There is no federal law that requires private employers to pay employees for holidays that are not worked, pay additional for working on holidays or even to give time off for holidays but it has become common practice and most of your employees will expect it.
Christmas, New Years, Thanksgiving, Memorial Day, Independence Day (Fourth of July) and Labor Day are traditional work holidays. Is it your policy to make those paid holidays? Does the Employees class; full time, part time, probationary, play a role in whether they are paid for the holiday or not? For example; full time may be paid but part time hourly might not. Do you have union agreements in place for some employees that regulate the issue?
There are a number of days that have become virtual holidays in many companies such as the day after Thanksgiving (Black Friday), Christmas Eve, and New Years Eve. There are also holidays that are recognized by some governmental agencies such a Washington's Birthday, Columbus Day, Veterans Day and Martin Luther King's birthday. There are also religious holidays that are important to your employees.
Establish what holidays your recognize, if you will pay employees, in not all which employees will be paid and will you give time off if not paid. Start with the six traditional. If you decide they are to be paid holidays then examine the other days. One solution is to make the six traditional holidays paid then have a number of "floating" holidays that you can assign to those virtual holidays depending on how they fall in the week so you can allow the employee to take advantage of long weekends. If they are not to be paid holidays can your employee work if they choose or are they required to take the day off?
If your employee asks for a religious holiday that is not a holiday under your policy will you allow the time off or is the employee required to use a vacation day? Will the time off be paid? If you allow one employee special considerations will other employees want their own special considerations?
Are you in a business where you need employees to work those days; retail, medical, emergency services? Will you pay "holiday pay"; double time, 1½ time?
When I first started my company I gave my employees half days on Christmas and New Years Eve and thought I was being generous. When we were busy and I asked employees to work Black Friday there was grumbling. Even if the policy is absolutely clear to you put in writing so there is no misunderstanding. It is far better for an employee to know they are going to be required to work then be given the day off than expect a holiday and have to break plans because they are needed at work.
Original Content Copyright 2010 Thomas Robinson
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