Understanding Holiday Pay Rules: Compliance and Legal Obligations

November 27, 2024

Navigating the complexities of holiday pay can be a challenging task for employers, particularly when considering compliance with state and federal laws. One commonly asked question is whether requiring employees to work the day before and the day after a holiday to receive holiday pay is permissible. Contrary to what some might think, neither federal law nor Idaho state law mandates employers to provide holiday pay at all. This lack of a statutory requirement allows employers considerable flexibility in deciding their holiday pay policies.

Essentially, employers can impose conditions such as requiring work on the days surrounding a holiday, unless restricted by an employment contract or a collective bargaining agreement. However, while these conditions are generally permissible, it’s important for employers to consider any legal obligations that may arise from specific agreements or broader legal protections. For example, the Family and Medical Leave Act (FMLA) poses exceptions that employers must heed. Holiday pay policies usually offer exceptions for employees who use vacation days around a holiday, but not generally for those calling in sick, unless their situation is covered by the FMLA.

The importance of compatibility with the FMLA is stressed by legal experts such as Jason R. Mau, who advises that companies ensure employees eligible for vacation must be allowed to use it. This means they should still receive their holiday pay even if they are on protected leave under the FMLA. While employers have flexibility in setting holiday pay policies, they must remain vigilant about potential legal obligations. By carefully considering these factors, companies can develop clear and compliant holiday pay policies that respect both their own operational needs and the rights of their employees.

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