Can Employers Withhold Holiday Pay? An Expert's Guide

The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as holidays or vacations (federal or otherwise). These benefits are generally a matter of agreement between the employer and the employee (or the employee's representative). Employees have the right to file a wage claim with the department if there is a dispute with the employer over the amount of wages due. If the employer refuses to pay accrued wages on the regularly established payday, the employee must request payment. If the employee does not receive payment after 6 days, they can file a claim with the department.

Once a complaint is filed, the department will try to resolve the matter with the employer. All businesses that open their doors on state or federal holidays must closely follow vacation pay laws. Specifically, federal law does not require employers to pay their employees additional compensation (that is, overtime pay) for working on holidays. In fact, the Fair Labor Standards Act (FLSA) only requires employers to pay for time worked; employers don't need to pay employees for holidays when employees may not have to work. For example, if an employee has the day off on Christmas Day, which is a federal holiday, the employee has no right to pay that day.

However, with that said, many employers often offer vacations to all employees and pay for that time off. Employers must indicate in the employment contract what vacation employees will have and whether they will be paid for that time off. In addition, employers must indicate whether additional compensation will be provided to those who work during the holidays. An employer doesn't have to pay employees by the hour for time off during a holiday. The employer is only required to pay employees by the hour for the time actually worked.

On the other hand, exempt employees (salaried employees who do not receive overtime), who are given the day off, should receive their full weekly wage if they work any time during the week on which the holiday falls. This requirement for exempt employees did not change under the new federal overtime regulations. As the holiday season approaches, employers may be considering offering employees paid time off during the holidays or additional pay when working during a holiday. Here we answer these and other frequently asked questions about vacation pay. Some employers also offer paid holidays for Martin Luther King, Jr.

Day, President's Day, June 19th, Hispanic Heritage Day and Veterans Day. Make sure you understand the rules that apply to your company and that you clearly communicate and consistently apply your vacation pay policy. This blog does not provide legal, financial, accounting or tax advice. This blog provides practical information on the subject. The content of this blog is as is and offers no guarantees.

ADP does not guarantee or guarantee the accuracy, reliability, and completeness of the content of this blog. When an employer decides to create a benefits policy, they are free to impose whatever conditions they want. Under state labor regulations, laws that include the employment of minors, the minimum wage, working hours and overtime, the payment and collection of wages, and existing laws on wage rates. There is no federal law requiring an employer to grant paid or other time off to employees on nationally recognized holidays. Similarly, many employers celebrate a holiday the previous Friday or the following Monday if a holiday falls on a Saturday or Sunday and the employer is not open to the public on the weekend. However, your employer may allow you to transfer any unused holiday, and many employers have a rule about the amount of vacation that can be transferred each year.

As long as the employer consistently follows its policy, any approach selected by the employer is acceptable. The protections in this law also apply if an employer takes adverse employment action against an employee because that employer believes that the employee has exercised any of their rights. If you haven't complied with your notice because you quit because of the way your employer has treated you, you may have other job applications. Larger employers usually have vacation policies that set out how to apply for vacation and any other vacation rules, or the rules may be set out in your employment contract if you are an employee. Employees have the right to file a wage claim if there is a dispute with the employer over wages due, or if the employer fails to pay earned wages on the regularly scheduled payday. If you are an employed worker (and not a real self-employed person) and your employer dissuades you from taking a vacation by saying that you will not be paid for it, the right to 4 weeks of vacation under European law will be transferred to the following year.

Many employers have a holiday year that runs from January 1 to December 31, but the year can begin on any date your employer chooses. If you leave employment for any reason, you must be paid according to the employer's regular pay schedule. Specifically, federal law does not require employers to pay their employees additional compensation (i).

Cornelius Maxon
Cornelius Maxon

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