Human Resource Blog

Holiday Pay

Because July 4th is on a Saturday this year, we are recognizing Friday July 3rd as the holiday. I do however have people who are working and will, according to our policy, be paid time and half for the hours they work on the 3rd.

We are also open the following day, July 4, and those scheduled to work that day are complaining because they are not being paid extra to work the holiday. Am I required to pay extra for both days? (Massachusetts)

No, you are not required to pay the holiday rate for both days, and it would be foolish to do so.

There is no federal or Massachusetts laws that requires employers to give paid holidays, or to pay a higher rate to employees who work on those holidays. However, since you have an established practice of doing so, you are wise to continue it. (If you wanted to change this policy, you would need to inform employees in advance, in writing.)

Since you are open on July 4 and have employees working on that day, it might make more sense for July 4 to be your companys recognized holiday this year. Employees who are off on Saturdays anyway could have a paid holiday on July 3. (Another way of looking at this: an employee who normally works a Mon -Fri week would be off, unpaid, on Friday and Sunday and receive the paid holiday for Saturday.) However, only the employees who actually work on July 4 should be paid time-and-one-half for it, under this system. Using this system would be fairer, but it would require you to admit that you changed your mind, or made a mistake.

In most establishments such as hospitals and hotels, that are open 365 days per year, the actual date is always the holiday. An employee who would normally have that day off is given an additional day off during the week as his or her *holiday.*

The other option is for July 3 to be the holiday this year. That means most employees will receive a paid day off, and employees who work that day will be paid time-and-a-half. They will be paid the regular rate for July 4, since it is not a *holiday* this year for your company.