Categorized | Economy

Closing for Holidays – Must You Pay Employees?

You decide to close your business on Labor Day. Or any holiday. Do you have to pay employees for that day? The answer is, no. No federal or state law requires you to pay for holiday time off.   But…

You do have to pay employees for holidays if:

  • They are salaried. You aren’t really paying them for the holiday, because you pay them monthly. But you can’t take away pay from these employees if you are closed on a holiday, if they worked during the week of the holiday.
  • You put paid holidays in writing. If you have an employee handbook or policy manual that lists paid holidays, don’t try to get out of paying for holidays.
  • Your company has a government contract which requires holidays be paid.
  • Your employees are working under a labor contract that specifies paid time off for holidays.

You can pay some employees for holidays and not others, depending on their status. For example, you can state in your employee handbook that full-time employees receive holiday pay but part-time or temporary employees do not. Or you can pay part-time employees a pro-rated amount for holidays.

Most employers pay for holiday time off for at least some employees; it’s a good business practice not to do less than what other employers are doing.

If your business needs employees to work on a holiday, you must pay them. There is no specific federal or state law that requires you to pay extra for holiday work, but most employers pay extra, some at “double time.”

More on holiday pay practices from About’s Human Resources site.

1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

More on holiday pay practices from About's Human Resources site.

Loading ... Loading ...

See Related News:

Comments are closed.

See Fresh News

From Around The World


News By Month

News By Date

October 2017
« Sep