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Jul12

Holiday Pay

July 4th was on Saturday and we recognized it with having Friday off. If a fulltime employee was on vacation the week of the holiday, can she get paid for the day off as a holiday or not?

Private employers are not required to provide employees with time off for holidays, either paid or unpaid. Thus, holiday pay policies or practices are at the discretion of the employer. Whether an employee is entitled to holiday pay during a week of vacation depends on a company’s policy and/or established practice.

Keep in mind, the federal Fair Labor Standards Act (FLSA) establishes compensation guidelines in the private sector and in Federal, State, and local governments. Any company/organization with annual dollar volume of sales or receipts of $500,000 or more is considered a covered enterprise under the FLSA.

Under the FLSA, employees are either non-exempt or exempt. Non-exempt employees must be paid for all hours worked and are subject to overtime and minimum wage requirements prescribed by the FLSA. Conversely, exempt employees receive a fixed predetermined salary for any workweek during which work is performed and are excluded from overtime pay provisions.

The FLSA doesn’t require non-exempt employees to be paid for time not actually worked such as a holiday.

Exempt employees, on the other hand, must receive their full salary for any workweek during which work is performed. Deductions from an exempt employee’s salary for absences occasioned by the employer, i.e. closure for a holiday, are not permissible. However, in this case, since the employee was on vacation and performed no work duties, there is no obligation to pay the employee’s full salary.

This entry was posted on Sunday, July 12th, 2015 at 9:10 pm and is filed under
Benefits, Compensation.
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