518-373-4111
Q: Am I required to pay overtime to employees who work on holidays?
A: Whether you pay extra for work done on holidays is up to you. There are no federal holiday pay laws that requires an employer to pay extra for work on holidays. However, some states, such as Massachusetts, require work for certain employers on holidays to be voluntary and paid at time and a half. New York does not have any exception to the Federal law.
As for overtime, if an employee has already worked 40 hours during that workweek, and then works on a holiday, the holiday should be paid at the applicable overtime rate. However, if there is an individual employment agreement or collective bargaining agreement that calls for increased or additional pay for holiday work, that agreement is enforceable under the labor law.
While usually not required by law, offering additional pay for work on holidays can be a nice financial incentive and reward. A few suggestions for doing so:
- Pay time and a half or double time for all hours worked on the holiday;
- Add an extra eight hours to the checks of employees who worked; or
- Place eight hours into a “floating holiday” bank for employees who worked so they can take time off at a later date.
If you decide to provide additional pay for holidays, be sure to do so in a non-discriminatory and consistent manner for all employees.
For more information and to learn how GTM provides HR guidance to businesses of all sizes, contact us at (518) 373-4111.
