Important Information Regarding Holiday Pay
LABOR & EMPLOYMENT
PRACTICE GROUP
HOLIDAY PAY – IS IT A RIGHT OR A PRIVILEGE?
PRACTICE GROUP
HOLIDAY PAY – IS IT A RIGHT OR A PRIVILEGE?
Employees and employers alike often share the same misunderstanding that everyone is entitled by law to receive time off for nationally recognized holidays. However, the reality may surprise you: there is no federal law requiring private employers to provide time off (paid or unpaid) to employees for nationally recognized holidays or on any other days. Additionally, no federal law requires employers to pay non-exempt* employees (whether hourly or salaried) for holidays on which they are not required to work.
If an employee is required to work on a holiday, there is nothing in federal or state law mandating employers to pay extra for working on that holiday. Hours worked on holidays are treated like hours worked on any other day of the week except when a non-exempt employee works overtime hours on that holiday. In the event a non-exempt employee will be working overtime hours on a holiday, then that employee is entitled to overtime pay for the overtime hours under standard overtime laws.
On the other hand, exempt** employees (qualifying salaried employees who do not receive overtime) who are given the holiday off must be paid their full weekly salary if they work any hours during the week in which the holiday falls. Employers cannot take deductions from exempt employees for absences that are effected by the employer or resulting from operating requirements of the employer’s business. If an employer’s policy is to provide unpaid holidays to its employees, docking an exempt employee for the holiday will endanger their exempt status for that week.
Generally speaking under federal law, paid time off, holidays, vacation and sick leave are matters of agreement between an employer and employee. However, if an employer chooses to provide either paid or unpaid holiday leave, it must comply with the terms of its established policy or contract. An employer should take care to look at any state or local laws that may prevent employees from working on holidays. Florida, like federal law, does not require private employers to provide employees with paid or unpaid holiday leave. The laws of other states may vary and employers should consult with counsel before implementing holiday or other leave policies.
If an employee is required to work on a holiday, there is nothing in federal or state law mandating employers to pay extra for working on that holiday. Hours worked on holidays are treated like hours worked on any other day of the week except when a non-exempt employee works overtime hours on that holiday. In the event a non-exempt employee will be working overtime hours on a holiday, then that employee is entitled to overtime pay for the overtime hours under standard overtime laws.
On the other hand, exempt** employees (qualifying salaried employees who do not receive overtime) who are given the holiday off must be paid their full weekly salary if they work any hours during the week in which the holiday falls. Employers cannot take deductions from exempt employees for absences that are effected by the employer or resulting from operating requirements of the employer’s business. If an employer’s policy is to provide unpaid holidays to its employees, docking an exempt employee for the holiday will endanger their exempt status for that week.
Generally speaking under federal law, paid time off, holidays, vacation and sick leave are matters of agreement between an employer and employee. However, if an employer chooses to provide either paid or unpaid holiday leave, it must comply with the terms of its established policy or contract. An employer should take care to look at any state or local laws that may prevent employees from working on holidays. Florida, like federal law, does not require private employers to provide employees with paid or unpaid holiday leave. The laws of other states may vary and employers should consult with counsel before implementing holiday or other leave policies.
*Employees who are entitled to overtime pay under the Fair Labor Standards Act.
**Employees who fall under a specific exemption from overtime pay under the Fair Labor Standards Act. See 29 U.S.C. § 213.
Sources:
1.U.S. Dept. of Labor, Overtime Pay: http://www.dol.gov/dol/topic/wages/overtimepay.htm;
2.Wage & Hour Insights, “Are Employers Required to Provide Holidays or Holiday Premium Pay?” by Doug Hass: http://www.wagehourinsights.com/wage-and-hour-faqs/are-employers-required-to-provide-holidays-or-holiday-premium-pay-wage-hour-faq/; and http://www.wagehourinsights.com/wage-and-hour-faqs/does-an-exempt-employee-who-calls-in-sick-the-day-before-thanksgiving-get-holiday-pay-wage-hour-faq/
3.The Practical Employer, “A Reminder About Holiday Pay” by Jon Hyman: http://www.workforce.com/blogs/3-the-practical-employer/post/a-reminder-about-holiday-pay
The
hiring of a lawyer is an important decision that should not be based solely
upon advertisements. Before you decide, ask us to send you free written
information about our qualifications and experience. Additionally, the
information above is not intended to be legal advice. Please consult with an
experienced lawyer if you have a specific issue or dispute.
Offices: 2400 E. Commercial Blvd, Ste. 400, Ft. Lauderdale, FL 33308 | 2901 Q. Street NW Suite 2,
Washington, D.C. 20007
Comments
Post a Comment