Magazine article HRMagazine

If Employees Work on a Holiday, Must the Company Give Them Another Day Off?

Magazine article HRMagazine

If Employees Work on a Holiday, Must the Company Give Them Another Day Off?

Article excerpt

The federal Fair Labor Standards Act doesn't require employers to provide additional pay or another day off to employees who work on a holiday.

However, some federal contrac- tors may be required to do so under the McNamara-O'Hara Service Contract Act and the Davis-Bacon Act and related acts, which apply to construction con- tractors. Some employers also may be obligated to provide holiday benefits under state law or collective bargaining agreements. If not, holiday benefits may be provided at the employer's discretion.

To encourage employees to work on a holiday, many employers pay nonexempt employees one and a half times their regu- lar rate of pay for holiday hours worked. Exempt employees typically have a guar- anteed salary regardless of the number of days or hours worked. However, an employer may provide them with addi- tional compensation for holiday work without jeopardizing their exempt status.

If an employer elects to provide employees with another paid day off for working on a holiday, it is up to the employer to decide whether the day must be taken during the same workweek, pay period, month or quarter. Consider staffing and administrative issues when making that decision. …

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