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Holiday Pay: What You Need to Know About Your Legal Rights
Definition & Meaning
Holiday pay refers to compensation provided to employees for time off on designated holidays. While the Fair Labor Standards Act (FLSA) does not mandate holiday pay, many employers offer it as part of their benefits package. The specifics of holiday pay are often negotiated between employers and employees or their representatives. In certain cases, federal laws may require holiday pay for workers on government contracts, depending on the applicable wage determinations.
Table of content
Legal Use & context
Holiday pay is primarily relevant in employment law and labor relations. It is often a topic of negotiation in collective bargaining agreements and can be included in employment contracts. Understanding holiday pay is essential for both employers and employees to ensure compliance with labor standards, especially in government contracting scenarios where specific acts may apply.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: An employee works for a private company that offers holiday pay for major holidays like Thanksgiving and Christmas. The employee receives their regular pay rate for these days off.
Example 2: A contractor working on a government project must provide holiday pay as specified in the Davis-Bacon wage determination for certain classifications of workers (hypothetical example).
Relevant laws & statutes
The following laws may affect holiday pay:
Fair Labor Standards Act (FLSA): Does not require holiday pay but regulates wages and hours.
McNamara O'Hara Service Contract Act (SCA): Requires holiday pay for certain government contracts.
Davis-Bacon Act: May require holiday pay based on wage determinations for specific worker classifications.
State-by-state differences
State
Holiday Pay Requirement
California
Employers are not required to provide holiday pay, but many do as part of benefits.
New York
Similar to California, holiday pay is not mandated but often included in contracts.
Texas
No state law requires holiday pay; it is determined by employer policy.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Differences
Vacation Pay
Compensation for time off taken for vacation.
Holiday pay is for specific holidays, while vacation pay is for personal time off.
Overtime Pay
Additional pay for hours worked beyond the standard workweek.
Overtime pay applies to hours worked, while holiday pay applies to designated days off.
Common misunderstandings
What to do if this term applies to you
If you are unsure about holiday pay policies at your workplace, review your employment contract or speak with your HR department. If you are an employer, consider drafting clear policies regarding holiday pay in your employee handbook. Users can explore US Legal Forms for templates that can help in creating or reviewing employment agreements.
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