pay is calculated

Employer-paid vacation time can differ between exempt and non-exempt employees. Exempt employees are expected to work whatever hours are necessary to complete a job.

employee is regular

Unfortunately for your What Is Holiday Pay? , it is not a requirement topay them overtimeon holidays. Nothing is stopping you from doing this if you’re feeling extra generous this holiday season, but that’s up to you. If you’re feeling more Grinch-like, no one can stop you from pinching pennies . Employers can determine if they want to pay employees a normal work pay day or incentivize holiday work by offering time-and-a-half or double pay. If a permanent employee uses holiday pay in the form of PTO, then their holiday pay should be the same on their day off as when they are at work, determined using an hourly rate. Employers can elect employees to work during the holiday time and pay the normal pay.

Describe how time-and-a-half pay is calculated.

Whether you’re an with questions about documenting your holiday policy or an employee with questions about holiday pay, you can ask a lawyerto get answers. To be entitled to a paid holiday off or holiday premium pay, an employee must be regularly scheduled, i.e., work hours that are scheduled in advance of the week in which they are worked. An employee is entitled to compensation for overtime work on a holiday at the same rate as for overtime work on other days. This overtime compensation is in addition to the premium pay earned by an employee who works overtime on a holiday. Regularly scheduled full-time and part-time employees who work a holiday earn holiday premium pay for all non-overtime hours up to 8 hours. As is the case for hourly employees, there is no specific law pertaining to holiday pay for salaried employees and is purely based on company policies.


Nonexempt employees aren’t exempt from the provisions of the FLSA. They’re typically required to track their time and be paid for overtime work.

Holiday Pay Policy: A Guide For Employers

For example, if you work four days a week, rather than five, you’d only get the equivalent of 4-day weeks’ worth of time off per year. The exception to this rule is that some businesses may still choose or are required to stay open (such as hospitals or other on-call staff).

  • Having a better understanding of holiday laws can help bring clarity and direction to your holiday pay plan.
  • But, if you still want people to work on Columbus and Groundhog Day, that’s entirely up to you.
  • Workers are often given a certain number of vacation days each year, either as a guaranteed benefit or as a bonus; however, this varies by country.