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Albertan Averaging Arrangement, Overtime Averaging Period - Bill 32

Effective November 1st, 2020, there are changes to the allowed overtime averaging period for employers with Averaging Arrangement. The overtime averaging period can now be extended up to 52 weeks, as outlined in Bill 32 - Restoring Balance in Alberta’s Workplaces Act. Currently, the overtime averaging period is up to 12 weeks.

Additional Information
Extending the Averaging Period typically results in less overtime for employees that work extended hours for a short period of time, such as seasonal workers.

Changing the overtime averaging period is optional. You can keep it at the current interval and remain compliant under the new act.

If you are using Overtime Rules for your Averaging Arrangement, this article will guide you through updating your Overtime Rule. For more information on the other changes included in this act that affect payroll, please go to the Restoring Balance in Alberta’s Workplaces Act.

Prior to Updating the Overtime Rule

Before updating your Alberta overtime rule, please ensure:

  • You have an Averaging Arrangement with your employees.

  • You have provided your employees with two weeks notice of the changes to the Averaging Arrangement.

  • All time entries are approved before November 1st in Maintain Time Data.

  • You have determined the averaging period you are using, in days. The maximum averaging period allowed without an extension approved by the Director of Employment Standards is 364 days (52 weeks).

  • Determine the overtime threshold for your averaging period. The maximum threshold is 44 hours per week of the averaging period. If you are using the full averaging period of 52 weeks, the maximum threshold is 2,288.

How to Update the Averaging Period

Important Information
Before you update the daily overtime rule, please approve all the time entries prior to the effective date of the Averaging Arrangement in Maintain Time Data. This will ensure your previous time entries will not be affected by this change.

Step 1: Open Overtime Rules in the Avanti Desktop Application.
By default, this can be found in Time & Attendance >> Installation & Maintenance.

Step 2: Select an Overtime Rule used for employees in Alberta, then select Modify.

Step 3: Select the Other Interval rule on the Details tab, then select Modify.

Additional Information
If you don’t have Other Interval set up on the Overtime Rule, we can help. Contact Care@Avanti.ca.

Step 4: On the Details tab, update Length to the number of days in the interval.

Additional Information
If you are taking advantage of the full 52-week averaging period, the Length will be 364 days.

Step 5: On the Threshold tab, update the Threshold to the new value. Select OK to save your changes.

Additional Information
The maximum threshold per week of the interval is 44. If you are using the full 52-week averaging period, the maximum threshold is 2,288 hours.

Step 6: Select OK to save the Overtime Rule.

Step 7: Repeat Steps 2 - 6 for each Overtime Rule for Albertan employees with a new Averaging Arrangement, if you have multiple rules.

Step 8: Nice work. Your Overtime Rules are now taking advantage of the changes to the overtime averaging period introduced with Bill 32 - Restoring Balance in Alberta’s Workplaces Act.

How to Remove the Daily Overtime Rule

Complete the following to remove the daily overtime rule, if daily overtime is not included in the Averaging Arrangement.

Important Information
Before you remove the daily overtime rule, please approve all the time entries prior to the Averaging Arrangement’s effective date in Maintain Time Data. This will ensure your previous time entries will not be affected by this change.

Step 1: Open Overtime Rules in the Avanti Desktop Application, if it is not already open.
By default, this can be found in Time & Attendance >> Installation & Maintenance.

Step 2: Select an Overtime Rule used for Alberta employees, then select Modify.

Step 3: Select the Daily rule on the Details tab, then select Delete.

Step 4: Select OK to remove the Daily Overtime from the Overtime Rule permanently.

Step 5: Select OK to save the Overtime Rule.

Step 6: Repeat Steps 2 - 5 for each Overtime Rule for Alberta employees who require daily overtime removal, if you have multiple rules.

Nice work. Your Overtime Rules are now taking advantage of the changes to the overtime averaging period introduced with Bill 32 - Restoring Balance in Alberta’s Workplaces Act.

Bill 32 also introduces changes to the holiday pay for employees in Alberta. Go to Adjusting your Alberta Holiday Rule for Bill 32 for more information.

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