This week’s question comes from Felix, a payroll manager: I have an employee who worked 34 hours last week. Since we pay eight hours for Independence Day even though we don’t work, do I need to pay two hours of overtime? Answer: Nothing in the Fair Labor Standards Act (FLSA) requires payment for time not worked. If an employer voluntarily pays for time not worked such as holidays, those hours need not be counted toward the FLSA overtime requirement for hours worked in excess of 40. Note that other federal or state laws or contractual agreements may require payment of holiday hours. Also, if an employee actually works on a holiday, those hours would be counted toward the overtime requirement. Consult your attorney if you have further questions.