California Labor Law on Paid Holidays
California does not require its employees to receive premium pay for holiday work. Unless the employers are working overtime during the holidays, then they do not have to pay their employees for premium pay or overtime compensation during that time. However, California employers may voluntarily pay their employees premium pay for working on holidays. Additionally, California state law does not require employers to close during the holidays.
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California Wage Laws
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California's Department of Industrial Relations regulates employment laws for the state. California employers must follow both federal laws through the U.S. Department of Labor's Wage and Hour Division and California's state laws through the Department of Industrial Relations.
California Holiday Pay
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Unless the California employer and employee are part of a private collective bargaining agreement or employment agreement requiring premium pay or pay at a rate higher than the employee's normal pay rate, then California's labor laws do not require additional pay for work on holidays. California does not require premium pay for work on holidays, weekends, or any other day. California employers must pay their employees overtime compensation if an employee works more than eight hours in a day or more than 40 hours in a week. California requires overtime compensation at one and one-half times the employee's normal pay rate for work exceeding 40 hours weekly and double overtime compensation for work exceeding 12 hours daily.
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Business Closing Rule
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California does not require employers to close during the holidays. Opening during the holidays is purely within the employer's discretion. Employees do not have a legal right in California to object to working during the holidays, and employers do not have to pay anything more than the employee's regular pay for working over the holidays.
Discretionary Pay
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Employers may voluntarily choose to pay their employees for holiday pay even though the employees did not work on the holiday. Employers may pay employees normal compensation, premium compensation and overtime compensation if the holiday hours would exceed the normal 40 hours. If the California employee did not work on the holiday, then even though an employee's workweek exceeds 40 hours, an employer who voluntarily compensates the employee for holiday pay does not have to pay overtime compensation for the holiday.
Federal Contracts
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Although both California and the federal Department of Labor do not require holiday pay for private employers, employees who work under government contracts must receive prevailing wages and fringe benefits as required under their collective bargaining agreements or under the federal laws that apply to employees performing work to the federal government on a federally funded project. The terms of those contracts can require employers to pay premium pay for these contractors.
Considerations
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Since employment laws frequently change, you should not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.
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References
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