Q: Are employers required to provide holiday pay to part-time employees?
A: It depends. Employers aren’t obligated to pay any hourly non-exempt employees for holidays they do not work; however, some employers voluntarily do so. Often times, companies will oﬀer paid holidays to only full-time employees but some also have paid holidays for regular part-time employees as an added benefit. Employers should have a written holiday pay policy no matter what the policy is. This way it is clear if there are any restrictions on when workers are eligible for such pay. For example, a company policy may require the employee to work the day before and the day after the holiday in order to receive the holiday pay or an employee may not be eligible until they have worked for the company for a certain number of days.
The majority of part-time employees are classified as hourly non-exempt but it’s important to remember that there are other pay classifications for part-time employees which may require that an employer pays for a holiday that occurs during the workweek. Part-time exempt workers fall into this category. Just like full-time exempt employees, you cannot dock part-time exempt employees when the oﬃce is closed for a holiday. Therefore, it is important to review employees’ eligibility for holiday pay when the holiday falls during the workweek.
Are you an ESC client? Contact your HR business partner if you would like assistance with developing or updating your holiday pay policy.