Holiday Pay California

Holiday pay refers to additional compensation provided by an employer for hours worked on recognized holidays. In California, there is no legal requirement for employers to pay a higher rate for holiday work unless the employee has already exceeded 40 hours that week and qualifies for overtime.

While many employers offer paid time off on holidays as part of their company policy, they are not obligated to compensate employees who do not work on those days. However, if holiday pay is outlined in a collective bargaining agreement or an individual employment contract, the employer is legally bound to honor those terms.

Holiday Pay In California

California Employers are not required to provide paid holidays. However, many employers choose to pay for holidays as a gift because it has been proven to increase employee morale [1].

If an employer promises holiday pay through either a collective bargaining agreement or an employee agreement, then they are required to adhere to that contract. A refusal to do so would be a violation of employment law and could result in a wage claim.

Holiday pay is usually paid out at time and a half, but will vary between companies. Keep in mind, weekends are not considered holidays, and should be paid at the standard rate for employees’ time.

Holiday pay benefits are most commonly offered to full-time employees and salaried workers. While part-time employees may occasionally receive holiday pay depending on company policy, contract workers rarely qualify for this benefit.

Some businesses choose to close during specific holidays and still offer paid time off to help employees maintain financial stability and a consistent income. An employer can mandate an employee come to work during a paid holiday if deemed necessary.

Almost all Federal Employees are offered paid holidays. Most federal workers, including both full and part-time, are entitled to double their usual rate on holidays. However, some heads of departments or elected positions are not entitled to holiday pay.

Federal Holidays Include:

• New Year’s Day
• Birthday of Martin Luther King, Jr.
• Inauguration Day
• Washington’s Birthday
• Memorial Day
• Juneteenth National Independence Day
• Independence Day
• Labor Day
• Columbus Day
• Veterans Day
• Thanksgiving Day
• Christmas Day

Other Common Paid Holidays:

• Genocide Remembrance Day
• Christmas Eve
• Cesar Chavez Day
• Day After Thanksgiving (Black Friday)

Religious Holidays

Most employers do not provide pay during religious holidays. However, under the California Labor Code, employers are required to make reasonable accommodations for religious beliefs. Accommodations may include a dress code for religious attire or schedule flexibility to allow employees to attend their religious services. Keep in mind, it is unlawful for an employer to retaliate against their workers for practicing religious beliefs.

Holiday Pay vs Overtime

Holiday Pay in California is different from overtime pay. Overtime pay refers to the larger rate required for work beyond the normal scope or hours, whereas holiday pay refers to an optional premium rate paid out to some workers. Overtime pay is mandatory under California law, whereas extra pay for holidays is not.

What is Overtime?

If an employee works more than eight hours in a day or 40 hours in a workweek, they are entitled to time and a half under California law. For example, an hourly rate of $20 per hour would become $30 per hour for all overtime hours worked.

Double pay is required if an employee works more than 12 hours in a workday or more than eight hours after seven consecutive days of work in a workweek. For example, an hourly rate of $20 would become $40 per hour for all double-time hours worked.

Overtime rules may allow for further provisions based on company policy or a collective bargaining agreement.

Key Differences Between Holiday Pay and Overtime

Overtime is completely separate from holiday pay. It can occur at any point whenever the hour limits are exceeded, not just on a holiday. Additionally, overtime contributes to accruing PTO. However, if a holiday is paid but not worked, it does not count towards accruing overtime or PTO.

It’s not uncommon for an employer to require an employee to work more hours to cover higher demand in the holiday season. If their time extends beyond 40 hours a week or eight hours a day, the worker is entitled to overtime.

Most employers do not allow holiday pay and overtime pay to “stack”, leading to multiple time-and-a-half premiums for the same hours. Typically, an employee only receives holiday pay or overtime pay, but not both.

Learn More about Overtime in California

Do Companies Have To Pay Holiday Pay – FAQ

What Paid Holidays are Mandatory in California? There are no mandatory Holidays in California. However, many employers allow for time off on major holidays such as Christmas Day.

Do you Have to Work the Day Before and After to Get Holiday Pay? Employers are allowed to set requirements for receiving holiday pay in California. The details depend on company policy and can usually be found in the employee handbook.

Do Employers Have to Pay Holiday Pay if you Work? Employers are not required to provide holiday premium pay. Importantly, employees always have a right to their regular pay, including time worked on weekends and holidays.

Do Companies Have to Pay Holiday Pay? Holiday pay varies based on state labor laws. In California and most other states, employers are not required to provide holiday pay. However, if an employer refuses to provide holiday pay that was promised in an employment agreement, they would be in violation of employment law.

Do Part-Time Workers get Holiday Pay? It depends on the employer’s policy. California law does not require private employers to provide holiday pay, whether for full-time or part-time employees. However, some companies extend holiday pay benefits to part-time workers as part of their internal policies. Employees should review their employee handbook or speak with HR to confirm eligibility.

Do Salary Employees get Holiday Pay? Salaried employees often receive holiday pay, but it depends on the employer’s internal policy. If a salaried employee is paid monthly, their holiday pay is typically built into their regular salary. This means they continue to receive their full monthly pay, even when the company observes a paid holiday and the employee does not work that day. If the employee is required to work on a holiday, some employers may offer additional compensation, such as a bonus or premium pay, depending on the company’s policy.

If an employee is salaried but does not receive paid holidays, the employer can deduct pay for holidays not worked under some conditions. If the company closes for a holiday and the employee is ready and willing to work, the employer generally cannot deduct pay for the day. However, if the employee chooses to take time off for personal reasons (not tied to a company closure) and they have no accrued PTO, the employer may deduct a full day’s pay under federal wage rules.

Are Federal Holidays Paid? Federal holidays are not automatically paid days off for all employees. While the federal government provides paid holidays to government workers, private employers are not legally required to offer paid time off for federal holidays. Whether or not an employee receives holiday pay depends on the company’s internal policy, employment contract, or any applicable collective bargaining agreement.

[1] https://www.google.com/url?q=https://hbr.org/2016/07/the-data-driven-case-for-vacation&sa=D&source=docs&ust=1748470809575359&usg=AOvVaw1h2FpYUwNRZpMdLRGrXskR