As we approach the holidays, many of you may be finding yourselves reviewing your holiday policy and wondering just which holidays you’re supposed to pay for. You’re not alone. This is an incredibly common question that we get in the Solution Center. And while it may seem confusing, the truth is it actually just comes down to which policies you set in place.
One of the biggest misconceptions about holiday pay is that if it’s a federally recognized holiday, you’re required to pay for it. While there’s a couple of states that have holiday pay laws, for the most part, private employers are excluded from these laws. This means that if you’re a private business, there is no state or federal law that says that you’re required to close for a holiday, pay for a holiday, or provide extra pay for employees who do work a holiday.
It also means that these pay policies come down to what you decide and what works best for your business. And there is no right policy or a blanket policy that will work for everyone. The key is that you pick a policy, apply it consistently to all of your employees, and track time correctly for exempt versus nonexempt employees. If you’re a CEDR member, this policy was customized during your handbook review and you can find all the time off and pay information in your handbook.
If you have any questions about your specific policy or holiday pay in general. Reach out to the Solution Center. Happy holidays.
