WORKPLACE LAW -
Holiday Pay & Policies

Question:

I am a little confused this year because Christmas and January 1st both fall on a Saturday. The office where I work is not open on weekends, and my boss has not decided if our office is going to close on another day because the holidays fall on our day off, and the business is not doing so well. Doesn’t my boss have to give us a paid day off for these holidays?

Answer:

Holiday issues can cause confusion for employees and employers alike. The first rule to remember is that private employers normally do not have to provide any paid holidays off, or pay a higher rate of pay to employees who work on a holiday. California law does not require that an employer provide its employees with paid holidays, that it close its business on any holiday, or that employees be given the day off for any particular holiday. An employer can choose to close its business on holidays and give its employees time off from work with pay. This is normally done pursuant to a policy or practice adopted by the employer, under the terms of a collective bargaining agreement, or based on the terms of an employment agreement between the employer and employee. Additionally, there is nothing in the law that requires an employer to pay an employee a special premium for work performed on a holiday, Saturday, or Sunday, other than the overtime premium required for work performed in excess of eight hours in a workday or 40 hours in a workweek.

Even though the law does not require paid holidays, most employers provide paid holidays off. A recent employer survey reveals that 97% of employers provide paid holidays to their employees, and 79% offer holiday parties.

Many employers have a paid holiday policy in their employee handbook, or they distribute a list of paid holidays each year to let their employees know which holidays they will observe. The best practice is to have a written policy about holiday pay. The policy should define the paid holidays, and explain what happens when a holiday falls on a day that is the employee’s usual day off. If the employer normally gives that holiday as a paid day, and pays other employees for that holiday, then the employer will normally pay holiday pay to the employee who has a scheduled day off on the holiday. But, some employers provide paid holidays only when the holiday falls on a regularly scheduled workday and only if the employee works on the last scheduled workday before the holiday and first scheduled workday after the holiday, unless absence on those days is approved in advance.

A holiday policy should also explain when employees become eligible for paid holidays. For example, many policies state that non-exempt employees become eligible for paid holidays after completion of their introductory period.

The most commonly granted holidays in California are:

  • New Year’s Day
  • Presidents’ Day
  • Memorial Day
  • Fourth of July
  • Labor Day
  • Thanksgiving Day
  • Friday after Thanksgiving
  • Christmas Day

California Government Code §6700 defines holidays to include these additional days:

  • Every Sunday.
  • The third Monday in January, known as "Dr. Martin Luther King, Jr. Day."
  • February 12th, known as "Lincoln Day."
  • March 31st known as "Cesar Chavez Day."
  • September 9th, known as "Admission Day."
  • The second Monday in October, known as "Columbus Day."
  • November 11th, known as "Veterans Day."

Many government employees get all of these holidays off, and employees who are governed by a collective bargaining agreement may have different paid holidays.

When a holiday falls on a Saturday, as Christmas and New Years Day will this season, the holiday is typically observed on the Friday before the actual holiday. When a holiday falls on a Sunday, it is normally observed on the following Monday.

Another issue may arise when a payday falls on a holiday. When this occurs, most employers will pay employees on the day before the holiday. However, under California law, if the regular payday falls on a holiday, employees can be paid on the next regular business day and the pay will be timely.

In addition to the “traditional” holidays described above, many employers provide “floating” holidays. Floating holidays allow employees a certain number of days to be used throughout the year for holidays of their choice. A recent poll reveals that forty-three percent of organizations offer paid floating holidays.

Employers should clearly define their holiday policies and communicate them to employees so everyone knows their holiday work schedule.
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