Paid Holidays

What is a “paid holiday”? 

A paid holiday is a national, state, or religious holiday that employers can decide to give employees. Remember that there is no federal law or Fair Labor Standards Act (FLSA) guideline that legally requires employers to give paid holidays. This is because the FLSA only regulates minimum wage and overtime pay. Given this, it is fundamentally at the discretion of the employer to give paid holidays or not. 

However, state and local laws may have different guidelines regarding paid holidays. It is best to check with the Department of Labor and state requirements. 

How can paid holidays benefit employees? 

Although employers do not need to give paid time off or vacation time, these benefits are commonly identified as important by employees. In today’s competitive and fast-paced business world, employees value work-life balance more and more. Research suggests that job seekers and employees may even put more weight on benefits than hourly wages or salary. Because of this, they look for benefits such as paid holidays to gauge a company’s benefits package. Time off from work can improve the physical wellness of employees and prevent burnout. 

Employers can benefit from offering paid holidays by their positive effects on the employees. It’s no secret that happy employees work better than those who are drained and exhausted. As mentioned above, paid time off, in general, can prevent burnout, promote work-life balance, and improve the physical wellness of employees. As a result, this can lead to increased productivity, employee engagement, and employee satisfaction. Finally, a company that offers paid holidays to employees is a good way of showing employees that you care for their well-being. It promotes a positive employer brand that can help attract and retain top talent. 

How do paid holidays affect the hourly pay or salary of employees? 

Because businesses are not required to offer paid holidays, this does not necessarily impact whether employees are hourly employees or salaried. If the company decides to offer paid holidays, they must determine the exact details and guidelines in a written policy. For hourly employees who are eligible for overtime pay, paid holidays do not necessarily equate with overtime pay. The employer must decide if they will offer holiday pay for workers who will render work and services during a paid holiday. Again, all of these parameters should be written in a policy. 

What are the most common examples of paid holidays in the United States? 

Here is a list of the most common paid holidays:

· Memorial Day

· Independence Day

· Labor Day

· Thanksgiving Day

· Christmas Day

· New Year’s Day

Aside from these common examples, employers are also free to choose if they want to recognize federal holidays as paid holidays.