The time between Thanksgiving and New Year’s is a busy time for many companies. Questions regarding overtime, holiday pay and temporary hires often arise. You don’t have to play Scrooge this holiday season if you know the rules.
Holiday pay rules
Companies that close on Thanksgiving Day, Christmas Day and New Year’s Day may, but aren’t required to, pay employees for that time.
Rule: The Fair Labor Standards Act () doesn’t mandate that employees be paid for holidays. Thus, who normally work 10-hour days can be paid for eight holiday hours.
If you do pay nonexempts holiday pay, and they also work overtime during a holiday week, don’t factor the holiday pay into their regular rate calculation as you figure their overtime rates. Rule: Holiday pay is idle time pay, which is excluded from the regular rate calculation.
What about exempts? If you close for a holiday, and you have a bona fide (register to read more), yo...