Employee Pay During the Holidays

Beth Dean 12.10.14
39 Minimalist Laptop Desk

The holidays can bring up confusing questions on how to pay your employees, especially since there are different rules for employees who are exempt or not exempt from overtime pay under the Federal Labor Standards Act (FLSA) regulations. Here is a quick guide on how to pay each group during the holidays.

Holiday Pay for Nonexempt Employees
Nonexempt employees are those who must be paid an overtime rate of 1.5 times their regular rates of pay when working more than 40 hours in a week. As a reminder, the overtime pay must be paid on the next regularly scheduled paycheck and cannot be delayed or exchanged for paid time off to be used at a later date.

If your business is closed on a holiday, the FLSA does not require payment to your nonexempt employees for time not worked. However, if your company does pay holiday pay as a general practice, you are bound to company policy.

There is no FLSA requirement to pay a shift differential or premium for working on holidays, but again, if your company practice is to do so, you are bound to that company policy and must apply it equally and nondiscriminatorily among all employees.

Holiday Pay for Exempt Employees
Exempt employees do not have to be paid overtime pay. Their professions are ones that require independent, original, or advanced thought that is of significance to the company’s operations and therefore may not be completely encompassed in a 40-hour workweek. Please refer to the FLSAs various Fact Sheets or contact your HR Consultant at Nextep for more information on overtime exemptions.

If your company is closed on a holiday during a day of the week that the employee is regularly scheduled to work, the exempt employee must be paid for that time. Under the FLSA, an exempt employee’s pay cannot be docked for being absent because of an operational requirement, such as the company closing shop for the day.

If the company is closed for the entire workweek, the employee’s pay may be deducted for that week, but only if no work whatsoever, including checking company emails on a mobile device, was performed during that entire week.

For human resource guidance in determining how to properly pay your employees during the holidays, please contact Nextep’s HR Department.

Also on Nextep

Get ready for changes! As of July 1, 2024, a new wave of state laws are set to go into effect across the country. These updates impact everything from worker protections and minimum wage to important regulations for businesses. Whether you’re an employer, employee, or simply a resident staying informed, this article will guide you […]
Read more
Exemptions from Overtime Pay: A Guide for Employers The Department of Labor (DOL) has announced significant changes to overtime regulations for salaried employees exempt from overtime pay. Here’s a breakdown of what you need to know and how to prepare: Key Changes: Increased Salary Thresholds: Currently, salaried workers earning less than $35,568 annually are exempt […]
Read more
A Game Changer for Employers The Federal Trade Commission (FTC) recently made a significant change regarding employers’ use of non-compete agreements. The final rule issued by the FTC prohibits the use of non-compete agreements for many workers, which is a departure from the longstanding practices of many companies. This decision is already facing legal challenges, […]
Read more
Key Points for Employers About the Latest Harassment Guidance The Equal Employment Opportunity Commission (EEOC) has recently updated its guidelines on workplace harassment enforcement. This was the EEOC’s first update in more than 30 years. The updates are intended to clarify and modernize existing standards. These changes take into account recent legal developments and the […]
Read more
What You Need to Know About PWFA The Equal Employment Opportunity Commission (EEOC) recently released the final regulations for the Pregnant Workers Fairness Act (PWFA). These regulations, taking effect on June 18, 2024, update the PWFA rules put into place in 2023 and significantly impact how employers with at least 15 employees accommodate workers with […]
Read more
When Addiction Strikes at Work The issue of addiction in the workplace presents a complex challenge for both employers and employees. The Americans with Disabilities Act (ADA) protects qualified individuals with disabilities, but active addiction itself isn’t necessarily covered. Here’s a breakdown of rights and responsibilities: Employee Rights Under the ADA Generally Not Covered: The […]
Read more
What is Considered “Reasonable”? What happens when an employee with a disability needs an adjustment to perform their job effectively? This is where reasonable accommodations come in. However, the question often arises: what exactly is considered “reasonable” under the Americans with Disabilities Act (ADA)? Striking a Balance The key is to find a balance between […]
Read more
It’s time for an ADA refresher! The Americans with Disabilities Act (ADA) is a cornerstone of civil rights legislation, ensuring equal employment opportunities for people with disabilities. As an employer, understanding your obligations under the ADA is crucial. Here’s a breakdown of the key points: What qualifies as a disability? The ADA defines a person […]
Read more
Forced to listen? Imagine this: Your boss calls a mandatory meeting. Instead of discussing work tasks, they spend the time telling you why you should support a political candidate or a particular religious view. That’s a captive audience meeting, and it’s becoming a hot-button issue. A captive audience meeting is a mandatory work meeting where […]
Read more
At some point during the election cycle, you may encounter employees wanting to display political propaganda at work.  This can range from flags and posters to social media posts and even conversations, and it can create a tense and uncomfortable atmosphere for colleagues with differing viewpoints. So, how do you maintain a respectful workplace while […]
Read more
An Employer’s Guide to Politics in the Workplace The current political climate can be divisive, and tension can easily spill over into the workplace. When employees hold vastly different political views, it can lead to arguments, hurt feelings, and a fractured work environment. So, what’s an employer’s responsibility when it comes to politics in the […]
Read more
An OSHA inspection can feel daunting, but understanding the process can empower you to get through it smoothly. This guide will equip you with the knowledge you need to ensure a collaborative and efficient experience for everyone involved. When might you encounter an OSHA inspector?  Imagine a concerned employee reports a potential safety hazard. Or […]
Read more

Download Our App


Download the Nextep Mobile App in Apple iOS or Google Play