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Holiday pay is a fringe benefit that most companies give their employees. In addition to the vacation pay, holiday pay is given to the employees as a bonus. It is possible that holiday pay is not given at times, due to which employees may be unhappy. They may believe that the employer cheated them and this raises questions about their rights, holiday pay laws and holiday pay entitlement. Below are a few questions that have been answered regarding holiday pay: Q. If a holiday falls on a weekend, as per law can an employer deny holiday pay to the employees?
Holiday pay is not a payment that is governed by law and employers are not needed to pay this. If a holiday falls outside of the working hours (weekends), majority of the companies do not give holiday payment. However, Federal and State employees are eligible for paid vacation. Q. If an employee works for only 35 hours a week, is it required that companies pay vacation and holiday pay?
As per law, companies do not need to give vacation or holiday pay (this includes employees who work less than 40 hours). The vacation or holiday pay are fringe benefits that are voluntary in nature. Therefore, it is up to the companies to pay it or not. However, if there is a company policy in relation to the holiday or vacation pay; the companies would need to notify the employees before withdrawing the benefit. Q. Is it legal for a company to stop paying holiday pay and paid time off hours to full time hourly employees?
Vacation pay, holiday pay and PTO (paid time off) are fringe benefits that are not necessary by law to be paid by the companies. Therefore, if companies were already giving this benefit; they would need to notify the employees that the benefit is being withdrawn before they stop paying it. Q. If a part time employee works on a holiday; is it required that the employer pay time and a half for the holiday hours worked?
Most of the companies do not give fringe benefits like holiday pay to part time employees. Employees are eligible for hours worked and any overtime. Overtime pay is generally one and a half time of the hourly pay. If other part time employees are being given time and a half for holiday hours; then this employee may also request the HR to extend this benefit to him/her and may also contact the local labor board. Q. If an employee did not turn up to work, due to sickness, after a holiday; is it required that the company give sick pay instead of holiday pay?
It is the general norm for an employee to turn up to work before and after a holiday so that the employee is eligible for the holiday pay. This is not a rule and is only a norm. Therefore, one should refer to the company policy with respect to sick leave on a Monday or a Friday or combined with a holiday. Whether an employee is a contract labor, hourly wage earner or a salaried employee will also have an impact. If the company policy specifically states that an employee is not eligible for holiday pay due to sickness on the following working day; then the company may hold the holiday pay. On the contrary, if there is no mention of this in the company policy; one may contact the State’s Department of Labor if they wish to and file a complaint with the Wage and Hour Commission. As a general rule, a company should pay both holiday and sick pay if there is a company policy to pay it if those are on different days. Work related issues need to be handled delicately and one needs to be aware of one’s rights and responsibilities. If one has any doubt on how to handle a holiday pay issue; it is best to consult an employment lawyer who would be able to guide.
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