Your Holiday Pay Questions Answered

by Deborah Z Mark


Does your company require employees to work on holidays?

Do you know what the requirements are for paying employees for holidays?

With Labor Day coming up on Monday, September 7th, you may be wondering.

FLSA Requirements for Holiday Pay

The Fair Labor Standards Act (FLSA) 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 works over 40 hours during that work week, any hours worked over 40 would be considered overtime, payable at 1 1/2 times the employee’s regular hourly rate.

Arizona Holiday Pay Requirements

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

Remember, if employees have direct deposit, and their regular pay date falls on a holiday, they will not have access to their pay until after the holiday. This would put you out of compliance if you wait until the day after the holiday to pay them.

It’s Up to You

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

You do have an employee handbook, right?

You are not required to pay employees holiday or vacation pay if they do not work on those days.

But if you want to attract and keep quality employees (which in turn attracts and keeps quality customers), you might want to consider it.

Need an employee handbook? Call managestaff. We provide a customized employee handbook as part of our service to you.


It’s what we do.

Image: Stuart Miles/