Which holidays are employers required to pay




















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A study of paid time off by the WorldatWork Association found that nine paid holidays was the norm in the United States. These are the most common paid holidays in a private sector organization's paid holiday schedule. They will vary by the company based on the needs of the employees and the needs of the business. For example, even companies that offer these paid holidays may have jobs that must work on the holidays.

This is a necessity, or in some cases, a choice for profitability, in industries that serve customers 24 hours a day, 7 days a week, and days a year. These jobs include manufacturing when capacity and customer demand requires more hours; direct patient healthcare services including nursing, emergency room services, hospital food services, custodial services, and more; open retail establishments; restaurants; gas stations; drug stores; convenience stores; some technical and customer support positions; and grocery stores.

Other services require employees on-call such as physician's offices, telephone services, electricity providing utilities, snow removal workers, and so forth. These people may have to depend on a fair on-call schedule to get to plan celebrations on otherwise paid holidays. The majority of employees who work jobs that must be staffed on holidays are hourly paid positions. As a reward for working the holiday and to make employees feel better about working on it , these employees often receive additional compensation in the form of time and a half or double time pay.

Additionally, some organizations add several of these days to their paid holiday schedule. This depends on regional differences and the input of employee feedback over time. Another commonly paid holiday option is a floating holiday or two in which the employee determines the day to take off as part of his or her paid holiday schedule.

These are offered so that, for example, employees with various religious and cultural celebrations and memorials and employees who wish to extend paid holiday weekends, have more options. Knowing what your employees want is the key to creating a successful employee paid holiday schedule.

Federal law 5 U. Paid holidays are a normal part of a compensation and benefits package offered by employers to attract and retain employees. These holidays are usually listed in an employment offer letter and appear in an employee handbook.

The most common paid holidays in the U. The federal government recognizes the above holidays as well as the following:. Other organizations may also add the following holidays to their schedule:. Sometimes, a company may offer a floating paid holiday that employees can take as needed.

Other companies offer paid time off for the employee's birthday or for Election Day. Floating holidays give employees the opportunity to use paid time off to celebrate religious holidays, especially if the holiday isn't commonly a paid holiday. Employees can also use PTO , personal days , or paid vacation days to get paid for religious commemorations and family time off.

Increasingly, competitively paid holidays and other time-off benefits are becoming crucial to an employer's ability to attract the best employees who have skills that are critical for the operation of the business.

Paid holidays may be negotiated by employees who have an employment contract. Senior-level employees with a contract are likely to have come from positions in other organizations where their seniority gave them the maximum paid holidays and vacation time. Senior-level employees are unlikely to settle for less time off when accepting a new position. In fact, if an employer doesn't offer equivalent paid vacation and holiday time, it may be a deal-breaker for the prospect—even if they don't typically use all of the time available.

Employer-paid vacation time can differ between exempt and non-exempt employees. Exempt employees are expected to work whatever hours are necessary to complete a job. They may have more flexibility in their schedule and less supervision, as well. Exempt employees in professional, technical, or managerial positions such as software developers, HR staff, controllers, or marketing staff may expect paid holidays to accompany their employment.

Such employees are unlikely to accept positions in companies that don't offer paid time off for holidays. Nonexempt employees aren't exempt from the provisions of the FLSA. They're typically required to track their time and be paid for overtime work.

They may be less likely to have paid holidays, or they may receive fewer paid holidays than their exempt or salaried colleagues. Contract employees or consultants do not receive paid holidays—and they don't expect them.



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