Q. Our company policy says employees who work on holidays are paid time-and-a-half. If an
A.You may pay additional compensation for hours worked beyond their standard workweek without affecting the employees' exempt status under the federal Fair Labor Standards Act. So, you can pay more for holiday work. The extra pay doesn't have to be time-and-a-half. It can be straight time, half time or a flat sum.
Keep in mind, however, that in borderline cases the U.S. Labor Department may view extra compensation as a factor in deciding whether a worker is truly exempt. Paying the worker exactly as you do a nonexempt employee, on an hour-for-hour basis, weighs against any exempt status.