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Holiday Pay Rules for Companies Open 7 Days a Week

If a holiday falls on a Sunday and your company is open 7 days per week, do you have to pay employees scheduled to work on Sunday holiday pay or normal pay since he/she will have the following Monday off?

The federal Fair Labor Standards Act (FLSA) establishes compensation requirements for employers. The FLSA doesn’t require pay for time not worked (i.e. paid time off for a holiday) nor does it require employers to pay a premium wage to employees who work on a holiday regardless of whether an employer is open 7 days a week. Such arrangements are considered a matter of agreement between employer and employee. It’s worth mentioning that government contractors may be subject to regulations under other federal laws.

Of course, paid time off for nationally recognized holidays and premium pay for time worked on such holidays are common benefits offered to employees.

If your policy entitles employees to holiday/premium pay for time worked on designated holidays, then you must abide by your own established terms regardless if the employee has the following day off in recognition of the holiday. It really depends on how the policy is worded and how the policy has been interpreted/applied in the past.

This entry was posted on Thursday, December 1st, 2016 at 1:47 pm and is filed under
Benefits, Compensation.
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