Labor Laws Concerning Holiday Pay

Holidays give employees a chance to relax and recuperate away from the work environment. Many employees find it comforting to know they are receiving pay while on holiday, but according to the labor laws, not every employer is mandated to grant this benefit.

Federal, State Laws

The Fair Labor Standards Act determines the federal minimum wage rate, overtime pay, and equal pay laws. The law mandates that all federal employees must receive paid holiday. Private-sector employers are not required to give employees holiday time off, with pay or without pay. States set their own wage and hour laws as well, but most states adopt the FLSA's holiday pay guidelines.

Employer Obligation

If the reason is not discriminatory (e.g. age, sex, marital status), employers are not obligated to provide the same holiday benefits to all their employees. Some employers pay all their full-time workers full holiday pay, while granting part-time workers less or no holiday pay.

Paid Holiday

If an employee works on a holiday, the employer must pay him for the hours worked. The employer does not have to pay him overtime or double-time pay for those hours unless he worked more than 40 hours that week. For example, if the employee has 32 regular hours and 8 holiday hours for the week, the employer can pay him the entire 40 hours at his normal pay rate.

There are many private organizations that give their employees holiday pay. This is done at the employer's discretion and not because the law ordered him to. Offering paid holidays in an employment package is generally the employer's method of gaining and keeping her employees.

Conditions

If employers give paid holidays, they can attach stipulations to this benefit. For example, they may require that the employee work the day before and the day after the holiday to qualify for holiday pay. They may also require that employees be employed with the firm for a certain length of time before becoming eligible for overtime pay. The conditions concerning holiday pay should be included in the company's policies and procedures.

Time-off Conflict

Though not required by law, if the holiday falls on an employee's day off, many employees will request that the employee schedule a different day off. If the holiday falls on a Saturday or Sunday, employers often observe the holiday on the preceding Friday or following Monday.

References

• Holiday Pay - Paid Holidays