With the holidays about to be in full swing and the end of the year near, visions of time-off requests, bonuses, and parties are likely dancing in employers’ heads. Getting any of those things wrong is a sure way to spoil the holidays, but a little planning and care will keep the work on track and the season merry.
Time-Off Trouble
As the song says, the holiday season can be the most wonderful time of the year, but it can also be the busiest time at work. Handling the time-off calendar is an unenviable task, as resentment and tempers can flare when too many people want to schedule the same days off. Use-it-or-lose-it time-off policies also complicate the task because they make people especially eager to schedule time off before the year ends.
Managing the calendar can be a bit easier if ground rules are set in advance. HR and payroll company ADP has some suggestions:
- Set a deadline for submitting holiday time-off requests to provide time to resolve conflicts.
- Set a limit on the amount of time off that can be taken at once.
- If work demands are high during the holiday season, designate days when time-off requests are off limits.
- Provide incentives for employees to take time off at other times of the year or to work during peak vacation times.
Religious accommodation is another issue when considering time-off requests during the religious holiday season. Title VII of the Civil Rights Act of 1964 requires covered employers to accommodate their employees’ sincerely held religious beliefs and practices unless doing so would present an undue hardship for the employer.
The Equal Employment Opportunity Commission’s guidance says that accommodating an employee’s religious beliefs may mean “allowing flexible arrival and departure times, floating or optional holidays, flexible work breaks, use of lunch time in exchange for early departure, staggered work hours, and other means to enable an employee to make up time lost due to the observance of religious practices.”
Pay Perils
Many employees will happily work a holiday if it means earning extra pay. No federal law requires such payment, but state or local laws may require a premium, so it’s important for employers to understand their legal obligations. Of course, if nonexempt employees (those who qualify for minimum wage and overtime pay under the federal Fair Labor Standards Act (FLSA)) work over 40 hours in a workweek, the law requires they be paid time and a half for the overtime.
Employers also need to remember that even if they’re closed on a holiday, exempt employees (those who meet the salary and duties tests under the FLSA) will still be entitled to their full week’s pay as long as they worked at least part of the week.
Many employers will offer an end-of-year/holiday bonus, but employers must keep federal law in mind. Under the FLSA, certain bonuses, including those deemed discretionary, are excluded from a nonexempt employee’s regular rate of pay and therefore won’t affect how overtime pay is calculated, but other kinds of bonuses may need to be included when overtime pay is calculated.
The U.S. Department of Labor offers Fact Sheet #56C explaining how bonuses can affect the regular rate of pay calculation for nonexempt employees, and Fact Sheet #17U explains how bonuses are handled for exempt employees.
Employees also need to understand holiday bonuses are taxable.
Fun and Legally Sound Parties
Everyone has heard stories of holiday parties gone bad, so party planners need to be ready to head off problems.
For example, if alcohol is going to be served, precautions are called for. A party can be made safer by hiring professional bartenders who know how to spot and diplomatically cut off people who’ve had enough.
Distributing drink tickets to limit consumption is another option, and offering free rides home for people who have overindulged is a good idea.
Sexual harassment is another holiday party hazard. Employers may want to issue reminders about suitable dress and behavior ahead of party day.
Also, employers may want to remind employees—and especially managers—that the party is optional, as some managers often signal that failing to schmooze at the annual party can prevent employees from gaining advancement.
Tammy Binford is a contributing editor.