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Holiday Pay

We have employees who regularly work on Sunday. As our company also declared Monday a company holiday do employees that regularly work on Sunday get paid holiday time for both Sunday and Monday?

There is no federal law that regulates holiday pay private employers. Thus, whether employees should receive holiday time for both days is really up to you to determine.

The company was closed on both Sunday (the day of the holiday) and Monday (in recognition of the holiday). Since some employees had no choice but to not work either day then it would be customary to give them holiday time for both days.

Remember, under the federal Fair Labor Standards Act (FLSA), non-exempt employees are not required to be paid for time not actually worked; whereas, exempt employees must be paid their full predetermined salary for any week during which work is performed.

There is no legal requirement for you to give holiday pay for Monday to non-exempt employees who already had off on Sunday. But, a deduction from exempt employees’ salaries for a day when the business is closed due to a holiday is not permitted.

Since the holiday has already passed it would just be fair to provide holiday pay for both days. In the future, you may consider adopting a policy that provides only one day off for the holiday and require the use of PTO for any other business closures. Such a policy is not always well accepted so make sure you consider your employees and business needs before implementing it.


This entry was posted on Tuesday, January 10th, 2017 at 1:22 pm and is filed under
Benefits, Compensation.
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