Overtime & Days in Lieu Policy

Overtime and Days in Lieu compensates employees when they are required to work in excess of the limits defined in the Employment Standards Code.

 

Overtime & Days in Lieu Policy

It is the policy of Arts Management Systems that allows Employees overtime hours to be banked and later taken off with pay, hour for hour, during regular work hours. Overtime hours can be banked for a period of 3 months. Banked time not taken within the 3 month period may be paid out at time-and-a-half.

 

Definition

In Alberta, under the Employment Standards Code, overtime is treated on a daily and/or weekly status. Overtime must be paid to all employees (regardless if they are paid a weekly, monthly, or annual salary except if they are exempt) on hours worked in excess of eight hours a day or 44 hours per week, whichever is greater (the higher of the two numbers is overtime hours worked in the week). The overtime rate is 1.5 times an employee’s regular rate of pay unless the employer and employee have entered into an overtime agreement.

 

General

  • Arts Management Systems hereinafter called “AMS”.
  • AMS and its employee’s are entering into an overtime agreement.
  • The Code requires an overtime agreement to be in writing. Employers must give employees who are covered by an overtime agreement a copy of the agreement.
  • AMS’s employees are all viewed as professionals. With professionals, AMS’s employee’s need to be prepared for each client’s onsite visit. Time spent by employees preparing for client training sessions is not view or recognized as overtime within this agreement.
  • AMS views this rules as guidelines and wants to be fair to the employees for the hours that they work.

 

Revision History

  • January 2010

What is Overtime?

  • All employees, including those who are paid a weekly, monthly, or annual salary, are inclined to have paid overtime pay for overtime hours they work unless they have entered into an overtime agreement.
  • Overtime hours are to be calculated both on a daily and on a weekly basis. The higher of the two numbers is overtime hours worked in the week.
  • Except as noted below, overtime is all hours worked in excess of:
    • eight hours a day, or
    • 44 hours a week.

Overtime Agreement

Hourly Part-Time or Casual Employees

  • Hourly Part-Time or Casual employees will be paid out for all overtime hours worked at a rate of 1.5 times the employee's regular rate of pay.
  • Hourly Part-Time or Casual employees are not applicable for banking overtime as Banked Time in Lieu.

Commission Paid Employees

  • Employees who are paid exclusively by incentive pay such as commission, piecework or a similar method, are not applicable for banking overtime as Banked Time in Lieu.

Salary Paid Employees

This agreement allows overtime hours to be banked and later taken off with pay, hour for hour, during regular work hours. This agreement relates to all overtime pay.
  • Overtime hours are calculated the same way under an overtime agreement, as it would be if overtime pay is to be paid at time-and-a-half.
  • Only overtime, which has been authorized and pre-approved by the department manager or designate, will be recognized as Banked Time in Lieu.
  • Banked Time in Lieu must be taken within three months of the end of the pay period in which the overtime was earned.
  • Banked Time in Lieu that is not taken at the end of the 3 Banked month time period, the overtime hours will be lost and will not be paid out at time-and-a-half.
  • Daily and weekly schedules may vary from time to time, and diversification in work schedules may be required to meet changing operational needs. Employees may be requested to work overtime during periods of unexpected and/or unavoidable workloads. Where possible, reasonable notice will be given under these circumstances.
  • Time taken off in lieu of overtime pay is equal to the actual number of overtime hours worked, at the employee's regular rate of pay.
  • In compliance with Employment Standards, employees in management positions are not eligible for overtime compensation.
  • On termination of employment, any outstanding overtime, which has previously been approved, will be paid out and included in the employee's final pay.

Travel Time

  • In most cases when airplane travel is required, travel time starts approximately 1.0 hour prior to domestic flights and 2.0 hours for international flights. Travel time will stop approximately 1.0 hour after arriving at the destination.
  • There will be travel time that is less then a full day and there will be time that is more then a full day. At most, a single travel day is earned as Banked Time in Lieu on either side of an onsite trip. As single travel day is used as a guideline for over a time period the over/under should average out.
  • Travel time to and from the airport when leaving your place of residence, is not eligible for overtime compensation.
  • Travel time on weekends is eligible for overtime compensation.
  • Travel time on a regular weekday where you were scheduled to work, is deemed part of your regular work week.

Weekend Stayovers

  • Overtime will only be recognized if time on the weekend was used for training purposes. If training was not scheduled to occur over the weekend day(s), then no overtime will be recognized for the Weekend day(s).
  • Weekend days where there is no scheduled training activities, are treated as regular weekend days off.

Work Requested by Client

  • While onsite, a client may request that AMS perform work on their behalf during the installation, training, and/or upgrade process. If AMS is requested to perform work, then this work will be invoiced back to the client for it would not (in most cases), be part of the pre-arranged agreement for onsite activities between AMS and client.
  • All overtime that is accepted and confirmed completed by the client, will be recognized as overtime. An overtime sheet will be required to be completed, signed by the client, and provided to the department manager or designate upon completion of the work. When the completed and signed overtime sheet has been received by the department manager or designate, then the overtime will be added to the Banked Time in Lieu.
  • Failure to provide a completed overtime sheet to the department manager or designate, will forfeit the overtime hours.

Requests to Use Banked Days in Lieu

  • Requests to take time off in lieu will be considered by the department manager or designate, and approved based on current operational needs.
  • In most conditions, the day will need to be a mutually agreeable date between the department managers or designate. If a mutually agreeable date cannot be determined, a date will be chosen and assigned at AMS’s discretion.

How is Overtime Paid?

Hourly Part-Time or Casual Employees

  • Overtime will be paid at the rate of 1.5 times the employee's regular wage rate.

Commission Paid Employees

  • Employees, who are paid exclusively by incentive pay such as commission, piecework or a similar method, have no established rate of pay. Therefore, for the purpose of calculating overtime entitlements, the wage rate is deemed to be the minimum wage.
  • If the incentive pay is less than what would have been earned applying the minimum wage, the employer must top up the incentive pay earnings to match minimum wage.
  • Overtime will be paid at the rate of 1.5 times the minimum wage rate.

Salary Paid Employees

  • If an employee is paid by a combination of salary and incentive pay, and the salary is greater than minimum wage, the salary establishes the hourly rate for the purpose of calculating overtime entitlements.

General Questions

If a General Holiday (Public/Statutory Holiday) is worked

Hours worked on a general holiday and paid at 1.5 times the regular wage are not used in computing either daily or weekly overtime. However, when employees do not qualify for the general holiday or if they are given another work day off with pay in lieu of working on the general holiday, the hours are counted for the purpose of calculation overtime.


If training happens on a Saturday only for a weekend stayover, is the Saturday recognized as a potential Banked Time in Lieu?

Yes. The Saturday will be available to be recognized as potential overtime. Because no training was done on Sunday, Sunday is not available to be recognized as potential overtime.


Do I have to work overtime at night to complete a task for the client?

AMS views its clients as professionals. Our clients expect us to be professionals when we are either in the office or onsite. The goal is to make the client successful. When the client succeeds, you will succeed, and by default, AMS will succeed. AMS strongly recommends that you evaluate your time when onsite and use ‘wasted time’ or ‘idle time’ when onsite to compete tasks in order to avoid being in a situation where overtime may become required.

If there are tasks such as map building, data conversion preparation, event building, season subscription preparation, etc. where the task could be done by the client, explain to the client that in order to stay on schedule, human resources/time needs to be allocated to complete the task. The client can determine if they have the available resources to complete the task in the required timeframe or if they need to authorize AMS to complete the task on their behalf (i.e. back in Calgary’s office, or in the hotel room at night). When the client determines that they need the assistance of AMS, it is an easy acceptance process for them to acknowledge that overtime is required and that they will be invoiced for it.

If the client does not authorize the overtime and the uncompleted task impacts the scheduled agenda, work with the client to rework the scheduled agenda to accommodate the uncompleted task into the next days schedule. Reorganize either the remaining training topics for the remaining time period, or mutually agree on training topics that can be removed from the training agenda.