The moment the holiday is around the corner, there is probably confusion between employees and employers in California. The reason is that some employers offer their employees holiday pay while others do not. This same confusion is expressed about whether or not vacation time and personal days are required, and if an employee is required to work on a specific day. Before we proceed any further on the subject matter, we must understand what holiday means in the first place.

WHAT IS A HOLIDAY?

The term “holiday” can mean different things to different people at various locations. It could mean vacation time or legal holidays on the calendar. But in this context, we would define holiday as any of the holidays listed in the California Government Code. These may include the following in no particular order:

• Christmas Day
• New Year’s Day
• Birthday remembrance of Martin Luther King, Jr
• Memorial Day
• Washington’s Birthday
• Independence Day (4th of July)
• Columbus Day
• Labor Day
• Thanksgiving Day
• Veterans Day

While most employers in California observe and pay for at least three of these holidays every year, the tradition has left several businesses in the dark as to whether holiday pay is just a preference or a requirement.

HOLIDAY PAY

Holiday pay is usually a bonus or benefit offered by employers to recruit and retain the best workers. In this competitive business environment, employers that offer the most generous holiday pay package will mostly win the talent war.

CALIFORNIA LABOR LAW HOLIDAY PAY

On different occasions, California’s legislature has proposed bills that would require individual businesses to pay their employees for working on holidays. However, none of these bills has become law. Presently, the California labor law does not require employers to provide its employees with holiday pay when they are not working or that an employee is given the day off for any particular holiday.

Besides, employers are not even required to close their business on any holiday. If a business does, the employer is not mandated to pay its employees for their lost hours. However, if the workplace is opened, employers are not required to compensate those who work on holiday at a higher rate or premium pay other than the wages they usually receive. This also applies to night shifts and weekends (Saturday and Sundays).

Generally, an employer controls how to account for holidays. Hours worked on holidays are treated just like every other day of the week. But an employer may decide to compensate employees with extra pay for the work done during the holidays. It is, therefore, important for an employer to communicate their holiday policies clearly in their employee handbook.

What Should Be Included In The Holiday Policy?

A holiday policy may include, but not restricted to:

• The days you approved as holidays
• The list of specific days approved as paid holidays
• Employee’s eligibility requirements for a holiday, like if the worker must work a day prior to and/or following the holiday to receive holiday pay, or whether they get holiday pay whilst on an unpaid absence leave
• A statement indicating that holidays do not accumulate and are not paid out when the employment contract is terminated
• A statement indicating that workers that are not in employment at the time of the holiday do not receive holiday pay

Any business that offers holiday pays should also provide detailed guidance in its policy regarding how nonexempt workers will get holiday pay provided they work on a paid holiday. If an employer forces a policy requiring workers to work the day prior to and/or following the holiday to receive holiday pay, the employer must not deny their employees from receiving holiday pay in cases where the employee was absent for a cause protected by the California labor.

What about Fixed Holidays: Any holiday pay?

Fixed holidays, like July 4, Thanksgiving Day and New Year’s day, are not regarded as holidays and do not need to be paid separately. However, floating holidays or personal days that are not attached to any specific day can be treated as vacation, subject to the same rule.

Guidelines for Nonexempt employee

Even though businesses are not required to pay employees during holidays, shutting down the workplace can still result in employers paying workers for the day the workplace is closed, regardless of whether or not the employer offers holiday pays. This mostly pertains to nonexempt works. Businesses are mandated to pay nonexempt workers only for hours they actually work. In a situation where an employer did not offer paid holidays and shut down their worksite for a holiday, and a nonexempt worker does not work on that day, then the employer need not pay the nonexempt worker.

Guidelines for Exempt employees about holiday pay

In a situation where an employer closes down business for the holiday, but an exempt employee is available to work during the holiday, the employer must pay the exempt employee their full salary for the work performed during the workweek without deduction for the holiday. In most situations, a designated “holiday” does not affect exempt employees. Furthermore, exempt employees must be paid if they are ready and able to work, but no work is available, such as on a holiday when the company closes down.

Vacations and Personal Days

Except an employer is required to schedule a day off in every seven days for an employee, there is no legal requirement to allow vacation or personal days. This implies that businesses do not need to allow employees on those days, let alone pay for them. Furthermore, vacation policies are not allowed in California, but an employer can place a limit on vacation buildup. The California Division of Labor Standards Enforcement (DLSE) has given some guidance on how the cap should be formulated. While the DLSE earlier declared a restriction on accrual to be at least 1.75 times the yearly accrual rate, it has since backed off this rule. Instead, the DLSE simply states that the limit must be “reasonable.” Whether the employee is laid off or resigned, the California labor laws on holiday pay require that the employer must pay an employee’s accrued vacation. If the employer fails to pay the employee within the timeframe, he should be ready to face the penalties.

Religious Holidays

If an employee requests for time off because their religion does not allow working on a particular day, then the employer cannot enforce such an employee to work. This is subject to if reasonable provisions are made, like getting the employee to swap with another employee or if the work can be completed another time. To accommodate workers, many businesses in California provide a floating holiday besides the usually scheduled holidays. This is to allow workers to take time off for their religious rites that are not covered in the company’s holiday policies. The California labor law does not permit employers to penalize their employees provided the employee has notified the employer in advance, and the absence does not create unnecessary problems or hardship for their business. Employers require that any such floating holiday must be used in the same year they are approved and should not be accrued into the following year.

What about sick pay?

In California, sick pay is not considered holiday time and is not subjected to California labor laws on holiday pay. If a company has a separate sick leave policy, sick pays should not be paid out when an employee resigned or is fired from the company. If an employee calls out sick, California labor law protects the worker and prevents the employer from penalizing or otherwise denying the leave. If the employee has accumulated paid sick days and is using them because they or an eligible family member is ill, then an employer cannot act against the employee in the form of suspension, employment termination or any other manner of discrimination.

What if the payday coincides with a holiday?

If a business’s payday day falls on the day employer is closed for a particular holiday listed in the California Government Code. The business can make a payment on the next business day. Of course, paying the day prior to the holiday is also acceptable.

Why Do Some Employees Get Paid

California state does not create any state law that makes holiday pay compulsory. However, individual businesses can decide to offer vacation pay, paid personal days and holiday pay, among others. Most employees do this because they found it to make their employees happier, which boosts the quality of employees and their works.

Can An Employer Attach Conditions To Employee Receiving Holiday Pay?

Absolutely! An employer may demand that workers work on the day prior to the holiday and/or following the holiday to be eligible for the holiday pay. They may also require that a worker must have worked for a particular period to be entitled to holiday pay. Furthermore, businesses in California may decide on the amount of holiday pay due to a temporary worker. No matter the condition applied, everything should be in black and white, preferably in the employee handbook.

Variation Within A Company As Regards Receiving Holiday Pay

The employer determines who and when to receive some work benefits, provided the basis for the different treatment is not prejudiced. This variation can happen based on the employee’s bargaining power. For businesses that offer holiday pay and other paid day off, compensations are usually given to full-time workers. Of course, part-time workers may be entitled to some places; it is often not the case. It is on rare occasions that temporary workers will receive any benefits, not to talk of time off with pay.

Is Holiday pay negotiable?

Holiday pay or paid day off can be considered negotiable in some cases. As an entry-level employee or someone who is paid hourly, particularly in workplaces with many workers, there are chances the holiday pay policy will remain sacrosanct. But if you are a salaried employee, you may be able to bargain holiday pays as part of your contract before you sign the employment contract. The only condition is it must be agreed upon (with backing documents) before signing. You will lose your bargaining power the moment the employment contract is signed, and you won’t have another unless there is time to renegotiate.

How Do I Know the amount that I Will Receive

When you are offered an employment position, you must ask about every benefit that is attached to the post. Since you would not accept a job position without knowing the about you will be paid, make sure you inquire about what their policy is regarding holidays, holiday pay and other time off. Be free to ask and let the answers be part of what you are going to consider before accepting a job position. Note that once you signed the employment contract paperwork, there is no way you can request a policy change.

Summary

Whether or not to pay for a holiday depends on the employer’s policies. It may appear like an unjust system that some workers get holiday pays while others do not. You need to understand that you have the power to decide whether to accept any job position or reject the offer if you are not pleased with their terms. If a California employer offers benefits or compensations, like holiday pay and even paid personal days, note that they are only doing that for personal reasons. And if a business is not offering any of these benefits, it is ideally within their legal rights, and no one can hold them accountable. Therefore, do not believe that because you get holiday pay at one workplace that you will also receive at your next place of employment. The most crucial factor here is that you ask and be ready to either accept their terms or look somewhere else. Ultimately, the choice is in your hands as an employee.

Conclusion

California labor laws handle wage issues very seriously. If it seems you have been unfairly denied holiday pay or perhaps you have other wage issues, you may need to consult an attorney. For a free legal evaluation, do not hesitate to contact United Employees Law Group.

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