Denying Time Off, No Gossip, and Holiday Pay for Leave Employees

Welcome back to another edition of HR Basecamp Roundup! This week, we tackle some interesting and common issues that come up in workplaces more often than you think. If you haven’t joined our HR Basecamp Facebook group yet, be sure to join so you can participate in these discussions in real time! 

FREE Resources in this Roundup:

• Taking Control of Your Time Off Policies

• Requirements for Constant Positivity in Your Business

• The NLRB Hates Your No Gossiping Policy

• Holiday Party Best Practices

1. How do I deny a time off request?

The Question:

One of my employees asked for a week off at the end of May. That’s typically a busy time for us, and this employee has already taken several sick days this year. I’m leaning toward denying the request—what’s the best way to handle that?

The Legal Side:

In most cases, employers have the discretion to approve or deny time off requests—unless protected leave (like mandatory state sick leave) is involved. Even then, you still retain some control, as long as you’re following the law.

This becomes a much easier decision if your team has access to:

• A clear, customized policy outlining how much time off is available
• Whether it’s paid or unpaid
• And how it’s tracked

With CEDR’s recommended setup, employees and managers both see time used and remaining via our software. Everyone operates from the same playbook.

That said, there’s one legal wrinkle: if any of the prior absences were protected under a state sick leave law, and now you’re denying a vacation request, be cautious. Denying the new request for what looks like a punishment for prior absences could be seen as retaliatory.

To protect yourself:

• Don’t cite their prior sick time as the reason
• Stick to neutral, business-based reasons, like staffing or workload
• Apply the same standard to similar requests to stay consistent and avoid claims of favoritism

The Human Side: This is where a well-written policy integrated into your PTO tracking technology within your timekeeping software shines! Your policy should already include, among other things:

• Time off is subject to manager approval, even if it’s been accrued
• High-demand times may result in denied request

When denying a request, clarity and kindness go a long way. Try something like:

“I appreciate you making the request early. Unfortunately, that’s one of our busiest weeks, and we need all hands on deck. I have to be consistent with everyone and can’t approve time off that week.”

You can also show goodwill by helping them find a better time:

“Let’s look at the calendar—maybe there’s a week in June that works better for both of us.”

The goal is to maintain fairness while showing you value the employee’s contributions and personal time.

Extra Credit Reading: Taking Control of Your Time Off Policies

2. Can I enforce a “no gossip” policy?

Question: Team morale in my office, unfortunately, took a hit due to the constant gossiping and negativity of a long-term employee. They’ve since quit, and I want to prevent this issue from happening again by including a policy in my handbook that makes it clear that gossiping is not allowed and employees should come to work with a positive attitude. How should I draft this?

The legal side: We get why you’d want to enforce this policy, but legally, you shouldn’t. The National Labor Relations Act (NLRA) protects employees’ rights to talk about their wages, working conditions, and frustrations with management—even if those conversations sound negative or occur on or off the clock. Broad “no gossip” rules or requirements for constant positivity can easily cross the line into unlawful territory.

In fact, the National Labor Relations Board (NLRB) has repeatedly said that policies restricting negative talk or gossip could chill protected activity, even if that’s not what you intended. So while it’s tempting to ban “toxic talk,” doing so can put your business at legal risk because the people who enforce the NLRA, while taking the most minor infraction, interpret it in ways that you would never imagine, and then use it against you.

The human side: The good news is that you can still set expectations for respectful and professional behavior—you just have to go about it the right way. Instead of writing a policy that bans gossip or requires cheerfulness, use more specific policies that cover inappropriate conduct, disruptive behavior, insubordination and unprofessional communication. These kinds of policies allow you to address real workplace problems without running afoul of the law.

Although it can be awkward to address, don’t wait for issues to pile up. If someone is bringing the mood down or stirring up conflict, address it early. That helps protect your culture and sends a message that professionalism matters.

As for now, it’s a great time to regroup. Let your team know you appreciate their resilience and teamwork through a tough patch. One bad apple can sour the barrel, but a strong team culture will get you through it—and then some.

Extra Credit Reading: The NLRB Hates Your No Gossiping Policy. Here’s Why.

3. Do employees on leave get holiday pay?

Question: I have an employee who will be on leave during Memorial Day and Fourth of July. Am I required to provide holiday pay for federally recognized holidays even though the employee isn’t working?

The legal side: For private employers, holiday pay isn’t a legal requirement, even for federal holidays. A few states impose holiday pay rules in specific industries, but generally, it’s entirely up to you whether you close for a holiday and whether your employees get paid for it. So, the real answer lives in your policies, not the law. This is exactly the kind of situation where a well-written employee handbook earns its keep—it should spell out who gets paid for holidays and under what circumstances, including when someone is on leave.

The human side: Holiday pay can be a touchy subject, especially if expectations haven’t been clearly set. If your employee reads the handbook and sees that holiday pay isn’t provided during a leave of absence, they might be slightly disappointed, but at least they’re informed. On the other hand, if they go on leave thinking they’ll be paid for holidays and find out otherwise after the fact, that’s a recipe for frustration and damaged trust. To avoid this, ensure your Time Off and Leave of Absence sections clearly state whether benefits like holiday pay continue during leave. It’s not just about fairness, it’s about consistency and transparency.

For more on holiday pay best practices, check out episode 301 of What the Hell Just Happened?!