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How to pay California employee holiday pay when their schedule is normally 6 days per week.

In California, an employee normally works 8 hours per day, 6 days per week, Monday-Saturday. A holiday fell on Tuesday. We paid 8 hours holiday pay, she was off. she worked a total of 40 hours in 6 days and got one day of holiday pay. What is the correct way to pay her.

This is a matter of company policy rather than employment law, even in California. There is no law that requires an employer to offer paid holidays to employees (in most states. One exception is retail employees in Rhode Island.) If your company chooses to offer paid holidays to employees you establish the policies surrounding them.

Many employers would pay the employee as you describe above, simply paying the employee for 8 hours more than she actually worked. There is no requirement that this time — the 8 hours of unearned holiday pay — be counted in tabulating overtime for the week. However, the employee should still be paid overtime on hours worked as applicable under California law.

However, some employers have the policy that regardless of her usual work schedule, an employee cannot receive holiday pay if it results in her being paid for more than 40 hours in the payroll week. In order to be completely fair, if a company has such a policy, the employee should have worked only 4 days this week, and been paid for 32 hours worked + 8 hours of holiday pay. Otherwise, the employee is being penalized for working 5 days this week. That is lawful, but it is not fair. Still, some employers do have such a policy.

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This entry was posted on Tuesday, October 25th, 2011 at 5:58 am and is filed under
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