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This page was modified on 5/27/2007
Holiday Pay

Question:  Our HR department has questions about staffing up during holidays.  Typically back office or perhaps drive thru tellers will be working while other staff may have a "holiday."  The usual question is whether the individuals working over the holiday/closed period must receive overtime pay (at time and a half or higher).

Answer:  It depends.  As with most overtime questions, the key is whether the individual has worked more than 40 hours in the designated work week.  If so, then, yes, they are entitled to time and a half.

However, that is not the complete answer.  Also check your employee handbook.  Some employers provide "bonus" pay for employees who work on what is otherwise a holiday.  If that is in your policy, then you have made a "promise" to pay at that rate, even though it is not required under the Fair Labor Standards Act.

 



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If you would like to comment on legislative topics or if you have questions about this information please call our public affairs expert, Mae Beth Palone at (800) 749-4228 or E-mail mbpalone@ibat.org.

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