HR Home Forums Community Alberta – Overtime and Averaging

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  • Conner Lantz
    Keymaster
    Post count: 4836

    I am wondering if you can help me with something.

    We have a bit of a dilemma. We pay 10 hours a day regular. OT starts after 10, weekends or holidays. This also includes our shop guys. This is to align with what we can charge the customer.
    I know other companies also pay this way. What I need help with is an averaging agreement or something else maybe that reflects this. I don’t have much experience with averaging agreements.

    This is only an issue with the guys working in the shop as there is technically no travel time. In order to be productive and align with the field work we need to be at 10 hours a day.
    We have had a couple guys questions the 44 hour rule if they are in the shop.

    Let me know what you think. Would a phone conversation help tomorrow?

    Thanks.

    Conner Lantz
    Keymaster
    Post count: 4836

    Here’s Alan’s response. He will be happy to talk to you if you want to follow up. I believe he’s included his contact info. Hope this helps you deal with your situation. Glenn

    armcewen@shaw.ca

    4:02 PM (44 minutes ago)

    to Vicky, me

    Unfortunately, the AB employment standards aren’t likely going to be of much use.

    Averaging agreements are ways that employers can avoid having to pay overtime. They really only work where the hours of work, while capable of being scheduled, vary from day to day.
    This is true of compressed work schedules, i.e. 3 twelve-hour days on, followed by 4 days off, for example. Less common are situations where the hours of work are something like Monday – Wednesday at 6 hours per day, Thursday and Friday at 12 hours per day.

    No matter how you slice it there will still be overtime if employees are expected to work 10-hour days, 5 days a week.
    You can avoid daily overtime using an averaging agreement, but not the overtime threshold of 44 hours per week.

    Your best bet is to look at the overtime exemptions that apply to various industries. You mention field work, but you don’t describe what.
    Even then these exemptions may not apply to your shop employees.

    I understand that not all employers follow these rules, but you have to decide for yourself whether these will be followed.
    The greatest risk of not following them comes from disgruntled employees who file a claim for unpaid wages after they leave your employ.

    Alan R. McEwen
    Alan McEwen & Associates
    855 Berwick Road South, Qualicum Beach, BC  V9K 1R3
    250-228-5280 in the Pacific time zone
    https://alanrmcewen.com

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