Is Holiday Pay Required by Law?
With the holidays just around the corner employers are thinking about how and how much to pay their employees. Often, companies offer 5 to 7 paid holidays per year. This benefit has left many employers unclear on whether paying employees for holidays is actually a requirement.
Employers Need Not Pay Extra For Holidays
It is a common misconception that the federal government requires businesses to pay employees extra for holidays. There is no state or federal law requiring employers to pay employees extra for working on a holidays, nor is there any law requiring employers to give employees paid time off for holidays.
Holidays Do Not Factor In to Overtime Calculations
An employee can earn holiday pay and overtime in the same week only if the employee spends more than 40 hours doing actual “work” (in California overtime is paid by day). Let’s say the employee puts in 36 hours during a holiday week plus he gets his 8 hours paid holiday. That holiday pay does not figure into the overtime calculation. The payroll would look like this: 40 “regular” hours and 8 “holiday” hours at the the regular rate.
Other types of non-working pay includes sick, vacation, bereavement, jury duty, ect. which are treated similarly with regard to overtime.
For more information on this and other labor laws check out the Labor Law Talk website.