Explaining holiday pay legislation
As the holiday season approaches, employers should ensure they're familiar with the paid vacation provisions of federal time and attendance legislation.
According to the U.S. Department of Labor's website, "The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays (federal or otherwise)."
However, companies that close on holidays including Thanksgiving, Christmas and New Year's Day may elect to pay employees for that time, typically in accordance with agreements made between employers and workers or workers' representatives, such as unions.
Sometimes, holiday pay and vacation time are required - for example, in the case of government contracts that fit the labor standards of the McNamara-O'Hara Service Contract Act.
Business Management Daily notes that if nonexempt workers receive holiday pay during a week in which they work more than 40 hours, the holiday pay should not be factored into regular rate calculations used to determine overtime employee attendance compensation. The news source explains that "holiday pay is idle time pay, which is excluded from the regular rate calculation."
According to the U.S. Department of Labor's website, "The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays (federal or otherwise)."
However, companies that close on holidays including Thanksgiving, Christmas and New Year's Day may elect to pay employees for that time, typically in accordance with agreements made between employers and workers or workers' representatives, such as unions.
Sometimes, holiday pay and vacation time are required - for example, in the case of government contracts that fit the labor standards of the McNamara-O'Hara Service Contract Act.
Business Management Daily notes that if nonexempt workers receive holiday pay during a week in which they work more than 40 hours, the holiday pay should not be factored into regular rate calculations used to determine overtime employee attendance compensation. The news source explains that "holiday pay is idle time pay, which is excluded from the regular rate calculation."
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