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Jul12

Holiday Pay

Hello! For the 4th of July this year, one of our sites was closed Friday and Saturday. How do we handle holiday pay for an employee who normally worked both of those days? Holiday pay for Friday, when the 4th was observed and no pay for Saturday?

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.

Since the employee is regularly scheduled to work on both Friday and Saturday and you chose to close your company on both days, it would be fair to pay the employee for both days. The employee shouldn’t be penalized just because his normal work schedule conflicts with how you chose to observe the July 4th holiday.

It’s worth noting the federal law regarding compensation guidelines. The federal Fair Labor Standards Act (FLSA) covers employers 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.

But, again, it’s not fair or good practice to penalize the employee because the company closed for two days this year instead of only one. So, consider any applicable past practice, what the company can afford to do, and the effect on employee morale prior to making your decision. HTH!

This entry was posted on Sunday, July 12th, 2015 at 9:24 pm and is filed under
Compensation, Labor Laws.
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