Overtime pay is one of the most misunderstood areas of employment law in Alberta. Many salaried employees assume they are not entitled to overtime simply because they earn a fixed salary. Employers, too, often misinterpret the law, mistakenly believing that paying a salary exempts them from overtime obligations.
In reality, Alberta’s Employment Standards Code (ESC) sets out clear rules about overtime, and these rules apply to many salaried employees. At Verhaeghe Law in Edmonton, our employment lawyers regularly advise both employees and employers about overtime entitlements, exemptions, and disputes. To discuss your situation with a legal professional, schedule a consultation with us today.
Overtime Rules in Alberta
Under the ESC, employees are generally entitled to overtime pay for hours worked in excess of:
- 8 hours per day, or
- 44 hours per week (whichever is greater).
Overtime must be paid at a rate of 1.5 times the employee’s regular wage unless an averaging agreement or time-off arrangement is in place.
The law recognizes that long hours can be physically, mentally, and financially taxing. Overtime rules are designed to ensure employees are compensated fairly for extra work while encouraging employers to manage workloads responsibly.
Do Salaried Employees Qualify for Overtime in Alberta?
The short answer: yes, many do.
Being paid a salary refers only to how wages are structured, not whether overtime applies. Unless a salaried worker falls into an exempt category under the ESC, they are entitled to overtime pay just like hourly employees.
Exemptions include:
- Certain professionals (e.g., lawyers, engineers, architects).
- Supervisors and managers with genuine decision-making authority.
- Specific industries with different standards (such as trucking or farming).
A common issue arises when employees are given managerial titles without real authority. If your role is essentially the same as non-managerial staff, you may still qualify for overtime, even if your employer says otherwise.
Averaging Agreements and Time Off in Lieu of Pay
Employers and employees can enter into averaging agreements that allow hours to be averaged over a period of up to 52 weeks. For example, an employee working long shifts in one week and fewer in the next may not be entitled to overtime if their hours average out below 44 per week.
Another option is time off in lieu of pay. Instead of receiving extra wages, an employee may take paid time off equal to 1.5 times the overtime hours worked. However, this requires mutual agreement and proper record-keeping.
If your employer has not explained these arrangements or failed to follow them correctly, you may have a claim for unpaid overtime.
Common Overtime Disputes
Disagreements about overtime often arise because of:
- Assumptions about salary: Employers wrongly believe salary covers all hours worked.
- Job title misuse: Employees given titles like “manager” without actual managerial duties.
- Pressure not to report extra hours: Employees discouraged from logging overtime.
- Improper averaging agreements: Employers applying averaging without legal compliance.
These disputes can cost employees thousands of dollars in unpaid wages—and expose employers to significant liability.
Practical Tips for Employees & Employers in Alberta
If you are a salaried employee in Alberta, protect yourself by:
- Tracking your hours carefully, even if your employer does not require it.
- Reviewing your contract to see if averaging agreements or time-off clauses exist.
- Raising concerns early if you believe you are being denied overtime.
- Seeking legal advice before resigning, as quitting too soon may weaken your ability to recover unpaid wages.
Employers can reduce the risk of overtime claims by:
- Ensuring job titles match actual responsibilities.
- Training managers on overtime rules.
- Being transparent with employees about expectations and entitlements.
- Seeking legal advice before implementing averaging or time-off arrangements.
Our Edmonton employment lawyers assist clients on both sides of overtime disputes.
- For employees, we can:
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- Review employment contracts and job duties.
- Calculate unpaid overtime entitlements.
- Negotiate fair settlements or pursue claims in court.
- And more
- For employers, we can:
- Audit workplace policies to ensure compliance.
- Draft legally sound averaging agreements.
- Defend against overtime claims and minimize liability.
- And more.
By combining detailed knowledge of Alberta’s employment laws with practical negotiation strategies, we help clients resolve disputes efficiently while protecting their rights.
Contact Verhaeghe Law If You Have Questions About Your Employment Rights & Obligations
Overtime rules in Alberta are complex, and misunderstandings are common—especially for salaried employees. Whether you are an employee seeking unpaid wages or an employer trying to comply with the law, Verhaeghe Law’s Edmonton employment lawyers are here to help.
Contact us today to schedule a consultation. We will explain your rights and obligations, protect your interests, and guide you toward the best possible resolution.