Corporate Payroll Services

Time Off for Employees?

Are you obligated to give your employees time off on holidays?  The simple answer is “no.”


Premium Pay

You are also under no obligation to pay employees a rate higher than their regular pay for working on holidays unless you are in a state that has premium pay requirements.  Many employers may decide to give employees additional pay because it is an inconvenience for employees to give up time with their family.


Paying Non-exempt Employees vs. Exempt Employees

If you close on a holiday for a partial day or a full day, then you will only pay your non-exempt employees for hours they worked.  If you are going to be closing on the holiday, then you will want to give your employees advance notice.

If you choose to close the business for the holidays, exempt employees cannot have their salary reduced.  If you don’t close and they choose to take a day off, you can reduce their PTO bank or take a deduction from pay.

This post is provided by the HR Pros at HR Support Center.  When you need essential information on human resources issues, from benefits, hiring and management, to culture, technology and regulations, HR Support Center is a resource on which you can rely.