Holiday Pay Requirements

by Deborah Z Mark


The FLSA (Fair Labor Standards Act) does not require payment for time not worked, such as vacations or holidays (federal or otherwise).

If an hourly, non-exempt employee works on a holiday and surpasses 40 hours during that work week, any hours worked over 40 would be considered overtime, and payable at 1 1/2 times the employee’s regular hourly rate.

If a holiday falls on the scheduled pay day, ARS (Arizona Revised Statute) 23-351 requires employers to pay on or before the scheduled pay day.

Holiday and vacation pay are generally a decision of the individual employer, and should be addressed in the company’s employee handbook.

Need an employee handbook for your company?  Give us a call – managestaff provides customized employee handbooks as part of our service. 


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Image: Stuart Miles/