Overtime Pay Rules in Alberta: The 8/44 Rule Explained (2026)

The 8/44 rule

In Alberta, overtime is all hours worked over 8 in a day OR over 44 in a week — whichever is greater. The key word is "greater": you do not add daily and weekly overtime together. You calculate both and pay the higher number. For example, an employee who works four 10-hour shifts puts in 40 hours (under the 44-hour weekly threshold) but accrues 2 hours of daily overtime per shift — so they are owed 8 hours of overtime. This is general guidance, not legal advice; some industries and roles have separate rules.

The overtime rate

Overtime must be paid at a minimum of 1.5 times the employee's regular wage rate ("time-and-a-half") for each overtime hour worked.

Banking overtime — where Alberta is unusual

Alberta is one of the only provinces where, under a written overtime agreement, overtime can be banked at just 1 hour of paid time off per overtime hour worked (1:1) — rather than the 1.5:1 ratio most provinces require. Banked time must generally be taken within six months; if it is not used, the employer must pay it out at 1.5 times the wage rate. If you have run payroll in another province, this is one of the most commonly misunderstood differences.

Overtime averaging agreements

Employers and employees can also enter written overtime averaging agreements that spread hours over a period of up to 12 weeks. These must follow strict rules under the Employment Standards Code and cannot leave the employee worse off than they would have been without averaging.

Who is exempt from overtime

Not every employee is entitled to overtime. Common exemptions include:

• Managers and supervisors, in defined circumstances
• Salespeople paid by commission who work outside a place of business
• Certain regulated professionals
• Some farm and ranch workers
• Other roles specified in the Employment Standards Regulation

Get it right across provinces

Alberta's daily-and-weekly "greater of" calculation and 1:1 banking trip up employers used to other jurisdictions. If you operate in more than one province, build the province-specific rules directly into your payroll process rather than applying a single national rule.