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Exempt – Holiday Pay

According to our policy, employees are not entitled to holiday pay until he/she has worked 90-days. Would this apply to exempt employees as well? Or must we pay the exempt employee for the holiday, despite her not reaching 90-days yet? We are in Michigan, if this helps. Please advise.


In some cases, you are required to pay the exempt employee her full week salary even if she has not been there 90 days and does not work on the holiday.

If the holiday falls in the exempt employees first or last payroll week with the company, the days she works can be prorated.

If the exempt employee requests the holiday off, or refuses to work on the holiday, you need not pay her for that day. She is taking the day off for personal business, and an exempt employee need not be paid for any days missed for personal business.

However, if the exempt employee is ready, willing and able to work on the holiday, but you have no work for her (because the business is closed) you must pay her entire salary for the week. You can count this as regular time or holiday pay (whichever you prefer) but the exempt employee must be paid her entire salary for the week. Of course, you could also make any exempt employee work on the holiday without additional pay.

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This entry was posted on Friday, July 9th, 2010 at 3:44 pm and is filed under
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