Time Off and Pay Requirements on National Holidays
As the holidays approach, ten national holidays are authorized by federal law. A private company is not required by law to observe national holidays by providing the day off to employees. There are several matters of law to keep in mind, however:
- The Fair Labor Standards Act (FLSA) does not require companies to pay non-exempt (hourly) employees for time off on national holidays, but companies may do so. Exempt (salaried) employees who are given the day off, however, must be paid their full weekly salary (assuming they worked or took paid leave during the week in which the holiday falls).
- One of the national holidays — Christmas Day — is a religious holiday, but there are many other religious holidays and observances during the year that are not nationally recognized. Employers are obligated to provide reasonable accommodation for the religious practices of employees. A reasonable accommodation might be allowing an employee to take unpaid leave, personal leave, or paid vacation time for a religious observance that falls on a regular workday. Another option is to offer a “paid floating holiday” so that employees can choose a religious holiday to observe by taking paid time off.
- Paid or unpaid time off may be specified in government contracts covered by the McNamara-O’Hara Service Contract Act or the Davis-Bacon and Related Acts, or by union contracts.
- For federal government workers, the national holidays are called “federal holidays” and all ten holidays are paid days off.
For reference regarding the FLSA, click the link below.
