Federal government employees get 11 paid holidays each year and Inauguration Day every four years. Private sector employers are generally not required to close for holidays or to pay overtime or holiday pay. Some states have laws that regulate employees working on holidays and holiday pay. When it comes to holidays, many employers in California and across the country tend to give employees either the day off with pay (“paid holiday”), or give extra pay for hours worked similar to overtime pay (“holiday pay”). The most common paid holidays are: New Year’s Day. Memorial Day. If an eligible employee works on a statutory holiday, they must receive payment for the hours that they worked at the rate of time and a half, plus an average day’s pay. As an alternative, the employer may transfer the holiday to another day giving the employee a day off with pay. When it comes to time off, employers must consider what holidays to observe and how to handle various pay issues. To help you plan your 2023 holiday calendar, here are answers to frequently asked questions about holidays and holiday pay. Holiday Pay. The Fair Labor Standards Act (FLSA) does not require payment for time not worked, such as vacations or holidays (federal or otherwise). These benefits are generally a matter of agreement between an employer and an employee (or the employee's representative). Most employers pay 1.5 times the regular rate. However, some employers provide double pay. Multiply the regular wage by the premium pay rate. Then, multiply this sum by the number of hours worked. For example, if an employee earns $40 per hour and works six hours on a holiday for double pay, the calculation looks like this: Employees who are required to work on a holiday are entitled to a minimum of 2 hours of holiday premium pay. Holiday premium pay, commonly called "double time", is pay for non-overtime hours of work that you are required to work on a holiday. Employees who work on Remembrance Day are paid for at least half of a normal work day at 1 ½ times their regular wages. For example, employees who work two hours on Remembrance Day, but normally work an eight-hour day, are paid four hours at 1 ½ times their regular wage. While it’s not legally required, many employers do offer holiday pay (such as double time or time and a half) to their employees to reward and incentivize them for working on those days. Keep in mind that while holiday pay isn’t mandatory, standard rules about overtime pay will still apply on those days—since they’re viewed as a normal ...
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