Basics on Holiday Pay

The Holidays have been drawing near and it is the most wonderful time among workers not only because they get to spend quality time together with friends and family, but also because they may expect to receive a bonus payment.  Should a company provide additional payment to its employees simply because they took time off as they celebrate holidays?  Here are some valuable information about office management during these types of days.

Holiday time off – There is nothing within the United States Federal law that requires employers to provide time offs to their workers, whether paid or otherwise, during nationally-recognized holidays.  However, the management may allow holiday time offs according to their discretion.

Observance of religious holidays – Several faiths require their members to observe its religious holidays, which means they may not show up at work.  In this case, an employer is obligated to provide reasonable accommodation towards their employees, either through unpaid time off or fewer work hours.  However, the company has the right to refuse such request if it would result in undue hardship for its business.  Employees are required to inform in advance their upper management about their intention to take a religious time off.

Whether holiday time off should be paid – Providing a paid or unpaid holiday time off depends on the type of employee you are working with.  Hourly employees are unusually exempted from holiday pay, while salaried workers who do not receive overtime pay are given a paid day off equivalent to their full weekly salary.

Is paid time off considered overtime? – The answer is no.  Paid holidays should not be counted as the number of hours that determine whether an employer is entitled to overtime compensation.  In order to become eligible for compensation, an employee must actually work for 40 hours in a week.  However, paid time off is not considered the time you spend working.

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