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Holiday pay, work and hiring: The key rules you must follow

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in Office Management,Payroll Management

The Fair Labor Standards Act (FLSA) and the IRS can also throw kinks into your holiday plans. Watch out for these lumps of coal.

Four rules on holiday pay

Although paid holidays are customary for many employers, there’s no requirement to pay holiday pay.

  • Rule #1: The FLSA doesn’t mandate that employees be paid for holidays. This gives you a lot of latitude. For example, you can pay nonexempts for eight holiday hours, even if they customarily work 10-hour days.
  • Rule #2: If you do pay for holidays, and employees work overtime that week, don’t factor the holiday pay into their regular rates as you figure their overtime rates.

Holiday pay for exempt employees is trickier, since exempts generally must be paid their full salary in any week they do any work.

  • Rule #3: If you close for a holiday, and you have a bona fide benefits plan, exempts can be required to take those days off, provided they continue to receive their guarante...(register to read more)

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