Ontario light-industrial staffing agency Kordis was built inside.
What is the 8/44 rule?
Alberta's overtime rule is sometimes called the "8/44 rule" because overtime is owed for all hours worked over 8 hours in a day OR over 44 hours in a week, whichever results in greater overtime hours. The employer calculates overtime using both thresholds and pays whichever is higher.
For example, if a worker logs 40 hours in four days (10 hours each day), daily overtime (8 hours) exceeds weekly overtime (0 hours), so 8 hours of overtime are owed. If the same worker logs 44 hours Monday to Thursday and then 3 hours Friday, only the weekly threshold (3 hours over 44) applies, because 3 hours is greater than any daily overage.
How much is overtime pay in Alberta?
An employee must receive at least 1.5 times (time-and-a-half) their regular wage rate for all overtime hours. For example, if the regular rate is $20 per hour, overtime is at least $30 per hour.
Can employees bank overtime as time off instead of pay?
Yes, but only if both the employer and employee agree in writing. A written overtime agreement can allow an employee to take paid time off instead of receiving overtime pay, as long as the time-off equals or exceeds the value of the overtime hours at the 1.5x rate.
Is overtime based on the work week or the pay period?
Overtime is always based on the work week, not the pay period. A work week is defined by the employer (commonly Sunday to Saturday or Monday to Sunday), and overtime is calculated within that week boundary, even if the employer's pay period ends mid-week.
Worked example: four 10-hour days
A temp worker in Alberta works Monday through Thursday, 10 hours each day (40 total hours), at a $20 per hour regular rate. Daily overtime: 8 hours per day × 4 days = 32 hours over the 8-hour threshold. Weekly overtime: 0 hours (40 total is under 44). Using the greater amount: 32 hours of overtime are owed at $30 per hour (1.5 × $20), plus 8 regular hours at $20/hour. Total pay for the week: (8 × $20) + (32 × $30) = $160 + $960 = $1,120.
How does Alberta differ from Ontario and BC?
| Feature | Alberta | Ontario | BC |
|---|---|---|---|
| Daily threshold | 8 hours per day | No daily threshold (only weekly) | 8 hours per day (1.5x up to 12, then 2x) |
| Weekly threshold | 44 hours per week | 44 hours per week | 40 hours per week |
| Which threshold applies | Whichever is GREATER (the greater-of rule) | Only 44 hours per week | Both apply separately (first 8 hours at 1.5x, daily hours 8-12 at 1.5x, then 2x; plus weekly over 40 at 1.5x) |
| Rate(s) | 1.5x minimum; written agreements can offer time-off in lieu | 1.5x minimum; written agreements can offer time-off in lieu | 1.5x for first 12 hours per day / over 40 per week; 2x for hours over 12 per day |
| Calculation basis | Work week (employer-defined) | Work week (employer-defined) | Calendar week (Sunday to Saturday) |
Why does the 8/44 rule matter for staffing agencies?
Because Alberta is one of the few jurisdictions with a daily overtime threshold, shift patterns matter more. A temp worker assigned to four long days may trigger daily overtime even if the total hours stay under 44 per week. Conversely, five eight-hour shifts meet neither threshold, so no overtime is owed.
If your workers are primarily full-time day shifts, Ontario's rule (weekly only) is simpler. If your Alberta workers are on flexible or rotating patterns, the 8/44 rule makes the daily threshold a major cost driver.
What about statutory holidays and overtime?
Statutory holiday hours do not count toward the 44-hour weekly threshold or the 8-hour daily threshold for the purposes of triggering overtime. If a worker takes a general holiday (paid), those paid hours do not accrue overtime unless they actually work additional hours that exceed 8 or 44.
Common questions
What is the greater-of rule in the 8/44 overtime rule?
The greater-of rule means you calculate overtime two ways (hours over 8 per day AND hours over 44 per week), then pay whichever method results in MORE overtime hours. This ensures workers are not short-paid due to a particular shift pattern.
Do I pay 1.5x for all overtime in Alberta?
At minimum, yes. The legal minimum is 1.5x (time-and-a-half). You can pay more, and some employers agree in writing to offer paid time off at 1.5x value instead of cash.
If a worker does four 10-hour days, is that 8 or 12 hours of overtime?
That is 8 hours of daily overtime per day for 4 days = 32 hours total, because each day is 2 hours over the 8-hour threshold. Weekly threshold is 0 (since 40 is under 44). The greater amount is 32, so 32 hours of overtime are owed.
Is the 8/44 rule the same in other Canadian provinces?
No. Ontario has a 44-hour weekly threshold only (no daily threshold). BC has an 8-hour daily threshold and a 40-hour weekly threshold but no greater-of rule; both thresholds are applied separately. Alberta is unique with the greater-of approach.
Can I allow a worker to take time off instead of overtime pay?
Yes, if you have a written overtime agreement signed by both the employer and employee. The time off must be worth at least 1.5 times the hours worked (e.g., 8 hours of overtime = 12 hours of time off).
Does a paid statutory holiday count toward the 44-hour weekly threshold?
No. Statutory holiday pay is paid separately. Hours a worker actually works beyond their regular shift may still trigger daily or weekly overtime, but the paid holiday itself does not count toward the overtime thresholds.
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