"Many employers," Miller notes, "have a policy that, to receive holiday pay, must work the day before and the day after the holiday so people don't call in sick to extend their leave." How to avoid discriminationĬreating your policy should be done carefully. Your policy should clearly state which days will be considered holidays and how you will or will not pay them for those days. And employers should follow the policies they enact." "A policy will eliminate that possibility. "That opens up the argument that there's discrimination going on for one of the reasons protected under state or federal law," Miller says. Without a policy in place, there is a greater likelihood that people will be treated differently. Why you need a holiday pay policyĮveryone should have a holiday pay policy. The distinction should be clear in your policy. Exempt (salaried) employees, however, would be paid for the entire workweek at their regular rate should they work any time during the workweek. Should a nonexempt or hourly employee be scheduled to work on a holiday, you are only required to pay for hours worked at the regular rate of pay. Holiday pay, as in premium pay, i.e., time-and-one-half, double-time, or triple-time, is totally voluntary on your part as the employer. "There are some unique situations in California and Massachusetts, for example, but most of the nation is pretty straightforward." "Holiday pay, in general, is not required under the federal Fair Labor Standards Act (FLSA)," explains Fisher Phillips senior counsel Michael Miller. Find out what holiday pay is, what it's for, and who is eligible for it. Yet, employees expect to have at least some holidays to look forward to and most want to be paid for them, whether or not they work on the holiday. And if an employee is nonexempt, hourly, you may not even have to pay them for time not worked depending upon what state you're in. There are no federal holiday laws that say you have to give employees the day off for federal or state holidays. As an employer, have you figured out how you're going to handle them? Eight out of 12 months have at least one holiday on the calendar.
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