HR Management & Compliance

Holiday Pay: A Sample Policy

Neither California nor federal
law requires employers to observe legal holidays, although permitting employees
to take off at least some of the most widely recognized holidays is common
practice and good for workplace morale. We’ve put together this sample holiday
pay policy that you can tailor to your organization’s needs. Keep in mind that
it’s up to you to choose which holidays to offer, and you don’t have to provide
paid time off for them.


Sample Holiday
Pay Policy

The company observes and
allows time off with pay for eligible employees on each of the following
holidays [note: many employers also include December 24, the day after
Thanksgiving, and a floating holiday]:


• New Year’s Day

• Washington’s Birthday

• Martin Luther King
Jr.’s Birthday

• Memorial Day

• Independence Day

• Labor Day

• Thanksgiving Day

• December 25

Eligibility: Full-time employees are
eligible for holiday pay. Nonexempt employees become eligible after they have
been with the company for three months. Exempt employees are eligible
immediately on joining the company. Part-time and temporary employees are not
eligible for holiday pay. Holiday pay
eligibility shall further depend on the employee’s working eight regular hours
on the workday preceding and eight regular hours on the workday following the
holiday. The only exceptions to this rule shall be as approved by the
supervisor if the employee is ill and has submitted a doctor’s statement, if
the holiday falls during the employee’s approved vacation period, or if the
employee leaves work on the workday before or after the holiday because of an
industrial accident.


Weekends: If a holiday falls on a
Sunday, it will be observed on the following Monday. If the holiday falls on a
Saturday, the company will select either the following Monday or the preceding
Friday as a substitute holiday.


Vacations: If a holiday falls
within an eligible employee’s approved vacation period, the employee shall be entitled
to an additional day off at the beginning or end of the vacation period, or, at
the company’s discretion, to pay instead of that day [or: A holiday that
falls within an eligible employee’s approved vacation period will not count as
a vacation day taken.]


Work on holidays: At times, business needs
may require employees to work on a holiday, and the company reserves the right
to require an employee to work on a holiday. If this occurs, the company will provide
such employees with pay instead of the time off (as described below). In
addition, when an exempt employee is required to work on a holiday, his or her
department head may instead authorize time off with pay, at a later date, equal
to the amount of time worked on the holiday. Such time off shall be at the
mutual convenience of the company and the employee.


Pay rates: An eligible nonexempt
employee who is required to work on a holiday shall be paid 1
1/2 times their regular
hourly rate for all hours worked on the holiday (up to 12) in addition to 8 hours
of straight-time pay for the holiday. The employee will be paid double time for
hours worked in excess of 12 on a holiday, in addition to the 8 hours of
straight time pay for the holiday.


Religious accommodation:
who need time off for religious observances should speak with their supervisor
or the human resources department. The company will reasonably accommodate an
employee’s sincerely held religious belief.


The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.

Leave a Reply

Your email address will not be published.