Holidays are a wonderful time to celebrate traditions and spend time with loved ones. However, they can also be challenging to navigate as a household employee or homeowner who hires domestic staff. Employees may expect to get off work for government holidays and be compensated for those days. However, employers may need their staff members to work on holidays and offer to pay them more than the standard rate.
This article discusses holiday pay, including its amount, who is entitled to it, and how to create an agreeable holiday pay policy for all parties involved.
What Is Holiday Pay?
Holiday pay is payment received for either working or not working on the day of a holiday. An employee can receive pay for partial time off, additional hourly pay because it’s a holiday, or a holiday bonus from an employer. Contrary to popular belief, U.S. law does not require holiday pay. Employers are not legally required to pay employees extra money or any time off just because it is a holiday.
The Fair Labor Standards Act only regulates overtime pay and minimum wage. However, many employers choose to give their employees paid days off for some or all of the following holidays in the U.S.:
- Martin Luther King Day
- Presidents’ Day
- Memorial Day
- Independence Day (observed)
- Victoria Day (Rhode Island only)
- Labor Day
- Columbus Day/Indigenous Peoples’ Day
- Veterans Day
- Thanksgiving
- Day After Thanksgiving
- Christmas Eve
- Christmas Day
- New Year’s Eve
- New Year’s Day
How Much Is Holiday Pay?
Many employers and employees wonder, “Is holiday pay time and a half?” Time and a half refers to 150% of a person’s regular hourly wages. This is a common agreement among employers and their staff members but is not legally required. Other employers offer two times an employee’s regular pay rate on holidays.
Do Part-Time Employees Get It?
Holiday pay is often considered a benefit for full-time employees and not available to part-time staff members who don’t work on a regular schedule. However, some non-exempt, part-time employees who work on holidays may receive overtime pay at a higher rate than their normal wage. Employers can decide their own part-time holiday pay policies based on an employee’s regularly scheduled hours and frequency of work.
Is Holiday Pay Mandatory?
No, holiday pay is not mandatory, but it is common practice in the U.S. and a valuable incentive for your employees. For example, it’s a good idea to factor holiday pay into what a nanny costs or how much to pay a personal assistant for a salary or hourly rate. If you, as an employer, establish a written policy about holiday pay, you are legally obligated to uphold that commitment and pay your domestic staff members accordingly.
Creating a Policy
Providing holiday pay to your employees has many benefits, such as boosting motivation and making employees feel valued as people, not just workers. Yet, it is important to be very specific about calculating holiday pay to prevent future disputes.
In your employment paperwork, clearly define floating holidays and who is eligible to receive holiday pay. Work out the math of how holiday pay is calculated, especially for non-exempt employees. Allow for religious accommodations, consider holiday bonuses as an option, and talk openly with your employees about important holidays in their lives.
Pavillion Agency offers resources to employers and employees about personal service staffing matters and is here to answer your questions about holiday pay. Please contact us via email or by phone at 212-889-6609 to learn more about hiring household staff or finding a job as a domestic employee
