Holiday Pay for Nonexempt Employees

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Question

Can we require that nonexempt employees work on holidays? Some of our employees said that they should not be required to work on holidays and that, if they do, we owe them extra pay. Is any of this true? These are nonexempt employees in California.

Answer

On the federal level, the Fair Labor Standards Act does not require payment for time not worked, such as holidays (federal or otherwise). Similarly, according to the California Labor Commissioner, California law does not require that an employer provide its employees with paid holidays, close its business on any holiday, or give employees the day off for any particular holiday. Additionally, there is nothing in California law that mandates an employer to pay an employee a special premium for work performed on a holiday other than the overtime premium required (if overtime is worked).

Of course, employers should check their applicable state/local laws, as requirements may vary depending on location. When federal and state standards are different, the rules that provide the most protection to employees will apply.

That said, even if not required, providing employees with holidays off (or paying employees a special premium if they work on holidays) may help increase employee morale and make employees feel valued by the organization. Providing this time off may also help decrease the negative effects that can be caused by working too much, such as employee burnout, dissatisfaction, and turnover. Employers should take such considerations into account when deciding whether to require employees to work on holidays (and how much to pay them if they do).