Q. Can our company freely change its paid-holiday policy? Are we bound by certain federal or state laws on holiday pay, for instance? —D.C., Oklahoma
A. Yes, you can change your paid-holiday policy. No federal or state laws require you to offer paid holidays. So you're not obligated to provide paid holidays unless it's stipulated in an employment contract, collective-bargaining agreement or employee handbook. If you plan to change the holiday policy in your handbook, circulate the new policy well ahead of the change.
Finally, remember that, contrary to what some people think, federal law doesn't require employers to pay time-and-a-half for work performed on holidays. That said, you'll have a hard time remaining competitive without offering at least some paid holidays.