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Non-Exempt Holiday and Overtime Pay

If a non-exempt employee works 39.5 hours in a week, in addition to 8 hours of Holiday pay, should the 7.5hrs be paid as straight time?

The federal Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector and in Federal, State, and local governments.

The FLSA requires non-exempt employees to be paid for any time they’re suffered or permitted to work. Furthermore, non-exempt employees must receive overtime pay of at least one and one half times an employee’s regular rate of pay for any hours worked over 40 in a given workweek.

Since an employee who has a holiday off but receives holiday pay is not actually working, the time is not counted towards the total hours worked for the workweek for the purpose of calculating overtime.

So, if a non-exempt employee actually works 39.5 hours and is due 8 hours of holiday pay then no overtime is due. Though the total hours for the workweek are 47.5, 7.5 hours were not actually worked. Thus, they’re not counted towards the total number of hours worked for the purposed of calculating overtime.

Let’s say the employee actually worked 42 hours and received 8 hours of holiday pay totaling 50 hours for the workweek. Then, only two hours must be paid at the overtime rate since 8 of the hours were not actually worked.


This entry was posted on Thursday, August 11th, 2016 at 12:01 pm and is filed under
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4 Responses to “Non-Exempt Holiday and Overtime Pay”

  1. Heidi Says:

    Can you give a suggestion on how to pay a salaried non-exempt worker under these circumstances: in a week with a holiday they have to work at an evening meeting. This means there are 8 hours of holiday time (not worked) and 35 hours of worked time. Because they’re salaried, they receive the same amount of pay each month…Do I just need to find a way to fool our payroll system into paying for three hours additional or give 1:1 comp time?

  2. hrlady Says:

    Hi Heidi, Yes, you have to figure out a way to pay the employee the additional time. Remember, the employee must be treated as a non-exempt and be paid for all hours worked. Comp time is not permitted in lieu of pay for hours worked for non-exempt employees in the private sector. HTH!

  3. Heidi Says:

    How about for non-union local government employees?

  4. hrlady Says:

    Hi again,
    The FLSA permits employees of State or local government agencies to receive comp time, at a rate of not less than one and one-half hours for each overtime hour worked, instead of cash overtime pay. Just to be clear the comp time is for overtime hours only. Any regular hours must be paid as cash. In your case, the employee isn’t due overtime wages since only 35 hours were actually worked and 8 hours were holiday pay. So, you still need to figure out a way to pay them for the extra hours.

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