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Monthly Q & A from Affinity HR Group

Monday, August 14, 2017   (0 Comments)
Posted by: Allison Hudson
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Holiday Premium Pay

Question

With Labor Day right around the corner, we have decided to keep the business open on the holiday.  Do I have to pay a premium for employees who are scheduled to work?

Answer

There is no obligation under federal or state law to pay premium pay for holidays. Of course, you are obligated to pay overtime for any hours in excess of 40 hours in the workweek but premium pay is not statutorily required.  Therefore, your decision should largely be guided by your existing holiday pay policy, if one exists. If one doesn’t exist, realize that how you handle this situation may set precedence for future working holidays, so make your decision with that in mind. 


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