My office is closed on Thanksgiving Day and Christmas Day, but I don’t provide holiday pay. One of my employees approached me last week and said I’m required to pay since they are federally recognized holidays. Is this true?
The legal side of things: Every time a holiday comes around, employers frantically reach out to us to confirm that they aren’t breaking federal law by not providing holiday pay. Rest easy - with very few exceptions, private employers are not legally required to provide holiday pay. In fact, there’s no state or federal law that requires private employers to do anything for the holidays.
This means that holiday closures and pay are entirely up to you and what your handbook says. This is a great example of why it’s so important that your employees read and sign the handbook. Your handbook should clearly outline your holiday policy, so employees know what to expect from the get-go.
Note that exempt salaried employees still need to receive their regular salaries when you’re closed for a holiday, even if you don’t provide “holiday pay.”
The human side of things:It’s not uncommon for employees to claim holiday pay is required for federal holidays. As we mentioned above, having a concise policy in your handbook makes answering their questions easy because all you have to do is refer to what your handbook says about holiday pay.
That said, there’s more you can do at the beginning of the year to help reduce the amount of questions you get once the holiday season rolls around. Get ahead of things by making decisions regarding your holiday schedule before the start of the calendar year and share this information with your staff. Here at CEDR, our HR team sends a holiday calendar to all employees in December that lists each holiday for the following year and when it will be observed. The whole team then knows what to expect and can plan their holidays accordingly.
Here’s what to do:
1. Review your Employee Handbook to confirm which holidays you’ve identified as being typically observed by your business.
2. Look at the actual calendar to see where each of those holidays falls during your work week.
3. Decide which days you will pay or close for each holiday, if any: You can give more time off than usual: This year, Christmas falls on a Monday, but if it happened to fall on a Tuesday, you could choose to close on Monday and Tuesday in order to have a long weekend without a split.You can also forgo a holiday closure if you wish: If you normally close for New Year’s Day but it happens to fall on a weekend, you might choose not to close at all for that holiday.
4. Make a list of the holiday closure schedule for the year, and use the HR Vault to share the list with your team
5. Make sure your holidays are also blocked on your team/patient calendar.
6. Provide your list of holidays to your timekeeping administrator so that the holiday schedule is set up for the entire year ahead of time for payroll purposes.
Want to learn more? Check out Episode 301 of “What the Hell Just Happened?!” You can listen here or wherever you stream your favorite podcasts.
I just started my business last year and am so excited because I have the budget to throw a staff holiday party this year. I’d like to do something nice for the team for working so hard, and I know they would enjoy an evening of good food and drinks. Are there any issues with paying for alcohol at a work event?
The legal side of things: There are always risks when alcohol is involved. Impaired driving is the most obvious, and liability for injuries is highly dependent upon your state and the facts of the situation.
Alcohol consumption can also lead to people doing and saying things that they likely know better about when they’re sober. It may be a party, but it’s still a work function, so you have a responsibility to watch for inappropriate behavior and address anything that happens so it doesn’t spill over into your workplace and create an uncomfortable working environment or even a harassment claim.
We regularly get requests for some type of liability waiver to remove all of these risks. Unfortunately, a waiver isn’t going to remove the inherent risks of having a party involving alcohol. Employees cannot sign away their legally protected rights or relieve their employer of legal obligations.
You can follow the guidance below to limit your exposure to any issues.
The human side of things: Serving alcohol at holiday parties does come with its own set of HR risks, but that doesn’t mean you need to take it off the table completely! You just need to go through the right steps to lower these risks and limit your liability in case something goes wrong.
For starters, pick the right location. We recommend holding the party off company property, and not hosting at someone’s home. Instead, hold it somewhere that isn’t tied to work, like a room at a restaurant or a private event space. Ideally, your venue will come with its own bartender, so there’s someone in charge of portion control. You can also limit consumption by giving drink tickets and/or limiting drink options.
While it may be an unpopular opinion, we recommend having the party on a weeknight. This can help reduce the risk of overdrinking since employees know they still have to show up to work the next day.
Last but certainly not least, make safety a priority. The last thing you want is an employee getting a DUI or hurting someone driving themselves home. If you’re going to serve alcohol, make sure there’s a way for employees to get home safely. An easy solution is a company Uber or Lyft account that employees can use to call their own ride.
Extra credit listening: “What the Hell Just Happened?!” - Episode 207: Holiday Party Guidance
Extra credit reading: Office Holiday Party Guidance
We love the holidays and are always looking for ways to have fun and promote the practice on social media. One of the things we've been doing is taking goofy pictures for each holiday. We dress up for Halloween, bring our dogs in for the Christmas holiday photo, and Valentine's Day is a hoot around here. This year, I am getting some politically correct pushback, and I want to know what we can require people to participate in when it is for the good of the practice and promoting our business. Are there any laws against wanting everyone to participate and holding them accountable?
The legal side of things: As an employer, you are permitted to ask your staff to dress up for a holiday photo. Keep in mind that some employees may not want to participate based on legally protected reasons. We used the word “ask” and not “require” for precisely that reason.
For example, an employee may not want to dress up based on a religious belief, and mandating costumes could infringe on their right to religious freedom, or in some instances, they may have other reasons that are protected under anti-discrimination laws.
Now for the human approach: As a company leader, it's your job to make sure that your holiday activity is culturally inclusive, appropriate for your workplace, and thoughtful towards everyone on your team.
How do you accomplish this? Plan in advance and allow for an employee to say no without making them feel bad about it. And, if you are our member, work with a CEDR advisor if you have any doubts or concerns. We can help give you an objective perspective.
In our scenario – a tribal costume could remind a Native American employee, or any employee, of the history of colonization in America from a perspective where their strong personal beliefs and experiences do not support giving thanks. And while we are talking about perspectives, sometimes, what you call the day can matter. Call it a “Holiday Party'' rather than a “White Christmas Party.” And, we will steer you away from “St. Valentine’s” and towards “Valentine’s Day.” Here is an even broader calendar that considers multiple cultures and religions.
Instead of trying to anticipate and solve every single religious and personal point of view, calling it the Holiday party instead of a Christmas party still accomplishes the same thing. It’s a time for all of us to get together appreciate one another, and give thanks to whomever we choose.
