How overtime applies when holidays are involved
The Fair Labor Standards Act doesn't require any sort of compensation when time off is taken for any reason, be it sick days, vacation or holidays.
If an employer provides compensation on a holiday when the business is closed, the payment doesn't count toward overtime pay. However, if a company has employees work during non-standard times and days to make up for a scheduled holiday, the employer needs to keep track of time and attendance accounting to make sure overtime isn't due.
The example of a company giving some employees the Thanksgiving holiday off with pay, but those workers then having to put in a full shift the following Saturday to keep up with demand, was recently given by local news source AZ Central.
The major concern for employers is when their weekly accounting period starts. Although commonly referred to as a workweek, the weekly period can start on any day and at any time, so long as it lasts for 168 hours, doesn't overlap with or miss some hours of the week and employees are notified if and when the timing of the period changes, according to the FLSA.
If the employer's workweek is structured so that the Saturday shift pushes workers' total hours above 40, then overtime is due. Time and attendance software can help companies make the hour-tracking process more manageable.
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