This week’s question comes from Ryan, a small-business owner. We’re going to be closed next Monday for Labor Day. We have some full-time employees and some part-time employees. Do I have to pay employees for holidays? Answer: There is no requirement in the Fair Labor Standards Act (FLSA) for employers to pay employees for holidays not worked or to pay them a higher rate if they do work. Most employers do pay holiday pay to their full-time employees. Among part-time employees, some employers pay a full day’s pay, some pay according to the employee’s work schedule or other allocation method, and some do not pay part-time employees for holidays. Most public sector and union employees have holiday pay negotiated into their contracts.
State laws may provide rules that are more beneficial to the employee and must be followed. Contact Vision Payroll if you have further questions about holiday pay.